Paysafe Limited

safe second quarter 2025 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 zero 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.

Thank you, and welcome to Paysafe's earnings conference call for the second quarter of 2025. Joining me today are Bruce Lothers, Chief Executive Officer, and John Crawford, Chief Financial Officer. Before we begin, a reminder that this call will contain forward-looking statements and should be considered in conjunction with 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 could cause actual results to differ materially from those forward-looking statements. You should not place undue reliance on these statements. Forward-looking statements 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. You can find additional information about non-GAAP measures and where relevant reconciliations to the most directly comparable GAAP measures in today's press release and in the appendix of this presentation, which are available in the investor relations section of our website. Now I'll turn the call over to Bruce.

Good morning, and thank you for joining us today. We have continued to build operational momentum this quarter, so let's turn to our financial results. Another good quarter with revenue adjusted a bit up adjusted EPS all in line with our expectations. We delivered 5% organic revenue growth and strong adjusted EBITDA growth of 12% when excluding the divested direct marketing business. The results reflect continued execution on our strategic priorities and growth across all major product lines. Additionally, we saw continued strong performance from existing customers and increase in growth contribution from new customer wins along with the launch of innovative new products. We returned $20 million to shareholders in the quarter by repurchasing nearly 1.5 million shares, up from 613,000 in Q1. And we continue to repurchase shares here in the third quarter, as our shares, in our opinion, remain significantly undervalued and provide a unique opportunity for us that we cannot ignore. With the second half underway, we continue to expect an acceleration of top line growth, especially in the fourth quarter as we deliver on our existing contracts, execute on our sales pipeline, and drive revenue from product initiatives that are already in market. Collectively, this remains on track to drive stronger growth and margin improvement in the second half. Compared to this time last year, our enterprise level deals and the annual contract value of those bookings are up more than 20% year to date, with a healthy backlog of signed business across the gaming and fintech sectors, including digital asset and pay fact merchants, scheduled to go live in the near term, which further supports our confidence in the full year outlook. Turning to slide four. I'll share an update on our product priorities, starting with the recent launch of our Pargo Efectivo wallet in Peru. While it's early days, we're pleased with the initial reception of nearly 40,000 signups and a strong volume of repeat users. We also see sustained high volumes of website and app store visits and believe we have a strong foundation to build future engagement and growth. But more importantly, This demonstrates our ability to leverage Paysafe's wallet platform to deliver tailored solutions that meet consumers' local payment needs. This is something we plan to replicate in other markets globally as Paysafe identifies opportunities to bring value to consumers and differentiate ourselves in the market. Next, our Skrill digital wallet continues to evolve towards being an entertainment destination with products that enhance engagement and loyalty. Our new free-to-play feature allows users to predict the outcomes of live football matches, creating a fun and engaging experience. We also recently launched our new Sports Corner, which highlights the latest match statistics and live odds from real betting operators. By embedding this key step of the sports betting flow, we allow users to complete many of their main actions within the wallet. increasing the probability of completing a transaction. We are seeing strong active user engagement with these new features placing consumers at the heart of the action. With respect to our eCash solutions, we continue to demonstrate the success of our online channel with continued product enhancements and regional expansion. This shift towards online account-based distribution has seen revenue growth of 37% year to date. supporting engagement and recurring activity by users with a digital footprint. While revenue contribution is relatively small at 22 million in the first half, our own online store is now our largest distributor. Lastly, in Q2, we signed BBVA, a major Spanish bank that is expanding operations into Germany. Through this partnership, we are enabling BBVA's consumers to seamlessly deposit and withdraw cash to and from their bank accounts at any of our point of sale partner locations in the region. This further expands our reach through partnerships with leading mobile and retail banks, similar to our recent collaborations to provide digital cash solutions to Revolut and Deutsche Bank, among others. While there is a lot more happening across both merchant and consumer portfolio, this gives you some of the highlights of our current product initiatives that are already in market. This represents a cultural shift in the organization, bringing us closer to our midterm goal to drive 10 to 12% annual revenue contribution from products released in the last three years. Turning to slide five, We continue to be very pleased with the progress on our enterprise side of the sales organization and pipeline. Our growth in e-commerce continues to be very strong, exceeding 30% in the second quarter and broad-based across iGaming and other verticals. The quality of our e-com and enterprise bookings continues to improve and is driving higher quality revenue growth overall, including high single-digit growth from our top 20 countries with positive momentum across Europe, which saw a double-digit regional growth for the first time in years. On the SMB side, we discussed on prior calls that we have some more work to do as we rebalance and optimize the SMB team and go to market channels. While attrition is slightly elevated from where we want it to be, we're encouraged by our new mid-growth this quarter. which was up 6% across the SMB portfolio, including growth from the direct channel. We continue to implement more efficient marketing programs to drive sales qualified leads with better close rates, while at the same time focusing on the retention of high value accounts. Lastly, we remain very excited about our expanded partnership with Fiserv, where we've already seen a promising response to our Clover initiatives. To wrap up, we're seeing solid progress towards our priorities to drive new product growth, ramp up the sales organization, leverage key partnerships, and drive greater scale and efficiency across the Paysafe network. With that, I'll ask John to review the financial results and outlook.