Paypal Holdings, Inc. · NASDAQ:PYPL
Paypal — Q2 2025 Earnings Presentation
32 slides from Paypal's earnings presentation, Jul 29, 2025
Slide 1: PayPal Second Quarter 2025 Performance
PayPal Second Quarter 2025 Performance Financial results & company highlights July 29, 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: 2Q'25: Strong execution across PayPal driving profitable growth
2Q'25: Strong execution across PayPal driving profitable growth • Another quarter of profitable growth: TM$ ex. interest on customer balances1 +8% • Strengthening PayPal value proposition: branded experiences TPV +8% and branded online checkout TPV +5% ◦ Mid-teens % global transactions on new checko
Slide 4: 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 Scaling modern experiences and high-growth products Global branded checkout traffic Mid-teens % on new checkout experience1 PayPal and Venmo can now be
Slide 5: Advancing strategic growth drivers: Accelerating Venmo growth
Advancing strategic growth drivers Win Scale Omni and Drive PSP Scale Next Gen Checkout Grow Venmo Profitability Growth Vectors Branded Experiences Accelerating Venmo growth Driving everyday spend with Venmo across college campuses nationwide >45% Pay with Venmo TPV growth Venmo Debit Card >40% mont
Slide 6: Advancing strategic growth drivers: Gaining momentum beyond ecommerce
Advancing strategic growth drivers Win Scale Omni and Drive PSP Scale Next Gen Checkout Grow Venmo Profitability Growth Vectors Branded Experiences Gaining momentum beyond ecommerce PayPal’s first contactless mobile wallet is 2M First time PayPal & Venmo Debit Card now available nationwide in German
Slide 7: Introducing PayPal World
Advancing strategic growth drivers Win Scale Omni and Drive PSP Scale Next Gen Checkout Grow Venmo Profitability Growth Vectors Branded Experiences Introducing PayPal World Enabling seamless global commerce & P2P experiences Commerce: Consumers can check out P2P: Unlocking interoperability across wi
Slide 8: PSP continuing to contribute to TM$ growth
Advancing strategic growth drivers Win Scale Omni and Drive PSP Scale Next Gen Checkout Grow Venmo Profitability Growth Vectors Branded Experiences PSP continuing to contribute to TM$ growth Enterprise: Braintree TPV returning to growth SMB: Expanding PayPal Complete Payments (PPCP) Braintree FXN TP
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 Agentic Ads Crypto & Building powerful Creating stablecoin agentic experiences personalized Simplifying global with trust
Slide 10: 2Q'25 snapshot
2Q'25 snapshot (in millions, except % and per share data) Results Y/Y growth • TPV and revenue accelerated from 1Q Total payment volume (TPV) $443,547 6%; 5% FXN • Another quarter of high single-digit TM$ Revenue $8,288 5%; 5% FXN growth Transaction margin $ (TM$)1 $3,844 7% • Adjusted free cash flo
Slide 11: Account and activity metrics
1 Account and activity metrics (in millions, except % and TPA) 2Q'25 Active accounts2 438 • Active accounts2 and MAA3 +2%, with contributions from both PayPal consumer accounts and Venmo Y/Y growth 2% Monthly active accounts (MAA) 3 226 • Number of payment transactions -5% and TPA4 -4%, reflecting p
Slide 12: TPV mix across PayPal's platform
TPV mix across PayPal’s platform 2Q'24 1Q'25 2Q'25 • Branded checkout TPV Prior year period Prior quarter Current quarter up mid-single-digits FXN despite some tariff 1 GROWTH 5% 4%; 6% ex Leap Day 5% headwinds on retail Branded checkout (online) spending % OF TOTAL 29% 29% 29% FXN • P2P & other con
Slide 13: 2Q'25 key financial results
2Q'25 key financial results (in millions, except % and per share data) 2Q'25 • Within total revenue, transaction revenue +4%, driven by branded Total revenue $8,288 checkout and Venmo, and other value-added services (OVAS) revenue +16%, driven primarily by strong performance in Y/Y growth 5% consume
Slide 14: Raising FY'25 TM$ & EPS guidance
Raising FY'25 TM$ & EPS guidance 3Q'25 FY'25 July 2025 guidance April 2025 guidance $15.35B - $15.5B $15.2B - $15.4B Transaction margin $ Transaction margin $ $3.76B - $3.82B 5% - 6% growth 4% - 5% growth 3% - 5% growth Includes ($125M) from lower interest Included ($150M) from lower interest 5% - 7
