Q1 2026 Paysafe Ltd Earnings Call

May 13, 2026

Operator: Ladies and gentlemen, greetings, and welcome to the Paysafe Q1 2026 Earnings Conference Call. At this time, all participants are in the listen-only mode. A brief question-and-answer session will follow the formal presentation. If anyone requires operator assistance during the conference, please signal the operator by pressing star and 0 on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host for today, Kirsten Nielsen, Head of Investor Relations. Please go ahead.

Speaker #2: A brief question-and-answer session will follow the formal presentation. If anyone requires operator assistance during the conference, please signal the operator by pressing star and zero on your telephone keypad.

Speaker #2: As a reminder, this conference is being recorded. It is now my pleasure to introduce your host for today, Kirsten Nielsen, Head of Investor Relations.

Speaker #2: Please go ahead. Thank you and welcome to Paysafe's Earnings Conference Call for the first quarter of 2026. Joining me today are Bruce Lowthers, Chief Executive Officer, and John Crawford, Chief Financial Officer.

Kirsten Nielsen: Thank you, and welcome to Paysafe's earnings conference call for Q1 2026. Joining me today are Bruce Lowthers, Chief Executive Officer, and Alexia Quadrani, Chief Financial Officer. Before we begin, a reminder that this call will contain forward-looking statements and should be considered in conjunction with cautionary statements contained in our earnings release and the company's most recent SEC reports. These statements reflect management's current assumptions and expectations and are subject to factors that may cause actual results to differ materially from those forward-looking statements. You should not place undue reliance on these statements. Forward-looking statements during this call speak only as of the date of this call, and we undertake no obligation to update them. Today's presentation also contains non-GAAP financial measures.

Speaker #2: Before we begin, a reminder that this call will contain forward-looking statements and should be considered in conjunction with cautionary statements contained in our earnings release and the company's most recent SEC reports.

Speaker #2: These statements reflect management's current assumptions and expectations, and are subject to factors that may cause actual results to differ materially from those forward-looking statements.

Speaker #2: You should not place undue reliance on these statements. Forward-looking statements during this call speak only as of the date of this call, and we undertake no obligation to update them.

Speaker #2: Today's presentation also contains non-GAAP financial measures. You can find additional information about these measures and reconciliations to the most directly comparable GAAP financial measures in today's press release and in the appendix of this presentation, which are available in the Investor Relations section of our website.

Kirsten Nielsen: You can find additional information about these measures and reconciliations to the most directly comparable GAAP financial measures in today's press release and in the appendix of this presentation, which are available in the investor relations section of our website. With that, I'll turn the call over to Bruce.

Speaker #2: With that, I'll turn the call over to Bruce.

Speaker #3: Thank you and good morning, everyone. Thank you for joining us today. We started off 2026 with a strong revenue growth of 10%, adjusted dividend growth of 4%, and 21% growth in adjusted EPS.

Bruce Lowthers: Thank you, good morning, everyone. Thank you for joining us today. We started off 2026 with a strong revenue growth of 10%, adjusted EBITDA growth of 4%, and 21% growth in adjusted EPS. We generated $67 million in unlevered free cash flow in Q1, an increase of 17% while improving our net leverage ratio to 5.2x. Our strong top-line performance included strong sports betting growth during the NFL playoffs, some outperformance of the consumer business where active users reached 7.9 million, an increase of 9% year-over-year. Growth also benefited from favorable FX and another licensing deal to monetize our data. In Q1, our operating expenses grew 6% versus the prior year, excluding bad debt, largely due to FX.

Speaker #3: We generated $67 million in unlevered free cash flow in the first quarter, an increase of 17%, while improving our net leverage ratio to 5.2 times.

Speaker #3: Our strong top-line performance included strong sports betting growth during the NFL playoffs, some outperformance of the consumer business where active users reached $7.9 million, an increase of 9% year over year.

Speaker #3: Growth also benefited from favorable FX and another licensing deal to monetize our data. In Q1, our operating expenses grew 6% versus the prior year, excluding bad debt.

Speaker #3: Largely due to FX. We also increased our investment in data infrastructure to support our AI initiatives and data business, as well as increased our marketing investment to accelerate growth.

Bruce Lowthers: We also increased our investment in data infrastructure to support our AI initiatives and data business, as well as increased our marketing investment to accelerate growth. Additionally, we had increase in credit losses while converting to a new risk management platform. We believe these losses were contained over the course of a few weeks beginning in March and shouldn't have an impact on the business going forward as our models continue to mature. Later, Alexia Quadrani will discuss the revenue cadence and margin considerations for the year. Overall, we're pleased to start off on such a strong note. Our internal model for the year remains intact, supporting our confidence to reaffirm our growth outlook for 2026.

Speaker #3: Additionally, we had increased in credit losses, while converting to a new risk management platform. We believe these losses were contained over the course of a few weeks beginning in March, and shouldn't have an impact on the business going forward as our models continue to mature.

Speaker #3: Later, John will discuss the revenue cadence and margin considerations for the year. But overall, we're pleased to start off on such a strong note.

Speaker #3: Our internal model for the year remains intact, supporting our confidence to reaffirm our growth outlook for 2026. I would also like to add another key indicator for the year for shareholders to focus on is our net leverage ratio.

Bruce Lowthers: I would also like to add another key indicator for the year for shareholders to focus on is our net leverage ratio, which should have a meaningful impact on our valuation over the next 24 months. First, I'll share a few highlights on our strategic progress for the quarter, starting with slide 4. On the consumer side, we had a strong quarter with notable strength from Latin America across gaming and e-commerce. Our PaysafeWallet solution continue to see strong adoption across Europe. We're currently live in 18 countries, with new countries expected to launch later this year. Paysafe continues to advance our digital-first support model as a driver of customer experience and operating efficiency. Our virtual assistants play a key role in delivering intelligent, always-on support.

Speaker #3: Which should have a meaningful impact on our valuation over the next 24 months. First, I'll share a few highlights on our strategic progress for the quarter, starting with slide four.

Speaker #3: On the consumer side, we had a strong quarter with notable strength from Latin America across gaming and e-commerce. Our Paysafe wallet solution continued to see strong adoption across Europe, where we're currently live in 18 countries, with new countries expected to launch later this year.

Speaker #3: Paysafe continues to advance our digital-first support model as a driver of customer experience and operating efficiency, and our virtual systems play a key role in delivering intelligent, always-on support.

Speaker #3: In Q1, nearly 60% of all consumer contacts were resolved through digital assistance channels. Representing a 25% increase compared to Q1 of 2025. Turning to the merchant side, e-commerce growth was 17% in the first quarter, led by iGaming, which grew 28%.

