Paysafe’s Merchant Solutions adjusted EBITDA increased 28% year-over-year during the second quarter of 2026, while Digital Wallets adjusted EBITDA declined 9%, highlighting diverging profitability trends across its two major businesses as the payments company simultaneously reduced total debt by $106.3 million from year-end.
Merchant Solutions generated $50.6 million of adjusted EBITDA in Q2, up from $39.7 million a year earlier. Digital Wallets generated $74.9 million, down from $82.7 million. At the consolidated level, adjusted EBITDA declined 2% to $102.8 million from approximately $105 million.
Revenue increased across both businesses. Merchant Solutions revenue rose 6% to $246.1 million, while Digital Wallets revenue increased 3% to $206.6 million. Total company revenue increased 4% on both a reported and organic basis to $447.4 million from $428.2 million.
Merchant Solutions benefited from strong iGaming volumes in North America as well as Paysafe’s efforts to commercialize data through licensing agreements. Digital Wallets benefited from continued momentum and active-user growth in Latin America and PaysafeWallet in Europe, which more than offset weakness in markets where Paysafe is not actively marketing and temporary comparison effects in areas including social casino and cryptocurrency trading.
Paysafe reported a Q2 net loss of $58.9 million, or $1.13 per diluted share, compared with a $50.1 million loss, or $0.85 per diluted share, a year earlier. The quarter included an $18.6 million increase in restructuring and other costs, primarily related to legal expenses, while SG&A expenses increased $19.3 million.
Adjusted net income was $23.1 million, compared with $27.6 million in the prior-year period, and adjusted EPS was $0.43 compared with $0.46. Operating cash flow declined to $25.3 million from $39.6 million, while unlevered free cash flow decreased to $44.8 million from $53.9 million.
At the same time, Paysafe continued reducing leverage. The company ended June with $226.2 million in cash, $2.5 billion of total debt and $2.3 billion of net debt. Total debt declined $106.3 million from December 31, 2025, primarily reflecting $79.1 million of net repayments and a $33.9 million reduction associated with EUR/USD exchange-rate movements.
Paysafe subsequently refinanced a significant portion of its capital structure. The transaction includes a new $650.9 million term loan and a €478.4 million term loan, both maturing in June 2030. The company also replaced its revolving credit facility with a new $372.5 million senior secured revolver maturing in August 2031.
Management said the refinancing extends Paysafe’s debt maturity profile, refinances a significant portion of its capital structure and increases its revolving credit capacity. The company intends to balance investments in the business with its continuing goal of reducing leverage.
Paysafe expects full-year 2026 revenue of $1.79 billion to $1.83 billion and adjusted EBITDA of $449 million to $464 million. Adjusted EPS is expected to range from $1.90 to $2.03, with that guidance updated to reflect the refinancing and resulting changes in interest expense.
KEY QUOTES:
“We delivered second quarter results in line with our expectations, with revenue growing 4% in the quarter and 7% in the first half, driven by strong traction across our priority markets and products. Our investments in innovation, marketing, and data commercialization are continuing to generate returns, with our Product Vitality Index remaining on track toward our mid-term target of 20%. We also took important steps to strengthen our financial foundation by refinancing the majority of our capital structure and resolving a legacy legal matter. As we enter the second half of the year, we remain focused on execution, deleveraging, and building on the durable growth opportunities across our global network of consumers and merchants.”
Bruce Lowthers, CEO of Paysafe
“We are very pleased to have completed this transaction, which underscores our prudent approach to managing the balance sheet and liquidity. The refinancing extends our debt maturity profile, refinances a significant portion of our capital structure, and upsizes our revolver, while supporting our priorities to invest in the business and reduce leverage for the benefit of both lenders and shareholders.”
John Crawford, CFO of Paysafe
