Payoneer Reports First Quarter 2026 Financial Results
Rhea-AI Summary
Payoneer (NASDAQ: PAYO) reported Q1 2026 results: revenue ex. interest $210.1M (+11% YoY), total revenue $261.6M (+6% YoY), and adjusted EBITDA $69.4M. B2B volume grew 44% YoY, ARPU rose 17%, customer funds were $7.6B, and the company increased full‑year 2026 guidance for revenue ex. interest to $900–$940M and adjusted EBITDA to $285–$295M.
AI-generated analysis. Not financial advice.
Positive
- Revenue ex. interest +11% YoY ($210.1M)
- B2B volume growth +44% YoY
- ARPU +17% YoY ($513)
- Increased 2026 adjusted EBITDA guidance $285–$295M
- Q1 share repurchases $74M at $5.16 average
Negative
- Interest income down 11% YoY ($51.5M)
- Total revenue growth muted to +6% YoY due to lower interest income
News Market Reaction – PAYO
On the day this news was published, PAYO gained 4.12%, reflecting a moderate positive market reaction. Argus tracked a peak move of +2.2% during that session. Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $65M to the company's valuation, bringing the market cap to $1.64B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
PAYO was at $4.86, down 1.02% pre‑earnings, while peers were mixed: EVTC -1.77%, but PAGS, AI, APPN and NN were all up between 2.76% and 3.79%. Momentum scanner flagged PGY and APPN moving up, suggesting stock‑specific factors rather than a uniform sector move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 26 | Q4/FY 2025 earnings | Positive | -18.5% | Full-year 2025 growth, improved profitability, buybacks, and 2026 outlook. |
| Nov 05 | Q3 2025 earnings | Positive | -5.5% | Record Q3 revenue, strong ARPU and SMB growth, guidance raised. |
| Aug 06 | Q2 2025 earnings | Positive | +14.2% | Record revenue ex‑interest, solid volume and SMB growth, new partnerships. |
| May 07 | Q1 2025 earnings | Positive | -13.6% | Strong ex‑interest growth, SMB strength, China license, guidance suspended. |
| Feb 27 | Q4/FY 2024 earnings | Positive | -14.7% | Record annual volume, robust B2B growth, buybacks and acquisitions. |
Earnings releases have often been followed by negative one-day moves despite generally positive operating metrics and raised guidance.
Over the past few quarters, Payoneer’s earnings updates have highlighted consistent growth in revenue excluding interest, rising ARPU and expanding B2B volumes. Despite this, one‑day price reactions to earnings have frequently been negative, including moves of -18.51%, -14.73%, and -13.6% after prior reports. Buybacks and guidance increases have not consistently translated into positive immediate trading responses, framing today’s Q1 2026 results within a pattern of strong fundamentals but volatile post‑earnings sentiment.
Historical Comparison
In the past five earnings releases, PAYO’s average next‑day move was -7.64% despite generally positive KPIs and guidance, underscoring a pattern of cautious or skeptical post‑earnings trading.
Earnings reports show a progression of growing revenue ex. interest, expanding B2B and ARPU, and increasing buybacks, with 2026 guidance building on these trends.
Market Pulse Summary
This announcement details Q1 2026 growth in revenue ex. interest of 11%, strong 44% B2B volume expansion, higher ARPU and increased SMB revenue. Management also raised 2026 guidance, targeting $900–$940M revenue ex. interest and $285–$295M adjusted EBITDA, while boosting share repurchases. In context of past earnings that often met with volatile reactions, investors may track execution on B2B growth, ARPU trends and capital return to assess durability of these improvements.
Key Terms
arpu financial
take rate financial
bps financial
adjusted ebitda financial
stablecoin technical
AI-generated analysis. Not financial advice.
Increases 2026 guidance
First Quarter 2026 Financial Highlights
($ in mm unless otherwise noted) | 1Q 2025 | 2Q 2025 | 3Q 2025 | 4Q 2025 | 1Q 2026 | YoY Change | |||||
Revenue ex. interest income | 11 % | ||||||||||
Interest income | 58.0 | 58.3 | 59.5 | 55.8 | 51.5 | (11) % | |||||
Revenue | 6 % | ||||||||||
Transaction costs as a % of revenue | 16.0 % | 15.6 % | 15.7 % | 15.6 % | 13.5 % | (250) bps | |||||
Net income | (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) | 16 % | ||||||||||
Average Revenue Per User (ARPU)1 | 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
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 by16% volume growth led by a significant acceleration in B2B. - SMB customer revenue of
$189 million 12% year-over-year, reflecting:- SMBs that sell on marketplaces revenue of
$115 million 4% year-over-year. - B2B SMBs revenue of
$64 million 23% year-over-year. - Checkout revenue of
$10 million 46% year-over-year.
- SMBs that sell on marketplaces revenue of
- B2B volume growth accelerated significantly to
44% year-over-year driven by strong growth inChina , EMEA and APAC. - Strong enterprise payouts momentum continued with
28% year-over-year volume growth. 17% growth in ARPU, and22% growth in ARPU excluding interest income, the seventh consecutive quarter of20% + 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 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 $5.16 $17 million - 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
We are increasing our full year 2026 guidance, reflecting
Bea Ordonez, Chief Financial Officer
2026 guidance is as follows:
Revenue | |||||||
Transaction costs | ~ | ||||||
Adjusted EBITDA1 | |||||||
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
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
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
investor@payoneer.com
Media Contact:
Angela Sullivan
PR@payoneer.com
TABLE - 1 PAYONEER GLOBAL INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) ( | ||||||
(Unaudited) | ||||||
Three months ended | ||||||
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 | $ | 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 | ||||||
$ | 86,616 | $ | 84,896 | |||
64,751 | 58,893 | |||||
58,185 | 51,260 | |||||
26,047 | 27,873 | |||||
25,996 | 23,695 | |||||
Total revenues | $ | 261,595 | $ | 246,617 | ||
1. | ||||||||||||
2. | No single country included in any of these regions generated more than | |||||||||||
3. | ||||||||||||
TABLE - 2 PAYONEER GLOBAL INC. RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (UNAUDITED) ( | ||||||
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, | |||||||||||
3. | Represents non-recurring costs related to severance and other employee termination benefits. | |||||||||||
TABLE - 3 PAYONEER GLOBAL INC. EARNINGS PER SHARE ( | ||||||
(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 | $ | 0.06 | $ | 0.06 | ||
Diluted earnings per share | $ | 0.06 | $ | 0.05 | ||
TABLE - 4 PAYONEER GLOBAL INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) ( | ||||||
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 | 12,634 | 10,412 | ||||
Capital advance receivables (net of allowance of | 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, | — | — | ||||
Common stock, | 4,153 | 4,118 | ||||
Treasury stock at cost, 77,465,358 and 63,121,771 shares as of March 31, 2026 and | (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) ( | ||||||
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, | (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 | ||
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SOURCE Payoneer