Payoneer Global Inc. Q4 FY2025 earnings call

• Payoneer is the financial operating system for global commerce with 20-year head start, global scale, trust and safety built over decades, and driving growing profitability through disciplines. • Oriented towards an AI-first strategy to reshape customer experience, operations, and cost structure. • In 2025, grew revenue X interest 14%, B2B revenue grew 28%, B2B now 30% of revenue X interest. • Strengthened and expanded enterprise relationships. • 21% ARPU expansion at interest, 9 basis points of SMB take rate expansion, $7.9 billion customer funds held. • Improved unit economics, other operating expenses down 3% in 2025. • In 2026, plan to deliver significant core profitability expansion, expect more than double core adjusted EBITDA to $90 million at midpoint, revenue X interest $900 - $940 million with 12% growth at midpoint. • Moving further upmarket to focus on larger, more sophisticated customers. • Made targeted investments to expand and enhance value prop, launched expanded capabilities in Mexico and Indonesia, acquired Boundless, adding partners for working capital and credit solutions. • Partnering with Bridge to launch stablecoin capabilities, applied to establish uninsured national trust bank in US.

In 2025, Payoneer processed over $87 billion in volume across 190 countries and territories. B2B revenue grew 28% in 2025, representing 30% of revenue X interest, up from 20% in 2023. Fourth quarter 2025 revenue was $275 million, with revenue excluding interest income up 9%. ARPU increased 15% in the quarter, with ARPU excluding interest income up 21%. Total volume grew 10% year-over-year, with B2B volume growth of 21% in Q4. Customer funds increased 13% year over year to $7.9 billion. Adjusted EBITDA was $69 million in Q4 2025, and total adjusted EBITDA for 2025 was $272 million with a 26% margin. In 2026 guidance, revenue is expected to be between $1,090 million and $1,130 million, with revenue excluding interest income between $900 million and $940 million, expecting core revenue growth of 12% at midpoint. Adjusted EBITDA is expected to be between $275 and $285 million, and excluding interest income, between $85 and $95 million.

• 2026 revenue expected between $1,090 million and $1,130 million, with $190 million interest income, revenue excluding interest income between $900 million and $940 million, core revenue growth 12% at midpoint. • Core revenue guidance includes ~300 basis point headwind to growth rate due to checkout transition and portfolio changes. • Expect revenue ex-interest growth to accelerate in 2026, high single-digit growth in first half, increasing to mid-teens in second half. • Transaction costs expected ~15% of revenue, down 70 basis points year-over-year. • Adjusted OPEX ~$660 million at midpoint, 7% increase year-over-year. • Adjusted EBITDA between $275 and $285 million, ~25% margin, excluding interest income between $85 and $95 million, double-digit margin first time as public company. • Expect adjusted EBITDA ex-interest income to scale over year as lap headwinds and scale B2B franchise. • Expect overall adjusted EBITDA margin to increase sequentially in 2026.

Q: As you move upmarket, what metrics should we follow? What KPIs should we track to see the progress as you make that strategy?

A: In Q4 2025, customers that did over $50,000 accounted for 42% of revenue, up 10 percentage points vs Q1 2022. Track ARPU growth, traction, cross-selling product, and volume for customer growth.

Q: Can you talk about the long-term opportunity to expand margins on core profitability?

A: Focused on expanding X interest profitability. Guidance at midpoint calls for $90 million of core adjusted EBITDA before interest income, more than 2X prior year. AI-first strategy to drive step function efficiency gains.

Q: Talk a little bit about the trends in the marketplace business.

A: Saw slightly softer October and November marketplace volume, strong holiday season with mid-single-digit growth in December, modest acceleration in January and February.

Q: Talk a little bit about the opportunity for the bank and timeline.

A: Excited about bank charter allowing issuance and management of reserves for stablecoins, custody down line, bringing digital currencies into regulated ecosystem.

Q: About the 300 basis point headwind and tariffs.

A: Headwind from transition to Stripe solution and shifting to healthier portfolio. Tariffs present opportunity due to global presence and ability to capture shifting trade flows, with hope for clarity and certainty long term.