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Payoneer Global Inc. (PAYO)·Q3 2025 Earnings Summary

Executive Summary

  • Record quarterly revenue of $270.9M, up 9% YoY; revenue ex. interest income rose 15% YoY to $211.4M, evidencing strong B2B and Card adoption .
  • 2025 guidance raised: total revenue to $1,050–$1,070M (prior $1,040–$1,060M), transaction costs ~16.0% (prior ~16.5%), adjusted EBITDA to $270–$275M (prior $260–$275M); reiterated revenue ex. interest income at $815–$835M, and raised interest income expectations to $235M .
  • Q3 revenue beat consensus while normalized EPS was in line-to-slightly above and EBITDA missed on a GAAP basis; adjusted EBITDA of $71.3M (26% margin) remained robust and ahead of medium-term targets .
  • Strategic catalysts: deepened B2B expansion (+27% YoY core B2B revenue), robust customer funds ($7.1B, +17% YoY) underpinning interest income, and Checkout migration to Stripe to improve cost/yield over time .

What Went Well and What Went Wrong

What Went Well

  • Revenue ex. interest up 15% YoY to a quarterly record; ARPU ex. interest +22% YoY (fifth straight 20%+ quarter), driven by larger customers, higher-take-rate B2B, Checkout, and Card .
  • B2B SMB revenue +27% YoY; CEO: “B2B revenue grew 27% in Q3 and now represents roughly 30% of revenue x interest” .
  • Adjusted EBITDA of $71.3M with 26% margin; CFO: “Adjusted EBITDA was $71M representing a 26% adjusted EBITDA margin” .

What Went Wrong

  • GAAP diluted EPS fell to $0.04 vs $0.11 last year, primarily due to prior-year discrete tax benefits; net income declined to $14.1M from $41.6M YoY .
  • Take rate (total) was roughly flat YoY at 121 bps; transaction costs as % of revenue ticked up 40 bps YoY to 15.7% .
  • Checkout growth expected to moderate near term as the franchise migrates to Stripe; CEO: “top line growth will moderate in Q4 and into 2026 as we migrate” .

Financial Results

Core P&L and Margins (GAAP and non-GAAP)

MetricQ1 2025Q2 2025Q3 2025
Revenue ($M)$246.6 $260.6 $270.9
Interest Income ($M)$58.0 $58.3 $59.5
Revenue ex. Interest ($M)$188.6 $202.3 $211.4
Net Income ($M)$20.6 $19.5 $14.1
Diluted EPS (GAAP) ($)$0.05 $0.05 $0.04
Adjusted EBITDA ($M)$65.4 $66.4 $71.3
Transaction Costs as % of Revenue16.0% 15.6% 15.7%
Total Take Rate (bps)125 126 121
SMB Customer Take Rate (bps)119 120 121

Q3 2025 Actuals vs Wall Street Consensus

MetricConsensusActualSurprise
Revenue ($M)263.4*270.9 +7.5 (+2.9%)*
Primary EPS ($)0.0602*0.0604*+0.0002 (~in-line)*
EBITDA ($M, GAAP)65.7*52.5 -13.2 (-20%)*
# of Estimates (Revenue / EPS)10 / 9*——

Values marked with * retrieved from S&P Global.

Segment and Geography

SMB Revenue Components ($M)Q1 2025Q2 2025Q3 2025
Marketplaces$110 $116 $121
B2B SMBs$52 $58 $62
Checkout$7 $9 $9
SMB Total$170 $183 $192
Revenue by Region ($M)Q1 2025Q2 2025Q3 2025
Greater China$84.9 $85.9 $91.2
EMEA$58.9 $67.4 $68.2
Asia-Pacific$51.3 $53.8 $57.2
Latin America$27.9 $28.9 $28.0
North America$23.7 $24.7 $26.3
Total$246.6 $260.6 $270.9

KPIs

KPIQ1 2025Q2 2025Q3 2025
Volume ($B)$19.7 $20.7 $22.3
Active ICPs (000s)556 559 548
Total Take Rate (bps)125 126 121
SMB Customer Take Rate (bps)119 120 121
Card Spend ($B)$1.4 $1.5 $1.6
Customer Funds ($B)$6.6 $7.0 $7.1

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Revenue ($M)FY 2025$1,040–$1,060 $1,050–$1,070 Raised
Transaction Costs (% Revenue)FY 2025~16.5% ~16.0% Lowered
Adjusted EBITDA ($M)FY 2025$260–$275 $270–$275 Raised (midpoint)
Revenue ex. Interest ($M)FY 2025$815–$835 $815–$835 Maintained
Interest Income ($M)FY 2025Not explicitly quantified~$235 Introduced/Raised
Adjusted OpEx ($M)FY 2025—~$618 Introduced
Adjusted EBITDA ex. Interest ($M)FY 2025~13 (2024 actual reference)~$38 (midpoint) Raised vs 2024 baseline

