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Jun 30, 2025
PayPal Q2 2025 Earnings Report
PayPal delivered solid financial performance with increased revenue, net income, and EPS in Q2 2025.
Key Takeaways
PayPal saw continued profitable growth in Q2 2025, driven by strength in Venmo, branded checkout, and value-added services. Non-GAAP EPS rose 18% as the company raised its full-year guidance.
Total payment volume reached $443.55 billion, up 6% year-over-year.
Net income grew to $1.26 billion with a non-GAAP EPS of $1.40.
Transaction margin dollars excluding interest rose 8% to $3.53 billion.
Venmo total payment volume grew 12% year-over-year, reaching $81.98 billion.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
PayPal raised its full-year 2025 guidance for transaction margin dollars and non-GAAP EPS, reflecting momentum across branded checkout, Venmo, and value-added services.
Positive Outlook
- Raised FY25 transaction margin dollar guidance to $15.35B–$15.5B.
- Increased FY25 non-GAAP EPS guidance to $5.15–$5.30.
- FY25 free cash flow guidance reaffirmed at $6B–$7B.
- Q3 non-GAAP EPS expected at $1.18–$1.22.
- Transaction margin dollar growth expected at 5%–7% ex. interest.
Challenges Ahead
- Adjusted free cash flow down 42% year-over-year.
- Transaction losses increased due to normalization and fraud.
- Overall payment transaction volume declined 5% YoY.
- TPA fell by 4% year-over-year, driven by Braintree softness.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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