**PayPal Q1 2025 Earnings Summary**

Financial Highlights
- Net revenues grew 1% year-over-year to $7.79 billion (2% FX-neutral).
- GAAP operating income rose 31% to $1.53 billion; non-GAAP operating income rose 16% to $1.62 billion.
- GAAP operating margin expanded 447 basis points to 19.6%; non-GAAP operating margin expanded 257 basis points to 20.7%.
- GAAP EPS increased 56% to $1.29; non-GAAP EPS increased 23% to $1.33.

Payment Metrics
- Total Payment Volume (TPV) increased 3% year-over-year to $417.2 billion (4% FX-neutral).
- Number of payment transactions decreased 7% year-over-year to 6.0 billion, mainly due to lower PSP (Payment Service Provider) transactions.
- Active accounts reached 436 million, up 2% year-over-year and up 1.5 million sequentially.

Cash Flow and Capital Returns
- Free cash flow was $964 million, down 45% year-over-year.
- Adjusted free cash flow (excluding timing impacts from European BNPL receivables) was $1.38 billion, down 26%.
- PayPal returned $1.5 billion to shareholders through buybacks of 19 million shares in the quarter.

Balance Sheet
- Cash, cash equivalents, and investments totaled $15.8 billion as of March 31, 2025.
- Total debt stood at $12.6 billion.

Segment and Revenue Breakdown
- Transaction revenue (90% of total revenue) was flat year-over-year at $7.02 billion.
- Revenue from other value-added services grew 17% year-over-year to $775 million.
- U.S. revenue was flat compared to a year ago, while international revenue grew 3% (5% FX-neutral).

Guidance
- 2025 full-year guidance is maintained despite macroeconomic uncertainties.
- 2Q'25 guidance: GAAP EPS $1.24–$1.26; non-GAAP EPS $1.29–$1.31.
- FY'25 guidance: GAAP EPS $4.80–$4.95; non-GAAP EPS $4.95–$5.10.

Management Commentary
CEO Alex Chriss emphasized that PayPal is delivering profitable growth for the fifth consecutive quarter, with progress in branded checkout, PSP, omnichannel services, and Venmo. He reiterated that PayPal is building a solid foundation to become the global commerce platform connecting merchants and consumers.

PayPal and Coinbase Expand Stablecoin Partnership

PayPal and Coinbase have deepened their partnership to boost adoption of the PayPal USD (PYUSD) stablecoin. The collaboration will enable:

- Fee-free PYUSD transactions on Coinbase, with 1:1 USD redemptions
- New payment innovations for global money movement and commerce
- Exploration of DeFi use cases using PYUSD across decentralized platforms

The move is part of a broader push to grow PYUSD's utility and adoption among developers, businesses, and consumers.

PYUSD is issued by Paxos Trust Company and is backed by U.S. dollar reserves, including Treasuries and equivalents.

Both firms emphasized their long-term goal of mainstreaming stablecoin-based solutions in digital finance.

PayPal is launching a new loyalty program that offers users in the United States 3.7% annual rewards in PayPal USD (PYUSD) for holding the stablecoin in their PayPal or Venmo wallets.

The feature is expected to become available in Summer 2025.

Key highlights:

- Users will receive the 3.7% reward annually in PYUSD, paid out monthly and added to their Cryptocurrencies Hub.
- PYUSD can be used for purchases at millions of merchants, peer-to-peer transfers, remittances via Xoom, fiat conversion, crypto exchange, and on-chain transfers on Ethereum and Solana.
- The rewards program is optional; users can opt in or out at any time and redeem PYUSD for USD at a 1:1 rate.
- Rewards may not initially be available to New York-based users.
- Only Venmo consumer accounts (not teen or business accounts) are eligible.

PayPal stated that this initiative supports its goal to build a commerce-ready, globally connected financial ecosystem using stablecoins and crypto technology. PYUSD is issued by Paxos Trust Company and is fully backed by U.S. dollar equivalents.

PayPal has launched a major promotional campaign featuring actor Will Ferrell to highlight its enhanced checkout and Pay Later features.

