Financial Performance - Payoneer processed $22.3 billion and $20.4 billion in volume for the three months ended September 30, 2025 and 2024, respectively, and $62.7 billion and $57.6 billion for the nine months ended September 30, 2025 and 2024, respectively [134]. - Revenues for the three months ended September 30, 2025 were $270.9 million, a 9% increase from $248.3 million in the prior year; for the nine months, revenues were $778.1 million, also a 9% increase from $716.0 million [150]. - Net income for the three months ended September 30, 2025 was $14.1 million, a 66% decrease from $41.6 million in the prior year; for the nine months, net income was $54.2 million, a 47% decrease from $103.0 million [148]. - Adjusted EBITDA for the three months ended September 30, 2025, was $71,267 thousand, compared to $69,268 thousand in the prior year, reflecting a year-over-year increase [198]. - For the nine months ended September 30, 2025, Adjusted EBITDA totaled $203,123 thousand, slightly down from $207,282 thousand in the same period of 2024 [198]. Expenses - Transaction costs for the three months ended September 30, 2025 were $42.5 million, a 12% increase from $38.1 million in the prior year; for the nine months, transaction costs were $122.4 million, also a 12% increase from $109.0 million [151][152]. - Research and development expenses increased by $5.2 million, or 15%, to $39.9 million for the three months ended September 30, 2025, driven by higher employee-related expenses and IT costs [155]. - Sales and marketing expenses rose by $7.2 million, or 14%, to $59.5 million for the three months ended September 30, 2025, primarily due to increased employee compensation and marketing expenditures [159]. - General and administrative expenses increased by $6.4 million, or 22%, to $36.1 million for the three months ended September 30, 2025, mainly due to higher employee compensation and legal expenses [161]. - Depreciation and amortization expenses rose by $2.6 million, or 19%, to $16.1 million for the three months ended September 30, 2025, primarily driven by increased amortization of internal use software [163]. Cash Flow - Net cash provided by operating activities was $178.6 million for the nine months ended September 30, 2025, an increase of $47.5 million compared to the prior year [180]. - Net cash used in investing activities decreased significantly to $169.4 million for the nine months ended September 30, 2025, from $1,814.1 million in the prior year [186]. - Net cash provided by financing activities was $37.0 million for the nine months ended September 30, 2025, an increase of $474.0 million compared to the prior year [188]. - As of September 30, 2025, the company had $479.4 million in cash and cash equivalents, with $273 million remaining available for future stock repurchases [173][175]. Acquisitions - Payoneer acquired Payeco Finance Information Holding Corporation on April 9, 2025, enhancing its regulatory infrastructure for China-based customers [144]. - The company also acquired Skuad Pte. Ltd. on August 5, 2024, to accelerate its strategy for delivering integrated financial services to international SMBs [145]. Market Conditions - Macroeconomic conditions, including geopolitical events and interest rate changes, may impact Payoneer's operations and revenue growth [137]. - The company held $1.8 billion in term deposits and U.S. Treasury Securities, which could be materially affected by changes in interest rates [206]. - The company has entered into interest rate floor contracts with respect to $1.9 billion in customer funds to mitigate risks from declining interest rates [207]. - A hypothetical 10% strengthening or weakening of the U.S. dollar against the New Israeli Shekel could have a material impact on unrealized gains or losses recognized in AOCI [210]. - The company’s foreign currency exposure includes various currencies, and a hypothetical 10% increase or decrease in current exchange rates could materially impact financial results [211]. - The company generates revenues from foreign exchange transactions, which are influenced by market conditions and negotiations with third-party financial institutions [212].

Financial Performance - Payoneer reported record quarterly revenue of $270.9 million for Q3 2025, a 9% increase year-over-year [2]. - Revenue excluding interest income grew 15% year-over-year, driven by 9% volume growth and significant take rate expansion with SMB customers [7]. - Net income for Q3 2025 was $14.1 million, a decrease of 66% compared to the same quarter last year [2]. - Adjusted EBITDA for Q3 2025 was $71.3 million, reflecting a 3% increase year-over-year [2]. - The company raised its 2025 revenue guidance to a range of $1,050 million to $1,070 million, with adjusted EBITDA guidance of $270 million to $275 million [9]. - Total revenues for the three months ended September 30, 2025, were $270.85 million, an increase of 9.4% from $248.27 million in the same period of 2024 [20]. - Revenue recognized at a point in time was $208.70 million in Q3 2025, up from $179.64 million in Q3 2024, reflecting a growth of 16.2% [20]. - Adjusted EBITDA for Q3 2025 was $71.27 million, compared to $69.27 million in Q3 2024, indicating a year-over-year increase of 2.9% [25]. - Net income for Q3 2025 decreased to $14.12 million from $41.57 million in Q3 2024, representing a decline of 66.1% [25]. - Net income for the nine months ended September 30, 2025, was $54,180, compared to $102,973 for the same period in 2024, representing a decrease of approximately 47% [32]. Customer Metrics - Active Ideal Customer Profiles (ICPs) decreased by 2% year-over-year to 548,000 [2]. - SMB customer revenue reached $192 million, growing 17% year-over-year, with B2B SMBs revenue up 27% to $62 million [7]. - Payoneer cards saw a record $1.6 billion in spend, up 19% year-over-year [12]. - Customer funds on the platform totaled $7.1 billion as of September 30, 2025, reflecting a 17% year-over-year growth [12]. - Customer funds increased to $6.77 billion as of September 30, 2025, compared to $6.44 billion at the end of 2024, reflecting a growth of 5.2% [30]. Regional Performance - Greater China revenue reached $91.16 million in Q3 2025, up from $85.11 million in Q3 2024, marking a growth of 7.4% [22]. - North America revenue was $26.30 million in Q3 2025, slightly up from $25.16 million in Q3 2024, reflecting a growth of 4.5% [22]. Cash and Assets - Cash and cash equivalents as of September 30, 2025, were $479.45 million, a decrease from $497.47 million at the end of 2024 [30]. - Total assets increased to $8.21 billion as of September 30, 2025, compared to $7.93 