Paysafe (US:PSFE) TMX Newsfile·2026-02-16 15:35Core Viewpoint - The article discusses an ongoing investigation by Faruqi & Faruqi, LLP into potential claims against Paysafe Limited, highlighting significant financial losses and alleged violations of federal securities laws by the company and its executives [2][4]. Financial Performance - Paysafe reported third quarter financial results on November 13, 2025, with revenue of $433.8 million, missing consensus estimates by $5.8 million, and a net loss of $87.7 million, a significant increase from a net loss of $12.98 million in the same period the previous year [5]. - The company revised its full-year 2025 expected revenue to $17 million at the midpoint and adjusted EPS to $0.50 at the midpoint [5]. Allegations and Issues - The complaint alleges that Paysafe's ecommerce business had significant exposure to a single high-risk client, leading to understated credit loss reserves and write-offs [4]. - It is claimed that Paysafe faced undisclosed issues with higher risk Merchant Category Codes, complicating its banking relationships and negatively impacting revenue growth [4]. - The company was unlikely to meet its previously issued financial guidance for fiscal year 2025 due to these issues [4]. 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, amid unusually heavy trading volume [6].