Payoneer Reports First Quarter 2026 Financial Results

11% increase in revenue ex. interest and strong profitability 44% B2B volume growth reflects acceleration across every major region Increases 2026 guidance , /PRNewswire/ -- Payoneer Global Inc. ("Payoneer" or the "Company") (NASDAQ: PAYO), the global financial technology company powering business growth across borders, today reported financial results for its first quarter ended March 31, 2026. First Quarter 2026 Financial Highlights ($ in mm unless otherwise noted) 1Q 2025 2Q 2025 3Q 2025 4Q 2025 1Q 2026 YoY Change Revenue ex. interest income $188.6 $202.3 $211.4 $218.9 $210.1 11 % Interest income 58.0 58.3 59.5 55.8 51.5 (11) % Revenue $246.6 $260.6 $270.9 $274.7 $261.6 6 % Transaction costs as a % of revenue 16.0 % 15.6 % 15.7 % 15.6 % 13.5 % (250) bps Net income $20.6 $19.5 $14.1 $19.0 $19.6 (5) % Adjusted EBITDA 65.4 66.4 71.3 68.5 69.4 6 % Adjusted EBITDA ex. interest income 7.5 8.1 11.7 12.8 17.9 140 % Operational Metrics Volume ($bn) $19.7 $20.7 $22.3 $24.8 $22.8 16 % Average Revenue Per User (ARPU)1 $ 439 $ 452 $ 471 $ 488 $513 17 % Revenue as a % of volume ("Take Rate") 125 bps 126 bps 121 bps 111 bps 115 bps (10) bps SMB customer take rate2 119 bps 120 bps 121 bps 113 bps 120 bps 1 bp 1. Please refer to "Additional Information and Definitions" for a description of ARPU. 2. SMB customer take rate represents revenue from SMBs who sell on marketplaces, B2B SMBs, and Checkout (previously known as Merchant Services), divided by the associated volume from each respective channel. "In Q1 we delivered acceleration across major KPIs: revenue growth ex. interest accelerated to 11%, B2B volume growth more than doubled to 44%, and we delivered another quarter of significant core profitability expansion. We are driving broad-based momentum across our business, supported by differentiated assets that compound as we scale. We have infrastructure built on years of investment and innovation, network effects that strengthen as volumes grow, and platform depth that allows us to meet the needs of how our customers operate globally. We're a profitable, scaled platform in a multi-trillion-dollar B2B market that's still in the early innings of digitization, and our strong Q1 results demonstrate we're capturing share. We are executing consistently, moving fast where we see opportunities, and building a business that's not just larger, but structurally more valuable, with deeper strategic advantages and stronger customer relationships." John Caplan, Chief Executive Officer First Quarter 2026 Business Highlights (unless otherwise noted) Revenue excluding interest income grew 11% year-over-year, driven by 16% volume growth led by a significant acceleration in B2B. SMB customer revenue of $189 million grew 12% year-over-year, reflecting: SMBs that sell on marketplaces revenue of $115 million, up 4% year-over-year. B2B SMBs revenue of $64 million, up 23% year-over-year. Checkout revenue of $10 million, up 46% year-over-year. B2B volume growth accelerated significantly to 44% year-over-year driven by strong growth in China, EMEA and APAC. Strong enterprise payouts momentum continued with 28% year-over-year volume growth. 17% growth in ARPU, and 22% growth in ARPU excluding interest income, the seventh consecutive quarter of 20%+ growth in ARPU excluding interest income. 1bp of SMB customer take rate expansion driven by mix shift towards higher yield products and services and the impact of our fee and monetization initiatives. $7.6 billion of customer funds (including both short-term and long-term funds) as of March 31, 2026. Customer funds growth of 15% year-over-year partially offset the impact of lower interest rates on year-over-year interest income. Significant year-over-year increase in share repurchases, with $74 million in the first quarter at a weighted average price of $5.16, vs $17 million in Q1 2025. Announced a strategic collaboration with FundPark, a fintech that provides financing solutions that help e-commerce businesses in Hong Kong accelerate their global business expansion. 