Chief Executive Bruce Lowthers said on the earnings call that Paysafe is “continuing to sharpen our focus on experience-driven commerce.”
Digital Wallets Expand While SMB Repositions
Digital Wallets revenue increased 13% year over year in the fourth quarter to $220.2 million, or 6% on an organic basis. Active digital wallet users reached 7.8 million at quarter end, up 6% from a year earlier, with transactions per user also rising 6%, per commentary on the earnings call. Adjusted EBITDA for the segment grew 4% to $93.1 million, as a rough measure of cash flow.
Management highlighted the ongoing rollout of Paysafe Wallet, which surpassed 500,000 registered users by October and now operates in 18 countries. The strategy centers on cross-selling wallet functionality to an existing base of nearly 8 million active users, which lowers acquisition costs and deepens engagement.
Merchant Solutions revenue rose 2% organically in the quarter to $222.7 million. Within that, eCommerce expanded 24% in Q4, moderating from first-half growth above 30%, while SMB declined 3%. For the full year, eCommerce grew 27%, led by North American iGaming, which recorded 50% processing revenue growth.
Lowthers told analysts that SMB groundwork in 2025 is beginning to show results. “We see really strength in the direct channel,” he said, citing improved product positioning and new management leadership in the segment.
Paysafe shares were up 15% in early trading on Tuesday.
Forty percent of total bookings in the fourth quarter came from existing clients, reflecting a more coordinated push across wallet and acquiring relationships. Management also reported a 38% increase in enterprise deal count for the year.
Volumes in iGaming during the U.S. football season reached record levels, underscoring steady demand in entertainment-driven categories.
Management described artificial intelligence as embedded in operating infrastructure. Lowthers told analysts that modernization “goes beyond just any single tool like AI” and instead reflects “reengineering processes that enable us to operate at scale in a complex 24/7 payments environment.” He said AI now supports automated onboarding and monitoring, with “auto decisioning on direct applications to around 50%” and false positives reduced “by over 20%.” In technology development, “over 30% of the code generated via AI in 2025” accelerated product releases while maintaining control standards, as the CEO said on the call.
Lowthers said AI “accelerates decision making, enhancing experiences from merchants and consumers and strengthens our position in sectors like gaming, digital entertainment, travel, and eCommerce, where seamless personalized plus building interactions are increasingly the standard.”
Top-Line Results and Margin Discipline
Total fourth-quarter revenue rose 4% to $438.4 million.
Paysafe Chief Financial Officer John Crawford emphasized balance sheet priorities. “We are laser focused on reducing our net leverage ratio in 2026 and expect to be below five times by the end of this year,” he said on the conference call.
Guidance for 2026 calls for revenue between $1.79 billion and $1.83 billion, representing 5% to 8% growth. First-half growth is expected in the mid-single digits, with stronger momentum in the second half.
