Payoneer Global Inc.

Ladies and gentlemen, thank you for standing by. My name is Colby, and I'll be your conference operator today. At this time, I'd like to welcome you to the Payoneer third quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise, and after the speaker's remarks, there will be a question and answer session. If you'd like to ask a question at that time, please press star, then the number one on your telephone keypad. If you'd like to withdraw your question at any time, please press star one again. Thank you. I would now like to turn the call over to Michelle Wang. Please go ahead.

Thank you, Operator. With me on today's call are Payoneer's Chief Executive Officer, John Kaplan, and Payoneer's Chief Financial Officer, Bea Ordonez. Before we begin, I'd like to remind you that today's call may contain forward-looking statements, which are subject to risks and uncertainties. For more information, please refer to our filings with the SEC, which are available in the Investor Relations section of Payoneer.com. Actual results may differ materially from any forward-looking statements we make today. These forward-looking statements speak only as of today, and the company does not assume any obligation or intent to update them except as required by law. In addition, today's call may include non-GAAP measures. These measures should be considered in addition to and not instead of GAAP financial measures. Reconciliation to the nearest GAAP measure can be found in today's earnings materials, which are available on our website. Additionally, please note we have posted an earnings presentation supplement alongside our earnings press release on investor.payoneer.com. All comparisons made on today's call are on a year-over-year basis, unless otherwise noted. With that, I'd like to turn the call over to John to begin.

Good morning, and welcome to Payoneer's Q3 2025 earnings call. Payoneer is a global payments and financial operating platform built on durable infrastructure. Together, our technology, strategic relationships, and regulatory framework form the moat we've built over 20 years. Our mission is straightforward. We remove the friction between an entrepreneur's ambition and their achievement by delivering a secure, easy to use, and trusted financial platform built for global commerce. Our strong Q3 and year-to-date results reflect consistent execution against our strategic priorities. in a massive, fragmented, cross-border payments market. Our results give us confidence in our long-term opportunity, even as we navigate short-term volatility. We are evolving our business to be on offense as global trade evolves, supply chains adapt, and as innovations in money movement continue to gain momentum. I'll share our progress, where we're investing, and how we're positioning Payoneer to win. B will then walk you through our financials and increase guidance for 2025. In the first quarter of 2023, when I became sole CEO and B joined as CFO, Payoneer generated mid single digit revenue growth X interest. Adjusted EBITDA X interest was negative. Our priority at the time as a new management team was on reigniting growth and resetting the business for durable profitability. Two and a half years later, We have delivered record Q3 results and are raising our 2025 guidance. Q3 revenue X interest was up 15%, and we have delivered seven consecutive quarters of mid-teens or greater growth in line with or exceeding our stated targets. We've delivered six consecutive quarters of positive adjusted EBITDA X interest, including $12 million in Q3. Our total adjusted EBITDA margin was north of 25% in 2024, as well as in the first three quarters of 2025. The strength and consistency of our results in an evolving macro backdrop underscores our successful execution as we deliver for customers. So a few highlights. First, improved unit economics and higher quality customer portfolio. We are moving from casting a wide net to prioritizing quality. We define quality as larger, more complex customers with scale, ambition, and global reach. And we are focusing on industries and countries where we have the strongest product market fit. We are exiting customers that don't meet our risk tolerance or desired economics. We are driving meaningful ARPU growth as we move upmarket and as we deliver segment-specific pricing and product bundles. ARPU has increased 65% since Q1 of 2023 from $286 to over $470. In our long tail segment, we've raised prices and tightened product access, and the cohort is now profitable. We are focusing our acquisition efforts, service model, and product roadmap to capture and serve larger customers, especially multi-entity customers. ICPs receiving over $250,000 a month in volume represented nearly 30% of our Q3 revenue X interest and are growing significantly faster than the rest of the customer portfolio. The higher quality of our customer portfolio is evident in our financial results. You'll note that total ICP counts have been roughly flat year over year, while we have delivered consistent mid-teens revenue growth X interest. Our focus on larger ICPs has driven higher average volume per ICP. We have improved our transaction costs and profitability dynamics, even as our business expands to serve more complex use cases. Our diversified business mix and B2B expansion continue to drive growth. B2B revenue grew 27% in Q3 and now represents roughly 30% of revenue X interest, up from 20% in Q1 2023. Our platform solves for the complex AR and AP needs of global businesses. Our AP capabilities are built on infrastructure, licenses, and compliance, trusted by large global enterprise partners. and we are making these capabilities available to global SMBs. In B2B, we are also focusing our acquisition efforts on larger customers. More than 50% of B2B revenue came from ICPs doing more than $250,000 per month in volume, and the average invoice size in our B2B franchise increased mid-teens percentage year over year. Third, Our customers have shown that the ability to hold balances across currencies in their Payoneer account is a core Payoneer value proposition. And as such, the interest we earn on those balances represent a core component of our economics. Ending Q3, customers held over $7 billion on our platform, up 17% year-over-year for the second straight quarter. This demonstrates both the trust our customers have in our platform and the accounts payable utility that we provide. And together, this drives our revenue. We monetize customer funds through interest income and transaction fees as funds leave the Payoneer account, either when a customer withdraws to their local bank account or spends via Payoneer's AP products. Customer funds have grown in excess of volume year-to-date and represent substantial future revenue as customers deploy their funds. We have protected a substantial portion of our interest income over the next three years through hedging programs, which Bea will discuss in more detail. Our customers turn to Payoneer as they grow their businesses globally, and we are investing in our platform to deliver more value for them. We continue to drive multi-product adoption as we increase the utility of the Payoneer account and move away from being, quote, a toll booth on the money highway, unquote. Over 50% of Payoneer account spend is now coming from customers who use three or more AP products, up 200 basis points year over year. customers are increasingly using Payoneer as their central account to manage their business network payments and shifting to our card to pay for cross-border expenses. We are expanding the Payoneer account ecosystem and the services we provide to customers through strategic partnerships. Here's one example. We are partnering with a third-party lender to expand access to capital for our customers in a capital-efficient and tech-enabled way. On stablecoins and blockchain, the rails are evolving, and we are evolving our platform to capture the opportunity. Just as when Payoneer started, global businesses need multi-currency wallets and interoperability between different currencies and stores of value. Our strategy is to orchestrate across payment schemes and rails so cross-border businesses can focus on growth without compromising on safety or convenience. We are making steady progress on these efforts. We are now using Citi's on-chain money movement capabilities to move hundreds of millions of dollars quarterly, allowing us to manage liquidity even more efficiently. For customers, we are working on offering stablecoin wallet functionality in 2026. In summary, what you can expect from us going forward, one, relentless focus on profitable growth, guided by a refined portfolio segmentation across region, vertical, use case, product, and unit economics. We do what's best for the long-term health of the business every single day. Two, expansion of core operating margin as we focus on unlocking the meaningful leverage we see in our business over the long term. Three, prudent capital allocation as we fund innovation, pursue selective M&A, and return capital to shareholders via repurchases. We have nearly $500 million of cash and generated roughly $50 million of operating cash flow in Q3. In July, our Board approved a $300 million buyback, and we are executing with intent. We repurchased $45 million of shares in Q3. I'm proud of the progress the global Payoneer team has made this quarter and year-to-date to deliver for our customers. We remain confident in the secular drivers supporting our long-term opportunity and believe our platform and competitive mode position us well to generate long-term, durable, profitable growth. I'll now hand it over to Bea to walk through the numbers and our increased guidance for 2025.