Payoneer Global (PAYO) FY Conference Summary Company Overview - **Company**: Payoneer Global (PAYO) - **Industry**: Fintech and Payment Services - **Key Executives Present**: CEO John Kaplan, CFO Pete Ordonez Core Industry Insights - **Global Economic Trends**: The digitization of global commerce, globalization of workforces, and diversification of global trade are significant trends benefiting Payoneer [5][6] - **Tariff Environment**: Current tariff situations present short-term headwinds but are expected to create long-term opportunities for growth [5] Financial Performance - **EBITDA Growth**: Payoneer reported an EBITDA of $270 million in 2024, a significant increase from $28 million in 2021 [2][11] - **Revenue Growth**: Revenue grew by 20% in 2025, with Q1 showing a 16% increase [12][39] - **Customer Funds**: The company holds approximately $7 billion in customer funds, which generates interest income despite no yield being paid to customers [10][42] - **Revenue Composition**: 90% of revenue comes from 550,000 ideal customer profiles (ICPs), which represent over 50% of total revenue [29][30] Market Position and Strategy - **Market Share**: Payoneer has a single-digit market share in key global markets and aims to expand its presence [26] - **Customer Segments**: Focus on B2B SMBs and marketplace sellers, with a 20% market share in the latter [27][28] - **Product Diversification**: The company is expanding its product offerings, including accounts payable solutions and workforce management tools [15][32] Competitive Advantages - **Branded Relationships**: Strong partnerships with major marketplaces like Amazon, eBay, and Alibaba enhance Payoneer's market position [20][22] - **Local Presence**: Payoneer operates in 90 countries, providing localized support and services, which is a significant competitive advantage [25] - **Technological Edge**: The company offers advanced financial solutions that traditional banks cannot match, such as multi-currency accounts and 24/7 support [26][24] Future Outlook - **Growth Projections**: The management team aims for mid-teens revenue growth and 25% adjusted EBITDA margins in the medium term [38] - **Investment in Growth**: Payoneer has a strong balance sheet with $500 million in cash and no debt, allowing for continued investment in growth and shareholder returns [36][50] Investor Insights - **Market Misunderstandings**: There is a perceived disconnect between Payoneer's financial performance and investor understanding, particularly regarding the value of customer funds and the company's growth potential [41][42] - **Take Rate Dynamics**: Contrary to industry trends, Payoneer has successfully expanded its take rates, indicating strong pricing power [48][49] Conclusion - Payoneer is well-positioned to capitalize on the growing demand for cross-border financial services, with a robust business model, strong financial performance, and a clear strategy for future growth. The company encourages investors to engage more deeply with its business model to fully appreciate its value proposition and growth potential [51].

Payoneer Global (PAYO) FY Conference Summary Company Overview - **Company**: Payoneer Global - **Industry**: Financial Technology (FinTech) - **Focus**: Empowering small and medium-sized businesses (SMBs) for global transactions - **Global Reach**: Customers in 190 countries and territories [4][5] Core Points and Arguments - **Mission**: To simplify cross-border payments and accounts for businesses globally [5] - **Revenue Growth**: Achieved 42% revenue growth over the last two years and turned the core business profitable [5][17] - **Customer Base**: 2 million active customers with 11 million applications annually [14] - **Market Opportunity**: Positioned in a $300 billion marketplace payouts business, with significant potential in cross-border B2B payments for SMBs and emerging markets [12][24] - **Strategic Focus**: Shifted from a one-size-fits-all approach to a targeted strategy focusing on larger B2B customers [14][54] - **Financial Performance**: Delivered 20% revenue growth in 2024, exceeding medium-term targets [17] Industry Dynamics - **Competitive Landscape**: Competes with PayPal but also collaborates with them; primarily disrupts traditional banks that lack modern technology [26][30] - **Emerging Markets**: Actively expanding in India, with a new partnership with Alibaba.com to onboard Indian exporters [25][43] - **Cross-Border Payments**: Significant growth in the SMB economy, with a focus on underserved markets [24][30] Product and Service Innovations - **Financial Stack**: A comprehensive suite of services for accounts receivable (AR) and accounts payable (AP) [46] - **Card Product Growth**: 30% growth in card usage over the last six quarters, indicating strong customer loyalty [46][48] - **Customer-Centric Approach**: Focus on understanding and meeting the unique needs of SMBs globally [30][32] Macro Environment and Challenges - **Resilience**: Despite macroeconomic disruptions (e.g., Ukraine war, SVB collapse), the business remains strong and resilient [19][40] - **Trade Dynamics**: No significant deterioration in financials due to trade disruptions; sellers are adapting to changing tariff environments [40][41] Future Outlook - **Growth Trajectory**: Early stages of a multi-year growth journey with strong momentum and opportunities ahead [20][21] - **Stablecoins**: Exploring the potential of stablecoins as a payment rail, leveraging existing customer trust [36][37] - **Customer Retention**: Focus on high-value customers and expanding product offerings to drive revenue growth [54][55] Additional Insights - **Cultural Impact**: Payoneer is viewed as synonymous with entrepreneurship in many regions, particularly in emerging markets [10] - **Customer Engagement**: Strong emphasis on building relationships and community with customers [30][32] - **Adaptability**: The company is well-positioned to adapt to changing market conditions and customer needs [39][60]

Group 1 - Payoneer Global Inc. (NASDAQ: PAYO) has been trading near its lows after being public for over 4 years, indicating potential undervaluation in the market [1] - The company has consistently demonstrated strong growth despite challenges such as the Russian invasion, showcasing its resilience in the global payments sector [1]

Financial Performance - Revenues for the three months ended March 31, 2025, were $246.6 million, an increase of $18.4 million or 8% compared to the prior year[152]. - Operating income decreased by 24% to $29.3 million for the three months ended March 31, 2025, compared to $38.4 million in the prior year[152]. - Net income for the three months ended March 31, 2025, was $20.6 million, a decrease of 29% compared to $29.0 million in the prior year[152]. - Adjusted EBITDA for the three months ended March 31, 2025, was $65.431 million, slightly up from $65.236 million in the same period of 2024[193]. - The company experienced an $8.4 million year-over-year decrease in net income for the three months ended March 31, 2025, primarily due to a $27.5 million increase in operating expenses[176]. Expenses - General and administrative expenses increased by 24% to $29.9 million for the three months ended March 31, 2025, primarily due to higher employee compensation and consulting expenses[159]. - Research and development expenses rose by 16% to $37.3 million for the three months ended March 31, 2025, driven by increased employee-related expenses and restructuring charges[157]. Cash Flow and Investments - As of March 31, 2025, the company had $524.2 million in cash and cash equivalents[168]. - Net cash provided by operating activities increased to $53.7 million for the three months ended March 31, 2025, up from $39.5 million in the same period of 2024, representing a growth of 36%[175]. - Net cash used in investing activities decreased to $48.0 million for the three months ended March 31, 2025, from $114.1 million in the same period of 2024, a reduction of 58%[182]. - Net cash used in financing activities was $402.4 million for the three months ended March 31, 2025, down from $521.1 million in the same period of 2024, a decrease of 23%[184]. Acquisitions - Payoneer acquired 100% of Payeco Finance Information Holding Corporation on April 9, 2025, enhancing its regulatory infrastructure in China[149]. - The company also acquired Skuad Pte. Ltd. on August 5, 2024, to strengthen its financial services for SMBs operating internationally[150]. Market Conditions and Risks - The ongoing geopolitical conflicts, including the war in Ukraine and the conflict in Israel, may impact future revenues and operations, although current effects have been minimal[143][148]. - The company is monitoring the impacts of evolving tax legislation, with a global minimum tax of 15% applicable from January 1, 2025, in certain jurisdictions[165]. Share Repurchase - The company repurchased 1,880,309 shares of common stock for $17.0 million during the three months ended March 31, 2025, with $86.8 million remaining available for future repurchases[170]. - The company has authorized a stock repurchase program of up to $250.0 million, which expires on December 31, 2025[169]. Foreign Exchange Revenue - Payoneer has the opportunity to generate revenues from foreign exchange transactions as part of the payment delivery process[206]. - The ability to generate revenues from foreign exchange is partially dependent on external factors such as market conditions and applicable regulations[206]. - Optimizing foreign exchange efforts can have a material impact on revenues and earnings[206].

