Paysafe Limited (NYSE:PSFE) stock rose on Tuesday after the payments firm delivered a strong earnings beat and steady organic growth across key segments.
The rally was likely magnified by elevated short interest, with 37.33% of the public float sold short, signaling substantial bearish positioning that may have fueled a squeeze.
The company reported fourth-quarter adjusted earnings per share of 46 cents, beating the analyst consensus estimate of 36 cents. Quarterly sales of $438.355 million (an increase of 4% year over year) missed the Street view of $441.029 million.
Quarter In Detail
The results included a headwind of $12.9 million related to the disposed direct marketing payments processing business line.
Organic revenue growth for the fourth quarter was 4%, reflecting 2% organic growth from Merchant Solutions and 6% organic growth from Digital Wallets.
The company said organic performance was led by continued double-digit growth from e-commerce, fueled by North America’s iGaming, strong demand for Paysafe’s suite of local payment solutions in Latin America, as well as growth from consumer product initiatives across Europe.
Quarterly gross profit, excluding depreciation and amortization, totaled $244.564 million, higher than $236.605 million a year ago.
Paysafe reported adjusted EBITDA of $102.081 million in the fourth quarter, compared with $103.345 million a year ago.
Fourth-quarter operating cash flow increased 27% to $74.9 million, compared to $58.9 million in the prior year period, mainly driven by inflows from working capital.
As of December 31, 2025, total cash and cash equivalents were $250.2 million.
Outlook
Paysafe forecast fiscal 2026 adjusted EPS of $2.12 to $2.32, compared with the $2.30 analyst estimate.
The company also projected fiscal 2026 sales of $1.79 billion to $1.83 billion, versus the $1.81 billion consensus estimate.
Elevated Short Interest
The company has a short float of 2.76 million shares, representing 37.33% of its publicly traded float, indicating a notably high level of short interest among investors betting against the stock.
PSFE Price Action: Paysafe shares were up 17.31% at $7.28 at the time of publication on Tuesday, according to Benzinga Pro data.
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