billion at the end of 2024, showing a growth of 3.6% [30]. - Total cash, cash equivalents, restricted cash, and customer funds at the end of the period reached $5,709,604, up from $4,898,477, indicating an increase of approximately 16.5% [32]. Cash Flow and Investments - Net cash provided by operating activities increased to $178,577 from $131,039 year-over-year, reflecting a growth of about 36% [32]. - Cash flows used in investing activities were $(169,379), a significant reduction compared to $(1,814,106) in the previous year, showing improved cash management [32]. - The company reported capital advances extended to customers of $(235,407), a decrease from $(260,435) year-over-year, indicating a reduction in customer financing [32]. - Purchases of investments in available-for-sale debt securities totaled $(351,824), down from $(1,255,686) in the prior year, reflecting a strategic shift in investment approach [32]. - Common stock repurchased amounted to $(95,029), compared to $(120,457) in the previous year, indicating a decrease in share buyback activity [32]. Expenses and Currency Management - Depreciation and amortization expenses increased to $46,083 from $33,630, representing a rise of approximately 37% [32]. - The company experienced a foreign currency re-measurement gain of $(4,965), compared to a minimal gain of $(109) in the previous year, highlighting currency fluctuations impact [32]. - The effect of exchange rate changes on cash and cash equivalents resulted in a gain of $5,177, compared to a gain of $109 in the previous year, indicating improved currency management [32]. - Transaction costs as a percentage of revenue were approximately 16.0%, indicating a slight improvement in cost management [9].

Financial Performance - Payoneer reported revenues of $260.6 million and $507.2 million for the three and six months ended June 30, 2025, representing increases of 9% and 8% year-over-year, respectively[148]. - Net income for the three months ended June 30, 2025, was $19.5 million, a decrease of 40% compared to the prior year[144]. - Adjusted EBITDA for the three months ended June 30, 2025, was $66,425 thousand, compared to $72,778 thousand for the same period in 2024[194]. - Adjusted EBITDA for the six months ended June 30, 2025, was $131,856 thousand, slightly down from $138,013 thousand in the same period of 2024[194]. Volume and Customer Funds - The company processed $20.7 billion and $40.4 billion in volume during the three and six months ended June 30, 2025, compared to $18.7 billion and $37.2 billion in the same periods of 2024[132]. - Customer funds on Payoneer's platform grew to $7.0 billion as of June 30, 2025, contributing to increased interest income revenue despite a decline in interest rates[136]. - Volume for the three months ended June 30, 2025, was $20,688 million, an 11% increase compared to $18,713 million in the same period of 2024[189]. - Volume for the six months ended June 30, 2025, reached $40,363 million, a 9% increase from $37,169 million in the same period of 2024[189]. Expenses - Research and development expenses increased by 36% to $37.4 million for the three months ended June 30, 2025, driven by higher employee-related costs and contractor expenses[152]. - Research and development expenses increased by $15 million, or 25%, to $74.7 million for the six months ended June 30, 2025, driven by higher employee compensation and contractor expenses[153]. - Sales and marketing expenses rose by $11.5 million, or 11%, to $112.0 million for the six months ended June 30, 2025, primarily due to increased employee-related expenses and marketing expenditures[155]. - General and administrative expenses increased by $16.6 million, or 33%, to $66.9 million for the six months ended June 30, 2025, largely due to higher employee compensation and consulting expenses[159]. - Depreciation and amortization expenses rose by $9.8 million, or 49%, to $29.9 million for the six months ended June 30, 2025, mainly driven by increased amortization of internal use software[160]. - Transaction costs rose to $40.6 million for the three months ended June 30, 2025, a 10% increase attributed to higher bank and processor fees[149]. Cash Flow and Liquidity - Net cash provided by operating activities was $124.4 million for the six months ended June 30, 2025, an increase of $43.5 million compared to the prior year[176]. - Net cash used in investing activities decreased by $831.8 million to $133.5 million for the six months ended June 30, 2025, reflecting a shift in investment strategy[183]. - Net cash provided by financing activities was $2.2 million for the six months ended June 30, 2025, a decrease of $456.6 million compared to the prior year[185]. - As of June 30, 2025, the company had $497.1 million in cash and cash equivalents, indicating strong liquidity[169]. - The company repurchased 6,692,475 shares for $49.7 million during the six months ended June 30, 2025, with $54.1 million remaining available for future repurchases[171]. Acquisitions and Strategic Moves - The company acquired Payeco Finance Information Holding Corporation on April 9, 2025, enhancing its regulatory infrastructure in China[142]. - Payoneer also acquired Skuad Pte. Ltd. on August 5, 2024, to strengthen its financial services for SMBs operating internationally[143]. Market and Regulatory Environment - The company anticipates a negative impact on revenue from declining interest rates over the medium term due to recent Federal Reserve rate cuts[136]. - Payoneer continues to monitor geopolitical events, including the ongoing conflicts in Israel and Ukraine, which may affect its operations and revenue[137][141]. - The company is evaluating the potential impacts of the One Big Beautiful Bill Act on its effective tax rate and deferred tax assets, but does not expect a material impact for the period ended June 30, 2025[165]. Foreign Exchange and Interest Rate Risks - The company held $1.8 billion in term deposits and U.S. Treasury Securities, which could be materially affected by changes in interest rates[201]. - The company has entered into interest rate floor contracts with respect to $1.9 billion in customer funds to mitigate risks from declining interest rates[202]. - A hypothetical 10% strengthening or weakening of the U.S. dollar against the New Israeli Shekel could have a material impact on unrealized gains or losses[204]. - The company generates revenues from foreign exchange transactions, which are influenced by market conditions and regulations[206]. - Management closely monitors volume and revenue to ensure continued growth in funds and business activity on the platform[190].

