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Payoneer Global Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 5 November 2026: press release. Guidance figures: 1 kept. The quarter’s numbers.

Key takeaways

  • Revenue ex-interest income up 5%: Revenue excluding interest income was $222 million, up 5% year-over-year. Total revenue was $276.9 million, up 2% from $270.9 million a year earlier. Source
  • Volume up 13%, led by B2B: Volume rose 13% to $25.3 billion from $22.3 billion. The release headline names B2B volume growth as the lead driver. Source
  • B2B volume up 59%: B2B volume reached $5.0 billion, up 59%, with growth in all major regions and larger customers, particularly in China and EMEA. B2B SMB revenue rose 13% to $70 million. Source
  • Take rate fell 12 basis points: Take rate, revenue as a share of volume, was 109 basis points against 121. The SMB customer take rate fell to 111 basis points from 121. Source
  • ARPU up 18%, ex-interest up 21%: ARPU was $555 against $471. ARPU excluding interest income grew 21%, the ninth consecutive quarter of growth of 20% or more. Source
  • Interest income fell on lower rates: Management said customer funds growth partly offset the effect of lower interest rates on interest income. Interest income on customer balances was $54.7 million, down 8% from $59.5 million. Source
  • Nuvei to pay $7.40 per share cash: Under the June agreement, Nuvei will acquire all outstanding common stock for $7.40 per share in cash, a total equity value of about $2.75 billion.

“Payoneer’s Q3 results show our upmarket strategy is working: B2B volume growth accelerated to 59% year-over-year, ARPU ex. interest expanded 20%+ year-over-year for a 9 th consecutive quarter, and the percentage of our revenue from larger customers continues to grow.”

John Caplan, Chief Executive Officer

Guidance

AreaPeriodFigureAgainst last quarter
Nuvei transaction close Sourcemid-2027mid-2027Kept

What changed from last quarter

  • New: Payoneer's shareholders approved the Nuvei transaction on September 14, 2026. The prior release said the deal was subject to that approval. Source
  • New: The company obtained payment licenses in Canada and Israel during the quarter. Source

Results and growth drivers

  • Revenue ex-interest income up 5%: Revenue excluding interest income was $222 million, up 5% year-over-year. Total revenue was $276.9 million, up 2% from $270.9 million a year earlier. Source
  • Net income up, diluted EPS flat: Net income was $14.9 million against $14.1 million a year earlier. Diluted EPS was $0.04 in both periods. The prior quarter reported a net loss of $2.4 million. Source
  • Adjusted EBITDA down, ex-interest up: Adjusted EBITDA was $68.3 million, down 4% from $71.3 million. Adjusted EBITDA excluding interest income rose 16% to $13.6 million. Source
  • Volume up 13%, led by B2B: Volume rose 13% to $25.3 billion from $22.3 billion. The release headline names B2B volume growth as the lead driver. Source

Segments and regions

  • Greater China and Asia-Pacific revenue rose: Asia-Pacific revenue was $60.8 million against $57.2 million. Greater China revenue was $95.2 million against $91.2 million. Europe, Middle East and Africa was $68.6 million against $68.2 million. Source
  • Latin America revenue fell 12%: Latin America revenue was $24.6 million, down from $28.0 million a year earlier. North America revenue was $27.8 million, up from $26.3 million. Source
  • U.S. revenue within North America: Of North America revenue, the U.S. was $26.8 million in the quarter, against $25.2 million a year earlier. Source

“Our customer relationships and distribution, regulatory infrastructure and wallet and payout capabilities are highly complementary with Nuvei’s capabilities and together, we will build the end-to-end money movement infrastructure designed for the world’s largest digital commerce ecosystems.”

