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1. Company Snapshot

1.a. Company Description

Payoneer Global Inc.operates a payment and commerce-enabling platform that facilitates marketplaces, platforms and online merchants worldwide.It delivers a suite of services that includes cross-border payments, B2B accounts payable/accounts receivable, multi-currency account, physical and virtual Mastercard cards, working capital, merchant, tax, compliance and risk, and others.


The company's platform delivers bank-grade security, stability, and redundancy combined with modern digital capabilities that interconnects the world on a single platform.Its cross-border payment solutions support an ecosystem of marketplaces and marketplace sellers to pay their sellers in approximately 190 countries and territories by connecting to Payoneer APIs and for sellers to get paid.The company was founded in 2005 and is based in New York, New York.

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1.b. Last Insights on PAYO

The recent 3-month performance of Payoneer Global Inc. was negatively impacted by a Q1 earnings miss, with the company reporting a quarterly earnings of $0.05 per share, missing the Zacks Consensus Estimate of $0.07 per share. This earnings miss, combined with the adjournment of the 2025 Annual Meeting of Stockholders, may indicate underlying issues with the company's operations and governance. Additionally, the recent partial adjournment of the annual meeting may lead to uncertainty and potential delays in decision-making processes, further exacerbating the negative sentiment.

1.c. Company Highlights

2. Payoneer's Q3 2025 Earnings: Strong Growth and Improving Profitability

Payoneer delivered a robust Q3 2025, with revenue ex-interest income growing 15% to $211 million, and adjusted EBITDA margin expanding to 26%. The company's earnings per share (EPS) came in at $0.04, in line with expectations. Revenue was $271 million, up 9% year-over-year, driven by a 15% increase in ARPU. The company's focus on higher-quality customers is yielding results, with ICPs receiving over $250,000 a month in volume representing nearly 30% of Q3 revenue ex-interest.

Publication Date: Nov -24

📋 Highlights
  • Revenue & Growth Acceleration: Q3 revenue ex-interest rose 15% YoY to $211M, with 7 consecutive quarters of mid-teens growth, driven by 27% B2B revenue growth (now 30% of total ex-interest revenue).
  • Profitability Expansion: Adjusted EBITDA reached $71M (26% margin) in Q3, with $12M ex-interest. Guidance raised to $270–275M adjusted EBITDA for 2025, reflecting 3x growth vs. 2024.
  • Customer Quality Shift: High-value ICPs (> $250K/month volume) now comprise 30% of Q3 revenue ex-interest, driving 65% ARPU growth since Q1 2023 to $470.
  • Customer Funds Growth: Held funds surged 17% YoY to $7.1B, partially offsetting interest income declines. Strategic incentives and AP product adoption are accelerating fund retention.
  • B2B & Strategic Initiatives: B2B volume growth accelerated to high teens in Q4 guidance, supported by Skuad integration and partnerships. Stablecoins and AP solutions now contribute $4M quarterly intra-network revenue.

Financial Performance

The company's financial performance was strong, with total volume growing 9% year-over-year, and B2B volume growing 27%. Customer funds held by Payoneer increased 17% year-over-year to $7.1 billion, demonstrating trust in the platform. Operating expenses were $235 million, up 10% driven by labor-related expenses and transaction costs. Adjusted EBITDA was $71 million, representing a 26% margin, and $12 million excluding interest income.

Business Momentum

Payoneer's business momentum is expected to continue, with ARPU consistently growing above 20% for five quarters. The company's multifaceted strategy for SMB take rate expansion is working, and it is building a healthier and more sustainable customer portfolio. The go-to-market strategy is changing, with a focus on acquiring higher-quality customers through partnerships. Bea Ordonez mentioned that the company is "focused on delivering growing profitability through optimizing transaction cost economics and managing operating expenses."

Valuation and Growth Prospects

With a P/E Ratio of 28.19 and an EV/EBITDA of 9.19, the market is pricing in a certain level of growth. Analysts estimate next year's revenue growth at 7.3%. The company's ROE is 9.66%, and ROIC is 8.75%, indicating a decent return on equity and invested capital. The Free Cash Flow Yield is 10.56%, which is attractive. The company's focus on high-value customers and improving profitability should drive long-term shareholder value.

