Paysafe’s iGaming Growth Fails to Offset Q3 Margin Pressure

The company reported group revenue of $439.6 million, up 1% year on year, in its November 12 financial results. Group adjusted EBITDA declined 17% to $105.7 million.

Merchant Solutions Margin Falls Below 20%

Paysafe pointed to North American iGaming and improved sales to small and medium-sized businesses as drivers of Merchant Solutions growth.

The segment’s third-quarter figures were:

• Revenue – $236.7 million, up 2% year on year;
• Adjusted EBITDA – $45.2 million, down 5%;
• Adjusted EBITDA margin – approximately 19.1%, based on 15M’s calculation.

A year earlier, Merchant Solutions generated $231.9 million in revenue and $47.8 million in adjusted EBITDA.

Dividing adjusted EBITDA by segment revenue puts the Q3 2025 margin at 20.6%. On the same basis, Q3 2026 comes to 19.1%, a decline of roughly 1.5 percentage points.

The figures cover the entire Merchant Solutions segment. Paysafe did not disclose a separate revenue figure or margin for iGaming payment processing.

Digital Wallets Grows in Two Regions

Digital Wallets posted 2% organic revenue growth. Paysafe attributed the improvement to business in Latin America and PaysafeWallet in Europe.

Merchant Solutions gained approximately $4.8 million in revenue but lost $2.6 million in adjusted EBITDA year on year. How much North American iGaming contributed to either figure remains undisclosed.