Paysafe stock declines as company cuts full-year forecast

Shares of Paysafe Ltd. /zigman2/quotes/221587949/composite PSFE -0.78% were falling 11% in premarket trading Wednesday after the payments company cut its full-year forecast. Paysafe posted a second-quarter net loss of $631.5 million, or 87 cents a share, compared with a loss of $6.6 million, or 4 cents a share, in the year-prior period. The latest quarter's figure included a $676.5 million impairment charge, reflecting "a sustained decline in Paysafe's market capitalization, as well as current market and macroeconomic conditions." On an adjusted basis, Paysafe earned 5 cents a share, down from 9 cents a share a year before, but above the FactSet consensus, which was for 3 cents a share. Revenue dipped to $378.9 million from $384.3 million, while analysts were expecting $375.5 million. For the third quarter, Paysafe expects revenue of $350 million to $365 million, along with adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda) of $90 million to $95 million. Analysts tracked by FactSet were modeling $384 million in revenue and $113 million in adjusted Ebitda. Additionally, Paysafe reduced its full-year outlook. Executives now anticipate $1.47 billion to $1.49 billion in revenue, down from a prior forecast of $1.53 billion to $1.58 billion. They're also calling for $400 million to $415 million in full-year adjusted Ebitda, whereas they had previously modeled $440 million to $460 million. The stock has tumbled 79% over the past 12 months as the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.94% has lost 7%.