There's been a notable change in appetite for Paysafe Limited (NYSE:PSFE) shares in the week since its first-quarter report, with the stock down 17% to US$7.71. The results don't look great, especially considering that statutory losses grew 387% toUS$0.71 per share. Revenues of US$443m did beat expectations by 4.3%, but it looks like a bit of a cold comfort. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Following the latest results, Paysafe's six analysts are now forecasting revenues of US$1.81b in 2026. This would be a modest 3.7% improvement in revenue compared to the last 12 months. Statutory losses are forecast to balloon 89% to US$0.41 per share. Before this earnings report, the analysts had been forecasting revenues of US$1.80b and earnings per share (EPS) of US$0.064 in 2026. So despite reconfirming their revenue estimates, the analysts are now forecasting a loss instead of a profit, which looks like a definite drop in sentiment following the latest results.

Although the analysts are now forecasting higher losses, the average price target rose 13% to 8.89, which could indicate that these losses are expected to be "one-off", or are not anticipated to have a longer-term impact on the business. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Paysafe analyst has a price target of US$12.00 per share, while the most pessimistic values it at US$7.50. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Paysafe's rate of growth is expected to accelerate meaningfully, with the forecast 4.9% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 3.9% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 4.1% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Paysafe is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest low-light for us was that the forecasts for Paysafe dropped from profits to a loss next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Paysafe going out to 2028, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with Paysafe .

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.