Revenue Performance - Revenue excluding interest income for Q2 2025 reached $202.3 million, a 16% increase year-over-year[2] - Total revenues for the three months ended June 30, 2025, increased to $260,614,000, up from $239,520,000 in the same period of 2024, representing an increase of approximately 8.3%[20] - Revenue recognized at a point in time rose to $199,560,000, compared to $170,751,000 in 2024, reflecting a growth of about 16.9%[21] - SMB customer revenue grew to $183 million, an 18% increase year-over-year, with B2B SMBs revenue up 37% to $58 million[5] - Payoneer expects 2025 revenue to be between $1.04 billion and $1.06 billion, with adjusted EBITDA projected at $260 million to $275 million[8] Profitability Metrics - Net income for Q2 2025 was $19.5 million, reflecting a 40% decrease compared to the previous year[2] - Operating income decreased to $30,077,000 for Q2 2025, down from $46,309,000 in Q2 2024, a decline of approximately 35%[20] - Net income for the three months ended June 30, 2025, was $19,480,000, a decrease from $32,425,000 in 2024, representing a decline of about 40%[20] - Adjusted EBITDA for Q2 2025 was $66,425,000, down from $72,778,000 in Q2 2024, indicating a decrease of approximately 8.5%[26] - The company reported a comprehensive income of $27,987,000 for Q2 2025, compared to $32,724,000 in Q2 2024, a decrease of about 14.5%[20] Expenses and Investments - Research and development expenses increased significantly to $37,387,000 in Q2 2025, compared to $27,580,000 in Q2 2024, marking an increase of about 35.5%[20] - Total operating expenses for Q2 2025 were $230,537,000, up from $193,211,000 in Q2 2024, reflecting an increase of approximately 19.4%[20] - The company reported stock-based compensation expenses of $38,814 thousand for the six months ended June 30, 2025, up from $28,742 thousand in 2024, representing a rise of 35.25%[32] Cash Flow and Assets - Net cash provided by operating activities rose to $124,401 thousand for the six months ended June 30, 2025, compared to $80,914 thousand in 2024, marking an increase of 53.73%[32] - Total current assets reached $7,212,530 thousand as of June 30, 2025, compared to $7,099,642 thousand at December 31, 2024, reflecting a growth of 1.59%[30] - Cash, cash equivalents, restricted cash, and customer funds at the end of the period totaled $5,657,385 thousand, slightly down from $5,688,197 thousand in 2024[32] - Net cash used in investing activities was $133,511 thousand for the six months ended June 30, 2025, compared to $965,298 thousand in 2024, showing a significant reduction in cash outflow[32] Shareholder Information - Payoneer announced a $300 million share repurchase authorization to enhance shareholder value[1] - The weighted average common shares outstanding for basic earnings per share increased to 368,770,598 in Q2 2025 from 356,315,658 in Q2 2024[28] - The diluted earnings per share remained at $0.05 for both Q2 2025 and Q2 2024, despite the decline in net income[28] - The company’s total shareholders' equity increased to $770,905 thousand as of June 30, 2025, compared to $724,790 thousand at December 31, 2024, reflecting a growth of 6.38%[30] Customer Metrics - Customer funds totaled $7.0 billion as of June 30, 2025, marking a 17% year-over-year increase[9] - Active Ideal Customer Profiles (ICPs) increased by 2% year-over-year to 559,000[2] - The transaction costs as a percentage of revenue improved to 15.6%, a 20 basis points decrease from the previous year[2]

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 period[153] - Net income for the three months ended March 31, 2025, was $20.6 million, a decrease of $8.4 million, or 29%, compared to the prior-year period[150] - Adjusted EBITDA for the three months ended March 31, 2025, was $65.4 million, slightly up from $65.2 million in the same period of 2024[192] - 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[175] Customer and Revenue Growth - Customer funds on the platform grew to $6.6 billion as of March 31, 2025, contributing to significant interest income revenue[141] - Total transaction volume for the three months ended March 31, 2025, was $19.7 billion, a 7% increase from $18.5 billion in the same period of 2024[187] Expenses - Transaction costs increased by $5.4 million, or 16%, to $39.3 million, driven by higher bank and processor fees[154] - Research and development expenses rose by $5.2 million, or 16%, to $37.3 million, influenced by employee-related expenses and the acquisition of Skuad[156] - General and administrative expenses increased by $5.7 million, or 24%, to $29.9 million, primarily due to higher employee compensation and consulting expenses[158] Cash Flow and Investments - 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%[174] - 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%[181] - 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%[183] - The company repurchased 1,880,309 shares for $17.0 million during the three months ended March 31, 2025, with $86.8 million remaining available for future repurchases[169] - The company has authorized a stock repurchase program of up to $250.0 million, which expires on December 31, 2025[168] Strategic Acquisitions and Investments - The company acquired Payeco Finance Information Holding Corporation on April 9, 2025, enhancing its regulatory infrastructure in China[148] - The company plans to continue investing in its global platform, new products, and customer growth to enhance value delivery[138] External Factors and Risks - The ongoing war in Ukraine and conflicts in the Middle East may impact economic activity and revenues, with Ukraine and Belarus accounting for less than 10% of total revenue[146][143] - The company is monitoring the impact of the OECD's global minimum tax proposal, which will apply to its operations starting January 1, 2025[164] Foreign Exchange Revenue - Payoneer has the opportunity to generate revenues from foreign exchange transactions as part of the payment delivery process[205] - The ability to generate foreign exchange revenues is influenced by external factors such as market conditions and applicable regulations[205] - Negotiations with third-party financial institutions are crucial for optimizing foreign exchange revenue generation[205] - Efforts to optimize foreign exchange can have a material impact on revenues and earnings[205]