The campaign includes the company's largest-ever sweepstakes, "The Great PayPal Checkout," offering a total of $10 million in giveaways. Every day for 100 days, 1,000 PayPal Checkout users will have purchases of up to $100 reimbursed, with winners receiving the cash value in their PayPal accounts.

Alongside the sweepstakes, PayPal has rolled out several updates: faster checkout through biometric login, reduced latency by over 40%, and pre-qualified spending limits for its Pay in 4 Pay Later service. Additionally, users with the PayPal Debit Mastercard can now tap to pay using mobile wallets and earn 5% cash back on select monthly purchases, including a new category for Rideshare and Public Transit.

Will Ferrell’s ad campaign will use his humor to demonstrate the convenience and flexibility of PayPal Checkout and Pay Later. PayPal continues to position payments as a central part of the shopping experience, aiming to make transactions more rewarding and user-friendly across platforms.

PayPal Board Member Rodney Adkins to Step Down Following 2025 Annual Meeting

PayPal Holdings, Inc. has announced that Rodney Adkins will not stand for re-election to its Board of Directors when his current term concludes at the company's 2025 Annual Meeting of Stockholders. The company confirmed that Adkins’ decision was not due to any disagreement with PayPal's operations or policies.

In light of Adkins’ planned departure, PayPal's Board has approved a reduction in its size from 12 to 11 members, effective immediately before the 2025 Annual Meeting.

Adkins has served as a director at PayPal, contributing to governance and oversight during his tenure. The company expressed its appreciation for his service and leadership.

**PayPal Reaches $30 Billion Milestone in Global Small Business Lending**

On March 26, 2025, PayPal announced that it has surpassed $30 billion in global loan originations through its small business financing solutions, including over 1.4 million loans and cash advances issued to more than 420,000 business accounts worldwide. Since launching PayPal Working Capital in 2013 and PayPal Business Loan in 2017, the company has helped bridge critical funding gaps for small and medium-sized enterprises (SMEs), which often struggle to access traditional credit.

PayPal’s offerings provide a streamlined online application process with minimal paperwork, no lengthy credit checks, and fast funding—often within minutes. Customers have responded positively, with repeat use exceeding 90% and Net Promoter Scores reaching 76 for Working Capital and 85 for Business Loans. The services are available in the U.S., UK, Germany, France, Australia, and the Netherlands.

The impact of these solutions is significant: businesses using PayPal Working Capital have seen an average 36% increase in total PayPal payment volume, while those using Business Loans have reported a 16% boost.

Entrepreneurs like D'Shawn Russell, CEO of Southern Elegance Candle Co., credit PayPal financing with enabling business growth. After starting with $100,000 in sales, she has grown her company into a multi-million-dollar business with the help of multiple PayPal Working Capital loans.

PayPal’s EVP Michelle Gill highlighted that these solutions address one of the biggest challenges small businesses face: access to capital. The company’s tools provide a fast, reliable alternative to traditional lending, helping entrepreneurs scale and succeed in a competitive economy.

PayPal Holdings, Inc. (NASDAQ: PYPL) announced that Joy Chik has joined the company's Board of Directors. Joy brings more than 26 years of corporate and board experience scaling products, services, and teams on a global level. Joy currently serves as the President of Identity and Network Access at Microsoft and is responsible for leading the company's multi-billion-dollar security business, Microsoft Entra.

PayPal Holdings, Inc. Announces Appointment of Joy Chik to Board of Directors
San Jose, CA – March 10, 2025 – PayPal Holdings, Inc. (NASDAQ: PYPL) today announced that Joy Chik has been appointed to the company’s Board of Directors, effective immediately. Ms. Chik currently serves as the President of Identity and Network Access at Microsoft and brings extensive expertise in technology, cybersecurity, and digital identity solutions.