Stablecoins and B2B Business

Payoneer sees stablecoins as a long-term opportunity and is exploring it with intent. The company's B2B business is performing well, with revenue growth of 27% in Q3. The expectation is for B2B volume growth to reach the high teens by Q4, driven by investments in the business. The Skuad acquisition is seeing solid growth, driven by secular tailwinds in the employer of record solution space.

3. NewsRoom

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Payoneer Global Inc. (PAYO) Presents at UBS Global Technology and AI Conference 2025 Transcript

Dec -03

Source: seekingalpha.com

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Payoneer Global Inc. (NASDAQ:PAYO) Given Consensus Recommendation of “Moderate Buy” by Brokerages

Dec -01

Source: defenseworld.net

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Payoneer to Participate in the UBS Global Technology and AI Conference

Nov -19

Source: prnewswire.com

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Payoneer Global Inc. (PAYO) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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Payoneer Global Inc. (PAYO) Matches Q3 Earnings Estimates

Nov -05

Source: zacks.com

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Payoneer Reports Third Quarter 2025 Financial Results

Nov -05

Source: prnewswire.com

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Payoneer Global Inc. $PAYO Shares Purchased by State of New Jersey Common Pension Fund D

Nov -02

Source: defenseworld.net

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Yousif Capital Management LLC Buys 1,948 Shares of Payoneer Global Inc. $PAYO

Oct -23

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.00%)

6. Segments

Cross-borders Payments Platform

Expected Growth: 7%

Payoneer's cross-border payments platform growth is driven by increasing e-commerce adoption, rising demand for digital marketplaces, and growing need for efficient international money transfers. Additionally, the platform's scalability, security, and compliance features, as well as its ability to facilitate payments in over 200 countries, contribute to its rapid growth.

7. Detailed Products

Cross-Border Payments

Enables businesses to send and receive payments globally, with competitive exchange rates and low fees.

Borderless Payments Platform

A platform that enables businesses to send and receive payments globally, with real-time tracking and automated reconciliation.

Working Capital

Provides businesses with access to capital to support their growth, with flexible repayment terms and competitive interest rates.

Digital Wallet

A digital wallet that enables users to store, send, and receive funds globally, with real-time exchange rates and low fees.

API and Integration

Enables businesses to integrate Payoneer's payment capabilities into their own platforms, with customizable APIs and developer tools.

Mass Payouts

Enables businesses to make mass payments to multiple recipients globally, with automated payment tracking and reconciliation.

8. Payoneer Global Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Payoneer Global Inc. operates in a niche market, providing cross-border payment solutions. While there are substitutes available, they are not as comprehensive as Payoneer's offerings, reducing the threat of substitutes.

Bargaining Power Of Customers

Payoneer's customers are primarily small to medium-sized businesses and individuals. They do not have significant bargaining power, as they rely on Payoneer's services to facilitate their international transactions.

Bargaining Power Of Suppliers

Payoneer's suppliers are primarily banks and financial institutions. They do not have significant bargaining power, as Payoneer has established relationships with multiple suppliers, reducing dependence on any one supplier.

Threat Of New Entrants

The fintech industry is rapidly evolving, and new entrants are emerging. However, Payoneer's established brand and comprehensive services create barriers to entry, making it challenging for new entrants to replicate its offerings.

Intensity Of Rivalry

The cross-border payment market is competitive, with established players like PayPal and TransferWise. However, Payoneer's focus on business payments and its comprehensive services differentiate it from competitors, reducing the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 3.71%
Debt Cost 5.82%
Equity Weight 96.29%
Equity Cost 7.81%
WACC 7.74%
Leverage 3.85%

11. Quality Control: Payoneer Global Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Growth: 6.3

Quality: 7.3

Yield: 2.0

Momentum: 7.5

Volatility: 6.7

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PaySign

A-Score: 4.9/10

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Growth: 6.4

Quality: 7.9

Yield: 0.0

Momentum: 9.5

Volatility: 2.0

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Growth: 5.1

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Payoneer Global

A-Score: 4.6/10

Value: 4.8

Growth: 9.0

Quality: 7.4

Yield: 0.0

Momentum: 2.0

Volatility: 4.3

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Value: 7.4

Growth: 7.7

Quality: 6.8

Yield: 0.0

Momentum: 2.0

Volatility: 2.0

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Sterling Check

A-Score: 3.4/10

Value: 3.2

Growth: 7.1

Quality: 2.7

Yield: 0.0

Momentum: 5.0

Volatility: 2.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.68$

Current Price

5.68$

Potential

-0.00%

Expected Cash-Flows