Class Action Filed Against Paysafe Investors Over Securities Fraud
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy PSFE?
Source: Businesswire
- Earnings Miss: Paysafe reported Q3 2025 revenue of $433.8 million, missing consensus estimates by $5.8 million, with a net loss of $87.7 million, a significant increase from the prior year's loss of $12.98 million, indicating deteriorating financial health that could undermine investor confidence.
- Increased Credit Losses: The company disclosed a credit loss expense of $13,220 for the quarter, primarily due to expected chargebacks from a specific merchant, alongside write-offs of $9,924 in the Merchant Solutions segment, highlighting significant issues in managing high-risk clients that may further impact future financial performance.
- Stock Price Plunge: Following the earnings report on November 13, 2025, Paysafe's stock price fell by $2.80, or 27.6%, closing at $7.36 per share on unusually high trading volume, reflecting strong market concerns regarding the company's outlook.
- Class Action Initiated: A class action lawsuit has been filed against Paysafe, alleging that the company failed to disclose critical adverse facts related to high-risk clients during the class period, misleading investors and potentially causing long-term negative impacts on the company's financing and operations.
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Analyst Views on PSFE
Wall Street analysts forecast PSFE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PSFE is 10.22 USD with a low forecast of 7.00 USD and a high forecast of 14.10 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
1 Buy
3 Hold
1 Sell
Hold
Current: 7.110
Low
7.00
Averages
10.22
High
14.10
Current: 7.110
Low
7.00
Averages
10.22
High
14.10
About PSFE
Paysafe Limited is a United Kingdom-based payments platform provider. The Company's integrated payments platform offers the full spectrum of payment solutions ranging from credit and debit card processing to digital wallet, eCash and real-time banking solutions. Its segments include Merchant Solutions and Digital Wallets. Merchant Solutions segment offers a range of solutions, including a full range of PCI-compliant payment acceptance and transaction processing solutions for merchants and integrated service providers including merchant acquiring, transaction processing, and fraud and risk management tools. This segment includes Paysafe and Petroleum Card Services brands. Digital Wallets segment is the combination of its legacy Digital Wallet and eCash solutions and services markets in Europe, United Kingdom, North America and Latin America. It also provides digital commerce solutions for specialized industry verticals, including iGaming, gaming, digital goods and cryptocurrencies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Class Action Filed Against Paysafe Investors Over Securities Fraud
- Earnings Miss: Paysafe reported Q3 2025 revenue of $433.8 million, missing consensus estimates by $5.8 million, with a net loss of $87.7 million, a significant increase from the prior year's loss of $12.98 million, indicating deteriorating financial health that could undermine investor confidence.
- Increased Credit Losses: The company disclosed a credit loss expense of $13,220 for the quarter, primarily due to expected chargebacks from a specific merchant, alongside write-offs of $9,924 in the Merchant Solutions segment, highlighting significant issues in managing high-risk clients that may further impact future financial performance.
- Stock Price Plunge: Following the earnings report on November 13, 2025, Paysafe's stock price fell by $2.80, or 27.6%, closing at $7.36 per share on unusually high trading volume, reflecting strong market concerns regarding the company's outlook.
- Class Action Initiated: A class action lawsuit has been filed against Paysafe, alleging that the company failed to disclose critical adverse facts related to high-risk clients during the class period, misleading investors and potentially causing long-term negative impacts on the company's financing and operations.
See More
Paysafe Faces Shareholder Class Action Lawsuit
- Lawsuit Background: Paysafe Limited (NYSE: PSFE) is facing a shareholder class action lawsuit alleging the issuance of false and misleading statements, failing to disclose material adverse facts regarding its business, operations, and prospects, which could expose the company to significant financial risks.
- Client Risk Exposure: The lawsuit highlights that Paysafe's e-commerce business has significant exposure to a single high-risk client, potentially leading to understated credit loss reserves and write-offs, thereby affecting the company's financial stability.
- Merchant Category Issues: Additionally, Paysafe has undisclosed issues with higher-risk Merchant Category Codes, making its client services difficult to bank, which could further exacerbate the company's financial pressures.
- Financial Guidance Shortfall: As a result of these issues, Paysafe is unlikely to meet its previously issued financial guidance for fiscal year 2025, indicating a negative impact on future revenue growth and overall revenue mix.
See More
Paysafe Accused of Misleading Investors in Class Action
- Lawsuit Announcement: Robbins LLP informs investors of a class action filed against Paysafe Limited (NYSE: PSFE) for securities transactions between March 4, 2025, and November 12, 2025, alleging failure to disclose critical business risks that may have led to investor losses.
- Business Risk Exposure: The complaint indicates that Paysafe's e-commerce operations had significant reliance on a single high-risk client, resulting in understated credit loss reserves and write-offs, which could adversely affect the company's financial health and future growth potential.
