Paypal Holdings, Inc. · NASDAQ:PYPL
Paypal — Q2 2026 Earnings Presentation
29 slides from Paypal's earnings presentation, Jul 28, 2026
Slide 1: PayPal 2Q'26 Performance
PayPal 2Q'26 Performance Financial results & company highlights July 28, 2026
Slide 2: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation contains non-GAAP measures relating to our performance. These measures may exclude certain expenses, gains and losses that may not be indicative of our core operating results and business outlook, and, in each case, may be different from the non-GAAP fin
Slide 3: 2Q'26 financial highlights
2Q’26 financial highlights • Delivered +1% TM$ growth, +3% ex-interest on customer balances1,2 ◦ Product contributions from Venmo, credit, Braintree; investing for growth ◦ Branded checkout TPV growth further stabilized at +2% FXN ◦ Raising FY expectation to low single-digit growth • Diversifying gr
Slide 4: A More Focused PayPal
A More Focused PayPal What’s Different Early Proof Points in 2Q Diversifying beyond checkout into • BNPL TPV accelerated 3pts to +26% and BNPL MAAs1 >20% 1 financial services • Debit card and tap-to pay TPV growing >60%; Venmo Debit Card MAAs1 grew >50% • Both businesses growing TPV mid-teens 2 Acce
Slide 5: Transforming PayPal over time
Transforming PayPal over time A phased approach to fuel faster growth 2026-2027 2027-2028 2028+ Strengthen the fundamentals Build momentum Accelerate and disrupt • Refocus and rebuild consumer side of PayPal’s • Shift from stabilization to growth investment • Expand two-sided network and financial t
Slide 6: Sharper focus with stronger conviction
Sharper focus with stronger conviction Aligned around consumer-led strategy, clear accountability, and concentration of resources Checkout Solutions Consumer Financial Payment Services & PayPal Services & Venmo & Crypto Vision Trusted and valuable payments Go-to money movement and Reliable, differen
Slide 7: Multiple paths to at least $1.5B gross run-rate savings
Multiple paths to at least $1.5B gross run-rate savings over the next 2-3 years Three broad drivers, phased through 2029. Expected gross run-rate 2026 2027 2028 2029 savings Simplified operating model 1. Simplified structure & alignment Optimize role ratios 1. Simplified structure & alignment Refine
Slide 8: Enhancing our technology platform
Enhancing our technology platform Area 1H 2025 2H 2025 1H 2026 2H 2026 1H 2027 2H 2027 1H 2028 2H 2028 Customer PayPal Offerings Venmo Merchant PSP Offerings Payouts Other products Core Platform & Risk Services Identity Payments Servicing Checkout BNPL/Credit Enablers Finance Security Infrastructure
Slide 9: 2Q'26 snapshot
2Q'26 snapshot (in millions, except % and per share data) Results Y/Y growth Total payment volume (TPV) $486,448 10%; 9% FXN Revenue $8,682 5%; 3% FXN Transaction margin $ (TM$)1 $3,900 1% TM$ ex. interest on customer balances1,2 $3,619 3% Non-GAAP EPS1 $1.38 (1%) Adjusted free cash flow1,3 $1,832 1
Slide 10: Account and activity metrics
Account and activity metrics 1 (in millions, except % and TPA) 2Q'26 Active accounts2 439 • Active accounts2 grew +0.3% and MAA3 1%, largely driven by Y/Y growth —% Venmo Monthly active accounts (MAA)3 228 • 12-month trailing TPA4 +3%, inflecting to positive growth following price-value actions in B
Slide 11: TPV mix across PayPal's platform
TPV mix across PayPal’s platform 2Q'25 1Q'26 2Q'26 Branded experiences FXN GROWTH 8% 5% 6% • Branded experiences growth (online & offline)1 supported by strong omni adoption % OF TOTAL 31% 31% 31% FXN GROWTH 12% 14% 14% • Venmo momentum continues, Venmo 2 second consecutive quarter of mid- % OF TOTA
Slide 12: 2Q'26 key financial results
2Q'26 key financial results (in millions, except % and per share data) 2Q'26 Total revenue $8,682 • Transaction revenue +5%, driven by Braintree and Venmo as well Y/Y growth 5% as FX favorability FXN Y/Y growth 3% • Other value-added services (OVAS) revenue flat, with higher Transaction margin $ (TM
Slide 13: Raising FY'26 TM$ & low-end of non-GAAP EPS guidance
Raising FY’26 TM$ & low-end of non-GAAP EPS guidance 3Q'26 FY'26 Transaction margin $ Slightly positive Transaction margin $ ~$15.6B TM$ ex. interest on customer TM$ ex. interest on customer Slightly positive to low-single digit ~$14.5B balances1 balances1 Non-GAAP non-transaction Non-GAAP effective
Slide 14: Q&A
Q&A PayPal’s Cannes Lions activation showed brands how PayPal Ads is delivering measurable results for merchants, driven by real purchase behavior across our 439M active accounts. Read more here. ©2026 PayPal Holdings, Inc. 14