2026 Outlook "We begin 2026 with strong momentum. Revenue ex. interest is accelerating, robust growth in our B2B franchise is driving SMB take rate expansion, execution against our upmarket strategy is gaining traction and contributed to a seventh consecutive quarter of 20%+ growth in ARPU ex. interest, and core business profitability increased substantially. We're unlocking significant operating leverage while making meaningful investments, including in stablecoin and agentic AI, that we believe will support our durable, profitable growth. We are increasing our full year 2026 guidance, reflecting $900-$940 million in revenue ex. interest and $200 million in interest income. We expect adjusted EBITDA1 of $285-$295 million. Our business fundamentals are strong, our strategic initiatives are working, and we're well-positioned to capitalize on the significant opportunity ahead of us." Bea Ordonez, Chief Financial Officer 2026 guidance is as follows: Revenue $1,100 million - $1,140 million Transaction costs  ~15.0% of revenue Adjusted EBITDA1 $285 million to $295 million 1. The Company cannot reconcile its expected adjusted EBITDA to expected net income under "2026 Guidance" without unreasonable effort because certain items that impact net income and other reconciling metrics are out of the Company's control and/or cannot be reasonably predicted at this time, including income taxes and other financial (income) expense, net. Such unavailable information could have a significant impact on the Company's GAAP financial results. Please refer to "Financial Information; Non-GAAP Financial Measures" below for a description of the calculation of adjusted EBITDA. Webcast Payoneer will host a live webcast of its earnings on a conference call with the investment community beginning at 8:30 a.m. ET today, May 7, 2026. To access the webcast, go to the investor relations section of the Company's website at https://investor.payoneer.com. A replay will be available on the investor relations website following the call. About Payoneer Payoneer is the financial platform for cross-border business and global payments. Payoneer empowers millions of businesses with the financial tools and services they need to grow and transact globally with confidence. We make it easier for SMBs, particularly in emerging markets, to connect to the global economy, pay and get paid across borders, manage their funds across multiple currencies, and grow their businesses. Forward-Looking Statements This press release includes, and oral statements made from time to time by representatives of Payoneer, may be considered "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or Payoneer's future financial or operating performance. For example, projections of future revenue, transaction costs and adjusted EBITDA are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "should," "expect," "intend," "plan," "will," "estimate," "anticipate," "believe," "predict," "potential" or "continue," or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward looking statements. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Payoneer and its management, as the case may be, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (1) changes in applicable laws or regulations; (2) the possibility that Payoneer may be adversely affected by geopolitical events and conflicts, such as Israel's and the United States' conflicts in the Middle East, and other economic, business and/or competitive factors, such as changes in global trade policies (including the imposition of tariffs); (3) changes in the assumptions underlying our financial estimates; (4) the outcome of any known and/or unknown legal or regulatory proceedings; and (5) other risks and uncertainties set forth in Payoneer's Annual Report on Form 10-K for the period ended December 31, 2025 and future reports that Payoneer may file with the SEC from time to time. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Payoneer does not undertake any duty to update these forward-looking statements. Financial Information; Non-GAAP Financial Measures Some of the financial information and data contained in this press release, such as adjusted EBITDA, have not been prepared in accordance with United States generally accepted accounting principles ("GAAP"). Payoneer uses certain non-GAAP measures to compare Payoneer's performance to that of prior periods for budgeting and planning purposes. Payoneer believes these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Payoneer's results of operations. Payoneer's method of determining these non-GAAP measures may be different from other companies' methods and, therefore, may not be comparable to those used by other companies and Payoneer does not recommend the sole use of these non-GAAP measures to assess its financial performance. Payoneer management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in Payoneer's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. You should review Payoneer's financial statements, which are included in Payoneer's Annual Report on Form 10-K for the year ended December 31, 2025 and its subsequent Quarterly Reports on Form 10-Q, and not rely on any single financial measure to evaluate Payoneer's business.  