Payoneer Reports $246.6 Million Revenue in Q1 2025, Driven by SMB Growth

Payoneer Global Inc. reported a revenue of $246.6 million for the first quarter of 2025, marking an 8% increase from $228.2 million in the same period last year. This growth was primarily driven by an increase in revenue from small and medium-sized businesses (SMBs), which included $14.1 million from B2B SMBs, $7.9 million from marketplace sellers, and $3.5 million from direct-to-consumer sales. However, the company experienced a decline of $7.3 million in interest income from customer balances due to lower interest rates, despite an increase in customer funds held on its platform.

In terms of profitability, Payoneer reported a net income of $20.6 million, down 29% from $29.0 million in the prior year. The decrease in net income was attributed to a significant rise in operating expenses, which increased by $27.5 million, outpacing the revenue growth. Total operating expenses for the quarter were $217.3 million, up 14% from $189.8 million a year earlier. Notably, research and development expenses rose by 16% to $37.3 million, influenced by increased employee-related costs following the acquisition of Skuad Pte. Ltd. in August 2024.

Payoneer has been actively expanding its operations, recently acquiring Payeco Finance Information Holding Corporation, a licensed payment service provider in China, for approximately $75 million. This acquisition is expected to enhance Payoneer's regulatory infrastructure and improve service offerings for China-based customers. The company also completed the acquisition of Skuad, which is aimed at delivering a more integrated financial stack for SMBs operating globally.

As of March 31, 2025, Payoneer reported total customer funds of $6.6 billion, a slight decrease from $6.9 billion at the end of 2024. The company processed $19.7 billion in transaction volume during the quarter, up from $18.5 billion in the same period last year. The total number of employees increased to 1,200, reflecting the company's ongoing investment in talent to support its growth strategy. Looking ahead, Payoneer plans to continue investing in its platform, enhancing product offerings, and expanding its customer base, while also navigating macroeconomic challenges such as geopolitical tensions and fluctuating interest rates.