Payoneer (US:PAYO)2025-11-05 12:35Financial 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] - SMB customer revenue reached $192 million, reflecting a 17% year-over-year growth, with B2B SMBs revenue up 27% to $62 million[7] - 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 $270,850,000, representing a 9.5% increase from $248,274,000 in the same period of 2024[20] - Adjusted EBITDA for the three months ended September 30, 2025, was $71,267,000, compared to $69,268,000 in 2024, reflecting a 2.9% increase[25] - Net income for Q3 2025 was $14.1 million, a decrease of 66% compared to the previous year[2] - Net income for the three months ended September 30, 2025, was $14,123,000, down from $41,574,000 in 2024, a decrease of 66.1%[25] - Net income for the nine months ended September 30, 2025, was $54,180, a decrease of 47% compared to $102,973 in 2024[32] Customer Metrics - Active Ideal Customer Profiles (ICPs) decreased by 2% year-over-year to 548,000[2] - The average revenue per user (ARPU) excluding interest income grew 22% year-over-year, marking the fifth consecutive quarter of over 20% growth[7] - Customer funds on the platform grew by 17% year-over-year to $7.1 billion as of September 30, 2025[12] - Customer funds increased to $6,772,912,000 as of September 30, 2025, compared to $6,439,153,000 at the end of 2024, a rise of 5.2%[30] Regional Performance - Greater China revenue for the three months ended September 30, 2025, was $91,159,000, up from $85,111,000 in 2024, an increase of 3.7%[22] - North America revenue increased to $26,302,000 in 2025 from $25,162,000 in 2024, a growth of 4.5%[22] Cash Flow and Investments - Net cash provided by operating activities rose to $178,577, up 36% from $131,039 in the previous year[32] - Net cash used in investing activities was $(169,379), significantly improved from $(1,814,106) in 2024[32] - Cash, cash equivalents, restricted cash, and customer funds at the end of the period totaled $5,709,604, an increase from $4,898,477 in 2024[32] - Capital advances extended to customers decreased to $(235,407) from $(260,435), a reduction of 10%[32] - Purchases of investments in available-for-sale debt securities were $(351,824), a decrease of 72% compared to $(1,255,686) in 2024[32] Shareholder Metrics - The weighted average common shares outstanding increased to 368,266,611 in 2025 from 357,297,824 in 2024, a rise of 3.0%[28] - The company reported a diluted earnings per share of $0.04 for the three months ended September 30, 2025, down from $0.11 in 2024, a decrease of 63.6%[28] - Common stock repurchased amounted to $(95,029), down from $(120,457) in the previous year, indicating a 21% reduction[32] Depreciation and Amortization - Depreciation and amortization increased to $46,083 from $33,630, reflecting a 37% rise year-over-year[32] Transaction Costs - The transaction costs as a percentage of revenue were approximately 16.0%[9] Other Financial Metrics - Payoneer experienced a 19% year-over-year increase in spend on Payoneer cards, totaling $1.6 billion[12] - 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[32]