Payoneer's profit rise includes a $5.8 million currency correction
B2B payment growth accelerated, yet operating profit fell. The quarter also brought stronger cash generation and a newly disclosed weakness in financial controls.
Payoneer's net income rose in the third quarter even though operating profit fell sharply. A turnaround in financial income, including a correction to earlier foreign-exchange losses, more than offset the weaker operating result.
The cross-border payments company earned $14.9 million, up from $14.1 million a year earlier. Operating profit fell 31% to $25.1 million. Its new quarterly filing also disclosed a material weakness in the controls behind the currency-accounting error.
| Quarter ended September 30 | 2026 | 2025 |
|---|---|---|
| Revenue | $276.9 million | $270.9 million |
| Operating profit | $25.1 million | $36.3 million |
| Net income | $14.9 million | $14.1 million |
| Adjusted EBITDA | $68.3 million | $71.3 million |
What lifted the bottom line
Payoneer recorded $6.2 million of net financial income, compared with a $5.8 million expense a year earlier. That roughly $12 million swing sits below operating profit. It is separate from the interest Payoneer earns on customer balances, which it includes in revenue.
The current financial-income result includes a $5.8 million correction reversing unrealized currency losses overstated in the June quarter. Payoneer said a mismatch in transaction reconciliations caused the error. It concluded that the error was not material to the earlier financial statements and corrected it in the September quarter rather than restating them.
The company nevertheless identified a material weakness in the relevant financial-reporting controls and said its disclosure controls were not effective at September 30. It is working on remediation.
Payoneer's adjusted EBITDA excludes all net financial income, including that correction. It also adds back taxes, depreciation and amortization, stock compensation and acquisition-related costs. Interest earned on customer balances remains in the measure, which fell to $68.3 million from $71.3 million.
More payments, a different revenue mix
Business-to-business payment activity remained strong. B2B volume grew 59% from a year earlier, faster than the 48% growth reported in the second quarter. B2B small-business revenue grew 13%, compared with 18% growth in the second quarter.
Across its small-business customers, revenue as a share of payment volume fell to 1.11% from 1.18% in the second quarter. That measure covers the wider customer mix, rather than B2B alone. Payoneer also reported 21% growth in revenue per customer excluding interest income.
Interest earned on customer balances fell to $54.7 million from $59.5 million. Research and development expense rose to $50 million from $39.9 million, and depreciation and amortization also increased, weighing on operating profit.
Cash improved as the takeover remains pending
Operating cash flow for the quarter rose to $67.3 million from $47.5 million, calculated by subtracting the first-half figures from the nine-month statements. September corporate cash and cash equivalents totaled $362.6 million. The separate $7.54 billion held for customers was matched by customer-balance liabilities.
Payoneer remains under an agreement for Nuvei to acquire it for $7.40 a share in cash. Shareholders approved the deal in September, and the companies expect completion in mid-2027, subject to regulatory approval and other closing conditions. Payoneer withdrew its financial guidance in August because of the pending transaction.
The Payoneer company profile tracks its operating results, customer-fund balances, cash and acquisition history as the deal progresses.