Paysafe Limited, the Bermudian-incorporated specialised payments platform, has reported a net loss for the first quarter of $1.2 billion.

The company said that due to a sustained decline in Paysafe’s stock price and market capitalisation, as well as current market and macroeconomic conditions, Paysafe recognised a $1.2 billion impairment of goodwill in the first quarter.

It added that the non-cash impairment charge would not have any impact on the company’s compliance with its debt covenants, cash flows or liquidity.

The first quarter result compared with a net loss of $60.6 million in the prior year period.

Total revenue for the first quarter was $367.7 million, a decrease of three per cent compared with $377.4 million in the first quarter of 2021.

Excluding a $11.6 million unfavourable impact from year-over-year changes in foreign exchange rates, revenue was approximately flat.

Total payment volume was $31.2 billion, an increase of 13 per cent year-over-year. Adjusted Ebitda was $104 million, a decrease of eight per cent.

First quarter net cash from operating activities was $503.8 million, compared with $48.7 million in the prior year period.

Free cashflow was $59.2 million, compared with $108.5 million in the first quarter of 2021.

Bruce Lowthers, who joined as CEO last month, said: “I am thrilled to be joining the talented Paysafe team at such a pivotal time.

“Paysafe has a long track record of being a pioneer in payments and with a lot of potential to grow in verticals with strong tailwinds.

“I look forward to working with the team to seize the opportunities ahead, drive more innovation in the fintech ecosystem and ultimately generate greater shareholder value.”

Izzy Dawood, CFO of Paysafe, said: “Paysafe is off to a good start this year, posting first quarter results ahead of our expectations.

“We are particularly pleased with the strong performance from our US acquiring business, which delivered double-digit volume, revenue and adjusted Ebitda growth.

“We are winning across digital commerce and the turnaround of the digital wallet business continues to show progress.”

Shares of Paysafe on the New York Stock Exchange were trading at $1.89 in mid-afternoon Wednesday, well off their 52-week high of $13.95.