Paypal Holdings, Inc. · NASDAQ:PYPL
Paypal — Q3 2025 Earnings Presentation
31 slides from Paypal's earnings presentation, Oct 28, 2025
Slide 1: PayPal Third Quarter 2025 Performance
PayPal Third Quarter 2025 Performance Financial results & company highlights October 28, 2025
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: Accelerating growth while shaping the future of commerce
Accelerating growth while shaping the future of commerce PayPal is a stronger company today Accelerating momentum across strategic initiatives • Momentum driven by focus and execution • Another quarter of profitable growth and strong free ◦ TM$ ex. interest on customer balances1 on pace cash flow ge
Slide 4: PayPal's growth is diversifying
PayPal’s growth is diversifying Investor Day strategic drivers contributing to faster TM$ growth Revenue ex. interest on customer TM$ ex. interest on customer Win Checkout1 balances growth (spot) balances growth (spot) Consistent contribution to growth Scale Omni & Grow Venmo2 7% 7% Faster growth fr
Slide 5: Advancing strategic growth drivers
Advancing strategic growth drivers Win Scale Omni and Drive PSP Scale Next Gen Checkout Grow Venmo Profitability Growth Vectors Branded Experiences Branded Experiences TPV1 +8% FXN; gaining traction online & in store Online checkout and omni initiatives accelerating U.S. Branded Online Omni Experien
Slide 6: Advancing strategic growth drivers: BNPL
Advancing strategic growth drivers Win Scale Omni and Drive PSP Scale Next Gen Checkout Grow Venmo Profitability Growth Vectors Branded Experiences Building the future of flexible payments at scale with buy now, pay later (BNPL) Expanding product offerings ~$40B Expected 2025 BNPL TPV and geographie
Slide 7: Advancing strategic growth drivers: Venmo
Advancing strategic growth drivers Win Scale Omni and Drive PSP Scale Next Gen Checkout Grow Venmo Profitability Growth Vectors Branded Experiences Deepening Venmo engagement and driving faster growth (TPV +14%) >45% of Venmo revenue1,2 growth from Pay with Venmo and Venmo Debit Card ~$1.7B Expected
Slide 8: Advancing strategic growth drivers: PSP
Advancing strategic growth drivers Win Scale Omni and Drive PSP Scale Next Gen Checkout Grow Venmo Profitability Growth Vectors Branded Experiences PSP TPV growth accelerated to +6% FXN and continues to contribute to TM$ growth Enterprise Payments1 TPV growth inflected post-price-to-value Deepening
Slide 9: Shaping the future of commerce
Advancing strategic growth drivers Win Scale Omni and Drive PSP Scale Next Gen Checkout Grow Venmo Profitability Growth Vectors Branded Experiences Shaping the future of commerce PayPal World Agentic Ads Crypto & stablecoin Now piloting PayPal World transactions Introducing Agentic Commerce Services
Slide 10: 3Q'25 snapshot
3Q'25 snapshot (in millions, except % and per share data) Results Y/Y growth • TPV and revenue +2pts vs. Total payment volume (TPV) $458,088 8%; 7% FXN 2Q, marking second consecutive quarter of Revenue $8,417 7%; 6% FXN acceleration • Another quarter of high Transaction margin $ (TM$)1 $3,871 6% sin
Slide 11: Account and activity metrics
Account and activity metrics1 (in millions, except % and TPA) 3Q'25 Active accounts2 438 • Active accounts2 +1% and MAA3 +2%, with contributions from both PayPal consumer accounts and Venmo Y/Y growth 1% Monthly active accounts (MAA)3 227 • Number of payment transactions -5% and TPA4 -6%, reflecting
Slide 12: TPV mix across PayPal's platform
TPV mix across PayPal’s platform 3Q'24 2Q'25 3Q'25 Branded experiences FXN GROWTH 6% 8% 8% • Branded experiences showed (online & offline)1 momentum, +8% with U.S. % OF TOTAL 30% 31% 31% accelerating to +10% FXN GROWTH 8% 12% 14% • Venmo continued to accelerate Venmo2 % OF TOTAL 18% 18% 19% +14% vs.
