Payoneer — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for Q3 2026 was $276.9 million, a 2% increase year-over-year compared to $270.9 million in Q3 2025.
• Revenue excluding interest income was $222.2 million, representing a 5% year-over-year increase.
• Net income was $14.9 million, up 6% year-over-year from $14.1 million.
• Adjusted EBITDA was $68.3 million, a 4% decrease year-over-year from $71.3 million.
• Adjusted EBITDA excluding interest income was $13.6 million, a 16% increase year-over-year.
• Transaction costs as a percentage of revenue were 15.0% in Q3 2026, a 70 basis point decrease from 15.7% in Q3 2025.
• Average Revenue Per User (ARPU) was $555, an 18% increase year-over-year.
• ARPU excluding interest income grew over 20% year-over-year for the ninth consecutive quarter.
• Customer funds totaled $7.5 billion as of September 30, 2026, a 6% year-over-year increase.
• Cash and cash equivalents were $362.6 million as of September 30, 2026, down from $415.5 million as of December 31, 2025.
• Total shareholders' equity was $665.7 million as of September 30, 2026, compared to $704.4 million as of December 31, 2025.
• Diluted earnings per share were $0.04 for Q3 2026, unchanged from Q3 2025.

Guidance and Future Outlook:

• Management targets a mid-2027 close for the Nuvei merger transaction.
• The company is currently making progress on obtaining necessary regulatory approvals for the Nuvei transaction.
• Shareholder approval for the Nuvei merger agreement was received on September 14, 2026.

Business Segments and Product Lines:

• Total transaction volume was $25.3 billion, up 13% year-over-year.
• SMBs that sell on marketplaces volume was $12.6 billion, up 1% year-over-year; revenue from this segment was $115 million, down 5% year-over-year.
• B2B volume was $5.0 billion, up 59% year-over-year, driven by growth across major regions and larger customers, particularly in China and EMEA.
• B2B SMBs revenue was $70 million, up 13% year-over-year.
• Checkout volume was $330 million, up 48% year-over-year; revenue was $14 million, up 60% year-over-year.
• Enterprise payouts volume was $7.4 billion, up 14% year-over-year.
• SMB customer revenue totaled $199 million, a 4% year-over-year increase.
• The company obtained payment licenses in Canada and Israel to extend its global regulatory infrastructure.

Market and Competitive Landscape:

• Revenue from larger customers continues to grow as a percentage of total revenue.
• Greater China generated $95.2 million in revenue, Europe, Middle East, and Africa generated $68.6 million, and Asia-Pacific generated $60.8 million.
• No single country within Europe, Middle East, and Africa, Asia-Pacific, or Latin America generated more than 10% of total revenue.
• The United States, the company's country of domicile, represented $26.8 million of North America revenue.

Risks and Challenges:

• Forward-looking statements regarding the Nuvei transaction are subject to risks including the timing and likelihood of completion, receipt of governmental and regulatory approvals, and potential termination of the Merger Agreement.
• Risks include disruption of management time, adverse effects on market price, potential negative impact on business relationships, and the ability to retain customers and key personnel.
• Other risks include unforeseen liabilities, third-party contract consent issues, cybersecurity attacks, wars, labor disputes, and changes in industry or regulatory conditions.
• Actual results may differ materially from forward-looking statements due to assumptions regarding foreign exchange rates and other economic factors.

Management Commentary and Tone:

• CEO John Caplan stated that Q3 results demonstrate the success of the company's upmarket strategy.
• Management highlighted the acceleration of B2B volume growth and the ninth consecutive quarter of 20%+ growth in ARPU excluding interest income.
• Management expressed confidence that Payoneer's customer relationships, distribution, regulatory infrastructure, and wallet/payout capabilities are highly complementary with Nuvei's capabilities.
• The stated goal is to build end-to-end money movement infrastructure designed for the world's largest digital commerce ecosystems.

Other Key Points:

• The Nuvei merger agreement proposal was approved by stockholders on September 14, 2026.
• M&A related expenses for the quarter included $2.7 million in third-party costs related to the pending Nuvei acquisition.
• M&A expenses also included approximately $0.2 million related to a non-recurring fair value adjustment and compensation expense for the Boundless deferred payment and earn-out arrangement.
• Restructuring charges were $0 for the quarter ended September 30, 2026.
• Stock-based compensation expenses were $18.7 million for the quarter.
• The company repurchased common stock for $92.5 million during the nine months ended September 30, 2026.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $180.4 million.
• Net cash used in financing activities for the nine months ended September 30, 2026, was $474.7 million.