PSFE · Research
Paysafe Trades at 5.97x Adjusted EBITDA and 8.36x GAAP: $122.91M of Add-Backs Include Legal Costs Not yet Paid
Paysafe's trailing adjusted EBITDA of $430.73M is 39.93% above its GAAP EBITDA of $307.81M. Add-backs rose from $36.57M in 2023 to $124.27M, and a $47.73M litigation provision is still on the balance sheet.
- EV / GAAP EBITDA
- 8.36x
- EV / adjusted EBITDA
- 5.97x company definition
- Add-backs in the gap
- $122.91M 39.93% above GAAP EBITDA
- Owner cash
- $74.04M 34.75x EV
| Scorecard | Read | Filing |
|---|---|---|
| Key multiple | 8.36x EV / GAAP EBITDA on $307.81M, against 5.97x on the $430.73M adjusted figure | 6-K, 20-F |
| Thesis | Add-backs grew 3.40 times from 2023 while adjusted EBITDA fell, and the largest piece is legal cost that is accrued but not yet paid | 6-K Notes 13 and 15, Ex. 99.1 |
| What proves it wrong | Add-backs fall toward the FY2024 level of $45.34M while adjusted EBITDA stays above $430.73M | 20-F, 6-K |
| Second test | The Delaware settlement is filed and approved at or below the $47.73M provision | 6-K Note 13 |
| Next catalyst | Third quarter results, expected about Nov 12 before the open (third-party estimate, not yet confirmed by Paysafe) | MarketBeat |
| Debt | $2.51B at carrying value ($10.19M current, $2.50B long-term); principal $2.53B, including a $66.00M settlement line of credit; Jun 30 value, before the Aug 12 refinancing | 6-K Note 7 |
| Cash | $226.16M of cash and equivalents; $983.81M of customer and restricted cash excluded | 6-K balance sheet |
Two EBITDAs
Paysafe runs payments and digital wallets. Q2 revenue was $447.44M, up 4.49% from $428.22M [1][2].
Paysafe presents Adjusted EBITDA. Over the trailing twelve months it is $430.73M.
GAAP EBITDA, which is operating income of $29.42M plus D&A of $278.39M, is $307.81M [1][2][3].
At an EV of $2.57B, that is 5.97x on the adjusted figure and 8.36x on GAAP. The $122.91M between them is what Paysafe adds back.
Restructuring and other costs are $68.01M, or 55.34% of the gap. Stock pay is $53.60M, and impairments, disposals and a small D&A line difference net to $1.30M [1][2][3].
| Period | Adjusted EBITDA, $M | Add-backs, $M | Add-backs, % of adjusted |
|---|---|---|---|
| FY2023 | 458.66 | 36.57 | 8% |
| FY2024 | 452.05 | 45.34 | 10% |
| FY2025 | 428.85 | 82.83 | 19.3% |
| TTM | 430.73 | 124.27 | 28.9% |
Adjusted EBITDA fell 6.09% from $458.66M in 2023 to $430.73M. Add-backs rose from $36.57M to $124.27M, and they are now 28.85% of the adjusted figure.
Legal costs, debt and owner cash
The other costs mainly relate to securities litigation and indemnities. They were $26.23M in the first half against $8.63M a year earlier [1].
The litigation provision is $47.73M at Jun 30, up from $30.20M at Dec 31. Plaintiffs and defendants reported a settlement in principle on Jun 10. The agreement is expected to be filed in the third quarter and needs court approval [1].
Cash has lagged the expense. First-half payments on restructuring and other costs were $12.74M against $33.33M expensed [2].
Owner cash is $74.04M after stock pay of $53.60M and capex of $105.62M, a multiple of 34.75x. Capitalized software is $98.90M of that capex, and stock pay is 22.98% of operating cash flow [1][3].
Debt is $2.51B at carrying value, and net debt is 88.72% of EV. Of $2.53B of principal, $1.47B falls due in 2028 [1].
On Aug 12 Paysafe refinanced part of the term loans into new loans due June 2030. They pay SOFR plus 5.00% and amortize 5% a year, against 1% on the old USD loan. Net debt is 5.30x adjusted EBITDA and 7.42x GAAP EBITDA, and interest expense is $137.60M [1][2]
Peers and what we watch
Paysafe's 8.36x GAAP EBITDA sits between Fiserv at 7.50x and ADP at 17.76x.
- Nov 12 (estimate): restructuring and other costs against $24.49M in Q2, and corporate costs against $22.70M [7][2].
- The Delaware settlement filing and its size against the $47.73M provision [1].
- Second-half adjusted EBITDA: guidance of $449M to $464M implies $246.96M to $261.96M against $228.68M a year earlier, an increase of 7.99% to 14.55% [2][3].
Figures are derived from filed statements. Nothing here is a price view.
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