Bruce Lowthers: In Q1, nearly 60% of all consumer contacts were resolved through digital assistance channels, representing a 25% increase compared to Q1 of 2025. Turning to the merchant side, e-commerce growth was 17% in Q1, led by iGaming, which grew 28%. The SMB business grew 2% in Q1, reflecting a modest improvement in attrition. Lastly, we continue to position Paysafe to support new AI-native commerce channels from conversational interfaces to autonomous purchasing. In Q1, we partnered with one of our enterprise clients, Norwegian Air, to demonstrate end-to-end agentic payment capabilities aligned at emerging industry protocols from partners Visa and Mastercard. With one integration, Paysafe can enable merchants to offer AI-powered commerce across ChatGPT, Claude, and Gemini, along with their own portal and apps. The merchant stays in control, plugging in through standard SDK while Paysafe handles the payment infrastructure.

Speaker #3: The SMB business grew 2% in Q1, reflecting a modest improvement in attrition. Lastly, we continue to position Paysafe to support new AI-native commerce channels, from conversational interfaces to autonomous purchasing.

Speaker #3: In Q1, we partnered with one of our enterprise clients, Norwegian Air, to demonstrate end-to-end agentic payment capabilities aligned at emerging industry protocols from partners Visa and Mastercard.

Speaker #3: With one integration, Paysafe can enable merchants to offer AI-powered commerce across ChatGPT, Claude, and Gemini, along with their own portal and apps. The merchant stays in control, plugging in through standard SDK, while Paysafe handles the payment infrastructure.

Speaker #3: Any AI assistant can use it. Built on open standard MCP and Google's AP2 protocol. While still early, we see agentic commerce as a meaningful evolution and how transactions originate, and we are positioning Paysafe to participate at scale.

Bruce Lowthers: Any AI assistant can use it. Built on open standard MCP and Google's AP2 protocol. While still early, we see agentic commerce as a meaningful evolution in how transactions originate, and we are positioning Paysafe to participate at scale. It's also worth highlighting that our revenue per FTE increased 13% from a year ago, normalized for FX. This is a strong testament to the hard work we've already done around productivity, resource allocation, and building foundational intelligent systems. Now, let's double-click on the growth drivers for the quarter, starting with Latin America on Slide 5. Paysafe offers a comprehensive network of alternative and local payment methods in Latin America. As the region's traditional cash culture rapidly evolves, digital wallets and account-to-account payments are becoming increasingly popular. Our refreshed consumer strategy is fueling user engagement, strengthened by targeted marketing and collaborative programs with key merchants.

Speaker #3: It's also worth highlighting that our revenue per FTE increased 13% from a year ago normalized for FX. This is a strong testament to the hard work we've already done around productivity, resource allocation, and building foundational intelligence systems.

Speaker #3: Now, let's double-click on the growth drivers for the quarter. Starting with Latin America on slide five. Paysafe offers a comprehensive network of alternative and local payment methods in Latin America, as the region's traditional cash culture rapidly evolves digital wallets and account-to-account payments are becoming increasingly popular.

Speaker #3: Our refresh consumer strategy is fueling user engagement, strengthened by targeted marketing and collaborative programs with key merchants. Our product strategy also continues to evolve, with the unique needs of local consumers, with ongoing enhancements to our product lineup, including pago efectivo wallet, which launched last year, bringing together our trusted local brand and Paysafe's wallet platform to deliver a streamlined user-friendly experience.

Bruce Lowthers: Our product strategy also continues to evolve with the unique needs of local consumers with ongoing enhancements to our product lineup, including PagoEfectivo wallet, which launched last year, bringing together our trusted local brand and Paysafe's wallet platform to deliver a streamlined, user-friendly experience. Lastly, our enterprise sales initiatives have been highly successful in driving strong cross-selling in the region. Our typical consumer in Latin America enjoys online gambling, video gaming, and esports. They need fast, secure, and affordable cash to digital solutions, along with quick access to their winnings. We also serve everyday consumers involved in e-commerce, from paying bills to enjoying entertainment services, many of whom prefer cash or non-bank payment options. Additionally, a large portion of our customers regularly send and receive remittances and engage in peer-to-peer transactions.

Speaker #3: Lastly, our enterprise sales initiatives have been highly successful in driving strong cross-selling in the region. Our typical consumer in Latin America enjoys online gambling, video gaming, and esports.

Speaker #3: They need fast, secure, and affordable cash-to-digital solutions, along with quick access to their winnings. We also serve everyday consumers involved in e-commerce, from paying bills to enjoying entertainment services, many of whom prefer cash or non-bank payment options.

Speaker #3: Additionally, a large portion of our customers regularly send and receive remittances and engage in peer-to-peer transactions. While Q1 benefited from a favorable comparison to the previous year, we anticipate strong double-digit growth throughout 2026 as we continue to build momentum with our product innovations and go-to-market strategies.

Bruce Lowthers: While Q1 benefited from a favorable comparison to the previous year, we anticipate strong double-digit growth throughout 2026 as we continue to build momentum with our product innovations and go-to-market strategies. Moving to Slide 6. Paysafe has a rich 30-year history built through acquisitions, but our story as a unified brand truly commenced in early 2024. Over the past 2 years, we have executed a multidimensional transformation, clarifying who we are and the value we deliver to our customers. This was a deliberate shift from a fragmented, siloed approach to a focused, intentional model, aligning our brand, product, and go-to-market around a cohesive narrative. Today, the alignment of our marketing and product strategy is delivering measurable commercial outcomes, particularly in our growth markets. In regions where we are making targeted investments, we are seeing strong performance across consumers, campaigns, and countries.

Speaker #3: Moving to slide six. Paysafe has a rich 30-year history built through acquisitions, but our story as a unified brand truly commenced in early 2024.

Speaker #3: Over the past two years, we have executed a multi-dimensional transformation, clarifying who we are and the value we deliver to our customers. This was a deliberate shift from a fragmented, siloed approach to a focused, intentional model, aligning our brand, product, and go-to-market around a cohesive narrative.

Speaker #3: Today, the alignment of our marketing and product strategy is delivering measurable commercial outcomes, particularly in our growth markets. In regions where we are making targeted investments, we are seeing strong performance across consumers, campaigns, and countries.

Speaker #3: We are building a repeatable, scalable model that positions us to accelerate growth even further across our priority markets. We are seeing this in Latin America, where active users reach 3.3 million in Q1.

Bruce Lowthers: We're building a repeatable, scalable model that positions us to accelerate growth even further across our priority markets. We are seeing this in Latin America, where active users reached 3.3 million in Q1, the highest level to date. This combination of local relevance, clear positioning, and targeted consumer activation is driving engagement reinforced through co-marketing programs with merchants. We're seeing it with our core wallet and cash solutions in high-potential regions such as Spain and France, where our brand and product and customer position align most strongly. That same approach extends to PaysafeWallet, which has had its strongest month on record in March. We believe this momentum represents the early stages of a much larger growth opportunity across the experience economy.

Speaker #3: The highest level to date. This combination of local relevance, clear positioning, and targeted consumer activation is driving engagement, reinforced through co-marketing programs with merchants.