Key Highlights of the Appointment:
Ms. Chik fills a vacancy created by an expansion of PayPal’s Board from 11 to 12 members.
She will also serve as a member of PayPal’s Audit, Risk, and Compliance Committee.
As a non-employee director, she will receive compensation as outlined in PayPal’s proxy statement filed with the SEC on April 9, 2024.
There are no material transactions between Ms. Chik and PayPal that require disclosure under Item 404(a) of Regulation S-K.
Dan Schulman, Chairman of PayPal's Board, stated:
"We are delighted to welcome Joy Chik to our Board. Her deep knowledge of identity and security in the digital landscape will be invaluable as we continue to innovate and enhance trust in our platform."

PayPal Holdings, Inc. Announces $1.5 Billion Senior Notes Offering
San Jose, CA – March 6, 2025 – PayPal Holdings, Inc. (NASDAQ: PYPL) today announced the completion of its $1.5 billion senior notes offering, consisting of three tranches:

$450 million Floating Rate Notes due 2028
$450 million 4.450% Notes due 2028
$600 million 5.100% Notes due 2035
The Notes were issued under an Indenture originally dated September 26, 2019, between PayPal and Computershare Trust Company, N.A., as trustee, under the Company’s Registration Statement on Form S-3 filed on February 5, 2025 (Registration No. 333-284693).

Key Terms of the Notes Offering:
Maturity Dates:
Floating Rate Notes: March 6, 2028
2028 Notes: March 6, 2028
2035 Notes: April 1, 2035
Interest Payment Schedules:
Floating Rate Notes: Quarterly on March 6, June 6, September 6, and December 6 (beginning June 6, 2025)
2028 Notes: Semiannually on March 6 and September 6 (beginning September 6, 2025)
2035 Notes: Semiannually on April 1 and October 1 (beginning October 1, 2025)
Redemption Provisions:
Floating Rate Notes: Not redeemable prior to maturity
2028 & 2035 Notes: PayPal may redeem these at any time, in whole or in part, with a make-whole premium, except for:
2028 Notes on or after February 6, 2028
2035 Notes on or after January 1, 2035
Covenants & Protections:
Limiting new liens and sale-leaseback transactions
Restrictions on mergers or asset sales (with exceptions)
Change of Control Protection: If PayPal undergoes a change of control and its credit rating is downgraded below investment grade by Fitch, S&P, and Moody’s, PayPal must offer to repurchase the Notes at 101% of principal value
The Notes are senior unsecured obligations, ranking equally with all existing and future unsecured and unsubordinated debt. However, they are:

Structurally subordinated to subsidiary liabilities
Effectively subordinated to secured debt to the extent of collateral value
Additional Information:
For full details, refer to the Indenture and Officer’s Certificate, which outline the complete terms of the Notes and are incorporated as Exhibits 4.1, 4.2, 4.3, 4.4, and 4.5 in PayPal’s Form 8-K filing.

About PayPal Holdings, Inc.:
PayPal (NASDAQ: PYPL) is a global leader in digital payments, empowering millions of businesses and consumers worldwide with seamless and secure payment solutions. Headquartered in San Jose, California, the company continues to innovate in fintech, mobile commerce, and digital transactions.

Fitch Rates PayPal's New Senior Notes 'A-'; Affirms Long-Term IDR at 'A-'

PayPal Holdings, Inc. announced that Jamie Miller, currently serving as Executive Vice President and Chief Financial Officer, has been appointed to the expanded role of Chief Financial and Operating Officer, effective February 25, 2025. The company also reaffirmed its full-year 2025 financial guidance and provided an outlook through 2027 during its Investor Day event.

source: PayPal Holdings, Inc., February 25, 2025.

PayPal reported strong fourth-quarter and full-year results for 2024, demonstrating solid growth and a strong foundation for its future transformation.

**Key Fourth Quarter Highlights:**
- Net revenues increased by 4%, reaching $8.4 billion, or 4% on a currency-neutral basis.
- Transaction margin dollars rose 7% to $3.9 billion.
- GAAP operating income decreased by 17% to $1.4 billion, while non-GAAP operating income grew by 2% to $1.5 billion.
- GAAP operating margin decreased by 431 basis points to 17.2%, while non-GAAP operating margin contracted slightly by 34 basis points to 18.0%.
- GAAP EPS decreased by 15% to $1.112, while non-GAAP EPS increased by 5% to $1.19.

