Loading...
01/11 16:19
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary and Q&A section reveal strong financial performance, optimistic guidance, and strategic partnerships (e.g., Mastercard). Despite some challenges like tariffs and macro volatility, management's focus on profitability and innovation, particularly in B2B growth and stablecoin technology, is promising. The market cap suggests moderate volatility, leading to a positive stock price outlook.
Revenue Q3 revenue was $271 million, up 9% year-over-year. Revenue excluding interest income reached $211 million, up 15% year-over-year. The growth was driven by the B2B franchise, adoption of high-value products and services, and strategic pricing and fee initiatives.
Adjusted EBITDA Adjusted EBITDA was $71 million, representing a 26% adjusted EBITDA margin in the quarter. Excluding interest income, adjusted EBITDA was $12 million. Year-to-date, adjusted EBITDA excluding interest income was approximately $27 million, nearly double the amount generated in 2024.
ARPU (Average Revenue Per User) ARPU increased 15% in the quarter, and excluding interest income, was up 22%. Since Q1 2023, total ARPU increased by 65% from $286 to over $470. This growth is attributed to moving upmarket, cross-selling higher-yielding AP products, and refining pricing and monetization strategies.
Customer Funds Customer funds held by Payoneer increased 17% year-over-year to $7.1 billion. This growth reflects customer trust in the platform and the utility provided by Payoneer accounts.
B2B Revenue B2B revenue grew 27% in Q3 and now represents roughly 30% of revenue excluding interest income, up from 20% in Q1 2023. The growth is driven by focusing on larger customers and increasing the average invoice size.
Transaction Costs Transaction costs were $42 million, up 12% year-over-year. Excluding interest income, transaction costs represented 20.1% of revenue, a decrease of around 70 basis points versus the prior year period, due to improved operational efficiency.
Net Income Net income was $14 million compared to $42 million in the third quarter of last year. The prior year period included a $19 million income tax benefit, which impacted the comparison.
Cash and Cash Equivalents Cash and cash equivalents were $479 million at the end of the quarter. Operating cash flows significantly exceeded net income, enabling investments for growth and share repurchases.
B2B revenue growth: B2B revenue grew 27% in Q3, now representing roughly 30% of revenue ex-interest, up from 20% in Q1 2023. The platform addresses complex AR and AP needs of global businesses.
Multiproduct adoption: Over 50% of Payoneer account spend now comes from customers using 3 or more AP products, up 200 basis points year-over-year.
Stablecoin wallet functionality: Payoneer is working on offering stablecoin wallet functionality in 2026.
Customer funds growth: Customers held over $7 billion on the platform, up 17% year-over-year for the second straight quarter.
Expansion in B2B: More than 50% of B2B revenue came from ICPs doing more than $250,000 per month in volume, with average invoice size increasing mid-teens percentage year-over-year.
Improved unit economics: ARPU increased 65% since Q1 2023, from $286 to over $470. Focused on larger, more complex customers and exiting customers that don't meet risk tolerance or desired economics.
Transaction cost optimization: Transaction costs represented 20.1% of revenue excluding interest income, a decrease of 70 basis points year-over-year, driven by improved operational efficiency.
Focus on profitable growth: Refined portfolio segmentation across region, vertical, use case, product, and unit economics to ensure long-term business health.
Capital allocation: Board approved a $300 million buyback, with $45 million of shares repurchased in Q3.
Short-term volatility in global trade and supply chains: The company acknowledges navigating short-term volatility in global trade and supply chains, which could impact operations and financial performance.
Customer portfolio risk: The company is exiting customers that do not meet risk tolerance or desired economics, which could lead to short-term revenue impacts.
Dependence on interest income: A significant portion of revenue is derived from interest income on customer balances, which is subject to fluctuations in interest rates despite hedging efforts.
Regulatory and compliance costs: Higher legal and consulting fees, including those related to license applications in India, indicate regulatory hurdles and associated costs.
Transaction cost pressures: Transaction costs remain a key area of focus, with ongoing efforts to optimize costs and manage profitability.
Macroeconomic uncertainties: The company operates in a dynamic global macroenvironment, which could affect volumes and revenue growth.
Operational expenses: Increased labor-related costs, facilities costs, and acquisition-related expenses could pressure margins.
Blockchain and stablecoin adoption risks: Efforts to evolve the platform for blockchain and stablecoin functionality carry execution and adoption risks.
Revenue Guidance for 2025: Payoneer expects total revenue between $1,050 million and $1,070 million, including $235 million from interest income and $815 million to $835 million excluding interest income. This reflects robust growth in customer funds and the current macro and trade environment.
Interest Income Projections: Interest income is projected to be $235 million for 2025, reflecting robust growth in customer funds, which have grown significantly in excess of volume year-to-date.
Adjusted EBITDA Guidance for 2025: Payoneer is raising its expectations for adjusted EBITDA to be between $270 million and $275 million, representing a 26% margin at the midpoint. Excluding interest income, adjusted EBITDA is expected to be $38 million at the midpoint, almost 3x the amount generated in 2024.
Customer Funds Growth: Customer funds held by Payoneer increased 17% year-over-year to $7.1 billion, demonstrating trust in the platform and representing future revenue potential as customers utilize AP products.
B2B Volume Growth: B2B volumes are expected to grow mid-teens in Q4 2025, with B2B revenue already growing 27% in Q3 2025 and representing 30% of revenue excluding interest income.
Marketplace Volume Expectations: Marketplace volumes are expected to be flat to up mid-single digits in Q4 2025.
Transaction Costs as Percentage of Revenue: Transaction costs as a percentage of revenue are expected to be approximately 16% for 2025, a 50 basis point reduction compared to prior guidance and a 200 basis point reduction versus the beginning of the year.
Strategic Investments and Capital Allocation: Payoneer plans to fund innovation, pursue selective M&A, and return capital to shareholders via repurchases. The company has nearly $500 million in cash and generated $50 million in operating cash flow in Q3 2025.
Stablecoin Wallet Functionality: Payoneer is working on offering stablecoin wallet functionality in 2026 as part of its strategy to evolve its platform and capture opportunities in blockchain and stablecoins.
Share Buyback Program: In July, the Board approved a $300 million buyback program. The company repurchased $45 million of shares in Q3 at a weighted average price of $6.73 per share. As of September 30, approximately $273 million remains on the current share repurchase authorization.
The earnings call summary and Q&A section reveal strong financial performance, optimistic guidance, and strategic partnerships (e.g., Mastercard). Despite some challenges like tariffs and macro volatility, management's focus on profitability and innovation, particularly in B2B growth and stablecoin technology, is promising. The market cap suggests moderate volatility, leading to a positive stock price outlook.
The earnings call summary shows a mixed picture: solid revenue growth and a strong cash position are positive, but the suspension of full-year guidance and potential revenue headwinds are concerning. The Q&A section reveals confidence in navigating tariffs, interest in stable coins, and strategic growth, but lacks clarity on tariff impacts and guidance. Given the company's small-cap status, the market may react within a neutral range (-2% to 2%) as investors weigh these factors.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