Slide 15: Supplemental information
Supplemental information ©2026 PayPal Holdings, Inc. 15
Slide 16: TPV, revenue, & take rate detail
TPV, revenue, & take rate detail (in millions, except %) 1Q'25 2Q'25 3Q'25 4Q'25 1Q'26 2Q'26 • US TPV +14%, driven by PSP, Venmo, and Total payment volume $417,208 $443,547 $458,088 $475,135 $463,955 $486,448 Y/Y growth 3% 6% 8% 9% 11% 10% branded experiences FXN Y/Y growth 4% 5% 7% 6% 8% 9% U.S. TP
Slide 17: Account and activity metrics detail
Account and activity metrics detail (in millions, except % and TPA) 1Q'25 2Q'25 3Q'25 4Q'25 1Q'26 2Q'26 • Active accounts1 0.3% and MAA2 +1%, largely Active accounts 1 436 438 438 439 439 439 driven by Venmo Y/Y growth 2% 2% 1% 1% 1% —% Monthly active accounts (MAA)2 224 226 227 231 225 228 Y/Y grow
Slide 18: Transaction margin (TM) detail
Transaction margin (TM) detail (in millions, except %) 1Q'25 2Q'25 3Q'25 4Q'25 1Q'26 2Q'26 • TE rate +1bps, driven by product mix Transaction expense (TE) $3,704 $3,968 $4,063 $4,252 $4,165 $4,385 TE rate 0.89% 0.89% 0.89% 0.89% 0.90% 0.90% Transaction loss (TL) $278 $383 $397 $279 $276 $323 • TL ra
Slide 19: Non-GAAP operating margin detail
Non-GAAP1 operating margin detail (in millions, except %) 1Q'25 2Q'25 3Q'25 4Q'25 1Q'26 2Q'26 Customer support and operations $398 $413 $447 $446 $446 $462 Y/Y growth (12%) (5%) 5% (1%) 12% 12% • Non-transaction opex +9%, driven by a Sales and marketing $448 $542 $482 $666 $495 $523 combination of g
Slide 20: Free cash flow (FCF) and capital allocation detail
Free cash flow (FCF) and capital allocation detail (in millions, except %) 1Q'25 2Q'25 3Q'25 4Q'25 1Q'26 2Q'26 • Generated 2Q'26 adjusted FCF of $1.8B Free cash flow $964 $692 $1,718 $2,190 $903 $1,775 Y/Y growth (45%) (49%) 19% —% (6%) 157% Adjusted free cash flow1 $1,381 $656 $2,279 $2,095 $1,720
Slide 21: Hedging impacts and credit reserve builds and releases
Hedging impacts and credit reserve builds and releases (in millions, except %) 1Q'25 2Q'25 3Q'25 4Q'25 1Q'26 2Q'26 Hedging Impacts (1) Favorable (unfavorable) impact to net revenues (exclusive of hedging impact) $(104) $111 $134 $198 $257 $74 Hedging impact 35 (70) (49) (82) (86) 6 Favorable (unfavo
Slide 22: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations ©2026 PayPal Holdings, Inc. 22
Slide 23: Reconciliation of GAAP operating expenses to non-GAAP operating expenses
Reconciliation of GAAP operating expenses to non-GAAP operating expenses Three Months Ended Year Ended December 31, June 30, March 31, December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, (In Millions/Unaudited) Note 2025 2024 2023 2026 2026 2025 2025 2025 2025
Slide 24: Reconciliation of GAAP operating income to non-GAAP operating income
Reconciliation of GAAP operating income to non-GAAP operating income, Transaction margin dollars, and Transaction margin dollars ex-interest on customer balances and GAAP operating margin to non-GAAP operating margin and Transaction margin Three Months Ended Year Ended December 31, June 30, March 31
Slide 25: Reconciliation of GAAP net income to non-GAAP net income
Reconciliation of GAAP net income to non-GAAP net income, GAAP diluted EPS to non- GAAP diluted EPS, and GAAP effective tax rate to non-GAAP effective tax rate Three Months Ended Year Ended December 31, (In Millions, Except Percentages and Per Share June 30, March 31, December 31, September 30, June
Slide 26: Reconciliation of operating cash flow to free cash flow
Reconciliation of operating cash flow to free cash flow and adjusted free cash flow Three Months Ended Year Ended December 31, June 30, March 31, December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, (In Millions/Unaudited) 2025 2024 2023 2026 2026 2025 2025 202
Slide 27: Definitions
Definitions (page 1 of 2) Our key metrics are calculated using internal company data based on the activity we measure on our payments platform and compiled from multiple systems, including systems that are internally developed or acquired through business combinations. While the measurement of our k
Slide 28: Definitions
Definitions (page 2 of 2) Total payment volume or “TPV” is the value of payments, net of payment reversals, successfully completed on our payments platform, or enabled by PayPal via a partner payment solution, not including gateway-exclusive transactions. Branded checkout (online) TPV comprises PayP
Slide 29: Upcoming calendar
Upcoming calendar Third Quarter 2026 Earnings October 27, 2026 ©2026 PayPal Holdings, Inc. 29