**Key Full Year 2024 Highlights:**
- Net revenues grew by 7% to $31.8 billion, or 7% on a currency-neutral basis.
- Transaction margin dollars increased by 7% to $14.7 billion.
- GAAP operating income rose by 6% to $5.3 billion, while non-GAAP operating income increased by 14% to $5.8 billion.
- GAAP operating margin contracted by 14 basis points to 16.7%, while non-GAAP operating margin expanded by 116 basis points to 18.4%.
- GAAP EPS increased by 4% to $3.993, while non-GAAP EPS grew by 21% to $4.65.

**Transaction and Account Growth:**
- Total payment volume (TPV) in the fourth quarter increased by 7% (7% FXN) to $437.8 billion, and TPV for the full year increased by 10% (10% FXN) to $1.68 trillion.
- Payment transactions in the fourth quarter decreased by 3% to 6.6 billion, while for the full year, payment transactions increased by 5% to 26.3 billion.
- Active accounts grew by 2.1% (8.8 million), reaching 434 million, with a sequential increase of 0.6% (2.6 million) in the fourth quarter.
- Payment transactions per active account increased by 3%, reaching 60.6 on a trailing 12-month basis.

CEO Alex Chriss expressed pride in the company's progress, noting that the improvements made to key areas like branded checkout, peer-to-peer, and Venmo are starting to reflect in the results. He emphasized the company's positive momentum going into 2025, with a focus on scaling adoption and continuing long-term, profitable growth.

Over the past week, PayPal Holdings (PYPL) has received mixed evaluations from financial analysts:

- **January 30, 2025**: BTIG analyst Lance Jessurun maintained a "Neutral" rating on PayPal, expressing caution ahead of the company's fourth-quarter earnings report scheduled for February 4. Jessurun highlighted uncertainties surrounding PayPal's growth outlook and noted that while the company has shown signs of adjusting pricing and returning branded products to positive growth, significant margin improvements may not materialize until the latter half of 2025.

- **January 28, 2025**: KeyBanc analysts, led by Alex Markgraff, rated PayPal at "Sector Weight" and cautioned that the company's financial guidance could disappoint. They expect management's forecast for transaction margin growth to be in the mid-single digits, partly due to challenges with foreign exchange rates. The performance of PayPal's branded checkout business during the holiday season was also highlighted as a focal point.

As of January 30, 2025, PayPal's stock is trading at approximately $90.10, reflecting a 1.51% increase from the previous close. Analysts maintain a consensus "Moderate Buy" rating, with an average 12-month price target of around $89.48, suggesting a potential downside of about 0.69%.

These assessments indicate a cautious optimism among analysts, balancing PayPal's growth initiatives with concerns about competitive pressures and market dynamics.

PayPal Ventures has co-led a $21 million Series A funding round in Formance, an open-source financial infrastructure provider. The investment, alongside contributions from Portage, Y Combinator, Hoxton Ventures, and AXC, follows a tenfold revenue increase for Formance over the past year.

Founded in 2021, Formance provides a programmable ledger that enhances transaction visibility and streamlines reconciliation for fintechs, SaaS platforms, and financial institutions. The funding will support its expansion in the U.S. and Europe while advancing its ledger into a comprehensive financial platform.

PayPal Ventures has led a $13 million Series B funding round for Olé Life, a Latin American insurtech company focused on simplifying and expanding access to financial protection. This funding, supported by Mundi Ventures, AV8, and Advent Morro, will help Olé Life scale its operations across Latin America and introduce new insurance products tailored to the region's needs.

Olé Life, known for offering Latin America's first fully digital life insurance product, has achieved significant milestones, including $2 billion in insured value and a network of over 4,000 distribution partners. The company plans to diversify beyond USD-denominated term life policies, offering innovative solutions such as whole-family protection plans.

PayPal Ventures highlighted Olé Life's alignment with its mission to promote financial inclusion and innovation. Olé Life aims to transform the insurance industry in Latin America by leveraging advanced AI and decades of experience to address unique regional needs, empowering families with accessible and tailored financial protection.