Paysafe (US:PSFE) Businesswire·2026-02-10 18:33Core Viewpoint - Paysafe Limited (PSFE) is facing a class action lawsuit due to alleged securities fraud, following a significant drop in its stock price after disappointing financial results were announced [1] Financial Performance - For Q3 2025, Paysafe reported revenue of $433.8 million, missing consensus estimates by $5.8 million - The company experienced a net loss of $87.7 million, a substantial increase from a net loss of $12.98 million in the same period the previous year - Full year 2025 expected revenue was revised down to $17 million at the midpoint, with adjusted EPS projected at $0.50 [1] Issues Leading to Lawsuit - The lawsuit alleges that Paysafe's ecommerce business had significant exposure to a single high-risk client, leading to understated credit loss reserves and write-offs - The company faced undisclosed issues with higher risk Merchant Category Codes, complicating its banking relationships - These factors were likely to negatively impact revenue growth and overall revenue mix, making it unlikely for Paysafe to meet its previously issued financial guidance for fiscal year 2025 [1] Stock Market Reaction - Following the announcement of the financial results, Paysafe's stock price fell by $2.80, or 27.6%, closing at $7.36 per share on November 13, 2025, with unusually high trading volume [1]