Company: PSEWF
Filing Date: 2025-03-04
Form Type: 20-F
Source: 0000950170-25-032340
Chunk: 108

Company: Paysafe Ltd
Filing Date: 2025-03-04
Form: 20-F
Item: Item 5
Chunk 108
---
 2023 primarily arises as a result of movements in the valuation allowance on restricted interest and tax loss carryforwards. A reconciliation between the statutory income tax rate and the income tax benefit / provision reported in the Consolidated Statements of Comprehensive Income / (Loss) is summarized in Note 3, Taxation, within Item 18, Financial Statements included elsewhere in this Report.

Net income / (loss)

Net income increased by $42,411 to an income of $22,160 for the year ended December 31, 2024 from a loss of $20,251 for the year ended December 31, 2023. The increase in net income was largely driven by an income tax benefit of $8,136 for the year ended December 31, 2024 compared to an expense of $40,840 for the year ended December 31, 2023, as well as a decrease in interest expense, net and an increase in other income. This is offset partially by a decrease in operating income mainly driven by increased selling, general and administrative expenses.

Non-GAAP financial measure

Adjusted EBITDA

Adjusted EBITDA for the Company decreased by $6,609, or 1.4%, to $452,054 for the year ended December 31, 2024 from $458,663 for the year ended December 31, 2023. This decrease was primarily driven by increased selling, general and administrative expenses (excluding employee stock options) of $57,756, and increased cost of services of $52,550, offset partially by increased revenue of $103,697 as described above. For further explanation on the year-over-year change on these financial statement line items, please refer to the commentary above in “ Results of Operations.”

A reconciliation of Net loss to Adjusted EBITDA is as follows for the years ended December 31, 2024 and 2023:

                                                              Year Ended December 31,                                      
  (U. S. dollars in thousands)                                2024                                      2023               
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Net income / (loss)                                         $                             22,160      $         (20,251  
  Income tax (benefit) / expense                                                            (8,136                 40,840  
  Interest expense, net                                                                    140,805                151,148  
  Depreciation and amortization                                                            273,364                263,433