PSFE - Paysafe posts Q2 net loss of almost $632M lowers year revenue adjusted EBITDA guidance

Paysafe ( NYSE: PSFE ) stock drifted down 3.2% in Wednesday morning trading after the fintech reduced its full-year revenue and adjusted EBITDA guidance after turning in a net loss of nearly $632M in the second quarter .

"While strong execution has enabled us to absorb headwinds from foreign exchange rates and a soft European gambling market, at this time we believe it is prudent to adjust our outlook to reflect the current macroeconomic environment," said CEO Bruce Lowthers.

It sees 2022 revenue of $1,470M-1,490M, compared with the consensus of $1.53B and the prior guidance of $1,530M-1,580M.

Adjusted EBITDA for this year is expected to be $400M-415M, down from the previous target of $440M-460M.

During Q2, the company recognized a $676.5M impairment of goodwill due to a sustained decline in its market cap in a backdrop of deteriorating macroeconomic conditions. The non-cash impairment charge won't have any impact on Paysafe's ( PSFE ) compliance with its debt covenants, cash flows or liquidity, it said.

EPS of -$0.87 at the end of June may not be comparable to the consensus of $0.00, and dropped from $0.01 at June 30, 2021.

Revenue of $378.9M exceeded the average analyst estimate of $375.5M but slid from $384.3M in the year-ago period.

US Acquiring revenue for Q2 rose to $187.2M from $164.6M at June 30, 2021. Digital Commerce sales, though, fell 12.7% Y/Y t0 $191.8M.

Q2 adjusted EBITDA was $102.9M compared with $118.8M in Q2 of last year.

Total payment volume increased 3% to $33.4B from a year before.

Earlier, Paysafe GAAP EPS of -$0.87, revenue of $378.9M beats by $3.42M, lower FY guidance .

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