Payoneer Global Inc. Fair Value Disclosure
NOTE 7 - FAIR VALUE
The following tables summarize the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2025 and 2024:
December 31, 2025 | |||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||
Financial Assets: | |||||||||||
U.S. Treasury Securities (included within Customer funds) | $ | 1,306,623 | $ | — | $ | — | $ | 1,306,623 | |||
Derivative assets (included within Other current assets) | |||||||||||
Interest rate floors1 | $ | — | $ | 1,688 | $ | — | $ | 1,688 | |||
Foreign currency forwards | — | 2,852 | — | 2,852 | |||||||
Total current derivative assets | $ | — | $ | 4,540 | $ | — | $ | 4,540 | |||
Derivative assets (included within Other non-current assets) | |||||||||||
Interest rate floors1 | $ | — | $ | 24,846 | $ | — | $ | 24,846 | |||
Total financial assets | $ | 1,306,623 | $ | 29,386 | $ | — | $ | 1,336,009 | |||
Financial Liabilities: | |||||||||||
Skuad acquisition earnout liability (included within Other payables) | $ | — | $ | — | $ | 8,453 | $ | 8,453 | |||
Non-current portion of PayEco deferred payment liability (included within Other long-term liabilities) | $ | — | $ | — | $ | 7,220 | 7,220 | ||||
Total financial liabilities | $ | — | $ | — | $ | 15,673 | $ | 15,673 | |||
December 31, 2024 | |||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||
Financial Assets: | |||||||||||
U.S. Treasury Securities (included within Customer funds) | $ | 1,174,937 | $ | — | $ | — | $ | 1,174,937 | |||
Derivative assets (included within Other current assets) | |||||||||||
Interest rate floors1 | $ | — | $ | 739 | $ | — | $ | 739 | |||
Foreign currency forwards | — | 910 | — | 910 | |||||||
Foreign currency net purchased options | — | 385 | — | 385 | |||||||
Total current derivative assets | $ | — | $ | 2,034 | $ | — | $ | 2,034 | |||
Derivative assets (included within Other non-current assets) | |||||||||||
Interest rate floors1 | $ | — | $ | 17,692 | $ | — | $ | 17,692 | |||
Total financial assets | $ | 1,174,937 | $ | 19,726 | $ | — | $ | 1,194,663 | |||
Financial Liabilities: | |||||||||||
Current portion of Skuad acquisition earnout liability (included within Other payables) | $ | — | $ | — | $ | 723 | $ | 723 | |||
Non-current portion of Skuad acquisition earnout liability (included within Other long-term liabilities) | $ | — | $ | — | $ | 8,021 | $ | 8,021 | |||
Total financial liabilities | $ | — | $ | — | $ | 8,744 | $ | 8,744 | |||
1As of December 31, 2025 and 2024, the Company recognized an obligation to return cash collateral related to interest rate floors of $27,260 and $18,790, respectively, which was offset against the gross derivative balances shown in the table above.
NOTE 7 - FAIR VALUE (continued):
The Company’s foreign currency derivative instruments are valued using pricing models that take into account the contract terms and relevant currency rates. The Company’s interest rate floors are valued using pricing models that take into account the contract terms and relevant interest rates.
As of December 31, 2025 and 2024, the fair values of the Company's cash, cash equivalents, customer funds (other than the portion consisting of available-for-sale debt securities), restricted cash, accounts receivable, capital advance receivables, accounts payable, and outstanding operating balances approximated the carrying values of these instruments presented in the Company's consolidated balance sheets because of their nature.
In 2024, the Company recognized a liability for contingent consideration related to the Skuad acquisition. During the years ended December 31, 2025 and 2024, the Company recognized $680 and $1,770 in loss related to the change in the fair value of the liability since the acquisition date, included within General and administrative expenses on the consolidated statements of comprehensive income. Refer to Note 3 above for additional details around valuation.
In April 2025, the Company recognized liabilities for deferred payments related to the PayEco acquisition, $559 expense related to the imputed interest associated with the liability, included within the Other financial income (expense), net on the condensed consolidated statements of comprehensive income was recognized during the year ended December 31, 2025.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.