PayPal lifts interim profit and revenue, raises full-year guidance

29th July 2025 15:09

(Alliance News) - PayPal Holdings Inc on Tuesday reported higher earnings and revenue for the second quarter and first half of 2025, buoyed by growth across its branded payments business and improved margins, prompting the digital payments firm to raise its full-year earnings guidance.

The San Jose, California-based company said revenue climbed 5.1% year-on-year to USD8.29 billion in the three months to June 30, from USD7.89 billion a year before.

First-half revenue rose 3.2% to USD16.08 billion from USD15.58 billion.

Second-quarter net income grew to USD1.26 billion from USD1.13 billion, while diluted earnings per share increased 20% to USD1.29 from USD1.08. For the first half, net income rose to USD2.55 billion from USD2.02 billion, with diluted EPS up to USD2.58 from USD1.90.

Operating income for the quarter rose 14% to USD1.50 billion, with the margin improving by 134 basis points to 18.1%. On a non-GAAP basis, operating margin reached 19.8%.

Total payment volume increased 6% to USD443.5 billion, while active accounts grew 2% year-on-year to 438 million.

The company returned USD1.5 billion to shareholders in the second quarter through share buybacks and ended the period with USD13.7 billion in cash, cash equivalents, and investments. Free cash flow was USD692 million, down from USD1.37 billion a year ago.

Chief Executive Officer Alex Chriss said: "We delivered another quarter of profitable growth, driven by continued strength across many of our strategic initiatives... I'm proud of our team for leading the industry forward in shaping the future of commerce."

PayPal raised its full-year EPS guidance and reaffirmed its free cash flow target, citing momentum across branded platforms including PayPal and Venmo, as well as investments in areas such as stablecoins and embedded commerce experiences.

Shares in PayPal were down 8.1% at USD72.22 in New York on Tuesday morning.

By Eva Castanedo, Alliance News reporter

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