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Payoneer (PAYO)
NASDAQ:PAYO
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Payoneer (PAYO) AI Stock Analysis

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PAYO

Payoneer

(NASDAQ:PAYO)

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Outperform 75 (OpenAI - 4o)
Rating:75Outperform
Price Target:
$7.50
▲(13.81% Upside)
Payoneer's overall stock score is driven by strong financial performance and positive earnings call highlights, including record revenue and strategic initiatives. However, technical analysis indicates potential bearish momentum, and valuation metrics suggest moderate pricing. The absence of a dividend yield and challenges such as increased transaction costs and declining net income slightly temper the outlook.
Positive Factors
Revenue Growth
The consistent revenue growth reflects strong market demand and effective business strategies, positioning Payoneer well for sustained expansion.
B2B Revenue Expansion
Significant B2B revenue growth indicates successful penetration into key markets and strengthens Payoneer's competitive position in the digital payments sector.
Strategic Partnerships
The partnership with Stripe enhances Payoneer's service offerings and global reach, potentially driving further customer acquisition and revenue growth.
Negative Factors
Net Income Decline
A decline in net income suggests challenges in maintaining profitability, which could impact future financial flexibility and investment capacity.
Increased Transaction Costs
Rising transaction costs may pressure margins and reduce profitability, necessitating efficiency improvements to sustain long-term growth.
China B2B Market Volatility
Volatility in the China B2B market could lead to unpredictable revenue streams, affecting overall business stability and growth prospects.

Payoneer (PAYO) vs. SPDR S&P 500 ETF (SPY)

Payoneer Business Overview & Revenue Model

Company DescriptionPayoneer 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 receivable, multi-currency account, physical and virtual Mastercard cards, working capital, merchant, tax, compliance and risk, and others. The company's platform delivers bank-grade security, stability, and redundancy combined with modern digital capabilities that interconnects the world on a single platform. Its cross-border payment solutions support an ecosystem of marketplaces and marketplace sellers to pay their sellers in approximately 190 countries and territories by connecting to Payoneer APIs and for sellers to get paid. The company was founded in 2005 and is based in New York, New York.
How the Company Makes MoneyPayoneer makes money primarily through transaction fees, currency conversion fees, and account maintenance fees. When users send or receive payments across borders, Payoneer charges a transaction fee, which is a percentage of the amount transferred. Additionally, the company earns revenue from currency conversion fees when transactions involve different currencies. Payoneer also generates income through interest on working capital solutions provided to businesses. Key partnerships with marketplaces, e-commerce platforms, and financial institutions enhance its revenue streams by expanding its user base and integrating its services into diverse ecosystems.

Payoneer Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong performance with record revenue, significant adjusted EBITDA growth, and strategic expansions and partnerships. However, challenges such as declining net income, volatility in the China B2B market, and increased transaction costs were noted.
Q2-2025 Updates
Positive Updates
Record Quarterly Revenue
Payoneer delivered record quarterly revenue excluding interest income, up 16% year-over-year, ahead of their medium-term target.
Strong Adjusted EBITDA Performance
Adjusted EBITDA was $66 million, a 25% margin, with expectations to more than triple adjusted EBITDA excluding interest in 2025.
B2B Growth
B2B revenue grew 37% in Q2, led by the largest customer segments, with a focus on larger multi-entity customers.
Strategic Partnership with Stripe
A new partnership with Stripe was launched to expand global checkout footprint and enhance product capabilities.
New Technology Hub in India
Announced the opening of a new technology hub in Gurgaon, India, to tap into one of the world's fastest-growing economies.
Increased Share Repurchases
Nearly doubled share repurchases versus Q1 and announced a $300 million buyback authorization.
Negative Updates
Net Income Decline
Net income was $19 million compared to $32 million in the second quarter of last year, with EPS down from $0.09 to $0.05.
China B2B Business Volatility
China B2B business grew mid-single digits, indicating volatility and fits and starts in the market.
Transaction Costs Increase
Total operating expenses increased 19%, with transaction costs of $41 million, representing 15.6% of revenue.
Company Guidance
During Payoneer's second quarter 2025 earnings call, the company reinstated its full-year guidance, showcasing confidence in navigating the current macroeconomic and tariff environment. Payoneer reported a record quarterly revenue of $202 million, excluding interest income, marking a 16% year-over-year increase. The company also achieved an adjusted EBITDA of $66 million, representing a 25% margin, and signaled an expectation to more than triple its adjusted EBITDA, excluding interest income, in 2025. Payoneer saw a 37% growth in B2B revenue and highlighted ARPU expansion of 21%, indicating strong product adoption and pricing strategy. They introduced a new $300 million share buyback program, reflecting confidence in their business value. Additionally, Payoneer is exploring stable coin functionality to leverage its global customer base and infrastructure, aiming to position itself as a critical player in digital payment technologies.

