Company: PSEWF
Filing Date: 2025-03-04
Form Type: 20-F
Source: 0000950170-25-032340
Chunk: 106

Company: Paysafe Ltd
Filing Date: 2025-03-04
Form: 20-F
Item: Item 5
Chunk 106
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 Segments” below.

Cost of services (excluding depreciation and amortization)

Cost of services (excluding depreciation and amortization) increased $52,550, or 7.9%, to $715,762 for the year ended December 31, 2024 from $663,212 for the year ended December 31, 2023. The increase is largely attributable to an increase of $49,702, or 10.6% in our Merchant Solutions segment due to the increase in volumes as noted above.

Selling, general and administrative

Selling, general and administrative expenses increased $67,417, or 13.3%, to $575,553 for the year ended December 31, 2024 from $508,136 for the year ended December 31, 2023. This movement is primarily driven by an increase in credit losses of $25,322 in the Merchant Solutions due to specific loss events associated with certain merchants and increased losses in the direct marketing payment processing business line. The Company announced a definitive agreement to sell this business line in February 2025 as described above.

The increase is also driven by an increase in personnel costs of $18,376, primarily related to increased headcount to expand our sales capabilities as well as annual salary increases, an increase in share based compensation expense of $9,661, mainly related to new share-based compensation awards granted during the year and an increase in legal and professional fees of $9,913 due to increased consulting fees supporting a portfolio optimization project.

Depreciation and amortization

Depreciation and amortization increased $9,931, or 3.8%, to $273,364 for the year ended December 31, 2024 from $263,433 for the year ended December 31, 2023. This was mainly driven by amortization on software development costs placed in service during the first quarter of the year ended December 31, 2024.

Impairment expense on goodwill and intangible assets

Impairment expense on goodwill and intangible assets decreased by $431 or 34.4%, to $823 for the year ended, December 31, 2024 from $1,254 for the year ended December 31, 2023. For the year ended December 31, 2024 and 2023 no goodwill impairment was recognized. For the year ended December 31, 2023, impairment expense relates to specifically identified software development costs which had no future economic benefit.

Restructuring