Payoneer Global (PAYO 13.92%), a global digital payments platform serving small and medium-sized businesses (SMBs), released its second quarter fiscal 2025 earnings on August 6, 2025. Payoneer delivered GAAP revenue of $260.6 million in Q2 2025, ahead of the $253.2 million average analyst estimate, but missed on GAAP EPS at $0.05 versus expectations of $0.06. The quarter featured record revenue excluding interest income, ongoing gains for SMB products, but highlighted contracting profitability as costs grew faster than sales. Management reinstated full-year guidance, signaling more confidence despite ongoing risks from global trade and tariffs.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS | $0.05 | $0.06 | $0.09 | (44.4%) |
| Revenue | $260.6 million | N/A | $239.5 million | 8.8% |
| Adjusted EBITDA | $66.4 million | $72.8 million | (8.8%) | |
| Revenue ex. Interest Income | $202.3 million | $173.7 million | 16.4% | |
| Net Income | $19.5 million | $32.4 million | (39.8%) |
Source: Analyst estimates for the quarter provided by FactSet.
Company Overview and Business Model
Payoneer Global offers a platform for cross-border payments, serving nearly two million SMBs in over 190 countries. Its main users are entrepreneurs and small business exporters, especially those selling through online marketplaces or conducting global B2B trade. Customers benefit from multi-currency accounts, receiving and making payments internationally, as well as value-added services like cards and working capital solutions.
The company’s growth relies on expanding digital commerce, regulatory compliance, and continuous technological upgrades. Key recent focuses include deepening relationships with larger SMBs, investing in compliance infrastructure, and supporting innovation in digital payment products. Success depends on its ability to balance growth with efficiency, keep up with evolving payment technology, and manage regulatory risk as it expands globally.
Quarter Highlights and Performance Drivers
Revenue reached a new high in Q2 2025, driven by a 16% year-over-year jump in revenue excluding interest income. Transaction volume rose 11% year-over-year to $20.7 billion. Growth was driven by expansion with higher-value SMB customers, successful cross-selling of new services like Checkout (a merchant payment processing solution), and increasing take rates for B2B and card products.
Within the SMB segment, revenue increased 18% year-over-year. Revenue from SMBs selling on online marketplaces rose 8% year-over-year, B2B SMB revenue grew 37% year-over-year, and Checkout revenue jumped 86% year-over-year. These gains reflect more effective pricing and the addition of features that attract larger and more active business users. The card business grew with $1.5 billion in card spend, up 25% year-over-year, and the company extended its partnership with Mastercard to ensure card reliability and coverage.
Despite revenue gains, costs increased at a faster pace year-over-year. Total operating expenses (GAAP) climbed 19% compared to Q2 2024, with the most significant jumps in research and development (up 36%) and general and administrative costs (up 42%) compared to Q2 2024. Adjusted EBITDA, which measures core earnings before certain accounting and non-cash items, dropped nearly 9% year-over-year as the company’s costs outpaced revenue gains.
Payoneer also increased share repurchases, buying back $33 million in stock. This nearly doubled the prior quarter’s pace, with $33 million repurchased compared to $17 million in Q1 2025, and came alongside an expanded buyback authorization of up to $300 million through 2027. The company held $497 million in cash at quarter-end.
The company continued its push for operational and geographic diversification. Active ideal customer profiles (those with more than $500 per month in volume) grew modestly year over year to 559,000, while average revenue per user excluding interest income was up 21% year-over-year. Management remains focused more on quality and value per customer than on growing the user count at all costs.
Looking Ahead: Guidance and Risks
Management reinstated its guidance for FY2025, expecting total revenue in the range of $1.04–$1.06 billion and non-GAAP adjusted EBITDA between $260–$275 million. Revenue excluding interest income is projected at $815–$835 million, reflecting anticipated mid-teens growth from SMB and B2B customer momentum. Transaction costs are expected to remain stable at about 16.5% of revenue. Management stated, “At the midpoint, we expect 2025 revenue of $1.05 billion and adjusted EBITDA1 of $268 million—demonstrating increasing leverage in our business model and sustained profitability excluding interest income.” (2025 guidance, fiscal year, non-GAAP adjusted EBITDA)
The company continues to face significant risks. U.S./China trade tensions and tariffs impact approximately 20% of revenue (including float revenue), with management estimating up to a $50 million headwind under current conditions. The environment remains “dynamic and evolving,” with outcomes uncertain. Interest income could remain under pressure if rates stay low or if customer behavior shifts further.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