- Financial Guidance Missteps: Due to undisclosed issues with higher-risk Merchant Category Codes, Paysafe faced banking difficulties in client services, making it unlikely for the company to meet its previously issued financial guidance for fiscal year 2025, raising further investor concerns.
- Stock Price Volatility: Following the revelation of these issues, Paysafe's stock price plummeted by $2.80, or 27.6%, closing at $7.36 per share on November 13, 2025, reflecting the market's strong reaction to the company's outlook.
See More
Paysafe Faces Class Action Lawsuit Following Poor Q3 Earnings Report
- Earnings Miss: Paysafe reported Q3 2025 revenue of $433.8 million, falling short of consensus estimates by $5.8 million, with a net loss of $87.7 million, a significant increase from the previous year's loss of $12.98 million, indicating deteriorating financial health that may undermine investor confidence.
- Increased Credit Losses: The company disclosed a credit loss expense of $13,220 primarily due to expected chargebacks from a high-risk client, alongside write-offs of $9,924 in the Merchant Solutions segment, highlighting challenges in managing high-risk clients effectively.
- Stock Price Plunge: Following the earnings announcement, Paysafe's stock price dropped by $2.80, or 27.6%, closing at $7.36 per share on unusually high trading volume, reflecting heightened market concerns about the company's future prospects and potential investor sell-off.
- Class Action Lawsuit: Glancy Prongay Wolke & Rotter LLP has filed a class action lawsuit in the Southern District of New York, alleging that the company failed to disclose significant adverse facts related to high-risk clients during the class period, potentially exposing investors to losses, with a 60-day window for investors to apply as lead plaintiffs.
See More
Paysafe to Announce Q4 and Full Year 2025 Financial Results
- Earnings Announcement Schedule: Paysafe Limited will announce its fourth quarter and full year 2025 financial results on March 3, 2026, before market open, highlighting its performance and growth in the global payments platform.
- Live Webcast Meeting: Management will host a live webcast at 8:30 AM ET on the same day to discuss the financial results, enhancing investor understanding and confidence in the company's performance.
- Investor Relations Link: Investors can access the webcast and supplemental information through the investor relations section of the Paysafe website, ensuring transparency and improving engagement with stakeholders.
- Company Background Information: With 29 years of online payment experience and an annual transactional volume of $152 billion in 2024, Paysafe employs approximately 3,000 people and operates in over 12 countries, showcasing its significant influence in the global payments market.
See More
Payment Speed and Brand Trust Crucial for Super Bowl Betting
- Increased Betting Intent: According to Paysafe's survey, 51% of fans in the U.S. and Canada plan to bet online during Super Bowl LX, with 27% expecting to wager more than usual, indicating strong interest in legal betting, particularly in California, Texas, and Alberta.
- Payment Preference: In regulated markets, 43% of bettors prioritize brand trust when selecting online sportsbooks, while 37% emphasize fast payouts, highlighting the critical role of payment experience in customer retention.
- Diverse Payment Methods: The survey reveals that 43% of players prefer debit cards and 42% prefer digital wallets; despite Massachusetts banning credit card use for betting, 33% overall still choose credit cards, indicating that payment method diversity will impact market competition.
- Risk of Customer Loss: If the payment experience falters, 84% of bettors would switch brands, underscoring the necessity for sportsbooks to focus on optimizing payment processes to seize short-term revenue opportunities while ensuring long-term customer loyalty.
See More
Class Action Filed Against Paysafe Investors Over Securities Fraud
- Earnings Miss: Paysafe reported Q3 2025 revenue of $433.8 million, missing consensus estimates by $5.8 million, with a net loss of $87.7 million, a significant increase from the prior year's loss of $12.98 million, indicating deteriorating financial health that could undermine investor confidence.
- Increased Credit Losses: The company disclosed a credit loss expense of $13,220 for the quarter, primarily due to expected chargebacks from a specific merchant, alongside write-offs of $9,924 in the Merchant Solutions segment, highlighting significant issues in managing high-risk clients that may further impact future financial performance.
- Stock Price Plunge: Following the earnings report on November 13, 2025, Paysafe's stock price fell by $2.80, or 27.6%, closing at $7.36 per share on unusually high trading volume, reflecting strong market concerns regarding the company's outlook.
- Class Action Initiated: A class action lawsuit has been filed against Paysafe, alleging that the company failed to disclose critical adverse facts related to high-risk clients during the class period, misleading investors and potentially causing long-term negative impacts on the company's financing and operations.
