Paysafe (PSFE) Stock Forecast & Price Target

Paysafe is supported by a differentiated two-sided payments ecosystem that combines Merchant Solutions and Digital Wallets, creating pricing power and cross-sell potential in specialized, high-risk verticals where regulatory compliance and risk management are barriers to entry. In 2Q26, revenue was $447M and adjusted EBITDA was $103M, while Merchant Solutions grew 6.0% organically to $246M on strong iGaming volumes, first multi-year recurring revenue data licensing deal, and improving mix, with gross margin at 54.5% and EBITDA margin at 20.6%. The balance sheet is still leveraged at 5.3x net debt to TTM EBITDA, but free cash flow of about $44.8M and management’s stated path toward lower leverage by end of FY26, alongside expectations for additional licensing deals and a 4Q growth ramp, support the positive outlook.

Paysafe is facing a deteriorating fundamental profile as adjusted EBITDA margins contracted 150 bps year over year, driven by heavier Digital Wallets investments, distributor commission pressure, and unfavorable product mix. Growth is also weakening materially, with Digital Wallets revenue slowing to 3% reported and 1% organic versus 15.2% and 7% last quarter, while ARPU fell 5% to $26, signaling soft customer monetization and less operating leverage. In addition, restructuring costs rose $18.6M year over year and another $39M cash payment is expected in 2H, while FY26 guidance still depends on a 2H ramp despite reduced adjusted EPS guidance and heightened leverage, macro, and regulatory risks.