Core Insights - Payoneer Global Inc. reported quarterly earnings of $0.05 per share, missing the Zacks Consensus Estimate of $0.07 per share, and down from $0.08 per share a year ago, representing an earnings surprise of -28.57% [1] - The company posted revenues of $246.62 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.70%, and up from $228.18 million year-over-year [2] - Payoneer Global shares have declined approximately 29% since the beginning of the year, contrasting with the S&P 500's decline of -4.7% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.07 on revenues of $251.53 million, and for the current fiscal year, it is $0.28 on revenues of $1.04 billion [7] - The estimate revisions trend for Payoneer Global is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Financial Transaction Services industry, to which Payoneer Global belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting that companies in the top half of Zacks-ranked industries tend to outperform those in the bottom half by more than 2 to 1 [8]

Payoneer Global (PAYO) Q1 2025 Earnings Call May 07, 2025 08:30 AM ET Company Participants Michelle Wang - Vice President-Investor RelationsJohn Caplan - Chief Executive OfficerBea Ordonez - Chief Financial OfficerDaniel Krebs - Senior AssociateWill Nance - Vice PresidentTrevor Williams - Managing DirectorSanjay Sakhrani - Managing Director Conference Call Participants Cristopher Kennedy - Research Analyst, Financial Services and Technology Operator Morning and thank you for standing by. Welcome to the Payo ...

Financial Data and Key Metrics Changes - Revenue grew 16% year over year excluding interest income, reaching $247 million, with adjusted EBITDA of $65 million and a 27% margin [10][25][32] - Net income was $21 million compared to $29 million in the same quarter last year, with basic and diluted earnings per share at $0.06 and $0.05 respectively [32] - Customer funds held by the company increased 11% year over year to $6.6 billion, contributing to interest income of $58 million despite declining average interest rates [28][29] Business Line Data and Key Metrics Changes - B2B revenue increased 37%, driven by growth in APAC, EMEA, and Latin America [11] - SMB volume grew 7% year over year, with B2B SMB volume up 21% and merchant services volume up 88% [26] - The take rate increased to 1.25%, up one basis point year over year, with SMB customer take rate up 11 basis points [27][28] Market Data and Key Metrics Changes - APAC and Latin America customer regions each grew revenue over 20%, representing about a third of total revenue [17] - Approximately 40% of revenue comes from helping customers sell to non-US markets, indicating a strong global presence [18] Company Strategy and Development Direction - The company aims to become the essential partner for cross-border SMBs, leveraging core assets to navigate the changing trade landscape [6][10] - Focus on quality customers and targeting high-value segments by industry, region, size, and product need [12][33] - Recent acquisition of a licensed China-based payment provider enhances the company's regulatory footprint in key markets [19][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term opportunities despite current macroeconomic uncertainties and potential impacts from tariffs [33][36] - The company is suspending its previously issued full-year 2025 guidance due to high uncertainty around global trade policies [33][35] - Management noted that SMBs are resilient and adapting to changes, with expectations for continued growth in the second quarter [34][37] Other Important Information - Total operating expenses increased 14% to $217 million, driven by higher transaction costs and labor-related expenses [30][31] - The company is focused on diversifying its business and investing in core capabilities to support customers [36][37] Q&A Session Summary Question: Customer reception to price increases and pricing power - Management stated that the pricing strategy remains customer segment-focused, with no immediate changes despite macro uncertainties [39][41] Question: Trends in customer onboarding and retention - Management highlighted strong net revenue retention among large customers and ongoing efforts to improve retention [42][43] Question: Clarification on the $50 million revenue impact from tariffs - Management explained that the $50 million figure is based on various assumptions regarding customer behavior and market dynamics [46][49] Question: Breakdown of revenue from China to the US - Management indicated that larger sellers in China are expected to be more resilient to tariffs, with a diverse range of sellers supported [60][62] Question: Impact of tariffs on overall margins - Management noted that while there could be impacts from tariffs, they do not anticipate a material effect at lower levels [77][78] Question: Evidence of pull forward in volumes - Management acknowledged the difficulty in determining pull forward effects due to various external factors impacting volume [80][81] Question: Changes in the number of ideal customer profiles (ICPs) - Management clarified that the focus is on maximizing profitable revenue growth rather than the quantity of ICPs, with significant growth in revenue from larger customers [84][86]