Speaker #3: We're seeing it with our core wallet and cash solutions in high-potential regions such as Spain, France, where our brand and product and customer position align most strongly.

Speaker #3: That same approach extends to Paysafe Wallet, which has had its strongest month on record in March. We believe this momentum represents the early stages of a much larger growth opportunity across the experienced economy.

Speaker #3: AI is also a key driver of change in our marketing model, enabling us to scale through automated segmentation, smarter targeting, and a more personalized customer experiences while increasing execution speed.

Bruce Lowthers: AI is also a key driver of change in our marketing model, enabling us to scale through automated segmentation, smarter targeting, and a more personalized customer experiences while increasing execution speed. Turning to Slide seven. iGaming continued to be a significant growth driver this quarter, with global revenue increasing 20% year-over-year, with strong growth across both segments in our core regions. We experienced robust activity during the NFL playoffs with outstanding operational performance during the Super Bowl and March Madness. Additionally, we announced a new partnership with MoonPay, enabling players to seamlessly deposit stable coins and cryptocurrencies with iGaming and daily fantasy sports brands in the US. Five operator pilots are currently underway, positioning us to meet evolving market demand.

Speaker #3: Turning to slide seven. iGaming continue to be a significant growth driver this quarter, with global revenue increasing 20% year over year, with strong growth across both segments in our core regions.

Speaker #3: We experienced robust activity during the NFL playoffs, withoutstanding operational performance during the Super Bowl and March Madness. Additionally, we announced a new partnership with MoonPay, enabling players to seamlessly deposit stablecoins and cryptocurrencies with iGaming and Daily Fantasy Sports brands in the US.

Speaker #3: Five operator pilots are currently underway, positioning us to meet evolving market demand. We also achieved a strong quarter for new bookings, securing agreements with both new and existing merchants.

Bruce Lowthers: We also achieved a strong quarter for new bookings, securing agreements with both new and existing merchants. We extended our partnerships with US clients such as Hard Rock and Golden Nugget to support their expansion into Canada. We signed a new agreement with Cheddar, a popular platform for sports and culture predictions in North America. In the broader entertainment sector, Paysafe has become a headline sponsor for Big Clan, Germany's largest esports organization, and will also sponsor Red Bull's Fortnite and EA Sports FC tournaments in 2026. These high-profile events and partnership attract top content creators and elite competitive players supporting premium brand visibility for Paysafe's digital wallet solutions at the forefront of entertainment. I will wrap up here. As you can see, we've had a very active quarter with a strong start to 2026, with impressive growth across revenue, cash flow, and EPS.

Speaker #3: We extended our partnerships with US clients such as Hardrock and Golden Nugget to support their expansion into Canada, and we signed a new agreement with Cheddar a popular platform for sports and culture predictions in North America.

Speaker #3: In the broader entertainment sector, Paysafe has become a headline sponsor for big clan, Germany's largest esports organization, and will also sponsor Red Bull's Fortnite and EA Sports FC tournaments in 2026.

Speaker #3: These high-profile events and partnership attract top content creators and elite competitive players supporting premium brand visibility for Paysafe's digital wallet solutions at the forefront of entertainment.

Speaker #3: I will wrap up here, as you can see, we've had a very active quarter with a strong start to 2026, with impressive growth across revenue, cash flow, and EPS.

Speaker #3: We're making good progress with our product initiatives, supported by our maturing sales motion and marketing investments. With that, I will John.

Bruce Lowthers: We're making good progress with our product initiatives, supported by our maturing sales motion and marketing investments. With that, I will turn over to Alexia Quadrani.

Speaker #1: Thank you, Bruce. Let's move to slide nine for a summary of our first quarter results. Revenue for Q1 was $442.7 million, an increase of 10% on a reported basis, with organic growth of 8% as the remaining impact from last year's business disposal was more than offset by a tailwind from FX.

Alexia Quadrani: Thank you, Bruce. Let's move to slide 9 for a summary of our Q1 results. Revenue for Q1 was $442.7 million, an increase of 10% on a reported basis, with organic growth of 8% as the remaining impact from last year's business disposal was more than offset by a tailwind from FX. Our Q1 results also benefited from another licensing data deal, which contributed $7 million. The underlying organic growth was approximately 6% normalizing for that. Across our top 20 countries, we saw growth of 13% in Q1, and we've consistently seen growth ranging from high single digits to low double digits over the past 4 quarters across these core markets. Adjusted EBITDA increased 4% to $99.2 million in Q1, and adjusted EBITDA margin declined 130 basis points.

Speaker #1: Our first quarter results also benefited from another licensing data deal, which contributed $7 million. So the underlying organic growth was approximately 6% normalizing for that.

Speaker #1: Across our top 20 countries, we saw growth of 13% in the first quarter, and we've consistently seen growth ranging from high single digits to low double digits over the past four quarters across these core markets.

Speaker #1: Adjusted EBITDA increased 4% to $99.2 million in the first quarter, and adjusted EBITDA margin declined 130 basis points. This reflects an increase in marketing and IT investment of $6 million, as well as an increase in credit loss expense of $10 million.

Alexia Quadrani: This reflects an increase in marketing and IT investment of $6 million, as well as an increase in credit loss expense of $10 million, which was partly offset by the benefit of the data deal. Turning to cash flow, we generated $67 million in unlevered free cash flow in Q1, an increase of 17% year-over-year, with a 67% conversion of adjusted EBITDA, in line with our target range and a solid improvement versus the prior year quarter. On an LTM basis, unlevered free cash flow was $307 million, reflecting 71% conversion. Adjusted net income for Q1 was $21 million, and adjusted EPS was $0.41, an increase of 21%, reflecting our reduced share count. Overall, relative to our expectations for the quarter, the top line came in ahead and adjusted EBITDA was in line but at a lower margin.

Speaker #1: Which was partly offset by the benefit of the data deal. Turning to cash flow, we generated $67 million in unlevered free cash flow in Q1, an increase of 17% year over year.

Speaker #1: With a 67% conversion of adjusted EBITDA, in line with our target range and a solid improvement versus the prior year quarter. On an LTM basis, unlevered free cash flow was $307 million, reflecting a 71% conversion.

Speaker #1: Adjusted net income for the first quarter was $21 million, and adjusted EPS was $41. An increase of 21%, reflecting our reduced share count. Overall, relative to our expectations for the quarter, the top line came in ahead and adjusted EBITDA was in line, but at a lower margin.

Speaker #1: Turning to the segment results on slide 10. Starting with Digital Wallets, volume in Q1 was $7.1 billion, an increase of 19%, or 9% in constant currency.