[Executive Summary & Q1 2025 Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Q1%202025%20Highlights) [Q1 2025 Financial Performance Overview](index=1&type=section&id=Q1%202025%20Financial%20Performance%20Overview) Payoneer reported strong Q1 2025 results with a 16% YoY growth in revenue excluding interest income, driven by B2B customers and the Card product, while total revenue increased by 8% YoY, net income decreased by 29%, and Adjusted EBITDA remained flat YoY | Metric | 1Q 2024 | 1Q 2025 | YoY Change | | :-------------------------- | :-------- | :-------- | :--------- | | Revenue ex. interest income | $162.9 million | $188.6 million | 16% | | Interest income | $65.3 million | $58.0 million | (11)% | | Revenue | $228.2 million | $246.6 million | 8% | | Net income | $29.0 million | $20.6 million | (29)% | | Adjusted EBITDA | $65.2 million | $65.4 million | 0% | | Volume | $18.5 billion | $19.7 billion | 7% | | Active ICPs | 530 thousand | 556 thousand | 5% | | Revenue as a % of volume ("Take Rate") | 124 basis points | 125 basis points | 1 basis point | | SMB customer take rate | 108 basis points | 119 basis points | 11 basis points | [CEO & CFO Commentary](index=1&type=section&id=CEO%20%26%20CFO%20Commentary) CEO John Caplan highlighted strong ARPU growth, increased adoption of high-value products, and the company's new payment service provider license in China, reflecting a commitment to complex markets, while CFO Bea Ordonez reiterated strong Q1 performance but noted the suspension of full-year 2025 guidance due to rapidly evolving and uncertain global macroeconomic and trade environments - Payoneer achieved strong ARPU growth and increased adoption of high-value products, while also securing a payment service provider license in China, demonstrating commitment to high-potential markets[4](index=4&type=chunk)[5](index=5&type=chunk) - The company has suspended its full-year 2025 guidance due to the rapidly evolving and uncertain global macroeconomic and trade environment, acknowledging substantial risks to financial results[7](index=7&type=chunk)[9](index=9&type=chunk) [Key Business Highlights](index=1&type=section&id=Key%20Business%20Highlights) Key business highlights include a 16% YoY growth in revenue excluding interest income, driven by 7% volume growth and significant take rate expansion with SMB customers, with ARPU excluding interest income accelerating for the seventh consecutive quarter, growing 22%, and notable growth in B2B SMBs and Merchant Services - Revenue excluding interest income grew **16% YoY**, fueled by **7% volume growth** and expanded take rates with SMB customers[6](index=6&type=chunk) - ARPU excluding interest income increased by **22%**, marking its seventh consecutive quarter of acceleration, driven by larger customers, higher take rate B2B, Checkout, and Card franchises, and pricing initiatives[6](index=6&type=chunk) SMB Customer Revenue Segment | SMB Customer Revenue Segment | 1Q 2025 Revenue | YoY Growth | | :--------------------------- | :-------------- | :--------- | | Total SMB customer revenue | $170 million | 18% | | SMBs selling on marketplaces | $110 million | 8% | | B2B SMBs | $52 million | 37% | | Merchant Services (Checkout) | $7 million | 96% | - Spend on Payoneer cards reached **$1.4 billion**, up **29% YoY**, with increased usage across all regions[12](index=12&type=chunk) - Customer funds totaled **$6.6 billion** as of March 31, 2025, an **11% increase YoY**[12](index=12&type=chunk) - Payoneer completed the acquisition of Easylink Payment Co., Ltd. in April 2025, strengthening its regulatory infrastructure in China to better serve local customers exporting globally[12](index=12&type=chunk) [2025 Outlook](index=2&type=section&id=2025%20Outlook) [2025 Outlook](index=2&type=section&id=2025%20Outlook) Payoneer has suspended its previously issued full-year 2025 guidance due to the current macroeconomic uncertainty and rapidly evolving global trade environment, acknowledging potential negative impacts on cross-border businesses and associated substantial risks to financial results - Payoneer has suspended its full-year 2025 guidance due to current macroeconomic uncertainty and the rapidly evolving global macro and trade environment[7](index=7&type=chunk)[9](index=9&type=chunk) - The company faces substantial risks that could impact financial results, particularly as a supporter of cross-border businesses that may be negatively affected by the dynamic environment[9](index=9&type=chunk) [About Payoneer](index=2&type=section&id=About%20Payoneer) [About Payoneer](index=2&type=section&id=About%20Payoneer) Payoneer is a global financial technology company founded in 2005, dedicated to empowering small and medium-sized businesses (SMBs) to transact, conduct business, and grow internationally, with a mission to enable entrepreneurs and businesses worldwide to participate and succeed in the digital global economy - Payoneer is a global financial technology company empowering SMBs to transact, do business, and grow globally[11](index=11&type=chunk) - The company's mission is to enable entrepreneurs and businesses worldwide to participate and succeed in the digital global economy by simplifying cross-border commerce[11](index=11&type=chunk) [Financial Information & Non-GAAP Measures](index=3&type=section&id=Financial%20Information%20%26%20Non-GAAP%20Measures) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section serves as a disclaimer for forward-looking statements, highlighting that