Financial Data and Key Metrics Changes - Revenue grew 16% year over year excluding interest income, reaching $247 million, with adjusted EBITDA of $65 million and a 27% margin [22][23][29] - Net income was $21 million compared to $29 million in the same quarter last year, with basic and diluted earnings per share at $0.06 and $0.05 respectively [30] - Customer funds held by Payoneer increased 11% year over year to $6.6 billion, contributing to interest income of $58 million despite declining average interest rates [25][26] Business Line Data and Key Metrics Changes - B2B revenue increased 37%, driven by growth in APAC, EMEA, and Latin America [9] - SMB volume grew 7% year over year, with B2B SMB volume up 21% and merchant services volume up 88% [23] - Average revenue per user (ARPU) growth excluding interest income accelerated to 22% year over year, marking the seventh consecutive quarter of growth [11] Market Data and Key Metrics Changes - APAC and Latin America customer regions each grew revenue over 20%, representing about a third of total revenue [15] - Approximately 40% of revenue comes from helping customers sell to non-US markets, indicating a strong diversification strategy [16] Company Strategy and Development Direction - The company aims to become the essential partner for cross-border SMBs, leveraging its core assets to navigate the changing trade landscape [5][12] - Focus on quality customers and targeting high-value segments by industry, region, size, and product need [10] - Recent acquisition of a licensed China-based payment provider enhances the company's regulatory footprint and market access [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term opportunities despite current macroeconomic uncertainties and potential impacts from tariffs [31][34] - The company is suspending its previously issued full-year 2025 guidance due to high uncertainty around global trade policies [31][34] - Management noted that they have not seen a slowdown in volumes or revenue through early May, expecting growth in Q2 to align with medium-term targets [32] Other Important Information - Total operating expenses increased 14% year over year, primarily due to higher transaction costs and labor-related expenses [27] - The company is actively managing its hedging programs to reduce sensitivity to fluctuations in short-term interest rates [26] Q&A Session Summary Question: Customer reception to price increases and confidence in pricing power - Management stated that their pricing strategy remains customer segment-focused and they have not seen pressure from price increases [38][40] Question: Trends in customer onboarding and retention - Management highlighted strong net revenue retention among larger customers and ongoing focus on improving retention strategies [41][42] Question: Clarification on the $50 million revenue impact from tariffs - Management explained that the $50 million figure is based on various assumptions regarding customer behavior and market dynamics, emphasizing the uncertainty of outcomes [45][49] Question: Breakdown of revenue from China and merchant size - Management indicated that larger sellers in China are expected to be more resilient to tariffs, with a diverse range of sellers supported [60][62] Question: Potential for share gains post-tariff disruptions - Management sees significant long-term opportunities for Chinese sellers to expand into other markets, supported by their established relationships with global marketplaces [68][70] Question: Maintaining momentum in a difficult environment - Management emphasized disciplined operations and the ability to optimize expenses in response to changing market conditions [71][72] Question: Strategy for workforce management - Management expressed excitement about the growth potential in workforce management, aligning with customer needs for global teams [73][74]

Financial Performance & Growth - Payoneer's total revenue for 1Q25 was $247 million, representing an 8% year-over-year growth[109] - Revenue excluding interest income for 1Q25 was $189 million, a 16% year-over-year increase[109] - Adjusted EBITDA for 1Q25 was $65 million, with an adjusted EBITDA margin of 27%[109] - Customer funds grew by 11% year-over-year, reaching $6.6 billion[85] Customer & Regional Growth - Active Ideal Customer Profiles (ICPs) totaled 556,000 as of March 31, 2025, a 5% year-over-year increase[42, 116] - Revenue from the APAC region grew by 23% year-over-year in 1Q25[116] - Revenue from the LATAM region grew by 21% year-over-year in 1Q25[116] Product & Service Expansion - B2B SMBs revenue increased by 37% year-over-year in 1Q25[113] - Merchant services revenue increased by 96% year-over-year in 1Q25[113] - 53% of customers are using 3+ AP products in Q4'24, compared to 40% in Q1'22[32, 64] Strategy & Outlook - The company is suspending its previously issued full-year 2025 guidance due to macroeconomic uncertainty[118] - The company is targeting mid-teens revenue growth and a 25% adjusted EBITDA margin in the medium term (through 2026)[99, 100, 101]

