Paysafe Stock Dives 11% On Preliminary Q4 Earnings, Sale Of Direct Marketing Payment Processing Business Line: Retail’s Still Exuberant

Shares of payments platform Paysafe (PSFE) declined nearly 11% Tuesday after the company announced its preliminary fourth-quarter earnings and said it would sell its direct marketing payment processing business line.

Paysafe expects net income for the fourth quarter (Q4) to be between $31 million and $37 million, compared to a net loss of $12 million a year earlier. The company expects Q4 revenue to rise 1% year-over-year (YoY) to $420 million, below a Wall Street estimate of $437.22 million.

Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) is expected to fall 16% YoY to $103 million. This includes total credit losses of $23 million in Q4, an increase of $16 million compared to the year-ago period.

For the full year, Paysafe expects year-over-year revenue growth to be between 6.5% and 8.0% and adjusted EBITDA margin to be between 27.1% and 27.6%, with adjusted EBITDA growth in the mid-teens. The outlook excludes the results of the disposed business for 2024 and 2025.

Paysafe said it will sell the assets related to its direct marketing payment processing business line, Paysafe Direct, to KORT Payments, a specialized omnichannel payments provider.

KORT Payments, led by Joel Leonoff, founder and former CEO of Paysafe, primarily consists of direct marketing and other card-not-present volume in both complex and traditional industry verticals.

The transaction, which is expected to close in 30 days, includes reseller and merchant contracts, as well as dedicated technology and employees related to the business.

Paysafe said that the consideration for this transaction largely consists of annual earnout payments over the next five years.

Meanwhile, the company’s board of directors has authorized a $70 million increase to its existing share repurchase program.

Despite the stock price decline, retail sentiment on Stocktwits continued to trend in the ‘extremely bullish’ territory (89/100), accompanied by significant retail chatter.

One user highlighted their optimism about the buyback.

Another user said Tuesday’s stock price decline is an overreaction.

Paysafe shares have gained nearly 17% in 2025 and over 42% in the past year.

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