actual results may differ materially due to various risks and uncertainties, including changes in laws, geopolitical events, economic factors, and legal proceedings, cautioning readers not to place undue reliance on these statements - Forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from expectations[13](index=13&type=chunk) - Key risks include changes in applicable laws/regulations, geopolitical events (e.g., Israel's conflicts), global trade policies (tariffs), changes in financial estimates, and legal/regulatory proceedings[13](index=13&type=chunk) [Non-GAAP Financial Measures Explanation](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) Payoneer uses non-GAAP measures like Adjusted EBITDA, Volume, and ARPU to assess performance and trends, noting that these are not prepared in accordance with GAAP and may not be comparable to other companies' methods, with specific definitions provided for each metric - Payoneer uses non-GAAP measures (Adjusted EBITDA, Volume, ARPU) for performance comparison and trend analysis, but these are not GAAP-compliant and may not be comparable to other companies[14](index=14&type=chunk) - Adjusted EBITDA is defined as net income adjusted for M&A related expenses, stock-based compensation, restructuring charges, warrant fair value changes, other financial expense/income, income taxes, and depreciation/amortization[15](index=15&type=chunk) - Volume refers to the total dollar value of transactions successfully completed or enabled by the platform, while ARPU (Average Revenue Per User) is revenue from active customers divided by the number of active customers[17](index=17&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) For the three months ended March 31, 2025, Payoneer reported total revenues of $246.6 million, an increase from $228.2 million in Q1 2024, but net income decreased to $20.6 million from $29.0 million, and diluted earnings per share fell from $0.08 to $0.05, with operating expenses increasing significantly | Metric (in thousands) | 1Q 2025 | 1Q 2024 | YoY Change | | :-------------------- | :------ | :------ | :--------- | | Revenues | $246,617 | $228,183 | 8.1% | | Transaction costs | $39,349 | $33,966 | 15.8% | | Total operating expenses | $217,298 | $189,807 | 14.5% | | Operating income | $29,319 | $38,376 | (23.6)% | | Net income | $20,577 | $28,974 | (29.0)% | | Basic EPS | $0.06 | $0.08 | (25.0)% | | Diluted EPS | $0.05 | $0.08 | (37.5)% | [Disaggregation of Revenue](index=6&type=section&id=Disaggregation%20of%20Revenue) Revenue from contracts with customers increased to $186.3 million in Q1 2025 from $160.5 million in Q1 2024, primarily recognized at a point in time, while interest income on customer balances decreased by 11.2% to $58.0 million, and Asia-Pacific revenue showed strong growth, increasing by 23.3% YoY Revenue Source | Revenue Source (in thousands) | 1Q 2025 | 1Q 2024 | YoY Change | | :---------------------------- | :------ | :------ | :--------- | | Revenue from contracts with customers | $186,263 | $160,458 | 16.1% | | Interest income on customer balances | $57,972 | $65,268 | (11.2)% | | Capital advance income | $2,382 | $2,457 | (3.1)% | | Total revenues | $246,617 | $228,183 | 8.1% | Primary Regional Market | Primary Regional Market (in thousands) | 1Q 2025 | 1Q 2024 | YoY Change | | :------------------------------------- | :------ | :------ | :--------- | | Greater China | $84,896 | $81,358 | 4.3% | | Europe, Middle East, and Africa | $58,893 | $59,163 | (0.5)% | | Asia-Pacific | $51,260 | $41,582 | 23.3% | | North America | $23,695 | $23,010 | 3.0% | | Latin America | $27,873 | $23,070 | 20.8% | - The company updated its regional market definitions in 2024, reclassifying South Asia into Asia-Pacific and Middle East and North Africa into Europe, Middle East, and Africa[22](index=22&type=chunk) [Reconciliation of Net Income to Adjusted EBITDA](index=7&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) Adjusted EBITDA for Q1 2025 was $65.4 million, a slight increase from $65.2 million in Q1 2024, despite a decrease in net income, with key adjustments including $18.8 million for stock-based compensation expenses and $2.6 million for restructuring charges Reconciliation of Net Income to Adjusted EBITDA | Metric (in thousands) | 1Q 2025 | 1Q 2024 | YoY Change | | :-------------------- | :------ | :------ | :--------- | | Net income | $20,577 | $28,974 | (29.0)% | | EBITDA | $43,709 | $49,545 | (11.8)% | | Stock based compensation expenses | $18,755 | $15,077 | 24.4% | | M&A related expenses | $337 | $2,375 | (85.8)% | | Restructuring charges | $2,630 | $0 | N/A | | Adjusted EBITDA | $65,431 | $65,236 | 0.3% | Adjusted EBITDA Quarterly Trend | Adjusted EBITDA (in thousands) | Mar. 31, 2024 | Jun. 30, 2024 | Sept. 30, 2024 | Dec. 31, 2024 | Mar. 31, 2025 | | :----------------------------- | :------------ | :------------ | :------------- | :------------ | :------------ | | Adjusted EBITDA | $65,236 | $72,778 | $69,268 | $63,271 | $65,431 | [Earnings Per Share](index=8&type=section&id=Earnings%20Per%20Share) Basic earnings per share decreased to $0.06 in Q1 2025 from $0.08 in Q1 2024, while diluted earnings per share also decreased from $0.08 to $0.05, with weighted average common shares outstanding increasing for both calculations Earnings Per Share | Metric | 1Q 2025 | 1Q 2024 | | :------------------------------------ | :------ | :------ | | Net income | $20,577 | $28,974 | | Basic earnings per share | $0.06 | $0.08 | | Diluted earnings per share | $0.05 | $0.08 | | Weighted average common shares (Basic)| 362,979,571 | 359,306,195 | | Weighted average common shares (Diluted)| 382,215,129 | 378,715,301 | [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets were $7.55 billion, a decrease from $7.93 billion at December 31, 2024, primarily driven by a reduction in customer funds, while total liabilities also decreased, largely due to a decrease in outstanding operating