[Payoneer First Quarter 2025 Financial Results](index=1&type=section&id=Payoneer%20First%20Quarter%202025%20Financial%20Results) Payoneer's Q1 2025 results show revenue growth and profitability, with a suspended 2025 outlook [Financial & Business Highlights](index=1&type=section&id=Financial%20%26%20Business%20Highlights) Payoneer's Q1 2025 highlights include 8% revenue growth driven by volume and take rate expansion, and strategic achievements [Q1 2025 Financial Highlights](index=1&type=section&id=Q1%202025%20Financial%20Highlights) Key financial metrics for Q1 2025 show revenue growth excluding interest income, but a decrease in net income Q1 2025 Key Financial Metrics | ($ in millions) | 1Q 2024 | 1Q 2025 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue ex. interest income | $162.9 | $188.6 | 16% | | Interest income | $65.3 | $58.0 | (11)% | | **Revenue** | **$228.2** | **$246.6** | **8%** | | Net income | $29.0 | $20.6 | (29)% | | Adjusted EBITDA | $65.2 | $65.4 | 0% | | Volume ($ in billions) | $18.5 | $19.7 | 7% | | Active ICPs ('000s) | 530 | 556 | 5% | - Revenue excluding interest income grew **16%** year-over-year, while total revenue grew **8%**. Net income decreased by **29%** YoY to **$20.6 million**[1](index=1&type=chunk)[2](index=2&type=chunk) - The take rate for SMB customers increased by **11 bps** YoY to **119 bps**, contributing to stronger revenue performance relative to volume[2](index=2&type=chunk)[3](index=3&type=chunk) [Q1 2025 Business Highlights](index=1&type=section&id=Q1%202025%20Business%20Highlights) Business highlights include strong ARPU growth, increased card usage, and a strategic acquisition in China - Average Revenue Per User (ARPU) excluding interest income grew **22%**, marking the seventh consecutive quarter of acceleration[6](index=6&type=chunk) SMB Customer Revenue Growth (YoY) | SMB Segment | Q1 2025 Revenue | YoY Growth | | :--- | :--- | :--- | | SMBs on marketplaces | $110 million | 8% | | B2B SMBs | $52 million | 37% | | Merchant Services (Checkout) | $7 million | 96% | - Spend on Payoneer cards increased **29%** YoY to **$1.4 billion**[12](index=12&type=chunk) - Customer funds grew **11%** YoY to **$6.6 billion** as of March 31, 2025[12](index=12&type=chunk) - In April 2025, Payoneer completed the acquisition of Easylink Payment Co., Ltd., a licensed China-based payment service provider, to strengthen its regulatory infrastructure and service for Chinese customers[4](index=4&type=chunk)[12](index=12&type=chunk) - The company repurchased **$17 million** of shares at an average price of **$9.04**, a slowdown from the **$51 million** repurchased in the prior year period[12](index=12&type=chunk) [2025 Outlook](index=2&type=section&id=2025%20Outlook) Payoneer suspended its full-year 2025 guidance due to uncertain global macroeconomic and trade conditions - Payoneer has suspended its full-year 2025 guidance due to macroeconomic uncertainty[7](index=7&type=chunk)[9](index=9&type=chunk) - The company faces substantial risks from the uncertain global macro and trade environment, which could negatively impact the cross-border businesses it serves[9](index=9&type=chunk) - Management remains focused on supporting customers and positioning the company to capture new opportunities that may arise from shifts in global trade and supply chains[10](index=10&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) Consolidated financial statements for Q1 2025 detail revenues, net income, balance sheet, and cash flow [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) The comprehensive income statement for Q1 2025 details total revenues and net income Consolidated Statements of Comprehensive Income (Unaudited) | (U.S. dollars in thousands) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | **Revenues** | **$246,617** | **$228,183** | | Total operating expenses | $217,298 | $189,807 | | **Operating income** | **$29,319** | **$38,376** | | Income before income taxes | $27,769 | $42,884 | | **Net income** | **$20,577** | **$28,974** | | Comprehensive income | $29,327 | $29,001 | - Operating expenses increased to **$217.3 million** from **$189.8 million** YoY, driven by increases across all categories, including R&D, Sales & Marketing, and G&A[20](index=20&type=chunk) [Disaggregation of Revenue](index=6&type=section&id=Disaggregation%20of%20Revenue) Revenue disaggregation details sources from customer contracts, interest income, and regional markets Revenue by Source (Unaudited) | (U.S. dollars in thousands) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Revenue from contracts with customers | $186,263 | $160,458 | | Interest income on customer balances | $57,972 | $65,268 | | **Total revenues** | **$246,617** | **$228,183** | Revenue by Primary Regional Market (Unaudited) | (U.S. dollars in thousands) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Greater China | $84,896 | $81,358 | | Europe, Middle East, and