Paysafe Q4 EPS Beats Estimates, 37% Short Float Sparks 17% Rally
Paysafe delivered adjusted Q4 EPS of $0.46, topping estimates by $0.10 on $438.4 million in revenue, with 4% organic growth led by Digital Wallets and Merchant Solutions. A 37.33% short float likely fueled a 17% stock surge after Paysafe’s operating cash flow rose 27% to $74.9 million.
1. Q4 Financial Results
Paysafe’s fourth-quarter adjusted EPS reached $0.46, $0.10 above consensus, on revenue of $438.355 million versus a $441.029 million estimate. Gross profit excluding D&A rose to $244.564 million from $236.605 million a year ago, while adjusted EBITDA totaled $102.081 million compared with $103.345 million.
2. Organic Growth Drivers
Organic revenue climbed 4% as Merchant Solutions grew 2% and Digital Wallets 6%, despite a $12.9 million headwind from the disposed direct marketing payments business. Growth was led by double-digit e-commerce gains in North America’s iGaming sector, expansion of local payment solutions in Latin America and new consumer initiatives in Europe.
3. Short Interest Impact
Paysafe’s short float stands at 37.33% of its public float, representing 2.76 million shares sold short. This elevated bearish positioning likely amplified a sizable short squeeze, driving a sharp intraday rally of over 17%.
4. Fiscal 2026 Outlook
For fiscal 2026, Paysafe forecasts adjusted EPS of $2.12 to $2.32, bracketing the $2.30 consensus, and projects revenue of $1.79 billion to $1.83 billion against a $1.81 billion estimate.