Payoneer Global (PAYO) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue excluding interest income grew 11% year-over-year, with total revenue at $261.6 million, driven by 16% volume growth and a 44% surge in B2B volume, alongside strong profitability expansion.

• Net income for Q1 2026 was $19.6 million, with adjusted EBITDA reaching $69.4 million (27% margin), and ARPU up 17% year-over-year, marking seven consecutive quarters of 20%+ ARPU growth ex-interest.

• Customer funds on platform rose 15% to $7.6 billion, reflecting increased trust and multi-product adoption.

• Strategic investments in AI, stablecoin capabilities, and fintech partnerships, including the acquisition of Boundless Technologies Limited and collaboration with FundPark, are underway.

• Diversified business model spans B2B SMBs, marketplace sellers, and enterprise payouts, with global reach across 190+ countries.

Financial highlights

• Q1 2026 revenue was $261.6 million, up 6% year-over-year; revenue excluding interest income was $210 million, up 11%.

• Adjusted EBITDA was $69.4 million, up from $65.4 million in Q1 2025; transaction costs decreased 11% to $35.2 million, representing 13.5% of revenue.

• Cash and cash equivalents stood at $339.4 million as of March 31, 2026.

• Net income was $19.6 million, with EPS of $0.06 (basic and diluted).

• Free cash flow conversion exceeded 100% on a three-year average, with $146 million FCF in 2025.

Outlook and guidance

• 2026 revenue guidance raised to $1.1–$1.14 billion, including $900–$940 million ex-interest and $200 million interest income.

• Adjusted EBITDA guidance increased to $285–$295 million; core Adjusted EBITDA expected to more than double to $90 million at midpoint.

• Transaction costs projected at approximately 15% of revenue.

• Expect to exit 2026 at a mid-teens growth rate, with B2B volume growth of 30%+ for the rest of the year.

• Management expects continued investment in platform enhancements, regulatory expansion, and customer acquisition.