Africa | $58,893 | $59,163 | | Asia-Pacific | $51,260 | $41,582 | | Latin America | $27,873 | $23,070 | | North America | $23,695 | $23,010 | | **Total revenues** | **$246,617** | **$228,183** | - The Asia-Pacific region showed the strongest YoY revenue growth at **23.3%**, followed by Latin America at **20.8%**[23](index=23&type=chunk) [Reconciliation of Net Income to Adjusted EBITDA](index=7&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) This section reconciles net income to Adjusted EBITDA, detailing various non-GAAP adjustments Reconciliation of Net Income to Adjusted EBITDA (Unaudited) | (U.S. dollars in thousands) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | **Net income** | **$20,577** | **$28,974** | | Depreciation and amortization | $14,390 | $9,408 | | Income taxes | $7,192 | $13,910 | | Other financial expense (income), net | $1,550 | $(2,747) | | Stock based compensation expenses | $18,755 | $15,077 | | M&A related expenses | $337 | $2,375 | | Restructuring charges | $2,630 | — | | **Adjusted EBITDA** | **$65,431** | **$65,236** | - Adjusted EBITDA remained flat YoY at approximately **$65.4 million**. Key adjustments from net income included stock-based compensation (**$18.8 million**), depreciation & amortization (**$14.4 million**), and income taxes (**$7.2 million**). A new restructuring charge of **$2.6 million** was recorded in Q1 2025[26](index=26&type=chunk) [Earnings Per Share](index=8&type=section&id=Earnings%20Per%20Share) Earnings per share for Q1 2025 show a decrease in both basic and diluted EPS YoY Earnings Per Share (Unaudited) | | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Basic EPS | $0.06 | $0.08 | | Diluted EPS | $0.05 | $0.08 | - Diluted earnings per share decreased to **$0.05** in Q1 2025 from **$0.08** in Q1 2024[28](index=28&type=chunk) [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet highlights total assets, customer funds, and shareholders' equity as of March 31, 2025 Consolidated Balance Sheet Highlights (Unaudited) | (U.S. dollars in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $524,150 | $497,467 | | Customer funds | $6,578,390 | $6,964,153 | | **Total assets** | **$7,550,162** | **$7,930,380** | | Outstanding operating balances | $6,578,390 | $6,964,153 | | **Total liabilities** | **$6,799,431** | **$7,205,590** | | **Total shareholders' equity** | **$750,731** | **$724,790** | - Total assets decreased from **$7.93 billion** at year-end 2024 to **$7.55 billion** at the end of Q1 2025, primarily due to a decrease in customer funds and outstanding operating balances[30](index=30&type=chunk) - Shareholders' equity increased to **$750.7 million** from **$724.8 million** at the end of 2024, driven by net income and other comprehensive income, partially offset by share repurchases[30](index=30&type=chunk) [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash flow statements detail operating, investing, and financing activities for the first quarter of 2025 Consolidated Cash Flow Highlights (Unaudited) | (U.S. dollars in thousands) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $53,716 | $39,510 | | Net cash used in investing activities | $(47,986) | $(114,147) | | Net cash used in financing activities | $(402,446) | $(521,113) | - Cash flow from operating activities was a net inflow of **$53.7 million**, an improvement from **$39.5 million** in the prior year period[32](index=32&type=chunk) - Net cash used in financing activities was **$402.4 million**, primarily driven by a **$385.8 million** decrease in outstanding operating balances and **$17.8 million** in common stock repurchases[32](index=32&type=chunk) [Other Information](index=2&type=section&id=Other%20Information) This section provides corporate information, forward-looking statements, and non-GAAP financial measure definitions [About Payoneer](index=2&type=section&id=About%20Payoneer) Payoneer's mission is to empower global entrepreneurs and businesses in the digital economy - Payoneer's mission is to enable entrepreneurs and businesses anywhere to participate and succeed in the digital global economy by simplifying cross-border commerce[11](index=11&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section outlines the risks and uncertainties associated with forward-looking statements in the report - The report contains forward-looking statements subject to risks and uncertainties, including geopolitical events, changes in laws or regulations, and shifts in global trade policies[13](index=13&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and explains the use of non-GAAP financial measures like Adjusted EBITDA - The company uses non-GAAP measures like Adjusted EBITDA for performance comparison. These measures are not prepared in accordance with GAAP and may not be comparable to those of other companies[14](index=14&type=chunk) - Adjusted EBITDA is defined as net income adjusted to exclude items such as M&A expenses, stock-based compensation, restructuring charges, certain financial income/expenses, taxes, and depreciation & amortization[15](index=15&type=chunk)