PayPal

PYPL Q1 2025 Earnings

Reported Apr 29, 2025 at 7:01 AM ET · SEC Source

Q1 25 EPS

$1.33

BEAT +14.53%

Est. $1.16

Q1 25 Revenue

$7.79B

MISS 0.64%

Est. $7.84B

vs S&P Since Q1 25

-53.1%

TRAILING MARKET

PYPL -23.1% vs S&P +30.0%

Market Reaction

Did PYPL Beat Earnings? Q1 2025 Results

PayPal delivered a sharply mixed first quarter, posting earnings that cleared the bar by a wide margin while revenue came in fractionally light, setting up a nuanced conversation for investors. Adjusted EPS of $1.33 beat the $1.16 consensus estimate … Read more PayPal delivered a sharply mixed first quarter, posting earnings that cleared the bar by a wide margin while revenue came in fractionally light, setting up a nuanced conversation for investors. Adjusted EPS of $1.33 beat the $1.16 consensus estimate by 14.53%, driven by a 31% year-over-year surge in GAAP operating income to $1.53 billion and a 447-basis-point expansion in operating margin to 19.6%, as improved payment processing economics pushed the transaction margin rate to 47.7% from 45.0% a year ago. Revenue of $7.79 billion grew 1.2% year-over-year but missed the $7.84 billion consensus by 0.64%, reflecting modest top-line momentum as total payment volume rose 3% to $417.21 billion and active accounts climbed 2% to 436 million. CEO Alex Chriss framed the quarter as the company's fifth consecutive period of profitable growth, though PayPal left its full-year non-GAAP EPS guidance unchanged at $4.95 to $5.10, citing global macroeconomic uncertainty, with Q2 non-GAAP EPS guided to $1.29 to $1.31.

Key Takeaways

  • Fifth consecutive quarter of profitable growth
  • Transaction margin dollars grew 7% YoY to $3.7 billion
  • GAAP operating margin expanded 447 basis points to 19.6%
  • Non-GAAP operating margin expanded 257 basis points to 20.7%
  • Transaction expense rate improved to 0.89% from 0.97% a year ago
  • Restructuring charges declined significantly from $175M to $39M YoY
  • Active accounts grew 2% to 436 million
  • Payment transactions ex-PSP grew 6%
24/7 Wall St

PYPL YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

24/7 Wall St

PYPL Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q4 25
24/7 Wall St

PYPL Revenue by Geography

With YoY comparisons, source: SEC Filings

Q1 25 Q4 25

“PayPal had a great start to the year and our strategy is working. This is our fifth consecutive quarter of profitable growth with progress across branded checkout, PSP, omnichannel, and Venmo.”

— Alex Chriss, Q1 2025 Earnings Press Release