Payoneer’s third quarter results were met with a significant negative market reaction, as investors digested the company’s revenue growth and margin dynamics alongside management’s strategic focus. While the company delivered year-over-year growth driven by higher average revenue per user and an expanding B2B business, management acknowledged modest softness in marketplace volumes, particularly influenced by ongoing global trade volatility and tariffs. CEO John Caplan credited the results to deliberate moves upmarket, stating, “We are focusing on industries and countries where we have the strongest product market fit,” and highlighted the shift to serving larger, more complex customers as a key driver of performance.
Is now the time to buy PAYO? Find out in our full research report (it’s free for active Edge members).
Payoneer (PAYO) Q3 CY2025 Highlights:
- Revenue: $270.9 million vs analyst estimates of $263.1 million (9.1% year-on-year growth, 2.9% beat)
- Adjusted EPS: $0.06 vs analyst estimates of $0.07 (in line)
- Adjusted EBITDA: $71.27 million vs analyst estimates of $65.7 million (26.3% margin, 8.5% beat)
- EBITDA guidance for the full year is $272,500 at the midpoint, below analyst estimates of $267.5 million
- Operating Margin: 13.4%, in line with the same quarter last year
- Market Capitalization: $2.01 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Payoneer’s Q3 Earnings Call
-
Mayank Tandon (Needham & Company) asked about the sustainability of Payoneer’s volume and take rate growth, and seasonality impacts for 2026. CFO Bea Ordonez highlighted the business’s resilience and durable ARPU growth but did not provide specific guidance for next year.
-
Mayank Tandon (Needham & Company) followed up on evolving sales capacity and go-to-market strategy as Payoneer diversifies beyond China. CEO John Caplan explained a deliberate focus on acquiring higher-quality customers through partnerships and selective paid acquisition.
-
Sanjay Sakhrani (KBW) inquired about the impact of tariffs and macro volatility on SMB customer volumes. Ordonez noted some marketplace softness, particularly in China, but said the Q3 performance was within expected ranges and that guidance accounts for ongoing trade uncertainties.
-
Unknown Analyst (Jefferies) questioned the sustainability of take rate expansion and B2B volume growth. Ordonez pointed to product adoption, pricing optimization, and B2B outperformance as key factors, with expectations for continued but moderating growth.
-
Christopher Svensson (Deutsche Bank) asked about the drivers behind customer funds growth and client incentives to retain more balances on the platform. Ordonez cited upmarket movement, broader product utility, and increased AP adoption as reasons for higher balances, which in turn support future revenue streams.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will be monitoring (1) the pace of B2B revenue and AP product adoption, (2) execution on partnerships—particularly the migration of Checkout to Stripe and expansion in APAC markets, and (3) the growth and retention of larger, multi-entity customers as Payoneer moves upmarket. Progress toward blockchain and stablecoin integration will also be a key area to watch.
Payoneer currently trades at $5.64, down from $5.79 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free for active Edge members).
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