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2 2025)Current Period (Q3 2025)Trend
B2B expansionB2B SMB revenue +37% YoY in Q1; +37% YoY in Q2; strategic pricing and product attach B2B revenue +27% YoY; ~30% of revenue ex. interest; focus on larger, multi-entity ICPs; improved invoice sizes Strengthening mix and quality
Checkout strategyAnnounced Stripe partnership (Aug 18) to expand methods and improve cost/yield; ~$30M LTM revenue through Jun-25 Near-term moderation in top-line growth during migration; improved unit economics expected Transition with cost/yield benefits
Customer funds & interestQ1 funds $6.6B; Q2 $7.0B; interest income headwinds from lower rates Q3 funds $7.1B (+17% YoY); hedging floor protects ~$120M ’26, $80–$85M ’27–’28, $60M ’29 Durable interest stream via hedging
Tariffs/macroQ1 suspended guidance amid uncertainty ; Q2 reinstated guidance Tariffs impact marketplace volumes; October volumes modestly soft; Q4 guide incorporates broad outcomes Managed volatility; conservative planning
Cards/AP adoptionQ1 $1.4B card spend; Q2 $1.5B Q3 $1.6B (+19% YoY); >50% Account spend from 3+ AP products Rising AP attach and utility
Regulatory footprintCompleted China PSP acquisition (Easylink) India license application costs; continued last-mile infrastructure and blockchain pilots with Citi Expanding regulatory/infrastructure moat
Blockchain/stablecoinCiti on-chain movement to improve treasury Plan to offer Stablecoin Wallet functionality in 2026; orchestration across rails; regulatory clarity tailwinds Early buildout, strategic optionality

Management Commentary

  • CEO: “B2B revenue grew 27% in Q3 and now represents roughly 30% of revenue x interest… ending Q3 customers held over $7 billion on our platform, up 17% YoY” .
  • CFO: “Adjusted EBITDA was $71M representing a 26% adjusted EBITDA margin… we are raising our expectations for 2025 adjusted EBITDA to $270–$275M” .
  • CEO on Checkout: “Top line growth will moderate in Q4 and into 2026 as we migrate [to Stripe], [but] better cost and yield dynamics” .
  • CFO on hedging: “We have secured approximately $120M of 2026 interest income… $80–$85M in 2027–2028… $60M in 2029” .

Q&A Highlights

  • Sustainability of growth and take rate: Management emphasized durable ARPU expansion (above 20% multiple quarters) and upmarket mix; larger ICPs (~$250K/month) now 30% of ex-interest revenue .
  • Tariff/macro impacts: Some marketplace softness and October moderation; Q4 guidance brackets trade-route dislocations; customers deploying logistics/globalization/pricing strategies .
  • Checkout migration: Partnership with Stripe expected to improve cost/yield; moderation in growth near term with geographic expansion in APAC (India, South Korea) .
  • Customer funds growth drivers: Upmarket shift and AP utility encouraging balances; platform serving AP needs as much as AR; balances represent future revenue via AP monetization .
  • OpEx and margin runway: Transaction cost optimization via scale and partnerships (Mastercard/Stripe) and back-office automation/AI; focus on core profitability ex interest .

Estimates Context

  • Q3 revenue beat consensus by ~$7.5M (+2.9%); normalized EPS was in line to slightly above; GAAP EBITDA missed vs consensus, while adjusted EBITDA remained strong at $71.3M (26%) .
  • Consensus detail (S&P Global): Revenue 263.4M*, Primary EPS 0.0602*, EBITDA 65.7M*; Actuals: Revenue 270.9M , Primary EPS 0.0604*, GAAP EBITDA 52.5M .
  • Implication: Street models likely raise revenue and adjust mix assumptions (higher B2B/SMB take rate), keep normalized EPS near flat, and revisit EBITDA framework to focus on adjusted EBITDA vs GAAP.

Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Mix quality improving: Larger, multi-entity customers and B2B expansion are driving sustainable ARPU and take rate gains; expect continued operating leverage even as higher-take-rate products scale .
  • Guidance credibility strengthened: Raised FY revenue and adjusted EBITDA; transaction cost ratio lowered; interest income visibility enhanced via hedging floors .
  • Near-term watch items: Tariff/macro into holiday season; Checkout growth moderation during Stripe migration; monitor Marketplace volumes versus Q4 expectations .
  • Cash returns and balance sheet: $45M Q3 buybacks ($94M YTD), ~$479M cash; authorization ~$300M through 2027 supports shareholder returns .
  • Strategic rails optionality: Citi blockchain deployment now; stablecoin wallet targeted for 2026—potential long-term cost and liquidity benefits if adoption corridors develop .
  • KPI trajectory supportive: Volume +9% YoY; customer funds +17% YoY; card spend record highs; SMB take rate expansion continues .
  • Positioning: Diversified geography with growth in Greater China, APAC and EMEA; regulatory and last-mile infrastructure deepen moat for cross-border SMBs .