See More
Paysafe Faces Shareholder Class Action Lawsuit
- Lawsuit Background: Paysafe Limited (NYSE: PSFE) is facing a shareholder class action lawsuit alleging the issuance of false and misleading statements, failing to disclose material adverse facts regarding its business, operations, and prospects, which could expose the company to significant financial risks.
- Client Risk Exposure: The lawsuit highlights that Paysafe's e-commerce business has significant exposure to a single high-risk client, potentially leading to understated credit loss reserves and write-offs, thereby affecting the company's financial stability.
- Merchant Category Issues: Additionally, Paysafe has undisclosed issues with higher-risk Merchant Category Codes, making its client services difficult to bank, which could further exacerbate the company's financial pressures.
- Financial Guidance Shortfall: As a result of these issues, Paysafe is unlikely to meet its previously issued financial guidance for fiscal year 2025, indicating a negative impact on future revenue growth and overall revenue mix.
See More
Paysafe Accused of Misleading Investors in Class Action
- Lawsuit Announcement: Robbins LLP informs investors of a class action filed against Paysafe Limited (NYSE: PSFE) for securities transactions between March 4, 2025, and November 12, 2025, alleging failure to disclose critical business risks that may have led to investor losses.
- Business Risk Exposure: The complaint indicates that Paysafe's e-commerce operations had significant reliance on a single high-risk client, resulting in understated credit loss reserves and write-offs, which could adversely affect the company's financial health and future growth potential.
- Financial Guidance Missteps: Due to undisclosed issues with higher-risk Merchant Category Codes, Paysafe faced banking difficulties in client services, making it unlikely for the company to meet its previously issued financial guidance for fiscal year 2025, raising further investor concerns.
- Stock Price Volatility: Following the revelation of these issues, Paysafe's stock price plummeted by $2.80, or 27.6%, closing at $7.36 per share on November 13, 2025, reflecting the market's strong reaction to the company's outlook.
See More
Paysafe Faces Class Action Lawsuit Following Poor Q3 Earnings Report
- Earnings Miss: Paysafe reported Q3 2025 revenue of $433.8 million, falling short of consensus estimates by $5.8 million, with a net loss of $87.7 million, a significant increase from the previous year's loss of $12.98 million, indicating deteriorating financial health that may undermine investor confidence.
- Increased Credit Losses: The company disclosed a credit loss expense of $13,220 primarily due to expected chargebacks from a high-risk client, alongside write-offs of $9,924 in the Merchant Solutions segment, highlighting challenges in managing high-risk clients effectively.
- Stock Price Plunge: Following the earnings announcement, Paysafe's stock price dropped by $2.80, or 27.6%, closing at $7.36 per share on unusually high trading volume, reflecting heightened market concerns about the company's future prospects and potential investor sell-off.
- Class Action Lawsuit: Glancy Prongay Wolke & Rotter LLP has filed a class action lawsuit in the Southern District of New York, alleging that the company failed to disclose significant adverse facts related to high-risk clients during the class period, potentially exposing investors to losses, with a 60-day window for investors to apply as lead plaintiffs.
See More
Paysafe to Announce Q4 and Full Year 2025 Financial Results
- Earnings Announcement Schedule: Paysafe Limited will announce its fourth quarter and full year 2025 financial results on March 3, 2026, before market open, highlighting its performance and growth in the global payments platform.
- Live Webcast Meeting: Management will host a live webcast at 8:30 AM ET on the same day to discuss the financial results, enhancing investor understanding and confidence in the company's performance.
- Investor Relations Link: Investors can access the webcast and supplemental information through the investor relations section of the Paysafe website, ensuring transparency and improving engagement with stakeholders.
- Company Background Information: With 29 years of online payment experience and an annual transactional volume of $152 billion in 2024, Paysafe employs approximately 3,000 people and operates in over 12 countries, showcasing its significant influence in the global payments market.
See More
Payment Speed and Brand Trust Crucial for Super Bowl Betting
- Increased Betting Intent: According to Paysafe's survey, 51% of fans in the U.S. and Canada plan to bet online during Super Bowl LX, with 27% expecting to wager more than usual, indicating strong interest in legal betting, particularly in California, Texas, and Alberta.
- Payment Preference: In regulated markets, 43% of bettors prioritize brand trust when selecting online sportsbooks, while 37% emphasize fast payouts, highlighting the critical role of payment experience in customer retention.
- Diverse Payment Methods: The survey reveals that 43% of players prefer debit cards and 42% prefer digital wallets; despite Massachusetts banning credit card use for betting, 33% overall still choose credit cards, indicating that payment method diversity will impact market competition.
- Risk of Customer Loss: If the payment experience falters, 84% of bettors would switch brands, underscoring the necessity for sportsbooks to focus on optimizing payment processes to seize short-term revenue opportunities while ensuring long-term customer loyalty.
See More
