Paysafe (PSFE) Stock Up 5% Despite Guidance Cut

  • Paysafe (PSFE) stock is trending today after the company reported second-quarter earnings.
  • Top- and bottom-line data came in better than expected, but Paysafe also slashed full-year financial forecasts.
  • PSFE stock sunk at first this morning due to the unambitious forward guidance.
PSFE stock: Paysafe Card Iphone Display with Keyboard Mouse and Red Pen
Source: Sulastri Sulastri /

Paysafe (NYSE:PSFE) revealed second-quarter results earlier today. At first, shares dropped on the news despite the company displaying both top- and bottom-line beats. PSFE stock declined on the company’s modest guidance. Now, though, shares are up by more than 5%.

For Q2, this fintech payments platform recorded $378.9 million in revenue, topping analysts’ average estimate of $375.5 million. Turning to the bottom line, Paysafe also came out ahead with earnings of 5 cents per share. Wall Street had only expected 3 cents per share for the quarter.

Total payment volume (TPV) of $33.4 billion is another highlight from the Q2 report. That TPV indicates a 3% year-over-year (YOY) increase. TPV is a crucial metric for practically any fintech company, including Paysafe.

Here’s what else PSFE stock investors should know as shares move today.

Why Is PSFE Stock on the Move Today?

Despite the top- and bottom-line beats, shares of PSFE stock actually dropped at first today. That’s because traders are forward-looking. So, a company’s guidance can be just as important as its current reported data points.

Today, Paysafe guided for full-year 2022 revenue in the range of $1.47 billion to $1.49 billion. This represented a decrease from the company’s previous forecast of between $1.53 billion and $1.58 billion in full-year revenue.

That’s not all. Paysafe also predicted full-year adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of between $400 million and $415 million. The company had previously announced a range between $440 million and $460 million.

If a company’s not optimistic about the future, why should investors be? Today’s traders may have asked themselves this question this morning as they sold off PSFE stock. Shares fell as much as 4% in early trading before rebounding into the green. Looking forward, it will be exciting to see how the tug-of-war between buyers and sellers pans out.

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On the date of publication, David Moadel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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