Paysafe (PSFE) Stock Forecast & Price Target

Paysafe is benefiting from a stronger Merchant Solutions mix, where 1Q26 revenue rose 6.0% y/y to $246M on 6% organic growth, supported by resilient iGaming volumes, a 65bps take rate, and incremental data licensing deals that expanded adj. EBITDA margin to 20.6%. Digital Wallet also showed encouraging momentum, with 1Q26 revenue up 2.7% reported and 1% organic, active users rising 8% y/y to 7.8M, and a 36.2% adj. EBITDA margin underscoring healthy operating leverage. The outlook is further reinforced by a unique two-sided ecosystem, strong positions in specialized and high-risk verticals, and a clear path to reducing net leverage from 5.2x over the next 12–24 months, which could improve equity value.

Paysafe is facing a weaker fundamental backdrop as 2Q26 adjusted EBITDA margins contracted 150 bps year over year, Digital Wallets growth slowed to 3% reported and 1% organic, and ARPU fell 5% to $26, signaling both pricing and mix pressure. Leverage also worsened, with net debt to TTM EBITDA rising to 5.3x and total debt at $2.509B versus $226M of cash, while the recent debt refinancing adds about $25M in annual interest expense and drove FY26 adjusted EPS guidance down to $1.90–$2.03. The outlook is further clouded by $18.6M of restructuring costs tied to the Farzad litigation, an expected $39M cash payment in 2H, and ongoing dependence on a 2H ramp in a business exposed to high-risk verticals, regulation, and macro weakness.