Alexia Quadrani: Turning to the segment results on Slide 10. Starting with digital wallets, volume in Q1 was $7.1 billion, an increase of 19% or 9% constant currency. Revenue from digital wallets increased 15% to $216.3 million, with organic growth of 7%, as 3-month actives increased 9% year over year, led by strong growth in Latin America. Transactions per active user was flat year on year, and average revenue per user increased 6%, helped by FX, with both metrics influenced by the regional and product mix, including the strong growth from LATAM. adjusted EBITDA for digital wallets was $94.9 million, up 15% year over year, with 4% constant currency growth. adjusted EBITDA margin for the segment was 43.9%, down only 10 basis points despite higher investments in consumer marketing.

Speaker #1: Revenue from digital wallets increased 15% to $216.3 million, with organic growth of 7%. As three-month actives increased 9% year over year, led by strong growth in Latin America.

Speaker #1: Transactions per active user was flat year on year, an average revenue per user increased 6%, helped by FX. With both metrics influenced by the regional and product mix, including the strong growth from LatAm.

Speaker #1: Adjusted EBITDA for digital wallets was $94.9 million, up 15% year over year, with 4% constant currency growth. Adjusted EBITDA margin for the segment was 43.9%, down only 10 basis points despite higher investments in consumer marketing.

Speaker #1: Turning to the merchant segment results, volume increased 9% to $37.2 billion, resulting in organic revenue growth of 9%, or approximately 5% excluding the data deal.

Alexia Quadrani: Turning to the Merchant Solutions segment results, volume increased 9% to $37.2 billion, resulting in organic revenue growth of 9% or approximately 5% excluding the data deal. Normalizing for the benefit of the data deal, we saw a decline in the underlying gross margin in Merchant Solutions due to business mix, reflecting stronger growth from the low-margin ISO channel. Given these puts and takes, the adjusted EBITDA for the segment was $28.1 million, down from $29.4 million in Q1 of last year. Turning to slide 11 for a summary of debt and leverage. At the end of the quarter, total debt was just under $2.5 billion, down $122 million versus Q4 as we repaid more than $100 million during the quarter and saw a modest benefit from FX.

Speaker #1: Normalizing for the benefit of the data deal, we saw a decline in the underlying gross margin in merchant solutions due to business mix. Reflecting stronger growth from the low margin ISO channel.

Speaker #1: Given these puts and takes, the adjusted EBITDA for the segment was $28.1 million, down from $29.4 million in Q1 of last year. Turning to slide 11 for a summary of debt and leverage.

Speaker #1: At the end of the quarter, total debt was just under $2.5 billion, down 122 million versus Q4, as we repaid more than $100 million during the quarter and saw a modest benefit from FX.

Speaker #1: Our net leverage ratio was 5.2 times at quarter end, compared to 5.5 times at Q4. We repurchased 588,000 shares in January, which was a rollover from a December order.

Alexia Quadrani: Our net leverage ratio was 5.2 times at quarter end compared to 5.5 times at Q4. We repurchased 588,000 shares in January, which was a rollover from a December order. While we continue to think our shares are undervalued, reducing leverage is our priority this year, supported by our expected growth in adjusted EBITDA and strong cash flow generation. Turning now to our full-year outlook on Slide 12. We are reaffirming 2026 guidance for revenue growth, adjusted EBITDA, and adjusted earnings per share. As for the cadence, in Q2, we currently expect growth to be moderately below our full-year guidance range to approximately 4%. Considering in Q1, we had the licensing deal, a strong tailwind from FX, and seasonally high volumes from the NFL postseason and March Madness.

Speaker #1: And while we continue to think our shares are undervalued, reducing leverage is our priority this year, supported by our expected growth in adjusted EBITDA and strong cash flow generation.

Speaker #1: Turning now to our full-year outlook on slide 12. We are reaffirming 2026 guidance for revenue growth, adjusted EBITDA, and adjusted earnings per share. As for the cadence, in the second quarter, we currently expect growth to be moderately below our full-year guidance range to approximately 4%.

Speaker #1: Considering in Q1, we had the licensing deal, a strong tailwind from FX, and seasonally high volumes from the NFL postseason and March Madness. This brings our first half growth expectation to 7%.

Alexia Quadrani: This brings our H1 growth expectation to 7%. We expect a seasonally strong Q4 in both segments, further supported by the investments we're making in marketing on the consumer side. We expect operating expenses to be weighted to H1, including an increase of $14 million year-over-year related to marketing and IT investments. Given the $10 million increase in credit losses experienced in Q1, we expect adjusted EBITDA generated in H1 to be roughly flat year-over-year. While our H2 expectation remains ahead of consensus. Putting that together, for the full year, we continue to expect revenue and adjusted EBITDA to grow in the range of 5% to 8% while driving double-digit growth in adjusted EPS. Now I'll turn the call back to Bruce for closing remarks.

Speaker #1: We expect a seasonally strong Q4 in both segments, further supported by the investments we're making in marketing on the consumer side. We expect operating expenses to be weighted to the first half, including an increase of $14 million year over year related to marketing and IT investments.

Speaker #1: Given the $10 million increase in credit losses experienced in Q1, we expect adjusted EBITDA generated in the first half to be roughly flat year over year, while our second half expectation remains ahead of consensus.

Speaker #1: Putting that together for the full year, we continue to expect revenue and adjusted EBITDA to grow in the range of 5% to 8%, while driving double-digit growth in adjusted EPS.

Speaker #1: Now I'll turn the call back to Bruce for closing remarks.

Speaker #2: Thank you, John. We're pleased with our start to 2026, and our building on that with clear priorities to sharpen execution, drive product momentum through our vitality index, and further reduce leverage.

Bruce Lowthers: Thank you, Alexia. We're pleased with our start to 2026 and are building on that with clear priorities to sharpen execution, drive product momentum through our Vitality Index, and further reduce leverage. Before we begin our Q&A, I'd like to welcome Ignacio Caride to our board. Ignacio brings decades of experience in digital platforms, omni-channel retail, and payments, along with a deep knowledge of Latin America. We're excited to partner with him as we move forward, a sincere thank you to Eli Nagler, who has transitioned to a board observer position. We've been very fortunate to have Eli's support and leadership during his many years of service to Paysafe. As you may have seen, we've announced several board changes this year. As a result, the board now includes 9 independent directors out of 12 total.

Speaker #2: Before we begin our Q&A, I'd like to welcome Ignacio Caride to our board. Ignacio brings decades of experience in digital platforms, omnichannel retail, and payments, along with a deep knowledge of Latin America.

Speaker #2: We're excited to partner with him as we move forward, and a sincere thank you to Eli Nagler, who has transitioned to a board observer position.

Speaker #2: We've been very fortunate to have Eli's support and leadership during his many years of service to Paysafe. As you may have seen, we've announced several board changes this year, as a result, the board now includes nine independent directors out of 12 total.

Speaker #2: While CVC and Blackstone remain significant shareholders and continue to support our strategic direction, we see this progression to greater independence as a step toward a governance structure more typical for a U.S.

Bruce Lowthers: While CVC and Blackstone remain significant shareholders and continue to support our strategic direction, we see this progression to greater independence as a step toward a governing structure more typical for a US public company. Let's begin the Q&A session.

