In the financial landscape for the second quarter of 2025, a leading payments platform released its earnings report, revealing some significant financial metrics. The company reported a revenue of $428.2 million, marking a 3% decline from the previous year’s revenue of $439.9 million. This decrease was influenced by the prior year’s figures, which were bolstered by $36.7 million in revenue linked to a now-divested direct marketing payments processing segment.
Despite the overall revenue drop, the company achieved a notable 5% organic growth. Merchant Solutions drove this growth, boasting a 6% increase largely supported by a robust expansion in the e-commerce sector. Digital Wallets also contributed positively with a 3% organic increase.
However, the company’s net loss for the quarter was $50.1 million, a stark increase compared to a loss of only $1.4 million in the same timeframe last year. This rising loss was partially attributed to a significant income tax expense of $30.6 million, which related to a non-cash valuation allowance against UK deferred tax assets. This expense does not affect current cash flow or future tax payments.
The increased net loss was further compounded by a $16 million decrease in operating income, mainly from the divested portion of the business, and by an uptick in non-operating expenses that included higher losses on foreign exchange dealings and legal fees.
On a more adjusted basis, net income fell to $27.6 million from $36.3 million a year prior. This decline reflected an overall drop in Adjusted EBITDA, which decreased by 12% to $105 million, down from $119 million. The previous year’s figures reflected $25.4 million of Adjusted EBITDA from the now disposed business, influencing the current quarter’s performance.
Despite these hurdles, the company benefited from favorable foreign exchange rate movements, adding $9.6 million to revenue and $2.5 million to Adjusted EBITDA. However, this was somewhat countered by a $4 million headwind from reduced interest income on consumer deposits.
Operating cash flow for the quarter came in at $39.6 million, lower than the $54.1 million recorded in the prior year. Similarly, unlevered free cash flow was reported at $53.9 million, down from $70 million in the previous year.
Asserting a positive outlook, management expressed satisfaction with the quarterly performance, highlighting that revenue, adjusted EBITDA, and adjusted earnings per share were generally in line with expectations. The company is targeting stronger growth trajectories and improved margins in the latter half of the year, supported by the execution of strategic plans and successful performance in all major product lines. Management noted significant advances in existing customer relationships and momentum from new client acquisitions, alongside the introduction of innovative product offerings.
In sum, while the financial report reflects challenges such as net losses and revenue declines due to divested segments, there remain avenues of growth and strategic achievements that position the company for potential future success.