Slide 13: 3Q'25 key financial results
3Q'25 key financial results (in millions, except % and per share data) 3Q'25 • Transaction revenue +6%, driven by growth across the portfolio, Total revenue $8,417 including branded experiences, PSP, and Venmo Y/Y growth 7% • Other value-added services (OVAS) revenue +15%, driven primarily by strong
Slide 14: Raising FY'25 TM$ & EPS guidance
Raising FY’25 TM$ & EPS guidance 4Q'25 FY'25 October 2025 guidance July 2025 guidance $15.45B - $15.55B $15.35B - $15.5B Transaction margin $ Transaction margin $ $4.02B - $4.12B 5% - 6% growth 5% - 6% growth 2% - 5% growth Includes ($60M) from lower interest on Includes ($125M) from lower interest
Slide 15: Execution driving profitable growth across PayPal's platform
Execution driving profitable growth across PayPal’s platform • Reinvigorated and more diversified business driving continued profitable growth across Branded Experiences, PSP, and Venmo • Investing to scale adoption and amplify impact of enhanced experiences and next-gen growth vectors • Strong cash
Slide 16: PayPal is building the next-generation commerce platform
PayPal is building the next- generation commerce platform Power Pay payments everywhere Q&A Drive growth Pay your way Operate Get the smarter most value Online In-store Agentic ©2025 PayPal Holdings, Inc. 16
Slide 17: Supplemental information
Supplemental information ©2025 PayPal Holdings, Inc. 17
Slide 18: TPV, revenue, & take rate detail
TPV, revenue, & take rate detail (in millions, except %) 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 3Q'25 • U.S. TPV +8%, driven by Venmo, PSP, branded Total payment volume $416,814 $422,641 $437,836 $417,208 $443,547 $458,088 Y/Y growth 11% 9% 7% 3% 6% 8% checkout, and debit cards FXN Y/Y growth 11% 9% 7% 4% 5%
Slide 19: Account and activity metrics detail
Account and activity metrics detail (in millions, except % and TPA) 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 3Q'25 • Active accounts2 +1% and MAA3 +2%, with Active accounts 1 429 432 434 436 438 438 contributions from both PayPal consumer Y/Y growth —% 1% 2% 2% 2% 1% Monthly active accounts (MAA)2 221 222 228
Slide 20: Transaction margin detail
Transaction margin (TM) detail (in millions, except %) 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 3Q'25 • TE rate -2bps, driven by favorable product Transaction expense (TE) $3,942 $3,841 $3,997 $3,704 $3,968 $4,063 and merchant mix TE rate 0.95% 0.91% 0.91% 0.89% 0.89% 0.89% Transaction loss (TL) $259 $264 $331
Slide 21: Non-GAAP operating margin detail
Non-GAAP1 operating margin detail (in millions, except %) 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 3Q'25 Customer support and operations $436 $427 $451 $398 $413 $447 Y/Y growth (11%) (10%) (3%) (12%) (5%) 5% • Non-transaction opex +6%, which includes Sales and marketing $406 $468 $586 $448 $542 $482 impact fr
Slide 22: Free cash flow and capital allocation detail
Free cash flow (FCF) and capital allocation detail (in millions, except %) 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 3Q'25 • Generated 3Q adjusted FCF of $2.3B with Free cash flow $1,368 $1,445 $2,191 $964 $692 $1,718 YTD adjusted FCF of $4.3B Y/Y growth ** 31% (11%) (45%) (49%) 19% Adjusted free cash flow1 $1,
Slide 23: Hedging impacts and credit reserve builds and releases
Hedging impacts and credit reserve builds and releases (in millions, except %) 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 3Q'25 Hedging Impacts (1) Favorable (unfavorable) impact to net revenues (exclusive of hedging impact) $(33) $12 $(29) $(104) $111 $134 Hedging impact 22 (12) 38 35 (70) (49) Favorable (unfav
Slide 24: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations ©2025 PayPal Holdings, Inc. 24
Slide 25: Reconciliation of GAAP operating expenses to non-GAAP
Reconciliation of GAAP operating expenses to non-GAAP operating expenses Three Months Ended Year Ended December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, December 31, September 30, June 30, (In Millions/Unaudited) Note 2024 2023 2022 2025 2025 2025 2024 2024
Slide 26: Reconciliation of operating income and transaction margin
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, September 30, Jun
Slide 27: Reconciliation of net income and EPS
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 September 30, June 30, March 31, December 31, Sept
Slide 28: 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, September 30, June 30, March 31, December 31, September 30, June 30, March 31, December 31, September 30, June 30, (In Millions/Unaudited) 2024 2023 2022 2025 2025 2025 2024
Slide 29: 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 30: 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 31: Upcoming calendar
Upcoming calendar Fourth Quarter 2025 Earnings February 3, 2026 ©2025 PayPal Holdings, Inc. 31