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].
PAYONEER GLEQ.WARRT.EXP(PAYOW) - 2025 Q3 - Quarterly Report