Revenue growth decelerated to 5.2% in 2026Q2, while gross margin fell to 71.2% from 84.4% a year earlier, and operating income dropped to $16.9M from $30.1M, reflecting margin compression.
Payoneer Global Inc. (PAYO) annual income statement — 8-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Sales/Revenue | 1.08B | 1.05B | 977.72M | 831.1M | 627.62M | 473.4M | 345.59M | 317.75M | 260.13M |
| Revenue Growth % | 6.31% | 7.68% | 17.64% | 32.42% | 32.58% | 36.98% | 8.76% | 22.15% | - |
| Cost of Goods Sold | 237.93M | 230.86M | 152.11M | 122.29M | 110.17M | 101.48M | 97.04M | 94.67M | 81.37M |
| COGS % of Revenue | - | 21.93% | 15.56% | 14.71% | 17.55% | 21.44% | 28.08% | 29.79% | 31.28% |
| Gross Profit | 843.47M | 821.91M | 825.61M | 708.81M | 517.46M | 371.93M | 248.55M | 223.09M | 178.77M |
| Gross Margin % | 78% | 78.07% | 84.44% | 85.29% | 82.45% | 78.56% | 71.92% | 70.21% | 68.72% |
| Gross Profit Growth % | - | -0.45% | 16.48% | 36.98% | 39.13% | 49.64% | 11.42% | 24.79% | - |
| Operating Expenses | 729.26M | 697.24M | 676.58M | 605.2M | 539.67M | 402.14M | 265.85M | 219.44M | 180.69M |
| OpEx % of Revenue | - | 66.23% | 69.2% | 72.82% | 85.99% | 84.95% | 76.93% | 69.06% | 69.46% |
| Selling, General & Admin | 401.78M | 376.56M | 351.43M | 315.69M | 280.88M | 178.73M | 114.47M | 92.04M | 74.55M |
| SG&A % of Revenue | - | 35.77% | 35.94% | 37.98% | 44.75% | 37.75% | 33.12% | 28.96% | 28.66% |
| Research & Development | 171.06M | 155.42M | 134.63M | 119.2M | 115.04M | 80.76M | 52.3M | 34.77M | 29.38M |
| R&D % of Revenue | - | 14.76% | 13.77% | 14.34% | 18.33% | 17.06% | 15.13% | 10.94% | 11.3% |
| Other Operating Expenses | 4M | 165.26M | 190.52M | 170.32M | 143.75M | 142.65M | 99.07M | 92.64M | 76.76M |
| Operating Income | 114.21M | 124.67M | 149.03M | 103.61M | -22.21M | -30.21M | -17.3M | 3.64M | -1.93M |
| Operating Margin % | 10.56% | 11.84% | 15.24% | 12.47% | -3.54% | -6.38% | -5% | 1.15% | -0.74% |
| Operating Income Growth % | - | -16.35% | 43.84% | 566.41% | 26.47% | -74.67% | -575.01% | 288.95% | - |
| EBITDA | 190.03M | 190.29M | 157.73M | 111.7M | -13.93M | -23.15M | -10.45M | 9.73M | 2.38M |
| EBITDA Margin % | 17.57% | 18.08% | 16.13% | 13.44% | -2.22% | -4.89% | -3.02% | 3.06% | 0.92% |
| EBITDA Growth % | 13.1% | 20.64% | 41.21% | 901.9% | 39.84% | -121.59% | -207.36% | 308.05% | - |
| D&A (Non-Cash Add-back) | 75.82M | 65.63M | 8.7M | 8.09M | 8.29M | 7.06M | 6.85M | 6.09M | 4.31M |
| EBIT | 109.46M | 115.59M | 139.47M | 132.54M | 11.75M | -25.06M | -15.43M | 4.08M | -4.1M |
| Net Interest Income | 43.69M | 0 | 259.26M | 242.2M | 45.16M | -220K | 0 | 0 | 0 |
| Interest Income | 59.53M | 0 | 259.26M | 242.2M | 55.29M | 0 | 0 | 0 | 0 |
| Interest Expense | 15.85M | 0 | 0 | 0 | 10.13M | 220K | 0 | 0 | 0 |
| Other Income/Expense | -20.72M | -9.08M | -9.56M | 28.93M | 23.83M | 4.93M | 1.87M | 443K | -2.17M |
| Pretax Income | 93.49M | 115.59M | 139.47M | 132.54M | 1.62M | -25.28M | -15.43M | 4.08M | -4.1M |
| Pretax Margin % | 8.65% | 10.98% | 14.27% | 15.95% | 0.26% | -5.34% | -4.46% | 1.29% | -1.58% |
| Income Tax | 43.22M | 42.4M | 18.31M | 39.2M | 13.59M | 8.71M | 8.32M | 4.71M | 3.09M |
| Effective Tax Rate % | 46.23% | 36.68% | 13.13% | 29.58% | 840.72% | -34.46% | -53.93% | 115.3% | -75.34% |
| Net Income | 50.27M | 73.19M | 121.16M | 93.33M | -11.97M | -33.99M | -23.75M | -625K | -7.19M |
| Net Margin % | 4.65% | 6.95% | 12.39% | 11.23% | -1.91% | -7.18% | -6.87% | -0.2% | -2.76% |
| Net Income Growth % | -49.64% | -39.59% | 29.82% | 879.72% | 64.78% | -43.13% | -3699.36% | 91.31% | - |
| Net Income (Continuing) | 50.27M | 73.19M | 121.16M | 93.33M | -11.97M | -33.99M | -23.75M | -625K | -7.19M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.15 | 0.19 | 0.31 | 0.24 | -0.03 | -0.19 | -0.07 | -0.00 | -0.02 |
| EPS Growth % | -47.91% | -38.71% | 29.17% | 797.67% | 81.89% | -172.21% | - | 92.45% | - |
| EPS (Basic) | - | 0.20 | 0.34 | 0.26 | -0.03 | -0.20 | -0.07 | -0.00 | -0.02 |
| Diluted Shares Outstanding | 337.47M | 376.73M | 386.24M | 392.67M | 348.04M | 357.49M | 338.35M | 338.35M | 338.35M |
| Basic Shares Outstanding | 337.47M | 361.17M | 358.35M | 361.68M | 348.04M | 340.05M | 338.35M | 338.35M | 338.35M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying PAYO stock.