Speaker #2: Public company. Now, let's begin the Q&A session.

Speaker #1: Ladies and gentlemen, we will now begin the question and answer session. To ask a question, please press star and one on your telephone keypad.

Operator: Our first question comes from Jamie Friedman with Susquehanna. Please state your question.

Speaker #1: A confirmation tone will indicate your line is in the question queue. You may press star and two if you would like to remove your question from the queue.

Speaker #1: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. We will now wait for a moment while we poll for questions.

Speaker #1: Our first question comes from Jamie Friedman, with SIG. Please state your question.

Operator: Our first question comes from Jamie Friedman with Susquehanna. Please state your question.

Jamie Friedman: Hi. Good morning. It's Jamie at Susquehanna. Thanks for taking the question. Congratulations on the numbers. I wanted to get your perspective on how we should be thinking about EBITDA margin and merchant solutions. I know you articulated some of this on the call, but how we should be thinking about mix and the impact on margins, and then how we should be thinking about the merchant segment margins cadence for the rest of the year.

Speaker #3: morning. It's Jamie at Susquehanna. Thanks for taking the question. So congratulations on the numbers. I wanted to get your perspective on how we should be thinking about the EBITDA margin in merchant solutions.

Speaker #3: I know you articulated some of this on the call, but how we should be thinking about mix and the impact on margins and then how we should be thinking about the merchant segment margins cadence for the rest of the year.

Speaker #2: Right. Good morning, Jamie. I'm going to let John walk you through that. John, over to you.

Bruce Lowthers: Right. Good morning, Jamie. I'm gonna let Alexia walk you through that. Alexia, over to you.

Speaker #4: Sure. Thank you. So I think we expect the margins to be slowly improving through the year, and by slowly, I really mean in Q3 and Q4.

Alexia Quadrani: Sure. Thank you. I think we expect the margins to be slowly improving through the year. By slowly I really mean in Q3 and Q4. Q2 is most likely gonna look similar to Q1. We expect to be in the upper mid-teens, potentially higher than that, by the end of the year. That's driven, as you mentioned and we mentioned on the call earlier, the mix side with the ISO channel outperforming early this year. Then as we get our various pieces of the direct channel on better track in H2, that should drive the margins up.

Speaker #4: Q2 is most likely going to look similar to Q1, but we expect to be in the upper 15s, potentially higher than that by the end of the year.

Speaker #4: And that's driven as you mentioned, and we mentioned on the call earlier, the mix side with the ISO channel outperforming early this year. And then as we get the various pieces of the direct channel on better track in the second half, that should drive the margins up.

Speaker #3: Okay, no, that makes sense. And then in terms of the iGaming, I realize you called out that it's seasonally strong, especially in the fourth quarter.

Jamie Friedman: Okay. No, that makes sense. Then in terms of the iGaming, I realize you called out that it's seasonally strong, especially in Q4. Is it super seasonal even though, because there's seemingly a lot of gaming that others are talking about like Visa coming in H2?

Speaker #3: Is it super seasonal even though? Because there's seemingly a lot of gaming that others are talking about, like Visa coming in the second half.

Speaker #2: Yeah. On the seasonality of the gaming, obviously, Q1 is a big quarter for us with the playoffs, NFL playoffs, and Super Bowl. And then really, as Q4, you look at the back half of the year, there's just a tremendous amount of sporting activities as you're rolling into Q4.

Bruce Lowthers: Yeah. On the seasonality of the gaming, obviously, Q1 is a big quarter for us with the playoffs, NFL playoffs and Super Bowl. Really Q4, you look at the H2 of the year, there's just a tremendous amount of sporting activities as you're rolling into Q4. Those really have been historically the seasonality of the iGaming. Q2 is kind of muted. Q1 and Q4 are usually the big quarters on a seasonality basis. Alexia Quadrani or any of the others-

Speaker #2: So those really have been historically the seasonality of the iGaming. Q2 is kind of muted. But Q1 and Q4 are usually the big quarters on a seasonality basis.

Speaker #2: John, or anything like that.

Jamie Friedman: Great. Thanks, Bruce.

Speaker #3: Great. Thanks for talking. Yep. I'll jump back into Q2.

Bruce Lowthers: Sure.

Jamie Friedman: Yep. I'll drop back in the queue. Thank you.

Speaker #2: Thank you, Jamie. Yep.

Bruce Lowthers: Thank you, Jamie. Yep.

Speaker #1: My next question comes from Matthew Inglis, with RBC Capital Markets. Please state your question.

Operator: Our next question comes from Matthew Inglis with RBC Capital Markets. Please state your question.

Speaker #3: Hey, good morning. This is Matthew Inglis on for Daniel and RBC.

Matthew Inglis: Hey, good morning. This is Matthew Inglis on for Dan Sullivan at RB-

Bruce Lowthers: Good morning.

Speaker #2: Good morning.

Matthew Inglis: For the LatAm business, the World Cup is obviously a huge opportunity to acquire customers. I know you mentioned increased marketing spend and co-marketing with your merchant partners. Wondering if you can unpack a little more the customer acquisition strategy leading up to the World Cup and I guess just your expectations.

Speaker #3: So for the LATAM business, the World Cup is obviously a huge opportunity to acquire customers. I know you mentioned an increased marketing spend and co-marketing with your merchant partners.

Speaker #3: But wondering if you can unpack a little more the customer acquisition strategy leading up to the World Cup, and I guess just your expectations.

Speaker #2: Yeah. So when we look at the World Cup, it's an interesting dynamic. It gets a lot of airtime. For us, when we look at the digital wallet segment of the World Cup, when we held it last, there wasn't a material impact on the digital wallet side.

Bruce Lowthers: When we look at the World Cup, it's an interesting dynamic. It gets a lot of airtime. For us when we held it last, there wasn't a material impact on the digital wallet side. This time through, we've been relatively conservative in our forecasting of the impact of the digital wallet. We have a couple of different dynamics. One, Matthew, you just mentioned, is LatAm. We have a much stronger business in LatAm. Not really sure what the real impact is gonna be. We have a very active marketing campaign, both in LatAm and in North America.

Speaker #2: This time through, we've been relatively conservative in our forecasting of the impact of the digital wallet. We have a couple of different dynamics. One, Matthew, you just mentioned is LATAM.

Speaker #2: We have a much stronger business in LATAM, so not really sure what the real impact is going to be, but we have a very active marketing campaign both in LATAM and in North America.

Speaker #2: There's a campaign that we're doing really for the very first time that we're hoping to build off of the popularity of World Cup. On our consumer acquisition, and our initial campaigns have been very successful, but building around World Cup is something that will be new for us.

