Cross-border payment platform Payoneer (NASDAQ: PAYO) beat Wall Street’s revenue expectations in Q3 CY2025, with sales up 9.1% year on year to $270.9 million. The company’s full-year revenue guidance of $1.06 billion at the midpoint came in 0.9% above analysts’ estimates. Its non-GAAP profit of $0.06 per share was in line with analysts’ consensus estimates.

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StockStory’s Take

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.

Looking ahead, Payoneer’s increased guidance is anchored by its continued push toward larger customers and multiproduct adoption, as well as the durability of its transaction-based revenues. Management emphasized investments in automation and partnerships to broaden its offering, with CFO Bea Ordonez noting, “We are unlocking leverage through growth, managing our transaction costs and being disciplined with OpEx.” The company sees stablecoin and blockchain solutions as future growth levers, and intends to expand its product stack to further integrate with clients’ global payment needs, while cautioning that macroeconomic uncertainties and fluctuating trade policies could impact short-term trends.

Key Insights from Management’s Remarks

Management attributed Q3’s performance to upmarket customer focus, B2B expansion, and stable transaction margins, while also acknowledging near-term macro and trade headwinds.

• Upmarket customer strategy: Payoneer is prioritizing larger, more complex customers—those transacting over $250,000 monthly now represent nearly 30% of Q3 revenue ex-interest and are growing faster than the broader customer base. This shift drove a 65% increase in average revenue per user since early 2023.

• B2B segment expansion: The B2B business posted 27% growth and now comprises about 30% of revenue ex-interest, up from 20% two years ago. Management credits investments in accounts payable (AP) infrastructure and a focus on multi-entity corporate customers for this trend.

• Product adoption and pricing discipline: More than half of customer spending now comes from users engaging with three or more AP products, reflecting cross-sell success. Strategic pricing and bundled offerings in priority markets helped boost ARPU and contributed to profitability.

• Customer funds as a revenue driver: Customers held over $7 billion on the platform, up 17% year-on-year, providing a stable basis for interest income and demonstrating trust in Payoneer’s platform. The company has hedged a large portion of interest income for the next three years to reduce rate sensitivity.

• Operational efficiency and partnerships: Transaction costs as a percentage of revenue remained stable as Payoneer leveraged operational scale, improved partner negotiations, and deepened relationships with major players like Stripe and Mastercard. These partnerships are expected to further improve cost structure and enable product innovation.

Drivers of Future Performance

Payoneer’s guidance is driven by upmarket momentum, B2B adoption, and ongoing investment in automation and product innovation.

• Continued upmarket shift: Management expects future growth to be led by larger customers with more sophisticated payment needs, as these clients drive higher average transaction values and stickier relationships. The company’s focus on quality over quantity in customer acquisition is intended to further improve profitability dynamics.

• Expansion of B2B and AP products: The B2B segment is projected to sustain robust revenue growth, powered by increased adoption of accounts payable products, strategic partnerships, and a shift to multi-entity solutions. Management highlighted ongoing investments in workforce management and integration with platforms like Stripe to expand B2B offerings.

• Stablecoin and blockchain integration: Payoneer is preparing to offer stablecoin wallet functionality in 2026, aiming to keep pace with evolving money movement technology. Management believes these innovations will enable new use cases and help capture value as the cross-border payments landscape becomes more fragmented and digital.

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 $5.32, down from $5.79 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).

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