Payoneer Financial Statement Overview

Summary
Payoneer demonstrates strong financial health with consistent revenue growth, improving profitability, and robust cash flow generation. The company maintains low leverage, enhancing its financial stability. While the balance sheet shows high liabilities, effective cash flow management and profitability are key strengths that support its financial sustainability.
Income Statement
85
Very Positive
Payoneer shows strong financial performance with a consistent revenue growth trend, growing from $345.6M in 2020 to $996.15M in TTM 2025. The gross profit margin has remained robust, showing effective cost management, and the company has turned profitable with a net profit margin of 11.32% in TTM 2025. The EBIT and EBITDA margins have also improved considerably, indicating enhanced operational efficiency.
Balance Sheet
78
Positive
The balance sheet reflects a solid equity base with a debt-to-equity ratio of 0.03 in TTM 2025, indicating low leverage. The equity ratio stands at approximately 9.94%, suggesting a reasonable level of equity financing. However, the company's liquidity could be a concern with a high proportion of liabilities relative to assets.
Cash Flow
82
Very Positive
Payoneer's cash flow performance is commendable, with positive free cash flow growth and a healthy operating cash flow to net income ratio of 1.69 in TTM 2025. The free cash flow to net income ratio is also strong at 1.37, demonstrating efficient cash management and a solid ability to generate cash from operations.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.02B977.72M831.10M627.62M473.40M345.59M
Gross Profit849.32M825.61M708.81M517.46M371.93M248.55M
EBITDA180.86M196.33M131.42M-8.23M-7.14M1.20M
Net Income99.82M121.16M93.33M-11.97M-33.95M-23.60M
Balance Sheet
Total Assets8.11B7.93B7.28B6.59B5.08B3.67B
Cash, Cash Equivalents and Short-Term Investments497.14M497.47M617.02M543.30M465.93M102.99M
Total Debt45.88M21.38M43.42M24.50M13.66M40.02M
Total Liabilities7.34B7.21B6.62B6.05B4.59B3.65B
Stockholders Equity770.90M724.79M664.27M545.26M487.07M24.30M
Cash Flow
Free Cash Flow195.40M168.74M111.70M55.13M-1.32M-4.51M
Operating Cash Flow220.41M176.93M159.49M83.96M19.58M9.53M
Investing Cash Flow-1.43B-1.96B-44.25M5.73M10.16M-66.85M
Financing Cash Flow873.49M427.77M511.95M1.46B1.40B1.67B

Payoneer Technical Analysis

Technical Analysis Sentiment
Negative
Last Price6.59
Price Trends
50DMA
6.72
Negative
100DMA
6.80
Negative
200DMA
7.90
Negative
Market Momentum
MACD
-0.04
Positive
RSI
47.01
Neutral
STOCH
49.58
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 6.59 is below the 20-day moving average (MA) of 6.71, below the 50-day MA of 6.72, and below the 200-day MA of 7.90, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 47.01 is Neutral, neither overbought nor oversold. The STOCH value of 49.58 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 41 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$2.37B25.0313.86%13.02%-2.57%
73
Outperform
4.48B29.5332.57%22.02%12.42%
73
Outperform
3.48B8.4815.03%1.31%0.09%5.38%
69
Neutral
3.53B274.201.84%35.12%0.00%
67
Neutral
306.02M46.3712.54%27.84%-13.78%
63
Neutral
2.55B-44.35-7.67%17.47%-544.72%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PAYO
Payoneer
6.59
-1.02
-13.40%
PAGS
Pagseguro Digital
10.55
1.75
19.89%
PAYS
PaySign
5.62
1.38
32.55%
MQ
Marqeta
5.69
0.53
10.27%
DLO
DLocal
14.99
7.27
94.17%
RELY
Remitly Global
17.11
3.11
22.21%
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.Date of analysis: Sep 19, 2025