Payoneer reported higher third-quarter revenue and transaction volume, with growth led by its business-to-business (B2B) activity and larger customers. Net income rose year over year, although adjusted EBITDA declined slightly as interest income fell and revenue per dollar of payment volume continued to ease.
The company also said shareholders approved its proposed Nuvei transaction in September. Payoneer is still seeking regulatory approvals and is targeting a mid-2027 closing.
Third-quarter results
- Revenue was $276.9 million, up 2% year over year. Revenue excluding interest income grew 5% to $222.2 million, while interest income fell 8% to $54.7 million.
- Net income increased 6% to $14.9 million. Adjusted EBITDA was $68.3 million, down 4%. Adjusted EBITDA excluding interest income rose 16% to $13.6 million.
- Payment volume reached $25.3 billion, up 13%. Average revenue per user (ARPU) increased 18% to $555. Excluding interest income, ARPU grew 21%, marking the ninth consecutive quarter of growth above 20%.
- Revenue grew more slowly than payment volume. Payoneer’s revenue take rate—the share of payment volume recorded as revenue—was 109 basis points, compared with 121 basis points a year earlier. The SMB customer take rate was 111 basis points, down from 121 basis points.
Growth varied across customer and product lines
- B2B was the fastest-growing business: volume rose 59% to $5.0 billion, supported by growth across major regions and momentum with larger customers, particularly in China and Europe, the Middle East and Africa. B2B SMB revenue increased 13% to $70 million.
- Marketplace sellers had modest volume growth but lower revenue: volume increased 1% to $12.6 billion, while revenue fell 5% to $115 million.
- Checkout volume grew 48% to $330 million, and revenue increased 60% to $14 million.
- Enterprise payouts volume rose 14% to $7.4 billion.
- Total SMB customer revenue was $199 million, up 4% year over year.
Nuvei transaction and other updates
- Payoneer shareholders approved the Nuvei transaction on September 14. The company said it is progressing with the regulatory approvals needed to complete the deal and continues to target a mid-2027 closing.
- Payoneer said the companies’ customer relationships, distribution, regulatory infrastructure, wallet and payout capabilities are complementary. The proposed combination is intended to bring those capabilities together for large digital commerce businesses.
- Payoneer held $7.5 billion in customer funds at September 30, up 6% year over year. The growth in customer funds partly offset the effect of lower interest rates on interest income.
- The company obtained payment licenses in Canada and Israel, extending its regulatory presence in those markets.
The quarter’s results show a mix of stronger underlying payment activity and continued pressure on monetization: volume and ARPU rose, while the take rate declined. Interest income also remained a meaningful part of reported revenue, and was lower than a year earlier.