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Mar 31, 2025
PayPal Q1 2025 Earnings Report
PayPal reported solid results with steady growth in strategic areas during the quarter.
Key Takeaways
PayPal delivered a strong start to 2025, posting its fifth consecutive quarter of profitable growth, driven by improvements in branded checkout, PSP, omnichannel, and Venmo.
Net revenues increased to $7.8 billion.
Net income rose to $1.287 billion, up 45% year-over-year.
Active accounts grew to 436 million.
Adjusted free cash flow reached $1.381 billion.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
PayPal maintained its full-year guidance despite macroeconomic uncertainty, projecting continued profitable growth.
Positive Outlook
- Maintaining FY'25 GAAP EPS guidance of $4.80 - $4.95.
- Maintaining FY'25 Non-GAAP EPS guidance of $4.95 - $5.10.
- Sequential increase in active accounts expected.
- Focus on branded checkout, PSP, omnichannel, and Venmo.
- Strong operational discipline and cost management.
Challenges Ahead
- Macroeconomic uncertainty could impact consumer spending.
- Payment transactions showed a year-over-year decline.
- Pressure on free cash flow due to lower operating cash flow.
- Competition in the payments sector remains intense.
- Potential headwinds from fluctuating foreign exchange rates.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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