Payoneer reported record total revenue of $270.9 million for the third quarter of 2025, up 15% year‑over‑year and 3% sequentially, with revenue excluding interest income reaching $211.4 million, a 15% increase from the same period last year. Net income fell 66% YoY to $14.1 million, while adjusted EBITDA climbed 3% YoY to $71.3 million, reflecting a 26.4% margin that is 0.4 percentage points higher than the prior year. The company’s transaction volume grew to $22.3 billion, supported by 548,000 active ideal customer profiles (ICPs) and an average take rate of 121 basis points, indicating continued monetization of high‑value services and cross‑selling of products such as cards and working‑capital solutions.
Earnings per share came in at $0.04, missing the consensus estimate of $0.06 by $0.02 or 33%. The miss was driven by higher operating expenses, including increased investment in technology and talent, and a modest rise in interest income that was not fully offset by revenue growth. While the company’s core business remained strong, the cost structure and one‑time charges weighed on profitability, underscoring the need for tighter cost discipline in the coming quarters.
Revenue beat expectations by $7.5 million, or 2.8%, against a consensus estimate of $263.37 million. The top‑line gain was largely powered by a 17% year‑over‑year increase in SMB revenue, which reached $192 million, and a 9% sequential rise in transaction volume. Strong demand in the U.S. and European markets, coupled with higher average revenue per user (ARPU) driven by premium product adoption, offset headwinds in legacy payment services and helped lift the overall figure.
Payoneer raised its full‑year 2025 revenue outlook to $1,050 million–$1,070 million and adjusted EBITDA guidance to $270 million–$275 million, signaling confidence in sustained mid‑teens core revenue growth and margin expansion. The guidance increase reflects management’s view that the current trajectory of high‑margin product adoption and scale will continue, while cost‑control initiatives will mitigate the impact of rising operating expenses. The company did not revise its prior guidance, indicating a steady outlook rather than a cautious stance.
CEO John Caplan emphasized that the quarter “reinforced our position as the global financial platform for cross‑border SMBs” and highlighted a 16% year‑over‑year rise in core revenue and a 21% jump in ARPU. CFO Beatrice Ordonez noted that ARPU had increased 65% since 2023, from $286 to over $470, and that the company secured $120 million of 2026 interest income regardless of short‑term rate movements. Both executives underscored a strategic focus on high‑value services, AI‑driven solutions, and stablecoin opportunities as key growth levers.
Investors reacted to the EPS miss, with market sentiment turning negative despite the revenue beat. The miss underscored concerns about profitability and cost management, while the raised guidance provided a counterbalancing note of confidence. Analysts noted that the company’s ability to maintain a 26% adjusted EBITDA margin amid a challenging macro environment remains a positive sign, but the EPS shortfall highlights the need for continued focus on operating efficiency and cost discipline.
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