For fiscal year 2025, Payoneer Global Inc. (PAYO) reported total revenue of $1.05B. This represents a 304.7% increase compared to $260.1M in 2018.
Payoneer Global Inc. (PAYO) is profitable, generating $73.2M in net income for the fiscal year ending 2025 with a net profit margin of 7.0%.
Payoneer Global Inc. (PAYO) reported an operating income of $124.7M, resulting in an operating profit margin of 11.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Payoneer Global Inc. (PAYO) generated $821.9M in gross profit for the year, representing a gross profit margin of 78.1%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Margin compression and revenue deceleration
Metrics are mathematically derived from official filings.
Revenue Growth Losing Momentum
Payoneer's revenue growth slowed to 5.2% in 2026Q2 from 16.7% a year earlier, as reported in the latest quarterly results, suggesting a deceleration trend.
The year-over-year growth rate has halved from the mid-teens in early 2024 to single digits in 2026, with the most recent quarter showing only 5.2% growth. This deceleration appears broad-based, as sequential revenue also declined from 2026Q1 to 2026Q2, indicating potential demand softening or increased competition. Investors should monitor whether this is a temporary slowdown or a structural shift in the cross-border payments market.
Gross Margin Erosion Pressures Profitability
Gross margin fell to 71.2% in 2026Q2 from 84.4% a year earlier, according to financial statements, signaling a significant cost structure shift.
The 13 percentage point drop in gross margin over four quarters is substantial and appears to be driven by rising COGS, which nearly doubled from $40.6M to $78.9M. This may indicate a change in revenue mix toward lower-margin services or increased payment processing costs. If this trend persists, it could compress operating leverage and undermine the company's ability to generate sustainable profits.
Operating Leverage Reverses Sharply
Operating income fell to $16.9M in 2026Q2 from $30.1M a year earlier, despite only a 5% revenue increase, as reported in the income statement.
The operating margin contracted from 11.5% to 6.2% year-over-year, indicating that operating expenses are growing faster than revenue. SG&A expenses rose 17% while revenue grew only 5%, and R&D also increased, suggesting that the company is investing heavily but not seeing proportional revenue gains. This reversal of operating leverage warrants close attention, as it may signal inefficiencies or a strategic pivot that has yet to pay off.
Net Income Volatility and SBC Distortion
Net income swung to a $2.4M loss in 2026Q2 from a $19.5M profit a year earlier, with stock-based compensation at $38M, per the latest filings.
The reported net loss in 2026Q2 is striking given the positive operating income, suggesting that non-operating items or tax effects drove the bottom line negative. Stock-based compensation has more than doubled from $20.1M to $38.0M year-over-year, which may be inflating expense levels and reducing reported earnings quality. Investors should adjust for SBC to assess true cash profitability, as the gap between GAAP and cash earnings appears to be widening.
Rising COGS and SG&A Outpace Revenue
COGS surged to $78.9M in 2026Q2 from $40.6M a year earlier, while SG&A grew 17%, as per the income statement, pressuring margins.
The cost structure is clearly deteriorating, with COGS as a percentage of revenue jumping from 15.6% to 28.8% year-over-year. SG&A also increased disproportionately, suggesting that the company is scaling its cost base faster than its top line. This may reflect investments in infrastructure or sales capacity, but the lack of corresponding revenue acceleration raises questions about expense discipline.
Margin Compression Could Undermine Growth Story
The sharp decline in gross margin from 84.4% to 71.2% over four quarters, as reported, may indicate a structural shift that short-sellers could target.
If the gross margin erosion is not a temporary anomaly, it could signal that Payoneer is losing pricing power or facing higher processing costs, which would compress future profitability. The decelerating revenue growth combined with rising costs suggests that the company may be sacrificing margins to maintain growth, a strategy that could prove unsustainable. Investors should scrutinize the sustainability of the current cost structure and whether the company can restore its historical margin profile.