balances, and total shareholders' equity increased Consolidated Balance Sheets | Metric (in thousands) | Mar. 31, 2025 | Dec. 31, 2024 | Change | | :-------------------- | :------------ | :------------ | :----- | | Total assets | $7,550,162 | $7,930,380 | (4.8)% | | Customer funds (current assets) | $6,053,390 | $6,439,153 | (6.0)% | | Total liabilities | $6,799,431 | $7,205,590 | (5.6)% | | Outstanding operating balances | $6,578,390 | $6,964,153 | (5.6)% | | Total shareholders' equity | $750,731 | $724,790 | 3.6% | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities increased significantly to $53.7 million in Q1 2025 from $39.5 million in Q1 2024, despite a decrease in net income, largely due to changes in operating assets and liabilities, while net cash used in investing and financing activities also decreased Cash Flow Activity | Cash Flow Activity (in thousands) | 1Q 2025 | 1Q 2024 | Change | | :-------------------------------- | :------ | :------ | :----- | | Net cash provided by operating activities | $53,716 | $39,510 | 35.9% | | Net cash used in investing activities | $(47,986) | $(114,147) | 57.9% (less outflow) | | Net cash used in financing activities | $(402,446) | $(521,113) | 22.8% (less outflow) | | Net change in cash, cash equivalents, restricted cash and customer funds | $(394,838) | $(597,291) | 33.9% (less decrease) | - Capital advance extended to customers increased to **$84.1 million** in Q1 2025, while capital advance collected from customers also increased to **$95.2 million**[32](index=32&type=chunk) - Common stock repurchases significantly decreased to **$17.8 million** in Q1 2025 from **$51.0 million** in Q1 2024[32](index=32&type=chunk) [Contact Information](index=4&type=section&id=Contact%20Information) [Contact Information](index=4&type=section&id=Contact%20Information) This section provides the contact details for investor relations and media inquiries - Investor inquiries can be directed to Michelle Wang at investor@payoneer.com[18](index=18&type=chunk) - Media inquiries can be directed to Angela Sullivan at PR@payoneer.com[18](index=18&type=chunk)

Financial Performance - Payoneer reported a 21% increase in transaction volume to $80.1 billion and an 18% increase in revenue to $977.7 million for the year ended December 31, 2024, compared to 2023[22]. - Revenues typically experience seasonal fluctuations, with increases in the fourth quarter due to higher e-commerce sales during the holiday season[51]. - Payoneer holds investments in term deposits and U.S. Treasury Securities amounting to $1.8 billion, which are sensitive to interest rate changes[354]. - A hypothetical 1% increase or decrease in interest rates could materially affect the Company's revenues and earnings as of December 31, 2024 and 2023[355]. Market Opportunities - The global B2B e-commerce volume is projected to reach $36 trillion by 2026, with significant growth expected in Asia Pacific, Latin America, and the Middle East[24]. - The global e-commerce and service marketplace payouts business represents a $300 billion volume opportunity, while B2B SMBs represent a $6 trillion volume opportunity[36][37]. Customer Base - Payoneer has approximately 2 million active customers, with over 500,000 fitting the ideal customer profile, processing an average of over $500 monthly[48]. Compliance and Regulatory Environment - The company has built a robust compliance infrastructure, crucial for navigating the complex regulatory landscape of cross-border payments[27]. - Payoneer is subject to extensive and evolving regulations related to payment services, data privacy, and anti-money laundering, which may impose significant compliance costs[66][67]. - The company has implemented a KYC program to prevent the use of its services for illegal activities, which includes monitoring customer activity throughout the relationship[57][59]. Strategic Initiatives - Payoneer is focused on strategic M&A and partnerships to enhance capabilities and geographic penetration, aiming to deliver additional value to customers[50]. - The company is working to acquire a locally licensed non-bank payments institution in China, with the transaction expected to close in the first half of 2025[55]. Employee Engagement and Development - Payoneer emphasizes employee wellness and development, offering programs such as a Global Employee Assistance Program and a Top Talent leadership development initiative[70][71]. - The company has a total rewards strategy designed to attract and retain talent, focusing on equitable compensation and benefits[72]. Technology and Innovation - Payoneer’s digital payment platform is considered proprietary technology, developed in-house and protected through various legal measures[74][75]. Community Engagement - The company engages in community service through initiatives like the Global Week of Good, with participation from employees in 18 countries[73]. Risk Management - The Company has entered into interest rate floor contracts with respect to $1.9 billion in customer funds to mitigate risks from declining interest rates on revenues from interest income[355]. - The Company began investing in foreign currency forward contracts and net purchased options in January 2024 to reduce foreign currency risk[356]. - A hypothetical 10% strengthening or weakening of the U.S. dollar against the New Israeli Shekel could have a material impact on unrealized gains or losses recognized in AOCI at December 31, 2024[356]. - The Company's foreign currency exposure includes multiple currencies, and a hypothetical 10% increase or decrease in current exchange rates could materially impact financial results[357]. - The Company generates revenues from foreign exchange transactions as part of the payment delivery process, which is influenced by market conditions and regulations[358]. - Efforts to optimize foreign exchange can have a material impact on the Company's revenues and earnings[358].