Non-GAAP measures include the following items: Adjusted EBITDA: We provide adjusted EBITDA, a non-GAAP financial measure that represents our net income (loss) adjusted to exclude, as applicable: M&A related expense (income), stock-based compensation expenses, restructuring charges, loss (gain) from change in fair value of warrants and warrant repurchase/redemption, other financial expense (income), net, income taxes, and depreciation and amortization. Adjusted EBITDA ex. Interest: represents Adjusted EBITDA excluding interest income. Other companies may calculate the above measure differently, and therefore Payoneer's measures may not be directly comparable to similarly titled measures of other companies. Additional Information and Definitions In this earnings release, we reference volume, which is an operational metric. Volume refers to the total dollar value of transactions successfully completed or enabled by our platform, not including orchestration transactions. For a customer that both receives and later sends payments, we count the volume only once. Note: orchestration transactions ceased in 2024 and were related to our 2020 acquisition of optile GmbH. We also reference ARPU (Average Revenue Per User), which is defined as the Revenue from Active Customers divided by the number of Active Customers over the period in which the Revenue was earned. Active Customers for these purposes are defined as Payoneer accountholders with at least 1 financial transaction over the period. Revenue from Active Customers represents revenue attributed to Active Customers based on their use of the Payoneer platform, including interest income earned from their balances, and excluding revenues unrelated to their activities. Investor Contact: Michelle Wang [email protected] Media Contact: Angela Sullivan [email protected] TABLE - 1 PAYONEER GLOBAL INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (U.S. dollars in thousands, except share and per share data) (Unaudited) Three months ended March 31, 2026 2025 Revenues $ 261,595 $ 246,617 Transaction costs 35,202 39,349 Other operating expenses 40,011 41,658 Research and development expenses 43,326 37,271 Sales and marketing expenses 58,112 54,726 General and administrative expenses 36,007 29,904 Depreciation and amortization 18,916 14,390 Total operating expenses 231,574 217,298 Operating income 30,021 29,319 Financial expense: Other financial expense, net 812 1,550 Financial expense, net 812 1,550 Income before income taxes 29,209 27,769 Income taxes 9,641 7,192 Net income $ 19,568 $ 20,577 Other comprehensive income (loss) Unrealized gain (loss) on available-for-sale debt securities, net (8,351) 7,239 Tax benefit (expense) on unrealized gain (loss) on available-for-sale debt securities, net 1,902 (1,605) Unrealized loss on cash flow hedges, net (2,284) (1,787) Tax benefit on unrealized loss on cash flow hedges, net 446 327 Unrealized gain on interest rate floor, net 2,154 6,021 Tax expense on unrealized gain on interest rate floor, net (613) (1,276) Foreign currency translation adjustments (111) (169) Other comprehensive income (loss) (6,857) 8,750 Comprehensive income $ 12,711 $ 29,327 Per Share Data Net income per share attributable to common stockholders — Basic earnings per share $ 0.06 $ 0.06 — Diluted earnings per share $ 0.06 $ 0.05 Weighted average common shares outstanding — Basic 345,342,308 362,979,571 Weighted average common shares outstanding — Diluted 350,470,788 382,215,129 Disaggregation of revenue The following table presents revenue recognized from contracts with customers as well as revenue from other sources: (Unaudited) Three months ended March 31, 2026 2025 Revenue recognized at a point in time $ 206,899 $ 185,333 Revenue recognized over time 1,152 930 Revenue from contracts with customers $ 208,051 $ 186,263 Interest income on customer balances $ 51,537 $ 57,972 Capital advance income 2,007 2,382 Revenue from other sources $ 53,544 $ 60,354 Total revenues $ 261,595 $ 246,617 The following table presents the Company's revenue disaggregated by primary regional market, with revenues being attributed to the country (in the region) in which the billing address of the transacting customer is located, with the exception of global bank transfer revenues, where revenues are disaggregated based on the billing address of the transaction funds source. (Unaudited) Three months ended March 31, 2026 2025 Primary regional markets Greater China(1) $ 86,616 $ 84,896 Europe, Middle East, and Africa(2) 64,751 58,893 Asia-Pacific(2) 58,185 51,260 Latin America(2) 26,047 27,873 North America(3) 25,996 23,695 Total revenues $ 261,595 $ 246,617 1. Greater China is inclusive of mainland China, Hong Kong, Macao and Taiwan. 