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Investing.com - UBS lowered its price target on Paysafe (NYSE:PSFE) to $6.75 from $7.00 while maintaining a Sell rating on the stock. The stock currently trades at $7.46, though InvestingPro analysis suggests the company remains undervalued with a Fair Value of $11.07, placing it among potential opportunities on the most undervalued stocks list. The shares have declined 52% over the past year and 45% in the last six months.
The company’s 2025 volume, gross profit and adjusted EBITDA came in above Street expectations, while total revenue was slightly below Street by approximately 1% due to slower than expected growth in the Merchant segment. According to InvestingPro Tips, analysts predict the company will be profitable this year, with net income expected to grow—a notable shift for a company that wasn’t profitable over the last twelve months. SMB declined 3% year-over-year, partially offset by strength in Digital Wallets.
Merchant Solutions organic constant currency revenue grew approximately 2% year-over-year supported by eCommerce, which rose 24% and 27% year-over-year for the fourth quarter and full year 2025, respectively. North America iGaming processing revenue increased 50% year-over-year for full year 2025, though pressure from SMB remained.
Revenue from the new sales organization rose more than 60% year-over-year to $257 million. Paysafe expanded its enterprise salesforce to approximately 132 during full year 2025, which exited the year at full productivity run-rate.
Classic Wallets showed stronger than expected performance with 6% organic constant currency revenue growth, reflecting strength from new products across Europe and second-half momentum in Latin America. The approximately 12% revenue headwind from attrition was slightly higher than initial full year 2025 communication, with slight improvement in the fourth quarter at approximately 11%.For deeper insights into Paysafe’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, one of 1,400+ available for US equities, which transforms complex Wall Street data into clear, actionable intelligence.
In other recent news, Paysafe Limited reported fourth-quarter adjusted earnings that significantly exceeded analyst expectations, showcasing strong financial performance despite a revenue miss. This development was well-received in the market, as evidenced by the company’s shares moving positively in pre-market trading. Meanwhile, BTIG has lowered its price target for Paysafe from $11.00 to $10.00 but maintained a Buy rating on the shares. The firm anticipates that Paysafe will sustain a low to mid-single digit growth rate, which is expected to gradually reduce leverage and create equity value over time. These developments highlight Paysafe’s ability to deliver strong earnings results while navigating growth challenges. Investors are likely keeping a close watch on the company’s performance and strategic direction in light of these recent updates.
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