Bruce Lowthers: There's a campaign that we're doing really for the very first time, that we're hoping to build off of the popularity of World Cup, on our consumer acquisition. Our initial campaigns have been very successful, but building around World Cup is something that'll be new for us, so we've kind of remained conservative in our forecasting of that. I think, for us, as we look at it, we'll have a little bit of probably pop there in LatAm, and certainly on our merchant acquiring side in North America, because such a big component this time is in the US. We may have some opportunity there as well. If you recall the last time, it was in a time zone that was very difficult. There wasn't a lot of visibility in the US.

Speaker #2: So we've kind of remained conservative in our forecasting of that. But I think for us, as we look at it, we'll have a little bit of, probably, pop there in LATAM, and certainly on our merchant acquiring side in North America, because such a big component this time is in the U.S.

Speaker #2: We may have some opportunity there as well. If you recall the last time it was in a time zone that was very difficult, it wasn't a lot of visibility in the U.S.

Speaker #2: So this is really geared in a better way for us. But as I said, we've been conservative in our modeling because we really haven't experienced it at the size and scale that we are today.

Bruce Lowthers: This is really geared in a better way for us. As I said, we've been conservative in our modeling because we really haven't experienced it at the size and scale that we are today.

Speaker #3: Got it. Super helpful. Thank you.

Matthew Inglis: Got it. Super helpful. Thank you.

Speaker #1: My next question comes from Daniel, excuse me. Our next question comes from Darren Peller with Wolf Research. Please state your question.

Operator: Our next question comes from Darrin Peller with Wolfe Research. Please state your question.

Speaker #3: Hi, thanks. This is Paolo Bragg on for Darren. Bruce, can you provide a bit more color on the momentum you're seeing with Paysafe Wallet in Europe?

Paul Obregon: Hi. Thanks. This is Paul Obregon on for Darrin. Bruce, can you provide a bit more color on the momentum you're seeing with PaysafeWallet in Europe? I mean, what's really resonating with consumers there, and how are they engaging with it?

Paul Obrecht: Hi. Thanks. This is Paul Obregon on for Darrin. Bruce, can you provide a bit more color on the momentum you're seeing with PaysafeWallet in Europe? I mean, what's really resonating with consumers there, and how are they engaging with it?

Speaker #3: I mean, what's really resonating with consumers there and how are they engaging with it?

Speaker #2: Yeah, Paul, great question. We've really taken a very active stance with our marketing team on consumer acquisition there. So I think that for us is really driven quite a bit.

Bruce Lowthers: Yeah, Paul, great question. You know, we've really taken a very active stance with our marketing team on consumer acquisition there. I think that for us is really driven quite a bit. We've had really strong campaigns in Spain and France most recently. As we continue to, one, get more sophisticated in our marketing campaigns, for example, on a lead generation basis, we're very active in using bots to drive leads. We have thousands of bots a day out optimizing our lead generation. We've really transformed the way we go after consumer acquisition. I would also say that the PaysafeWallet is providing a great vehicle for us.

Speaker #2: We've had really strong campaigns in Spain and France most recently. So as we continue to, one, get more sophisticated in our marketing campaigns, for example, on a lead generation basis where we're very active in using bots to drive leads.

Speaker #2: We have thousands of bots a day out optimizing our lead generation. We've really transformed the way we go after consumer acquisition. I would also say that the Paysafe Wallet is providing a great vehicle for us.

Speaker #2: We see really nice double-digit growth with the Paysafe Wallet, and that creates a nice onboarding into our ecosystem from Paysafe Card. So I think we have a lot of things that are coming together, creating good opportunities, and probably the big historical difference for us is really the active engagement of our marketing team on consumer acquisition.

Bruce Lowthers: We see really nice double-digit growth with the PaysafeWallet, that creates a nice onboarding into our ecosystem from Paysafecard. I think we have a lot of things that are coming together, creating good opportunities. Probably the big historical difference for us is really the active engagement of our marketing team on consumer acquisition. We are much more aggressive about consumer acquisition today than we ever have been, but we're doing it in a very calculated and methodical way to make sure that we're maximizing the impact of the dollars that we spend. I think when you look at our marketing spend versus others, our marketing spend on a consumer basis is still well below the average as a percentage of revenue.

Speaker #2: We are much more aggressive about consumer acquisition today than we ever have been, very calculated, methodical way to make sure that we're maximizing the impact of the dollars that we spend.

Speaker #2: I spend versus others, our marketing spend on a consumer basis is still well below the average as a percentage of revenue. But we for us, it's been a substantial increase as we've kind of looked at it on a historical basis.

Bruce Lowthers: For us, it's been a substantial increase as we've kind of looked at it on a historical basis. We're really being very precise about the way we're doing it. So far, our marketing team has really had a lot of success getting this turned around for us.

Speaker #2: So we're really being very precise about the way we're doing it. And so far, our marketing team has really had a lot of success getting this turned around for us.

Speaker #4: The one thing I would add too in terms of engagement, we're pleased so far to see even though the business is relatively small compared to our core wallets business, the transactions per active user actually are very similar.

Alexia Quadrani: The one thing I would add, too, in terms of engagement, we're pleased so far to see, you know, even though the business is relatively small compared to our core wallets business, the transactions per active user actually are very similar to the Skrill and NETELLER users, which we're, you know, which we're excited as it shows, you know, real engagement and activity with the product.

Speaker #4: To the squirrel in the teller users, which we're excited as it shows real engagement and activity with the product.

Speaker #3: Great. That's really helpful color. And then as a follow-up, it's great to see SMB revenue growth improve to 2% year over year. Can you just touch on the drivers here and your expectations for SMB for the remainder of the year?

Paul Obregon: Great. That's really helpful color. As a follow-up, it's great to see SMB revenue growth improve to 2% year-over-year. Can you just touch on the drivers here and your expectations for SMB for the remainder of the year? Alexia, I think in a previous question, you noted your expectation for better performance on the direct side in H2. What's really needed to achieve this?

Paul Obrecht: Great. That's really helpful color. As a follow-up, it's great to see SMB revenue growth improve to 2% year-over-year. Can you just touch on the drivers here and your expectations for SMB for the remainder of the year? Alexia, I think in a previous question, you noted your expectation for better performance on the direct side in H2. What's really needed to achieve this?

Speaker #3: And then John, I think in a previous question, you noted your expectation for better performance on the direct side in the second half. What's really needed to achieve this?

Speaker #5: Do you want to, John, jump in?

Bruce Lowthers: Do you wanna, Alexia, jump in?

Alexia Quadrani: Yeah. I'll start the numbers piece first. I think, Paul, we're not expecting significant contribution from the SMB piece through the year. Our expectations of that business are better than Q1, but not dramatically better. We think it's gonna, you know, sort of work its way through the year to a couple points better than maybe where we were in Q1. You know, we don't have that penciled in for a significant uplift for the year.

Speaker #2: I'll start with the numbers piece first. I think, Paul, we're not expecting significant contribution from the SMB piece through the year. Our expectation is that business is better than Q1, but not dramatically better.

Speaker #2: We think it's going to sort of work its way through the year to a couple of points better than maybe where we were in Q1.

