Company: PSEWF
Filing Date: 2025-03-04
Form Type: 20-F
Source: 0000950170-25-032340
Chunk: 110

Company: Paysafe Ltd
Filing Date: 2025-03-04
Form: 20-F
Item: Item 5
Chunk 110
---
 income tax (benefit)/expense, interest expense, net, depreciation and amortization, share-based compensation expense, impairment expense on

goodwill and intangible assets, restructuring and other costs, loss/(gain) on disposal of subsidiaries and other assets, net, and other (expense)/income, net. For this reason, Segment Adjusted EBITDA, is presented in conformity with Accounting Standards Codification 280, Segment Reporting, and is excluded from the definition of non-GAAP financial measures under the Securities and Exchange Commission’s Regulation G and Item 10(e) of Regulation S-K.

The Company allocates shared costs to the two segments. Shared costs are the cost of people and other resources consumed in activities that provide a benefit across more than one segment. Shared costs are allocated to each segment primarily based on applicable drivers including headcount, revenue and Adjusted EBITDA.

Year Ended December 31, 2024 Compared to Year Ended December 31, 2023

Merchant Solutions

The following table presents our results for the Merchant Solutions operating segment for the year ended December 31, 2024 and 2023:

                                                      For the year                                Variance                          
                                                ended December 31,                                                                  
  (U. S. dollars in thousands)                                2024                                $                                 
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Revenue (1)                                                           957,623      878,346                     79,277        9.0  
  Cost of services (excluding depreciation                              518,792      469,090                     49,702       10.6  
  Selling, general and administrative (2)                               247,980      187,102                     60,878       32.5  
  Segment Adjusted EBITDA                                               190,851      222,154                    (31,303      -14.1  

(1)

Amount includes intersegment transactions that are attributable to the segment. Intersegment transactions are primarily for processing credit card transactions and deposits between segments.

(2)

Selling, general and administrative excludes share-based compensation costs which are not included in our definition of Segment Adjusted EBITDA.

The commentary included below exclude amounts that are outside of our definition of Segment Adjusted EBITDA. Refer to the commentary of these amounts under “ Results of Operations”.

Revenue increased by $79,277, or 9.0%, to $957,623 for the year ended