Paysafe Limited ( PSFE ) stock declined in premarket trading on Tuesday after it reported first-quarter 2025 results.

The company reported quarterly adjusted earnings per share of 34 cents, missing the Street view of 41 cents. Quarterly sales stood at $401 million, a decrease of 4% year over year, below the analyst consensus of $404.56 million. Organic revenue rose 5%.

Merchant Solutions’ revenue fell 6% due to business disposal but grew 6% organically. Digital Wallets declined 2% on lower interest revenue and FX, with 3% organic growth.

Adjusted EBITDA for Q1 decreased to $95.2 million from $111.9 million, impacted by business disposal, mix, and lower interest revenue. FX and interest headwinds reduced revenue by $9.3 million and EBITDA by $5.4 million.

Operating cash flow was $52.5 million, down from $58.8 million, and unlevered free cash flow fell to $57.3 million from $69.2 million.

As of March 31, 2025, cash stood at $234.3 million, total debt at $2.4 billion, and net debt at $2.2 billion. Debt rose $21.1 million since December 2024, reflecting FX impacts and repayments.

The company repurchased 612.6 thousand shares for $10 million during the quarter.

“We also secured new partnerships, launched innovative products through our wallet platform, and continued enhancing its functionality to better connect our 18 million consumers with over 1 million retailers—turning everyday transactions into exceptional experiences,” said Bruce Lowthers, CEO of Paysafe ( PSFE ). “With the second quarter underway, we’re operating with a leaner, lower-risk model, a strengthened sales organization, traction with new collaborations, and a robust product pipeline that positions us for accelerated growth in the second half of the year.”

FY25 Outlook: Paysafe ( PSFE ) reaffirmed its adjusted EPS guidance of $2.21–$2.51, below the $2.95 consensus estimate.

The company narrowed its sales outlook to $1.71 billion–$1.73 billion, compared to the $1.83 billion estimate. The company continues to expect adjusted EBITDA in the range of $463 million–$478 million.

Paysafe ( PSFE ) recently announced an expanded partnership with Fiserv to strengthen support for small and mid-sized businesses through enhanced payment solutions.

Key initiatives include integrating Fiserv’s Clover Capital to improve SMB access to financing, leveraging Data-as-a-Service to enhance fraud protection, and launching a digital wallet for faster settlements. The collaboration aims to drive financial efficiency, scalability, and sustainable growth for SMBs.

Price Action: PSFE stock is down 3.08% to $15.75 premarket at last check on Tuesday.