Financial Performance - Payoneer achieved a record annual volume of $80 billion, reflecting a 21% year-over-year growth[6] - Revenue for 2024 was $977.7 million, an 18% increase compared to $831.1 million in 2023[2] - Adjusted EBITDA for 2024 was $270.6 million, representing a 32% growth from $205.1 million in 2023[2] - The company reported a 20% year-over-year growth in revenue excluding interest income, reaching $720.9 million in 2024[2] - Revenues for Q4 2024 reached $261.739 million, a 16.7% increase from $224.320 million in Q4 2023[21] - Total revenues for the year 2024 were $977.716 million, up 17.6% from $831.103 million in 2023[21] - Operating income for Q4 2024 was $29.184 million, compared to $25.706 million in Q4 2023, reflecting a 9.7% increase[21] - Adjusted EBITDA for Q4 2024 was $63.271 million, an increase of 21.5% from $52.245 million in Q4 2023[27] - Revenue recognized from contracts with customers for Q4 2024 was $198.233 million, a 26.4% increase from $156.774 million in Q4 2023[22] Net Income and Earnings - Net income for Q4 2024 was $18.2 million, a decrease of 33% compared to $41.6 million in Q3 2024[2] - Net income for Q4 2024 was $18.190 million, down 32.8% from $27.021 million in Q4 2023[21] - Basic earnings per share for Q4 2024 were $0.05, down from $0.08 in Q4 2023[21] - Net income for Q4 2024 was $18.19 million, a decrease of 32.5% from $27.02 million in Q4 2023[31] - Basic earnings per share for Q4 2024 was $0.05, down from $0.08 in Q4 2023, while diluted earnings per share decreased from $0.07 to $0.05[31] Customer and Market Growth - Active Ideal Customer Profiles (ICPs) grew by 8% year-over-year, totaling 560,000[6] - B2B volume grew by 42% year-over-year, contributing significantly to overall volume growth[6] - Greater China contributed $89.938 million in revenue for Q4 2024, up 11.8% from $80.244 million in Q4 2023[24] - North America revenues for Q4 2024 were $25.898 million, a 10.2% increase from $23.499 million in Q4 2023[24] Assets and Liabilities - Total assets increased to $7.93 billion in 2024 from $7.28 billion in 2023, representing an 8.99% growth[33] - Cash and cash equivalents decreased to $497.47 million in 2024 from $617.02 million in 2023, a decline of 19.4%[33] - Customer funds increased to $6.44 billion in 2024, up from $6.39 billion in 2023, reflecting a growth of 0.99%[33] - Total current liabilities rose to $7.13 billion in 2024, compared to $6.54 billion in 2023, an increase of 9.03%[33] - Total shareholders' equity increased to $724.79 million in 2024 from $664.27 million in 2023, a growth of 9.09%[33] Cash Flow - Net cash provided by operating activities for 2024 was $176.93 million, compared to $159.49 million in 2023, an increase of 10.95%[35] - Net cash used in investing activities significantly increased to $1.96 billion in 2024 from $44.25 million in 2023[35] - Cash, cash equivalents, restricted cash, and customer funds at the end of the period totaled $5.66 billion, down from $7.02 billion in 2023, a decrease of 19.4%[35] Future Outlook - Payoneer plans to achieve revenue guidance of $1,040 million to $1,050 million for 2025[11] - The company acquired Skuad, enhancing its financial stack for SMBs operating internationally[12]

Financial Performance - Payoneer reported revenues of $248.3 million for the three months ended September 30, 2024, an increase of 19% compared to $208.0 million in the same period of 2023[158]. - Net income for the three months ended September 30, 2024, was $41.6 million, a significant increase of 224% compared to $12.8 million in the same period of 2023[158]. - Adjusted EBITDA for the three months ended September 30, 2024, was $69,268,000, up from $58,178,000 in 2023, indicating a growth of approximately 19%[203]. - The company reported a total EBITDA of $33,926,000 for the three months ended September 30, 2024, compared to $28,816,000 in 2023, reflecting an increase of about 18%[203]. - For the nine months ended September 30, 2024, net income reached $102,973,000, compared to $66,312,000 in 2023, marking a year-over-year increase of approximately 55%[203]. Revenue and Volume Growth - The company processed $20.4 billion in volume for the three months ended September 30, 2024, up from $16.3 billion in the same period of 2023, representing a growth of 25%[144]. - Volume grew by 25% and 23% for the three and nine months ended September 30, 2024, reaching $20.4 billion and $57.6 billion, respectively[197]. - Revenue growth was driven by a $109.2 million increase in revenue, outpacing a $67.3 million increase in operating expenses[187]. Expenses - Total operating expenses for the three months ended September 30, 2024, were $213.1 million, a 19% increase from $178.5 million in the prior year[158]. - Transaction costs for the three months ended September 30, 2024, were $38.1 million, a 25% increase from $30.4 million in the prior year, driven by higher chargebacks and operational losses[161]. - Research and development expenses rose to $34.6 million for the three months ended September 30, 2024, an increase of 28% from $27.0 million in the prior year, reflecting higher employee-related costs[165]. - General and administrative expenses rose by $4.6 million, or 18%, to $29.7 million for the three months ended September 30, 2024, primarily due to increased employee compensation and M&A related expenses[169]. - Depreciation and amortization expenses increased by $6.4 million, or 90%, for the three months ended September 30, 2024, and by $14.6 million, or 76%, for the nine months ended September 30, 2024, mainly due to higher amortization of software[172]. - Financial expense, net was $13.1 million for the three months ended September 30, 2024, an increase of $6.4 million, or 96%, driven by a loss on warrant repurchase[173]. - The company incurred $17,430,000 in stock-based compensation expenses for the three months ended September 30, 2024, compared to $15,330,000 in 2023, which is an increase of about 14%[203]. - M&A related expenses for the three months ended September 30, 2024, were $3,166,000, up from $1,745,000 in 