Payoneer Global NASDAQ: PAYO reported what management described as a strong start to 2026, highlighted by accelerating revenue growth excluding interest income, a sharp increase in B2B volumes, and expanding profitability. On the company’s first-quarter 2026 earnings call, CEO John Caplan and CFO Bea Ordonez pointed to broad-based momentum across the business, while emphasizing continued investment in product capabilities, including agentic AI and stablecoin features.
Revenue ex-interest accelerates as B2B volumes surge
Caplan said Payoneer delivered “strong accelerating results across our major KPIs,” with revenue excluding interest income up 11% year over year. Total revenue rose 6% to $262 million, according to Ordonez, while revenue excluding interest income reached $210 million.
Total volume increased 16% year over year to more than $22 billion. A key driver was B2B volume, which climbed 44% and “more than doubl[ed] from 21% in Q4,” Caplan said. Ordonez added that B2B volume accelerated across all reported regions and was “especially strong in the China goods sector,” with strength also in EMEA and APAC.
Within Payoneer’s SMB segment, Ordonez said:
- SMB volume grew 11% year over year.
- B2B SMB volume grew 44%.
- Marketplace SMB volume increased 2%.
- Checkout volume rose 53%.
Upmarket strategy boosts ARPU and customer funds
Payoneer also highlighted continued gains in average revenue per user (ARPU). Ordonez said ARPU increased 17% in the quarter, and ARPU excluding interest income rose 22%, marking the seventh consecutive quarter of 20% or higher growth on that metric. She attributed the trend to the company’s upmarket strategy, cross-sell efforts, and pricing and monetization initiatives.
Caplan said the company is increasingly serving customers as a multi-currency wallet supporting treasury management, accounts receivable, working capital, accounts payable, and workforce management. He noted that “the majority of our usage now comes from customers using us for three or more products,” and said funds held on the platform grew alongside deeper product adoption.
Customer funds held by Payoneer increased 15% year over year to $7.6 billion. Ordonez said growth in customer funds partially offset pressure from lower interest rates on interest income, which totaled $52 million in the quarter. She added that customer funds have grown faster than SMB volumes for the past five quarters, which she said “demonstrates the trust and value customers place in our platform.”
Profitability expands; share repurchases accelerate
Payoneer posted adjusted EBITDA of $69 million, representing a 27% margin. Caplan highlighted “substantial core profitability expansion,” and said adjusted EBITDA excluding interest income rose more than 140% to $18 million, which he called the company’s highest result as a public company. Ordonez also described the $18 million figure as the company’s “highest-ever quarterly performance” for adjusted EBITDA excluding interest income.
Net income was $20 million compared with $21 million in the prior-year period. Basic and diluted earnings per share were both $0.06, versus basic EPS of $0.06 and diluted EPS of $0.05 a year earlier.
On costs, Ordonez said operating expenses rose 7% to $232 million, driven primarily by higher labor-related expenses, incentives and spending tied to card adoption, and the impact of the Easylink acquisition in China. Transaction costs fell 11% to $35 million and represented 13.5% of revenue, down about 250 basis points year over year. Excluding interest income, transaction costs declined more than 400 basis points to 16.8% of revenue, which Ordonez attributed to strategic relationships with Mastercard and Stripe and improved operational efficiency.
Payoneer ended the quarter with $339 million in cash and cash equivalents. Ordonez said cash use is seasonally higher in the first quarter and also reflected higher capital expenditures from a move to new office space in Israel, as well as an increased pace of buybacks. During the quarter, Payoneer repurchased about $74 million of shares at a weighted average price of $5.16, leaving roughly $117 million remaining under its current authorization as of March 31.
2026 guidance raised on interest income; management expects mid-teens exit growth
Ordonez said Payoneer raised full-year 2026 guidance at the midpoint for revenue and adjusted EBITDA. The company now expects:
- Total revenue of $1.1 billion to $1.14 billion.
- Interest income of $200 million.
- Revenue excluding interest income of $900 million to $940 million (unchanged).
- Adjusted EBITDA of $285 million to $295 million.
Ordonez said the interest income outlook increased by $10 million due to “robust growth in customer funds” and updated expectations for prevailing interest rates in the U.S. and Europe. She noted there were “no changes” to guidance for revenue excluding interest income, transaction costs, adjusted operating expenses, or core adjusted EBITDA.
In response to questions about the macro environment and growth cadence, Ordonez said the company views conditions as “stable through the rest of the year,” adding that Q2 top-line revenue growth is expected to be “broadly stable” versus Q1, while acceleration is expected into the back half of the year. She attributed some of the back-half improvement in the marketplace business to lapping tariff impacts, and said Payoneer expects mid-single-digit marketplace volume growth for the year, accelerating in the second half.
For B2B, Ordonez said Payoneer expects “more than 30% year-over-year volume growth through the rest of the year,” with revenue “probably” in the mid-20% range, citing mix effects in China and EMEA. Caplan added that B2B is “now a third of the total volume” in the SMB business and called B2B “the engine of our growth going out.”
Product initiatives: AI, stablecoins, and a planned U.S. trust bank
Caplan said Payoneer is taking a “disciplined use case-driven approach” to deploying agentic AI, including pilots in customer support aimed at reducing ticket volume and improving resolution time, AI-driven lead generation, and broader adoption of AI tools to increase product velocity.
He also said the company is investing in stablecoin capabilities for the longer term and has launched stablecoin wallet capabilities via Bridge, with an initial cohort of customers already live. Caplan said Payoneer’s regulatory maturity positions it as a potential partner for “real-world adoption,” particularly among larger businesses and global marketplaces.
Caplan further pointed to Payoneer’s February announcement that it applied to establish an uninsured national trust bank in the U.S. He said “thousands of businesses” have joined the waitlist and that 80% are net new customers. He also noted that a “meaningful portion” of waitlist businesses are doing $600,000 or more in annualized commercial stablecoin activity.
During the Q&A, Ordonez discussed Payoneer’s checkout business after the company completed a migration to a Stripe solution. She said the company expected some churn from the transition but ultimately “performed much better than that,” migrating more than 90% of the portfolio more quickly than anticipated. She added that Payoneer is seeing improved adoption of features, including “significantly higher” adoption of buy now, pay later functionality than before.
Closing the call, Caplan said the first-quarter results demonstrate that Payoneer’s “strategy and execution are working,” and that the company looks forward to providing another update in August.
About Payoneer Global NASDAQ: PAYO
Payoneer Global NASDAQ: PAYO operates a digital payments platform that enables businesses, marketplaces and professionals to send and receive cross-border payments. The company's core offerings include multi-currency receiving accounts, mass payout services and working capital solutions. Through its platform, Payoneer facilitates global transactions by connecting payors and payees across a network of local bank transfers, card payouts and digital wallets, supporting the seamless movement of funds in over 150 currencies.
Founded in 2005, Payoneer has grown from a small fintech venture into a widely adopted payments infrastructure provider that serves clients in more than 200 countries and territories.
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