Speaker #2: But we don't have that penciled in for a significant uplift.

Speaker #5: I think the other thing we just point out is we did have better-than-expected or lower-than-expected attrition. In our book, we have not really modeled that in for a full year.

Bruce Lowthers: I think the other thing we just point out is we did have better than expected or lower than expected attrition in our book. We have not really modeled that in for a full year. We're very optimistic that we've made a lot of changes about trying to mitigate the attrition that we've had. Hopefully this is an ongoing rate that we can kind of hang around. We didn't model that in our forecasting at this point. We'll see how Q2 unfolds and move forward with that.

Speaker #5: So it would be we're very optimistic that we've made a lot of changes about trying to mitigate the attrition that we've had. And hopefully, this is an ongoing rate that we can kind of hang around.

Speaker #5: But we didn't model that in in our forecasting at this point. So we'll see how Q2 unfolds and move forward with that.

Speaker #1: The next question comes from Timothy Kiro with UBS. Please state your question.

Operator: The next question comes from Timothy Chiodo with UBS. Please state your question.

Speaker #6: Great. Thank you. I wanted to start with an update on Clover. So it was about a year ago or so that you announced an expanded partnership around value-added services and Clover Capital.

Timothy Chiodo: Great. Thank you. I wanted to start with an update on Clover. It was about 1 year ago or so that you announced an expanded partnership around value-added services and Clover Capital. It's been some time, and I was hoping you could just give us a status update on how that's going in terms of the incremental sales of those services that are sort of an add-on to the core payments business. I'll have a brief follow-up.

Speaker #6: It's been some time, and I was hoping you could just give us a status update on how that's going in terms of the incremental sales of those services that are sort of an add-on to the core payments business.

Speaker #6: And then I'll have a brief

Speaker #2: Yeah, good morning, Tim. And thanks for the question. We still see really strength with our Clover offering. We feel that it's a very strong offering in the marketplace.

Bruce Lowthers: Yeah. Good morning, Tim, and thanks for the question. You know, we still see really strength with our Clover offering. We feel that it's a very strong offering in the marketplace. For us, it's something that we've poured a lot of energy into in the last year. We still see double-digit growth on the merchant acquisition side of Clover. We feel very good about the product offering. I think it's getting honed a little bit more. Obviously, it does very well in the restaurant vertical and now in the services verticals, we're starting to see a lot of success there with it as well. Still feel like it's a great product that is serving us well and serving our merchants well.

Speaker #2: For us, it's something that we've poured a lot of energy into in the last year. We still see double-digit growth on the consumer on the merchant acquisition side of Clover.

Speaker #2: So, we feel very good about the product offering. I think it's getting honed a little bit more. Obviously, it does very well in the restaurant vertical.

Speaker #2: And now in the services verticals, we're starting to see a lot of success there with it as well. So still feel like it's a great product that is serving us well and serving our merchants well.

Speaker #6: Excellent. Thank you, Bruce. And the follow-up was, and I apologize, I'm juggling a few earnings this morning, but did you give any additional context or just the mechanics around the large data sale?

Timothy Chiodo: Excellent. Thank you, Bruce. The follow-up was, and I apologize, juggling a few earnings this morning, but did you give any additional context or just the mechanics around the large data sale? In other words, what type of customer would be purchasing data in that manner? How common are these and/or recurring/non-recurring? Obviously, it's non-recurring, but maybe these could happen more often.

Speaker #6: In other words, what type of customer would be purchasing data, not that manner, and how common are these? Or recurring/non-recurring? Obviously, it's non-recurring, but maybe these could happen more often.

Bruce Lowthers: I'm with you. Yeah, yeah.

Speaker #2: Yeah, yeah. So I don't know what the right word is. Sorry.

Timothy Chiodo: I don't know what the right word is. Episodic?

Bruce Lowthers: As I said, last. Ooh. Sorry.

Speaker #6: I was saying I'm not sure what the right word is—recurring, non-recurring—but kind of once in a while.

Timothy Chiodo: I was saying I'm not sure what the right word is, recurring, non-recurring.

Bruce Lowthers: Yeah.

Timothy Chiodo: Kind of, you know, once in a while.

Speaker #2: Yeah, no worries at all, Tim. So, look, for us, as I mentioned in the last quarter, this is a business we're building. We feel that this is going to be something that will continue to build quarter to quarter.

Bruce Lowthers: No, no worries at all, Tim. Look, for us, as I mentioned in the last quarter, this is a business we're building. We feel that this is gonna be something that we'll continue to build quarter to quarter. We expect sales throughout the year. We've modeled that for ourselves. As our pipeline continues to build, we think it'll be a steady state for us as we move forward. Now, it's early like any new product that it comes to market, so it's probably a little bit lumpy here in the beginning. We expect that there'll be deals throughout the year and have a pipeline that suggests that we'll be able to do that.

Speaker #2: We expect sales throughout the year. We've modeled that for ourselves as our pipeline continues to build. We think it'll be a steady state for us as we move forward.

Speaker #2: Now, it's early like any new product that it comes to market. So it's probably a little bit lumpy here in the beginning. But we expect that there'll be deals throughout the year.

Speaker #2: And have a pipeline that suggests that we'll be able to do that. So we feel very good about this; it's a new way for us to monetize the investment we've made in our IT infrastructure.

Bruce Lowthers: We feel very good about this is a new way for us to monetize the investment we've made in our IT infrastructure. People talk a lot about AI and the things that people are doing there. We really, over the last couple of years, have invested heavily in our data infrastructure. This has allowed us, 1, to monetize through sales of data, and there are all kinds of uses for that. The data that we sell is anonymized data, so this is not something that is traceable back to a particular merchant or consumer. These things are really being used on fraud modeling and the like.

Speaker #2: So people talk a lot about AI and the things that people are doing there. We really, over the last couple of years, have invested heavily in our data infrastructure.

Speaker #2: This has allowed us, one, to monetize through sales of data, and there are all kinds of uses for that. But the data that we sell is anonymized data.

Speaker #2: So this is not something that is traceable back to a particular merchant or consumer. These things are really being used on fraud modeling and the like.

Speaker #2: So when we look at our IT infrastructure, around data, today, when you look at our organization, we have over 150 data engineers that we didn't have just a couple of years ago.

Bruce Lowthers: When we look at our IT infrastructure around data today, when you look at our organization, we have over 150 data engineers that we didn't have just a couple of years ago. We've really transformed our foundational data layer. We think that does a couple of things. One, gives us revenue opportunities. Two, it's driving a tremendous amount of efficiencies for us, whether it be on the marketing side about lead generation, whether it be in our attrition management and the algorithms we use now to predict merchants as they're moving forward. It could be in our client services. We had 60% of our volume being handled by technology that our data engineers had created for us.