2. No single country included in any of these regions generated more than 10% of total revenue. 3. The United States is the Company's country of domicile. Of North America revenues, the U.S. represents $25,123 and $22,624 during the three months ended March 31, 2026 and 2025 TABLE - 2 PAYONEER GLOBAL INC. RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (UNAUDITED) (U.S. dollars in thousands) Three months ended March 31, 2026 2025 Net income $ 19,568 $ 20,577 Depreciation and amortization 18,916 14,390 Income taxes 9,641 7,192 Other financial expense, net 812 1,550 EBITDA 48,937 43,709 Stock based compensation expenses(1) 18,524 18,755 M&A related expenses(2) 478 337 Restructuring charges(3) 1,509 2,630 Adjusted EBITDA $ 69,448 $ 65,431 Three months ended, Mar. 31, 2025 June 30, 2025 Sept. 30, 2025 Dec. 31, 2025 Mar. 31, 2026 Net income $ 20,577 $ 19,480 $ 14,123 $ 19,012 $ 19,568 Depreciation and amortization 14,390 15,553 16,140 19,542 18,916 Income taxes 7,192 10,370 16,388 8,446 9,641 Other financial expense, net 1,550 227 5,836 1,466 812 EBITDA 43,709 45,630 52,487 48,466 48,937 Stock based compensation expenses(1) 18,755 20,059 17,799 16,491 18,524 M&A related expenses(2) 337 736 981 1,339 478 Restructuring charges(3) 2,630 — — 2,243 1,509 Adjusted EBITDA $ 65,431 $ 66,425 $ 71,267 $ 68,539 $ 69,448 1. Represents non-cash charges associated with stock-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant recurring expense in our business and an important part of our compensation strategy. 2. Amounts relate to M&A-related third-party fees, including related legal, consulting and other expenditures. For the three months ended March 31, 2026, $0.5 million of these expenses related to the acquisition of Boundless and the non-recurring fair value adjustment of the Skuad contingent consideration liability discussed in Note 3 to our condensed consolidated financial statements included elsewhere within this Quarterly Report on Form 10-Q. Amounts for the three months ended March 31, 2025 include $0.3 million in non-recurring fair value adjustment of the Skuad contingent consideration liability discussed in Note 3 to our condensed consolidated financial statements included elsewhere within this Quarterly Report on Form 10-Q. 3. Represents non-recurring costs related to severance and other employee termination benefits. TABLE - 3 PAYONEER GLOBAL INC. EARNINGS PER SHARE (U.S. dollars in thousands, except share and per share data) (Unaudited) Three months ended March 31, 2026 2025 Numerator: Net income $ 19,568 $ 20,577 Denominator: Weighted average common shares outstanding — Basic 345,342,308 362,979,571 Add: Dilutive impact of RSUs, ESPP and options to purchase common stock 5,128,480 18,362,026 Dilutive impact of private Warrants — 873,532 Weighted average common shares — diluted 350,470,788 382,215,129 Net income per share attributable to common stockholders — Basic earnings per share $ 0.06 $ 0.06 Diluted earnings per share $ 0.06 $ 0.05 TABLE - 4 PAYONEER GLOBAL INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) (U.S. dollars in thousands, except share and per share data) March 31, December 31, 2026 2025 Assets: Current assets: Cash and cash equivalents $ 339,365 $ 415,537 Restricted cash 4,851 6,090 Customer funds 7,245,415 7,544,541 Accounts receivable (net of allowance of $843 and $501 at March 31, 2026 and December 31, 2025, respectively) 12,634 10,412 Capital advance receivables (net of allowance of $3,676 at March 31, 2026 and $3,953 at December 31, 2025) 37,234 43,665 Other current assets 83,969 90,671 Total current assets 7,723,468 8,110,916 Non-current assets: Property, equipment and software, net 39,739 32,437 Goodwill 86,188 77,785 Intangible assets, net 214,443 208,053 Customer funds 350,000 350,000 Restricted cash 23,561 23,604 Deferred tax assets, net 60,261 56,898 Severance pay fund 867 856 Operating lease right-of-use