PayPal Holdings 8-K
EarningsNew guidance
Enrique Lores named next CEO to strengthen execution, particularly in branded checkout.
Filed 2026-02-03 07:08 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q4 and FY2025 results with 2026 EPS guidance. PayPal grew revenue, transaction margin dollars and EPS, but said execution—particularly in branded checkout—needs improvement; it cited the Board’s appointment of Enrique Lores as the next President and CEO as a commitment to stronger execution and results. The company’s 2026 outlook reflects lower interest rates and near-term investments intended to improve customer experience, presentment and consumer selection.
Key Figures
| Metric | Q4 2025 | Q4 2024 | Y/Y |
|---|---|---|---|
| Revenue | $8.68B | $8.37B | 4% |
| Operating income (GAAP) | $1.51B | $1.44B | 5% |
| Operating income (non-GAAP) | $1.55B | $1.50B | 3% |
| Net income (GAAP) | $1.44B | $1.12B | 28% |
| Diluted EPS (GAAP) | $1.53 | $1.11 | 38% |
| Diluted EPS (non-GAAP) | $1.23 | $1.19 | 3% |
| Net cash provided by operating activities | $2.38B | $2.39B | —% |
| Free cash flow (non-GAAP) | $2.19B | $2.19B | —% |
| Total payment volume | $475B | $438B | 9% |
| Metric | FY2025 | FY2024 | Y/Y |
|---|---|---|---|
| Revenue | $33.2B | $31.8B | 4% |
| Operating income (GAAP) | $6.07B | $5.33B | 14% |
| Operating income (non-GAAP) | $6.38B | $5.84B | 9% |
| Net income (GAAP) | $5.23B | $4.15B | 26% |
| Diluted EPS (GAAP) | $5.41 | $3.99 | 35% |
| Diluted EPS (non-GAAP) | $5.31 | $4.65 | 14% |
| Net cash provided by operating activities | $6.42B | $7.45B | (14%) |
| Free cash flow (non-GAAP) | $5.56B | $6.77B | (18%) |
| Total payment volume | $1.79T | $1.68T | 7% |
- Transaction margin dollars rose 3% to $4.03B in Q4 and 6% to $15.5B for FY2025; excluding interest on customer balances, they rose 4% to $3.74B and 6% to $14.2B, respectively. GAAP operating margin expanded 19 bp in Q4 and 154 bp for the year, while non-GAAP operating margin contracted 9 bp in Q4 and expanded 87 bp for the year.
- Active accounts grew 1.1% to 439M, while trailing 12-month transactions per active account fell 5% to 57.7; excluding payment service provider transactions, that metric increased 5%. GAAP EPS included positive effects from strategic investments and crypto assets held for investment of about $0.10 in Q4 and $0.14 for FY2025.
- Cash, cash equivalents and investments totaled $14.8B; total debt was $11.6B at 12/31/2025. PayPal repurchased about 23M shares for $1.5B in Q4 and about 86M shares for $6.0B over the trailing 12 months; year-end shares outstanding were 920M vs 993M. The Board declared a $0.14-per-share dividend payable 3/25/2026 and said it intends quarterly dividends, subject to market conditions and Board approval.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| GAAP diluted EPS | Q1 2026 | Mid-single-digit decline (prior-year EPS: $1.29) | — | — |
| Non-GAAP diluted EPS | Q1 2026 | Mid-single-digit decline (prior-year EPS: $1.33) | — | — |
| GAAP diluted EPS | FY2026 | Mid-single-digit decline (prior-year EPS: $5.41) | — | — |
| Non-GAAP diluted EPS | FY2026 | Low-single-digit decline to slightly positive (prior-year EPS: $5.31) | — | — |
Investor Takeaways
- Branded checkout execution is a key test of the improvement effort; progress there would address the weakness PayPal highlighted.
- Track Q1 2026 GAAP and non-GAAP EPS against the stated outlook, alongside the impact of lower interest rates and near-term investments.
The summary is written by an AI model reading the filing.
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