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PayPal Holdings (PYPL) FY2025 results: revenue $33.2 billion, up 4.3% on the year

PayPal Holdings, Inc. (PYPL) reported revenue of $33.2 billion for fiscal 2025, the year ended 31 December 2025, up 4.3% on the year before. Net income was $5.2 billion, up 26.2%, and diluted earnings per share $5.41. The figures are the company's own, from the 10-K it filed with the SEC on 3 February 2026.

Revenue
$33.2 billion
+4.3% on the year
FY2018FY2025
Operating margin
18.3%
16.7% a year earlier
FY2018FY2025
Net income
$5.2 billion
+26.2% on the year
FY2018FY2025
Diluted EPS
$5.41
+35.6% on the year
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 2 new.

  • Non-GAAP EPS up 14% for the year: Non-GAAP EPS was $1.23 in the quarter, up 3%, and $5.31 for the year, up 14%. GAAP EPS was $1.53 in the quarter and $5.41 for the year.
  • Transaction margin dollars up 6% for year: TM$ rose 3% to $4.0 billion in the quarter and 6% to $15.5 billion for the year. TM$ excluding interest on customer balances rose 4% in the quarter and 6% for the year.
  • Payment volume up 9% in quarter: TPV rose 9%, or 6% currency-neutral, to $475.1 billion in the fourth quarter. Full-year TPV rose 7% to $1.79 trillion, or 6% currency-neutral.
  • Guidance assumes growth offset by lower rates: Management said 2026 guidance assumes ongoing, diversified growth across key initiatives, offset by lower interest rates and the near-term impact of investments.
  • Free cash flow fell 18% for the year: Free cash flow was $2.2 billion in the quarter, flat year over year, and $5.6 billion for the year, down 18%. Operating cash flow for the year was $6.4 billion.
Read the Q4 FY2025 earnings call summary

From this 10-K

PayPal runs a two-sided payments network: it serves the consumer paying and the merchant being paid, and it holds the relationship on both ends of the same transaction. At the end of 2025 it had 439 million active accounts across approximately 200 markets. During 2025 it processed $1.79 trillion of total payment volume, 7% more than in 2024, across 25.4 billion payment transactions, 4% fewer. An active account is one registered with PayPal or a platform access partner that has completed a transaction in the past 12 months, and one person may hold more than one.

PayPal Holdings, Inc., the 10-K for 2025

PayPal runs a two-sided payments network: it serves the consumer paying and the merchant being paid, and it holds the relationship on both ends of the same transaction. At the end of 2025 it had 439 million active accounts across approximately 200 markets. During 2025 it processed $1.79 trillion of total payment volume, 7% more than in 2024, across 25.4 billion payment transactions, 4% fewer. An active account is one registered with PayPal or a platform access partner that has completed a transaction in the past 12 months, and one person may hold more than one.

What the consumer gets

Digital wallets under the PayPal and Venmo brands, used to shop online and in person, to manage money including saving and buying and selling cryptocurrencies, and to send money to friends and family. At checkout the consumer chooses the funding source: a bank account, a PayPal or Venmo balance, PayPal-branded credit and debit products, other credit and debit cards, certain cryptocurrencies, stored value such as gift cards, or eligible rewards. Around that sit tools for product discovery, price tracking, deals and offers, package tracking and shopping rewards. PayPal- and Venmo-branded debit and credit cards and a contactless mobile wallet using near-field communication extend the wallet into physical shops. Person-to-person transfers run through PayPal, Venmo and Xoom, the last for international money transfers to bank accounts, mobile wallets and cash pick-up points, and the filing treats person-to-person as a customer acquisition channel as much as a product, because people open accounts at the moment they send or receive.

Credit is offered as a funding source at checkout. Pay-later instalments are available in the United States, Germany, France, the United Kingdom and Australia among other markets, and in Japan under the Paidy brand, and the short-term version carries no interest and no consumer late fees in most geographies where it is offered. There are also interest-bearing installment products, in the United States issued by an independent chartered financial institution, and the PayPal- and Venmo-branded consumer credit cards and the PayPal Credit revolving product, issued through a partnership with an independent chartered financial institution in the United States and by PayPal itself in the United Kingdom.

What the merchant gets

Branded checkout under the PayPal and Venmo names, which lets a customer complete a purchase in a few steps without typing payment and address details, with pay-later instalments embedded in it. Unbranded payments processing covers digital checkout with debit and credit cards, digital wallets, pay-later instalments, certain cryptocurrencies and local payment methods. Around those sit payouts, payments orchestration, and fraud prevention and risk management, plus in-person selling through the PayPal Point of Sale app, a card reader and point of sale systems. In certain markets eligible small and medium-sized businesses can borrow: PayPal Working Capital gives a loan or cash advance for a fixed fee, sized on the annual payment volume the merchant already processes through PayPal, and PayPal Business Loan gives short-term financing for a fixed fee based on an assessment of the business and its owner. In the United States both are provided under a programme agreement with an independent chartered financial institution.

How it is paid

Mainly fees for completing payment transactions and other payment-related services, generally scaled to the volume of activity on the platform. It also charges for currency conversion, for an instant transfer out of a PayPal or Venmo account to a bank account or debit card, and for facilitating the purchase and sale of cryptocurrencies. It generally does not charge customers to fund or draw from their accounts. The rest comes from partnerships, interest and fees on the consumer and merchant credit products, interest earned on certain assets underlying customer balances, referral fees, subscription fees and gateway services.

Protection, and the people

The company runs protection programmes on certain purchases, reimbursing a consumer in defined circumstances such as an eligible item not arriving in the condition described, and paying a merchant in defined circumstances such as proving shipment or delivery. At the end of 2025 it employed approximately 23,800 people across 28 countries, 46% in the Americas, 42% in Asia-Pacific and 12% in Europe and the Middle East, with approximately 9,600 in the United States.

From PayPal's annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 3 February 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue33,17231,79729,771+4.3%
Operating income6,0655,3255,028+13.9%
Operating margin18.3%16.7%16.9%
Interest expense441382347+15.4%
Income tax1,0591,1821,165-10.4%
Net income5,2334,1474,246+26.2%
Net margin15.8%13.0%14.3%
Diluted EPS$5.41$3.99$3.84+35.6%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow6,4167,4504,843-13.9%
Capital expenditure852683623+24.7%
Free cash flow5,5646,7674,220-17.8%
Free cash flow margin16.8%21.3%14.2%
Cash from investing7971,689752-52.8%
Cash from financing-5,958-8,276-2,993
Depreciation and amortisation9631,0321,072-6.7%
Share-based compensation1,0021,2301,475-18.5%
Buybacks6,0526,0475,002+0.1%
Dividends paid1300.00.0
Dividend per share$0.14n/an/a
Diluted shares, weighted968m1,039m1,107m-6.8%
Shares outstanding at period end920m993m1,072m-7.4%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity20,25620,41721,051-0.8%
Debt9,9879,8799,676+1.1%
Operating lease liabilities548629416-12.9%
Finance lease liabilities10.018.00.0-44.4%
Other liabilities49,37247,78251,023+3.3%
Total liabilities and equity80,17378,72582,166+1.8%
Fixed assets1,7001,5081,488+12.7%
Goodwill10,86410,83711,026+0.2%
Intangible assets208326537-36.2%
Investments6,7038,8458,252-24.2%
Cash and equivalents8,0496,6629,081+20.8%
Receivables8409841,069-14.6%
Other assets51,80949,56350,713+4.5%
Total assets80,17378,72582,166+1.8%

10-K for the year ended 31 December 2025, filed 3 February 2026: the filing.