Payoneer Global 2025 Q2 Earnings Misses Targets as Net Income Declines 40%

Payoneer Global reported its fiscal 2025 Q2 earnings on Aug 6th, 2025, showing a revenue increase of 8.8% year-over-year but a significant drop in net income. The company reinstated its 2025 guidance, and announced a $300 million share repurchase authorization, signaling confidence in its long-term strategy despite a challenging earnings performance.

Revenue
Payoneer Global’s total revenue for the second quarter of 2025 grew by 8.8% year-over-year to $260.61 million, up from $239.52 million in the same period in 2024. This growth was primarily driven by an 11% increase in transaction volume and a 16% year-over-year increase in revenue excluding interest income, which hit a record $202.3 million. The interest income, however, saw a decline of 11% to $58.3 million from $65.8 million in the prior year. Among the key revenue contributors, SMB customer revenue totaled $183 million, showing an 18% year-over-year increase. This was driven by strong performance in key segments: SMBs that sell on marketplaces generated $116 million (up 8%), B2B SMBs contributed $58 million (up 37%), and Checkout revenue reached $9 million (up 86%).

Earnings/Net Income
Payoneer Global’s net income fell sharply to $19.48 million in Q2 2025, representing a 40% decline from $32.42 million in Q2 2024. The company’s earnings per share (EPS) also declined by 44.4% to $0.05, down from $0.09 in the previous year. This performance indicates that while the company’s top-line growth was strong, operational or cost-related challenges impacted the bottom line significantly.

Price Action
The stock of Payoneer Global has shown a positive trend post-earnings, with the price up 1.92% on the latest trading day, 11.41% over the past week, and 11.08% month-to-date. Despite the drop in earnings, investor sentiment appears to be cautiously optimistic, with the stock reacting positively to the company's reaffirmed guidance and strategic initiatives.

Post-Earnings Price Action Review
A post-earnings trading strategy involving the purchase of Payoneer Global shares after its revenue increase and a 30-day holding period returned 44.08% over the past three years. However, this strategy underperformed the benchmark by 4.50%. The Sharpe ratio of 0.27 and a maximum drawdown of 0.00% suggest the strategy was relatively low-risk, with consistent performance and minimal volatility.

CEO Commentary
John Caplan, CEO of Payoneer, highlighted the company’s strong Q2 performance, with revenue excluding interest income up 16% year-over-year and net new ICPs increasing by 2%. He emphasized the company’s strategic focus on B2B growth, high-value products, and expansion into upmarket markets. With a 37% revenue increase in B2B and the development of a comprehensive financial stack for cross-border commerce, Payoneer is leveraging partnerships with industry leaders like Stripe and expanding its presence in key regions such as APAC, LATAM, and EMEA.

Guidance
Payoneer Global has reaffirmed its 2025 financial guidance, expecting total revenue to range between $1,040 million and $1,060 million. This includes $225 million in interest income and $815 million to $835 million in revenue excluding interest income. The company is projecting adjusted EBITDA of $260 million to $275 million with a 25% margin. Looking ahead, Payoneer anticipates high single-digit volume growth, mid-single-digit growth in marketplace SMBs, mid-teens to low double-digit B2B volume, and continued take rate expansion.

Additional News
Payoneer announced a $300 million share repurchase authorization, expanding its existing program to $300 million of outstanding common stock. This authorization, effective from August 6, 2025, reflects the company's confidence in its financial position and long-term value. The repurchase program will run through December 31, 2027, and is subject to market conditions and the company's discretion. Additionally, Payoneer renewed its long-term agreement with Mastercard to enhance its multi-currency card offerings for customers with cross-border AP needs, highlighting the company’s focus on expanding its product capabilities and partnerships in key areas.