Payoneer (PAYO)
NASDAQ:PAYO
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Payoneer
(NASDAQ:PAYO)
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Rating:71Outperform
Price Target:
$5.50
▲(10.22% Upside)
Action:UpgradedDate:02/27/26
Score is driven primarily by strong financial fundamentals (profitability and cash-flow improvement with low leverage) and a positive earnings-call setup (guidance for meaningful EBITDA/margin expansion and continued buybacks). Offsetting these strengths, the technical picture is weak with the stock trading well below key moving averages and negative MACD, while valuation (P/E 27.6 and no dividend) is only moderately supportive.
Positive Factors
Cash generation
Payoneer’s material free cash flow improvement (FCF ~$207M in 2025 and operating cash flow ~$233M) provides durable internal funding for buybacks, acquisitions, product investment and working-capital solutions. Strong cash conversion supports financial flexibility and reduces reliance on external financing over the next several quarters.
Negative Factors
Interest income headwind
Declining interest income creates a structural revenue volatility risk: management estimates a ~$42M decline in 2026 and only ~51% of customer funds are hedged. Reduced interest spread compresses total margins and increases sensitivity to rates, requiring stronger core payments growth to offset.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Payoneer’s material free cash flow improvement (FCF ~$207M in 2025 and operating cash flow ~$233M) provides durable internal funding for buybacks, acquisitions, product investment and working-capital solutions. Strong cash conversion supports financial flexibility and reduces reliance on external financing over the next several quarters.
Read all positive factors
Payoneer (PAYO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.72B
Dividend YieldN/A
Average Volume (3M)4.49M
Price to Earnings (P/E)27.7
Beta (1Y)1.58
Revenue Growth10.58%
EPS Growth-45.52%
CountryUS
Employees2,407
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.05
Shares Outstanding344,772,980
10 Day Avg. Volume5,180,975
30 Day Avg. Volume4,488,823
Financial Highlights & Ratios
PEG Ratio-0.67
Price to Book (P/B)2.88
Price to Sales (P/S)1.93
P/FCF Ratio9.82
Enterprise Value/Market Cap0.79
Enterprise Value/Revenue1.29
Enterprise Value/Gross Profit1.57
Enterprise Value/Ebitda7.27
Forecast
1Y Price Target
$7.42Price Target Upside48.70% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)0.25
Revenue Forecast (FY)$1.11B
Payoneer Business Overview & Revenue Model
Company Description
Payoneer Global Inc. operates a payment and commerce-enabling platform that facilitates marketplaces, platforms and online merchants worldwide. It delivers a suite of services that includes cross-border payments, B2B accounts payable/accounts rece...
How the Company Makes Money
Payoneer primarily makes money through fees and financial income generated from facilitating payments and providing value-added financial services to its customers.
1) Transaction and service fees (payments and platform usage)
- Cross-border paym...
Payoneer Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum with material improvements in revenue ex-interest, ARPU expansion, B2B penetration, adjusted EBITDA and cash generation. Management provided constructive 2026 guidance targeting further margin expansion and doubling of core profitability while pursuing strategic initiatives (stablecoin, bank charter, AI, acquisitions). Key near-term challenges include declining interest income, a front-loaded revenue drag from migrating Checkout to Stripe, marketplace softness earlier in Q4, and some expense increases. Overall, the positives—sustained revenue and ARPU growth, meaningful profitability expansion, strong cash flow and proactive hedging and capital return—materially outweigh the cited headwinds.Positive Updates
Strong Volume and Global Footprint
Processed over $87 billion in volume across 190 countries and territories in 2025, demonstrating broad global scale and cross-border reach.
Negative Updates
Interest Income Headwind
Declining interest rates created a material headwind: a ~$25 million headwind in 2025 and an estimated ~$42 million decrease in interest income in 2026 versus prior year; only ~51% of customer funds were hedged as of Dec 31, 2025, leaving residual exposure.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Volume and Global Footprint
Processed over $87 billion in volume across 190 countries and territories in 2025, demonstrating broad global scale and cross-border reach.