Slide 15: Building momentum across PayPal's global commerce platform
Building momentum across PayPal’s global commerce platform • Continued profitable growth with multiple drivers including credit, branded checkout, PSP, and Venmo • Initiatives gaining traction: reinvigorating PayPal and Venmo brands and scaling new ways to pay • Shaping the future of commerce with i
Slide 16: PayPal is building the next-generation commerce platform Q&A
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 %) 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 • U.S. TPV +4%, driven by Venmo, debit cards, Total payment volume $403,860 $416,814 $422,641 $437,836 $417,208 $443,547 Y/Y growth 14% 11% 9% 7% 3% 6% and branded checkout, partly offset by FXN Y/Y growth 1
Slide 19: TPV mix detail
TPV mix detail 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 FY'23 FY'24 FXN GROWTH 5% 5% 6% 4%; 6% ex 5% 5% 6% 1 Leap Day Branded checkout (online) % OF TOTAL 29% 29% 32% 29% 29% 31% 30% FXN GROWTH 7% 7% 9% 8% 10% 3% 7% 2 P2P & other consumer % OF TOTAL 26% 26% 25% 27% 27% 26% 26% FXN GROWTH 18% 12% 6% 2% 2% 25% 1
Slide 20: Account and activity metrics detail
Account and activity metrics detail (in millions, except % and TPA) 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 1 • Active accounts1 and MAA2 +2%, with Active accounts 427 429 432 434 436 438 contributions from both PayPal consumer Y/Y growth (1%) —% 1% 2% 2% 2% Monthly active accounts (MAA)2 220 221 222 22
Slide 21: Transaction margin (TM) detail
Transaction margin (TM) detail (in millions, except %) 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 • TE rate -6bps, driven by favorable product Transaction expense (TE) $3,917 $3,942 $3,841 $3,997 $3,704 $3,968 and merchant mix TE rate 0.97% 0.95% 0.91% 0.91% 0.89% 0.89% Transaction loss (TL) $260 $259 $264
Slide 22: Non-GAAP operating margin detail
1 Non-GAAP operating margin detail (in millions, except %) 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 • G&A -19%, which included impact from lower Customer support and operations $454 $436 $427 $451 $398 $413 indirect tax expense and a legal contingency Y/Y growth (7%) (11%) (10%) (3%) (12%) (5%) Sales and
Slide 23: Free cash flow (FCF) and capital allocation detail
Free cash flow (FCF) and capital allocation detail (in millions, except %) 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 • FCF and adjusted FCF were impacted by shifts Free cash flow $1,763 $1,368 $1,445 $2,191 $964 $692 in working capital timing Y/Y growth 76% ** 31% (11%) (45%) (49%) Adjusted free cash flow
Slide 24: Hedging impacts and credit reserve builds and releases
Hedging impacts and credit reserve builds and releases (in millions, except %) 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 (1) Hedging Impacts Favorable (unfavorable) impact to net revenues (exclusive of hedging impact) $32 $(33) $12 $(29) $(104) $111 Hedging impact — 22 (12) 38 35 (70) Favorable (unfavorab
Slide 25: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations ©2025 PayPal Holdings, Inc. 25
Slide 26: Reconciliation of GAAP operating expenses to non-GAAP operating expenses
Reconciliation of GAAP operating expenses to non-GAAP operating expenses Three Months Ended Year Ended December 31, June 30, March 31, December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, (In Millions/Unaudited) Note 2024 2023 2022 2025 2025 2024 2024 2024 2024
Slide 27: Reconciliation of GAAP operating income to non-GAAP operating income, TM$
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 28: Reconciliation of GAAP net income to non-GAAP 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 June 30, March 31, December 31, September 30, June
Slide 29: 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) 2024 2023 2022 2025 2025 2024 2024 202
Slide 30: Definitions (page 1 of 2)
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 31: Definitions (page 2 of 2)
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 32: Upcoming calendar
Upcoming calendar Third Quarter 2025 Earnings October 28, 2025 ©2025 PayPal Holdings, Inc. 32