2023, indicating an increase of approximately 81%[204]. Cash Flow - Net cash provided by operating activities was $131.0 million for the nine months ended September 30, 2024, an increase of $29.7 million compared to $101.3 million for the same period in 2023[186]. - Net cash used in investing activities was $1,814.1 million for the nine months ended September 30, 2024, an increase of $1,766.4 million compared to $47.8 million in the prior year[191]. Strategic Developments - Payoneer acquired 100% of Skuad Pte. Ltd. on August 5, 2024, to enhance its financial stack for SMBs operating internationally[154]. - The company expects to see a negative impact on revenue from declining interest rates over the medium term, following a reduction in the U.S. Federal Reserve's benchmark interest rate[152]. - Interest income from customer balances contributed significantly to revenue growth, with an increase of $4.7 million for the three months ended September 30, 2024, due to higher interest rates[159]. Risk Factors - Payoneer continues to monitor geopolitical risks, including the ongoing conflicts in Israel and Ukraine, which may impact future operations and revenues[148]. - A hypothetical 1% increase or decrease in interest rates could have a material effect on the company's revenues and earnings, given the nature of its cash and cash equivalents[213]. - The company began investing in foreign currency forward contracts and net purchased options in January 2024 to mitigate foreign currency risk, which could significantly impact financial results[214]. - A hypothetical 10% increase or decrease in current exchange rates could have a material impact on the company's financial results due to foreign currency exposure[215]. Workforce Management - The company initiated a plan to reduce its workforce during the three months ending September 30, 2023, incurring non-recurring costs related to severance and other employee termination benefits[206].

Financial Performance - Payoneer reported a record quarterly revenue of $248.3 million for Q3 2024, representing a 19% year-over-year increase[2] - Net income surged to $41.6 million, a remarkable 224% increase compared to $12.8 million in Q3 2023[2] - Total revenues for the three months ended September 30, 2024, were $248,274,000, representing a 19.4% increase from $208,035,000 in the same period of 2023[20] - Revenue from contracts with customers increased to $180,360,000 in Q3 2024, up from $145,202,000 in Q3 2023, marking a growth of 24.2%[20] - Net income for Q3 2024 was $41,574,000, compared to $12,825,000 in Q3 2023, reflecting a significant increase of 224.5%[24] - Adjusted EBITDA for Q3 2024 reached $69,268,000, an increase of 19.0% from $58,178,000 in Q3 2023[24] - Net income for the nine months ended September 30, 2024, increased to $102,973, compared to $66,312 in the same period of 2023, representing a growth of 55.3%[31] Customer Metrics - Active Ideal Customer Profiles (ICPs) grew by 11% year-over-year, reaching 557,000, with larger ICPs (over $10,000 monthly volume) showing over 25% growth[5] - Customer funds reached $6.1 billion as of September 30, 2024, marking a 13% year-over-year increase[5] Operational Highlights - The company achieved a record quarterly volume of $20.4 billion, reflecting a 25% year-over-year growth, with B2B volume increasing by 57% to $2.8 billion[5] - The transaction costs as a percentage of revenue improved slightly to 15.3%, down 70 basis points year-over-year[2] - The company reported $1.4 billion in spend on Payoneer cards, a 41% increase year-over-year, indicating growing adoption of its card product[5] Guidance and Projections - Payoneer increased its 2024 revenue guidance to between $950 million and $960 million, reflecting strong performance and higher expectations for growth and profitability[8] - Adjusted EBITDA for 2024 is projected to be between $255 million and $265 million[8] Shareholder Value - Payoneer completed the repurchase and redemption of all 25 million outstanding public warrants for $21 million, reinforcing its commitment to long-term shareholder value[6] - Common stock repurchased totaled $(120,457), compared to $(34,408) in the previous year, indicating a stronger focus on returning value to shareholders[31] Asset and Cash Management - Cash and cash equivalents decreased to $534,170,000 as of September 30, 2024, down from $617,022,000 at the end of 2023[29] - Total assets decreased to $7,051,174,000 as of September 30, 2024, compared to $7,283,119,000 at the end of 2023[29] - The company’s total current liabilities were $6,262,586,000 as of September 30, 2024, a decrease from $6,541,975,000 at the end of 2023[29] - Cash, cash equivalents, restricted cash, and customer funds at the end of the period were $4,898,477, down from $5,946,900, a decrease of 17.6%[31] Investment Activities - Net cash used in investing activities significantly increased to $(1,814,106) from $(47,754), indicating a substantial investment in growth initiatives[31] - Cash paid in connection with acquisition amounted to $(48,219), highlighting ongoing strategic acquisitions[31] - Purchases of investments in available-for-sale debt securities reached $(1,255,686), indicating a significant allocation of resources towards investment opportunities[31] Other Financial Metrics - Greater China contributed $85,111,000 to total revenues in Q3 2024, up from $72,513,000 in Q3 2023, indicating a growth of 17.3%[21] - The company reported a diluted earnings per share of $0.11 for Q3 2024, compared to $0.03 in Q3 2023, representing a growth of 266.7%[27] - The company reported a loss on warrant repurchase/redemption of $14,746,000 in Q3 2024, which is a non-recurring expense[24] - Net cash provided by operating activities rose to $131,039, up from $101,328, reflecting a 29.3% increase year-over-year[31] - Depreciation and amortization expenses rose to $33,630 from $19,064, reflecting increased asset utilization[31] - The effect of exchange rate changes on cash and cash equivalents resulted in a gain of $109, compared to a loss of $(662) in the previous year[31]