Payoneer Reports 9% Revenue Growth to $260.6 Million in Q2 2025

Payoneer Global Inc. reported its financial results for the second quarter of 2025, revealing a revenue of $260.6 million, an increase of 9% from $239.5 million in the same period last year. For the first half of 2025, the company generated $507.2 million in revenue, up 8% from $467.7 million in the prior year. The growth in revenue was primarily driven by increased activity from small and medium-sized businesses (SMBs), particularly in the B2B sector, which contributed $15.7 million and $29.8 million to quarterly and semi-annual revenues, respectively. However, the company experienced a decline in interest income from customer balances, which fell by $7.5 million and $14.8 million for the respective periods due to lower interest rates.

Operating income for the second quarter was $30.1 million, a decrease of 35% compared to $46.3 million in the previous year, while net income dropped 40% to $19.5 million from $32.4 million. The decline in profitability was attributed to rising operating expenses, which increased by 19% to $230.5 million for the quarter, driven by higher costs in research and development, sales and marketing, and general administrative expenses. Notably, research and development expenses surged by 36% year-over-year, reflecting the company's commitment to enhancing its product offerings.

In terms of operational metrics, Payoneer processed $20.7 billion in transaction volume during the second quarter, up from $18.7 billion in the same period last year, marking an 11% increase. The company also reported a significant rise in customer funds, which reached $7.0 billion as of June 30, 2025. This growth in customer funds has been a key driver of revenue, particularly in the current high-interest rate environment, although the company anticipates potential revenue impacts from declining interest rates in the future.

Strategically, Payoneer has made significant acquisitions to bolster its market position. In April 2025, the company acquired Payeco Finance Information Holding Corporation, enhancing its regulatory infrastructure and service offerings for China-based customers. Additionally, the acquisition of Skuad Pte. Ltd. in August 2024 has accelerated Payoneer's strategy to provide a comprehensive financial stack for SMBs operating internationally. The company continues to focus on expanding its geographic footprint and product offerings to drive future growth.

Looking ahead, Payoneer remains optimistic about its growth trajectory, despite potential macroeconomic challenges, including geopolitical tensions and changing interest rates. The company plans to invest in enhancing its platform, expanding its regulatory footprint, and increasing customer acquisition efforts. With a robust cash position of $497.1 million as of June 30, 2025, Payoneer is well-positioned to navigate the evolving market landscape and capitalize on emerging opportunities.