Read all positive updates
Company Guidance
Payoneer’s 2026 guidance calls for total revenue of $1,090–$1,130 million with interest income of $190 million, implying revenue ex‑interest of $900–$940 million (≈12% growth at the midpoint) and core adjusted EBITDA of roughly $90 million at the midpoint (more than double 2025); management expects total adjusted EBITDA of $275–$285 million (~25% margin) and adjusted EBITDA ex‑interest of $85–$95 million (also >2x 2025) despite an estimated $42 million decline in interest income. They project adjusted OpEx of about $660 million at the midpoint (≈7% YoY, ≈4% at constant currency), transaction costs around 15% of revenue (down ~70 bps), and volume assumptions of high‑teens B2B growth, mid‑single‑digit marketplace growth, and mid‑teens enterprise payout growth; growth should accelerate from high‑single‑digit in H1 to exit 2026 at mid‑teens with mid‑teens core margins. The firm also noted hedges on roughly $4 billion (≈51%) of customer funds securing over $130 million of interest income for 2026 (>$110M for 2027, >$90M for 2028) and plans to continue buybacks, with about $192 million of repurchase authorization remaining.Payoneer Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
83
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.05B | 977.72M | 831.10M | 627.62M | 473.40M |
| Gross Profit | 821.91M | 825.61M | 708.81M | 517.46M | 371.93M |
| EBITDA | 181.21M | 148.17M | 140.62M | 20.03M | -18.00M |
| Net Income | 73.19M | 121.16M | 93.33M | -11.97M | -33.99M |
Balance Sheet | |||||
| Total Assets | 8.96B | 7.93B | 7.28B | 6.59B | 5.08B |
| Cash, Cash Equivalents and Short-Term Investments | 415.54M | 497.47M | 617.02M | 543.30M | 465.93M |
| Total Debt | 72.33M | 21.38M | 43.42M | 31.01M | 22.95M |
| Total Liabilities | 8.25B | 7.21B | 6.62B | 6.05B | 4.59B |
| Stockholders Equity | 704.43M | 724.79M | 664.27M | 545.26M | 487.07M |
Cash Flow | |||||
| Free Cash Flow | 206.62M | 116.53M | 111.70M | 55.13M | -884.00K |
| Operating Cash Flow | 233.49M | 176.93M | 159.49M | 83.96M | 20.02M |
| Investing Cash Flow | -218.34M | -1.96B | -44.25M | 5.73M | 10.16M |
| Financing Cash Flow | 738.04M | 427.77M | 511.95M | 1.46B | 1.40B |
Payoneer Technical Analysis
Negative
4.99
Price Trends
5.27
Negative
5.44
Negative
5.99
Negative
Market Momentum
-0.10
Negative
47.67
Neutral
74.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PAYO, the sentiment is Negative. The current price of 4.99 is above the 20-day moving average (MA) of 4.68, below the 50-day MA of 5.27, and below the 200-day MA of 5.99, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 47.67 is Neutral, neither overbought nor oversold. The STOCH value of 74.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PAYO.
Payoneer Risk Analysis
Payoneer disclosed 39 risk factors in its most recent earnings report. Payoneer reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Payoneer Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $294.14M | 37.12 | 17.19% | ― | 32.61% | -8.26% | |
73 Outperform | $3.65B | 18.77 | 38.09% | ― | 22.02% | 12.42% | |
71 Outperform | $1.72B | 27.73 | 9.84% | ― | 10.58% | -45.52% | |
65 Neutral | $3.37B | 41.81 | 8.61% | ― | 31.27% | ― | |
62 Neutral | $1.78B | -157.65 | -1.62% | ― | 20.11% | -391.61% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $2.87B | 7.50 | 14.40% | 1.40% | 0.58% | 5.76% |
* Technology Sector Average
PAYO
Payoneer
4.78
-2.47
-34.07%
PAGS
Pagseguro Digital
9.65
2.13
28.34%
PAYS
PaySign
5.62
3.49
163.85%
MQ
Marqeta
3.99
-0.20
-4.77%
DLO
DLocal
12.27
4.33
54.53%
RELY
Remitly Global
15.01
-5.92
-28.28%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.