Speaker #2: And so we've really transformed our foundational data layer and we think that does a couple of things. One, gives us revenue opportunities. And two, it's driving a tremendous amount of efficiencies for us, whether it be in the marketing side about lead generation, whether it be in our attrition management and the algorithms we use now to predict merchants as they're moving forward.

Speaker #2: It could be in our client services. And so we had 60% of our volume being handled by technology that our data engineers had created for us.

Speaker #2: So, I feel very good about the investment. I think it's been a huge payback for us here early on in our kind of transformation over the last couple of years.

Bruce Lowthers: Feel very good about the investment. I think it's been a huge payback for us here early on in our kind of transformation over the last couple of years.

Speaker #6: Excellent. Thank you for bringing that to life. I appreciate it, Bruce.

Timothy Chiodo: Excellent. Thank you for bringing that to life. I appreciate, Bruce.

Speaker #2: Yeah.

Bruce Lowthers: Yeah.

Speaker #1: A reminder to all participants, to ask a question, please press star and one on your telephone keypad. Our next question comes from Andrew Hart with BTIG.

Operator: Our next question comes from Andrew Hart with BTIG. Please state your question.

Speaker #1: Please state your question.

Speaker #7: Hey, thanks for the question. And Bruce, that was really helpful color on the data licensing deal. I guess just a quick follow-up on that.

Andrew Hart: Hey, thanks for the question. Bruce, that was really helpful color on the data licensing deal. I guess just a quick follow-up on that. Was that win included in full-year guidance at the beginning of the year? I know we reiterated guidance, but just wanna understand if that data licensing deal had any impacts. I guess really getting at how expectations for the back half of the year have potentially changed at all in overall visibility. Thanks.

Andrew Harte: Hey, thanks for the question. Bruce, that was really helpful color on the data licensing deal. I guess just a quick follow-up on that. Was that win included in full-year guidance at the beginning of the year? I know we reiterated guidance, but just wanna understand if that data licensing deal had any impacts. I guess really getting at how expectations for the back half of the year have potentially changed at all in overall visibility. Thanks.

Speaker #7: Was that when included in full-year guidance at the beginning of the year? I know we reiterated guidance, but just want to understand if that data licensing deal had any impacts.

Speaker #7: I guess really getting at how expectations for the back half of the year have potentially changed at all in overall visibility. Thanks.

Speaker #2: Hi, Andrew. We had data in our guidance throughout the year. So I think from our standpoint, there's really the way we looked at it, there was nothing new here.

Bruce Lowthers: Hi, Andrew. We had data in our guidance throughout the year. I think from our standpoint, the way we looked at it, there was nothing new here. We had data incorporated in. If anything, I would say it was probably just a little bit bigger than we anticipated in Q1, but we had data deals in our model throughout the year. No real change from our perspective.

Speaker #2: We had data incorporated in. If anything, I would say it was probably just a little bit bigger than we anticipated in Q1. But we had data deals in our model throughout the year.

Speaker #2: So no real change from our perspective.

Speaker #7: Okay. Very helpful. And then in iGaming, would love to just kind of hear what the early adoption of Pay with Cryptos looked like? Anything you'd highlight with your MoonPay partnership and what adoption has been like since the launch?

Andrew Hart: Okay, very helpful. Then, in iGaming, would love to just kinda hear what the early adoption of pay with cryptos looked like, anything you'd highlight with your MoonPay partnership and what adoption's been like since the launch?

Andrew Harte: Okay, very helpful. Then, in iGaming, would love to just kinda hear what the early adoption of pay with cryptos looked like, anything you'd highlight with your MoonPay partnership and what adoption's been like since the launch?

Speaker #2: I apologize, Andrew, I missed the beginning.

Bruce Lowthers: I apologize, Andrew, I missed the beginning. Crypto.

Andrew Hart: Pay with crypto.

Andrew Harte: Pay with crypto.

Speaker #7: Pay with Crypto.

Speaker #2: Oh, Pay with Crypto. Yeah. So look, the Pay with Crypto we feel very bullish about it. It's really kind of been a pilot mode at this point.

Bruce Lowthers: Pay with crypto. Look, the pay with crypto, we feel very bullish about it. It's really kind of in a pilot mode at this point. We've got about 5 merchants that we're really working with right now. We expect to be able to roll that out throughout the year. I think the key here on the crypto piece is really just being aware of what our consumers want to do and how they want to spend their money and us providing them a mechanism for them to spend the money the way they want to spend their money and where they want to spend the money. When you look at the survey that we did, there was really an interest in paying with crypto.

Speaker #2: We've got about five merchants that we're really working with right now. We expect to be able to roll that out throughout the year. I think the key here on the crypto piece is really just being aware of what our consumers want to do and how they want to spend their money and us providing them mechanism for them to spend the money the way they want to spend their money.

Speaker #2: And where they want to spend the money. And so when you look at the survey that we did, there was really an interest in paying with crypto.

Speaker #2: I think it was 83% of our survey respondents had expressed interest in it. So it was really a strong interest in it. So for us, we look at it as really just another LPM that we're providing that consumers want and now connecting it up to our merchants so that they can buy their video game or buy their place their sports bet.

Bruce Lowthers: I think it was 83% of our survey respondents had expressed interest in it, so it was really a strong interest in it. For us, we look at it as really just another LPM that we're providing, that consumers want, and now connecting it up to our merchants so they can buy their video game or buy their place their sports bet. Just trying to be there for the way they want to execute their transactions.

Speaker #2: Just trying to be there for the way they want to execute their transactions.

Speaker #7: Thanks, Bruce. Nice results.

Andrew Hart: Thanks, Bruce. Nice results.

Andrew Harte: Thanks, Bruce. Nice results.

Speaker #1: Ladies and gentlemen, this concludes the question and answer session. I would now like to hand the conference over to Bruce Lowthers. Chief Executive Officer for Closing Comments.

Operator: Ladies and gentlemen, this concludes the question and answer session. I would now like to hand the conference over to Bruce Lowthers, Chief Executive Officer, for closing comments.

Speaker #2: Thank you very much. Just want to thank the team at Paysafe for all the work for the quarter. Overall, I think the theme really strong quarter for us to start the year, which has us feeling optimistic about the year.

Bruce Lowthers: Thank you very much. I just want to thank the team at Paysafe for all the work for the quarter. Overall I think the theme, really strong quarter for us to start the year, which has us feeling optimistic about the year. We're very focused on executing the year. Biggest priorities, obviously our continued execution, pay down of our debt, really continuing to optimize our leverage free cash flow and that's the theme for 2026. Thank you very much for joining us today and we look forward to connecting again soon.

Speaker #2: We're very focused on executing the year. Biggest priorities. Obviously, our continued execution paydown of our debt really continuing to optimize our leverage-free cash flow.

Speaker #2: And that's the theme for 2026. So thank you very much for joining us today. And we look forward to connecting again soon.

Operator: Ladies and gentlemen, the conference call of Paysafe has now concluded. Thank you for your participation. You may now disconnect your lines.