What Happened?
Shares of cross-border payment platform Payoneer (NASDAQ: PAYO) fell 16.7% in the afternoon session after the company reported disappointing fourth-quarter 2025 financial results and provided a weak forecast for 2026.
The company's revenue grew 4.9% year on year to $274.7 million, but this fell short of analyst estimates of $281.6 million. In addition, its GAAP earnings of $0.05 per share missed Wall Street's consensus of $0.06. Compounding the issue, Payoneer's full-year revenue guidance of $1.11 billion at the midpoint came in 1.7% below analyst projections, signaling a challenging year ahead. The combination of current performance misses and a downbeat outlook prompted a negative reaction from investors.
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What Is The Market Telling Us
Payoneer’s shares are very volatile and have had 24 moves greater than 5% over the last year. But moves this big are rare even for Payoneer and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 4 months ago when the stock dropped 11.2% on the news that the company's third-quarter 2025 financial results revealed a significant drop in profitability that overshadowed its revenue growth. While revenue grew 9.1% year-over-year to $270.9 million, beating analysts' expectations, the company's profitability took a significant hit. GAAP earnings per share (EPS), a key measure of profit, came in at $0.04. This result was not only a steep decline from the $0.11 reported in the same quarter last year but also missed Wall Street's consensus estimate of $0.06. Although Payoneer’s full-year revenue guidance came in slightly ahead of expectations, this positive point was not enough to reassure investors, who focused on the sharp drop in earnings.
Payoneer is down 19.9% since the beginning of the year, and at $4.36 per share, it is trading 57.2% below its 52-week high of $10.18 from February 2025. Investors who bought $1,000 worth of Payoneer’s shares 5 years ago would now be looking at an investment worth $369.07.
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