Paypal Holdings, Inc. · NASDAQ:PYPL
Paypal — Q1 2026 Earnings Presentation
27 slides from Paypal's earnings presentation, May 5, 2026
Slide 1: PayPal 1Q'26 Performance
PayPal 1Q'26 Performance Financial results & company highlights May 5, 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: CEO Learnings and Actions
CEO Learnings and Actions Learnings from the first two months Taking action • Building on a strong foundation and valuable assets • Unlocking full growth opportunity with new operating model ◦ Customer trust built over more than two decades with leading ◦ Strengthening ownership with clear accountab
Slide 4: Three Market Opportunities
Three Market Opportunities High value market opportunities where PayPal has a differentiated right to win Market dynamics and growth PayPal’s Right to Win 01 $390B revenue TAM1 ↳ Growing use of digital wallets prioritizing • Scaled, global, agnostic, two-sided network driving flywheel of Growing mid
Slide 5: New Operating Model
New Operating Model Realigning to accelerate execution of growth priorities, streamline decision-making, and drive innovation Checkout Solutions Consumer Financial Payment Services & PayPal Services & Venmo & Crypto Market Opportunities: Market Opportunity: Market Opportunity: Checkout, CFS CFS Paym
Slide 6: 1Q'26 highlights
1Q’26 highlights • Delivered +3% TM$ growth excluding interest on customer balances1,2 ◦ Diversified drivers including credit, Venmo monetization, and PSP profitability more than offset targeted growth investments • Branded checkout TPV improved to +2% growth FXN ◦ Continuing to invest in experience
Slide 7: 1Q'26 snapshot
1Q'26 snapshot (in millions, except % and per share data) Results Y/Y growth Total payment volume (TPV) $463,955 11%; 8% FXN Revenue $8,353 7%; 5% FXN Transaction margin $ (TM$)1 $3,810 3% TM$ ex. interest on customer balances1,2 $3,536 3% Non-GAAP EPS1 $1.34 1% Adjusted free cash flow1,3 $1,720 25%
Slide 8: Account and activity metrics
Account and activity metrics 1 (in millions, except % and TPA) 1Q'26 Active accounts2 439 • Active accounts2 +1% and MAA3 +1%, largely driven by Venmo Y/Y growth 1% • 12-month trailing TPA4 -1%, reflecting price-to-value actions that Monthly active accounts (MAA) 3 225 drove lower Enterprise Payment
Slide 9: TPV mix across PayPal's platform
TPV mix across PayPal’s platform 1Q'25 4Q'25 1Q'26 7%; 8% ex Branded experiences FXN GROWTH 4% 5% • Branded experiences growth Leap Day (online & offline)1 supported by strong omni adoption % OF TOTAL 31% 33% 31% • Venmo momentum continues, sixth FXN GROWTH 10% 13% 14% consecutive quarter of double-
Slide 10: 1Q'26 key financial results
1Q'26 key financial results (in millions, except % and per share data) 1Q'26 Total revenue $8,353 • Transaction revenue +7%, driven by growth across the portfolio Y/Y growth 7% including PSP, branded checkout, and Venmo FXN Y/Y growth 5% • Other value-added services (OVAS) revenue +10%, driven Trans
Slide 11: Reiterating FY'26 guidance
Reiterating FY’26 guidance 2Q'26 FY'26 Low-single digit decline, or Transaction margin $ Transaction margin $ Slight decline approximately (-3%) TM$ ex. interest on customer TM$ ex. interest on customer Low-single digit decline Roughly flat balances1 balances1 Non-GAAP non-transaction Non-GAAP effec
Slide 12: PayPal is building the next-generation commerce platform Q&A
PayPal is building the next- generation commerce platform Q&A Our multi-year partnership with the NFL puts PayPal at the center of how fans send, receive, split, and pool money instantly with each other. Read more in our press release here. ©2026 PayPal Holdings, Inc. 12
Slide 13: Supplemental information
Supplemental information ©2026 PayPal Holdings, Inc. 13
Slide 14: TPV, revenue, & take rate detail
TPV, revenue, & take rate detail (in millions, except %) 4Q'24 1Q'25 2Q'25 3Q'25 4Q'25 1Q'26 • US TPV +11%, driven by PSP, Venmo, and Total payment volume $437,836 $417,208 $443,547 $458,088 $475,135 $463,955 Y/Y growth 7% 3% 6% 8% 9% 11% branded experiences FXN Y/Y growth 7% 4% 5% 7% 6% 8% • Intern
Slide 15: Account and activity metrics detail
Account and activity metrics detail (in millions, except % and TPA) 4Q'24 1Q'25 2Q'25 3Q'25 4Q'25 1Q'26 • Active accounts1 +1% and MAA2 +1%, largely Active accounts 1 434 436 438 438 439 439 driven by Venmo Y/Y growth 2% 2% 2% 1% 1% 1% Monthly active accounts (MAA)2 228 224 226 227 231 225 • Number
Slide 16: Transaction margin detail
Transaction margin (TM) detail (in millions, except %) 4Q'24 1Q'25 2Q'25 3Q'25 4Q'25 1Q'26 • TE rate +1bps, driven by product mix Transaction expense (TE) $3,997 $3,704 $3,968 $4,063 $4,252 $4,165 TE rate 0.91% 0.89% 0.89% 0.89% 0.89% 0.90% • TL rate -1bps, driven by improved loss Transaction loss (
Slide 17: Non-GAAP operating margin detail
Non-GAAP1 operating margin detail (in millions, except %) 4Q'24 1Q'25 2Q'25 3Q'25 4Q'25 1Q'26 Customer support and operations $451 $398 $413 $447 $446 $446 Y/Y growth (3%) (12%) (5%) 5% (1%) 12% • Non-transaction opex +8%, driven by a Sales and marketing $586 $448 $542 $482 $666 $495 combination of
Slide 18: Free cash flow and capital allocation detail
Free cash flow (FCF) and capital allocation detail (in millions, except %) 4Q'24 1Q'25 2Q'25 3Q'25 4Q'25 1Q'26 • Generated 1Q'26 adjusted FCF of $1.7B Free cash flow $2,191 $964 $692 $1,718 $2,190 $903 Y/Y growth (11%) (45%) (49%) 19% —% (6%) • Returned $1.5B in capital to stockholders Adjusted free
Slide 19: Hedging impacts and credit reserve builds and releases
Hedging impacts and credit reserve builds and releases (in millions, except %) 4Q'24 1Q'25 2Q'25 3Q'25 4Q'25 1Q'26 Hedging Impacts (1) Favorable (unfavorable) impact to net revenues (exclusive of hedging impact) $(29) $(104) $111 $134 $198 $257 Hedging impact 38 35 (70) (49) (82) (86) Favorable (unf
Slide 20: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations ©2026 PayPal Holdings, Inc. 20
Slide 21: 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, March 31, December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, December 31, (In Millions/Unaudited) Note 2025 2024 2023 2026 2025 2025 2025 2025
Slide 22: Reconciliation of GAAP operating income to non-GAAP
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, March 31, Decembe
Slide 23: Reconciliation of GAAP net income to non-GAAP
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 March 31, December 31, September 30, June 30, Marc
Slide 24: 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, March 31, December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, December 31, (In Millions/Unaudited) 2025 2024 2023 2026 2025 2025 2025
Slide 25: 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 26: 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 27: Upcoming calendar
Upcoming calendar Second Quarter 2026 Earnings July 28, 2026 Third Quarter 2026 Earnings October 27, 2026 ©2026 PayPal Holdings, Inc. 27