Payoneer Q2 2026 earnings: B2B volume accelerates as GAAP profit turns to loss

Payoneer (NASDAQ: PAYO) reported Q2 2026 revenue of $274.3 million, up 5% from $260.6 million a year earlier, while diluted EPS fell to a loss of $0.01 from earnings of $0.05. Payment volume grew 15% to $23.7 billion, led by a 48% increase in B2B volume, but higher operating and financial costs pushed the company to a GAAP net loss despite improved adjusted EBITDA.

Core financial results

Underlying payments revenue grew faster than the headline figure. Revenue excluding interest income increased 10% to $222.2 million, while interest income declined 11% as lower rates outweighed part of the benefit from higher customer funds.

Reported and adjusted profitability moved in opposite directions. Adjusted EBITDA rose 7%, but operating income declined and Payoneer recorded a $2.4 million net loss after operating expenses, M&A-related costs and other financial expense increased.

Adjusted EBITDA and adjusted EBITDA excluding interest income are non-GAAP measures.

Business and channel performance

B2B was the main volume growth driver, supported by expansion across major regions and continued acquisition of larger customers, particularly in China and EMEA. Checkout also expanded rapidly, while the marketplace channel recorded comparatively modest growth.

Average revenue per user increased 18% to $533, while ARPU excluding interest income rose 22%. The overall take rate declined 10 basis points to 116 basis points, although the SMB customer take rate decreased by only 2 basis points to 118 basis points.

Regional results were mixed. Greater China revenue rose approximately 9% to $93.2 million and Asia-Pacific increased about 13% to $60.8 million. EMEA was nearly flat at $68.3 million, while Latin America declined approximately 11% to $25.8 million.

Higher operating and deal costs drove the GAAP loss

Total operating expenses increased approximately 12% to $257.3 million, outpacing revenue growth. Research and development expense rose to $47.0 million from $37.4 million, general and administrative expense increased to $48.4 million from $37.0 million, and depreciation and amortization reached $21.2 million versus $15.6 million.

M&A-related expenses rose to $13.5 million from $0.7 million. The current-quarter amount included $10.8 million of third-party costs, including expenses connected with the proposed Nuvei acquisition, as well as $2.5 million of acquisition-related compensation for employees and contractors. Other financial expense also increased to $10.6 million from $0.2 million.

These costs explain much of the gap between adjusted EBITDA growth and weaker GAAP results. Payoneer generated $6.3 million of pretax income but recorded $8.7 million of income tax expense, resulting in the quarterly net loss.

Cash flow and balance sheet

For the first six months of 2026, operating cash flow was $113.0 million, down from $124.4 million in the comparable 2025 period. Cash and cash equivalents stood at $346.3 million on June 30, 2026, compared with $415.5 million at the end of 2025.

Payoneer repurchased $92.7 million of common stock during the first half, including $16 million in Q2 at a weighted average price of $4.91 per share. The company suspended repurchases during the quarter in connection with the proposed acquisition and does not intend to resume them while the transaction remains pending.

Separately, customer funds totaled approximately $7.7 billion at quarter-end, up 10% year over year. That growth partially offset the effect of lower interest rates on interest income.

Nuvei transaction replaces financial guidance with closing milestones

Payoneer entered into a definitive agreement on June 15, 2026, under which Nuvei will acquire all outstanding Payoneer shares for $7.40 per share in cash. The transaction has an estimated equity value of approximately $2.75 billion and is expected to close in mid-2027, subject to shareholder approval, required regulatory approvals and customary closing conditions.

Early termination of the waiting period under the Hart-Scott-Rodino Act was granted on July 28, but other closing conditions remain. If completed, Payoneer will become a private company and its shares will no longer trade on Nasdaq.

Because of the pending transaction, Payoneer suspended earnings conference calls and withdrew its outlook for 2026 as well as its medium- and long-term targets. The company will continue issuing quarterly results and filing reports with the SEC until the acquisition is completed.

Recent insider transactions

Insider data for the past six months reports 3,265,228 shares purchased across 11 transactions and 25,000 shares sold in one transaction, producing net reported purchases of 3,240,228 shares. The newest ten individual entries were mainly zero-price stock awards, plus one stock gift; the only sale among them was by CFO Beatrice Ordonez.

Risks investors should monitor

• Transaction completion risk: The Nuvei acquisition still requires shareholder approval, additional regulatory approvals and satisfaction of other closing conditions. Its expected mid-2027 closing date is not guaranteed.
• Pressure on GAAP profitability: Operating expenses grew faster than revenue, while M&A-related and financial expenses contributed to the shift from profit to loss. Continued expense growth could keep reported margins under pressure.
• Interest-rate sensitivity: Interest income declined 11% despite 10% growth in customer funds, showing that lower rates can offset balance growth.
• Take-rate pressure: Total volume rose 15%, but the overall take rate fell by 10 basis points. A continued decline could limit how effectively transaction growth converts into revenue.

Summary

Payoneer’s second-quarter results showed accelerating B2B and Checkout activity, higher ARPU and improved adjusted EBITDA, but those gains did not translate into GAAP profit because operating, acquisition-related and financial costs increased. Investors now need to monitor expense trends, take-rate and interest-income performance alongside the shareholder and regulatory milestones for the pending Nuvei acquisition.