John Caplan, Chief Executive Officer

Products and customers

  • B2B volume up 59%: B2B volume reached $5.0 billion, up 59%, with growth in all major regions and larger customers, particularly in China and EMEA. B2B SMB revenue rose 13% to $70 million. Source
  • Marketplace SMB volume nearly flat: Volume from SMBs selling on marketplaces was $12.6 billion, up 1%. Revenue from that group fell 5% to $115 million. Source
  • Checkout volume and revenue grew: Checkout volume was $330 million, up 48%. Checkout revenue was $14 million, up 60% year-over-year. Source
  • Enterprise payouts up 14%: Enterprise payouts volume was $7.4 billion, up 14%. SMB customer revenue rose 4% to $199 million. Source

Costs, margins and pricing

  • Take rate fell 12 basis points: Take rate, revenue as a share of volume, was 109 basis points against 121. The SMB customer take rate fell to 111 basis points from 121. Source
  • ARPU up 18%, ex-interest up 21%: ARPU was $555 against $471. ARPU excluding interest income grew 21%, the ninth consecutive quarter of growth of 20% or more. Source
  • Transaction costs fell to 15.0%: Transaction costs were $41.6 million, against $42.5 million a year earlier. They were 15.0% of revenue, a decline of 70 basis points. Source
  • R&D and D&A expenses rose: Research and development expenses were $50.0 million, up from $39.9 million. Depreciation and amortization was $21.4 million, up from $16.1 million. Source
  • Operating income fell to $25.1 million: Operating income was $25.1 million against $36.3 million. Total operating expenses were $251.8 million against $234.5 million a year earlier. Source
  • M&A costs lower than second quarter: M&A related expenses were $3.1 million, against $13.5 million in the second quarter. Third-party costs for the Nuvei transaction were $2.7 million. Source

Interest income and customer balances

  • Interest income fell on lower rates: Management said customer funds growth partly offset the effect of lower interest rates on interest income. Interest income on customer balances was $54.7 million, down 8% from $59.5 million. Source
  • Customer funds grew 6% to $7.5 billion: Customer funds, including short-term and long-term funds, were $7.5 billion at September 30, 2026. Source
  • Outstanding operating balances declined: Outstanding operating balances were $7.54 billion at September 30, 2026, down from $7.89 billion at December 31, 2025. Source

Cash, capital and returns

  • Cash lower than year-end 2025: Cash and cash equivalents were $362.6 million at September 30, 2026, down from $415.5 million at December 31, 2025. Source
  • Operating cash flow rose for nine months: Net cash provided by operating activities was $180.4 million for the nine months, against $171.9 million a year earlier. Source
  • Capex and capitalized software rose: Purchases of property, equipment and software were $25.5 million for the nine months, against $12.3 million. Capitalized internal-use software was $50.8 million, against $43.9 million. Source
  • Buybacks and lower share count: Common stock repurchased totaled $92.5 million for the nine months, against $95.0 million. Shares outstanding fell from December 31, 2025. Source
  • Shareholders' equity declined: Total shareholders’ equity was $665.7 million, down from $704.4 million. Accumulated other comprehensive loss grew to $45.6 million. Source

Strategy and the Nuvei transaction

  • Nuvei to pay $7.40 per share cash: Under the June agreement, Nuvei will acquire all outstanding common stock for $7.40 per share in cash, a total equity value of about $2.75 billion.
  • Canada and Israel licenses added: The payment licenses in Canada and Israel extend the company's regulatory footprint to more markets for customers. Source
  • Upmarket shift toward larger customers: Management said the share of revenue from larger customers continues to grow, consistent with the upmarket strategy. Source

Coming up, as management said on 5 November 2026

  • Regulatory approvals before closing: Remaining regulatory approvals are the step before the Nuvei transaction can close, according to management. Source

Figures management reported

FigureReported
Volume Source$25.3 billion, up 13%
B2B volume Source$5.0 billion, up 59%
SMBs that sell on marketplaces volume Source$12.6 billion, up 1%
Enterprise payouts volume Source$7.4 billion, up 14%
Checkout volume Source$330 million, up 48%
ARPU Source$555, up 18%
Take rate Source109 bps, down 12 bps

Risks management discussed

  • Regulatory: Closing the Nuvei transaction depends on regulatory approvals that management says are still being obtained. Source
  • External: Lower interest rates reduced interest income year-over-year, which management said customer funds growth only partly offset. Source

Earlier plans management reported on

  • Not stated: Repurchases were suspended in Q2 and were not expected to resume while the transaction is pending. The Q3 release does not restate this.
  • Not stated: The company said it would keep issuing quarterly earnings releases and filing SEC reports until the Nuvei transaction is completed.

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.