assets 63,750 62,257 Other assets 35,729 33,783 Total assets $ 8,598,006 $ 8,956,589 Liabilities and shareholders' equity: Current liabilities: Trade payables $ 41,811 $ 44,611 Outstanding operating balances 7,595,415 7,894,541 Other payables 124,637 144,568 Total current liabilities 7,761,863 8,083,720 Non-current liabilities: Deferred tax liabilities, net 25,455 25,051 Other long-term liabilities 151,613 143,391 Total liabilities 7,938,931 8,252,162 Commitments and contingencies Shareholders' equity: Preferred stock, $0.01 par value, 380,000,000 shares authorized; no shares were issued and outstanding at March 31, 2026 and December 31, 2025. — — Common stock, $0.01 par value, 3,800,000,000 and 3,800,000,000 shares authorized; 415,278,698 and 411,826,086 shares issued and 337,813,340 and 348,704,315 shares outstanding at March 31, 2026 and December 31, 2025, respectively. 4,153 4,118 Treasury stock at cost, 77,465,358 and 63,121,771 shares as of March 31, 2026 and December 31, 2025, respectively. (443,483) (368,867) Additional paid-in capital 912,812 896,294 Accumulated other comprehensive loss (13,134) (6,277) Retained earnings 198,727 179,159 Total shareholders' equity 659,075 704,427 Total liabilities and shareholders' equity $ 8,598,006 $ 8,956,589 TABLE - 5 PAYONEER GLOBAL INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (U.S. dollars in thousands) March 31, 2026 2025 Cash Flows from Operating Activities Net income $ 19,568 $ 20,577 Adjustment to reconcile net income to net cash provided by operating activities: Depreciation and amortization 18,916 14,390 Deferred taxes (1,108) (2,279) Stock-based compensation expenses 18,524 18,755 Interest on certificate of deposits (5,718) (6,725) Interest and amortization of premium/discount on investments 401 (2,685) Net realized (gains) losses on derivative instruments (94) 117 Foreign currency re-measurement (gain) loss 684 (1,811) Changes in operating assets and liabilities: Other current assets 6,802 17,165 Trade payables (6,750) (2,883) Deferred revenue 1,900 358 Accounts receivable, net (2,187) 2,555 Capital advance extended to customers (64,160) (84,078) Capital advance collected from customers 70,591 95,232 Other payables (15,154) (17,108) Other long-term liabilities 6,603 (781) Operating lease right-of-use assets 3,139 2,121 Other assets (126) 796 Net cash provided by operating activities 51,831 53,716 Cash Flows from Investing Activities Purchase of property, equipment and software (10,148) (4,726) Capitalization of internal use software (18,619) (16,067) Severance pay fund distributions, net (11) 17 Customer funds in transit, net (22,319) (19,742) Purchases of investments in available-for-sale debt securities (80,375) (71,968) Maturities of investments in available-for-sale debt securities 75,000 64,500 Settlement of cash flow hedges 2,061 — Cash paid in connection with acquisition, net of cash acquired (6,479) — Net cash used in investing activities (60,890) (47,986) Cash Flows from Financing Activities Proceeds from issuance of common stock in connection with stock-based compensation plan, net of taxes paid related to settlement of equity awards and proceeds from employee equity transactions to be remitted to employees (2,543) (4,400) Outstanding operating balances, net (301,781) (385,763) Receipts of collateral on interest rate derivatives 32,860 25,610 Payments of collateral on interest rate derivatives (32,680) (20,140) Consideration related to previous acquisitions (6,519) — Common stock repurchased (74,991) (17,753) Net cash used in financing activities (385,654) (402,446) Effect of exchange rate changes on cash and cash equivalents (808) 1,878 Net change in cash, cash equivalents, restricted cash and customer funds (395,521) (394,838) Cash, cash equivalents, restricted cash and customer funds at beginning of period 6,416,707 5,658,210 Cash, cash equivalents, restricted cash and customer funds at end of period $ 6,021,186 $ 5,263,372 Supplemental information of investing and financing activities not involving cash flows: Property, equipment, and software acquired but not paid $ 1,485 $ — Internal use software capitalized but not paid $ 6,694 $ 4,959 Common stock repurchased but not paid $ 1,942 $ — Right of use assets obtained in exchange for new operating lease liabilities $ 2,330 $ 2,724 View original content to download multimedia:https://www.prnewswire.com/news-releases/payoneer-reports-first-quarter-2026-financial-results-302764826.html SOURCE Payoneer