PayPal Reports 5% Revenue Growth to $8.288 Billion in Q2 2025

PayPal Holdings, Inc. reported its financial results for the second quarter of 2025, revealing a net revenue of $8.288 billion, a 5% increase from $7.885 billion in the same period last year. For the first half of 2025, the company generated $16.079 billion in revenue, up from $15.584 billion in the first half of 2024. The growth in revenue was primarily driven by a 6% increase in total payment volume (TPV) and higher interest and fee revenue from its loans receivable portfolio. Operating income for the second quarter rose to $1.504 billion, a 14% increase compared to $1.325 billion in the prior year, resulting in an operating margin of 18%, up from 17%.

In terms of expenses, PayPal's total operating expenses increased by 3% to $6.784 billion in the second quarter, primarily due to higher transaction and credit losses, as well as increased sales and marketing expenses. However, the company managed to reduce general and administrative expenses. The net income for the quarter was $1.261 billion, reflecting a 12% increase from $1.128 billion in the previous year. The diluted earnings per share rose to $1.29, a 20% increase compared to $1.08 in the same quarter of 2024.

PayPal's active accounts grew to 438 million as of June 30, 2025, a 2% increase from 429 million a year earlier. However, the total number of payment transactions decreased by 5% to 6.2 billion in the second quarter, while TPV increased to $444 billion, up 6% year-over-year. The company also reported a significant increase in transaction and credit losses, which rose by 42% in the second quarter, attributed to higher fraud incidents affecting its PayPal and Venmo products.

Strategically, PayPal completed an acquisition in the second quarter for a total purchase price of $19 million, marking its first acquisition in over a year. The company continues to focus on enhancing its technology infrastructure through the Q2 2025 Plan, which aims to improve scalability and reduce operational costs. This initiative is expected to incur restructuring charges of approximately $90 million to $100 million related to employee severance and benefits, with anticipated annualized cost savings of around $280 million.

Looking ahead, PayPal remains cautious about macroeconomic conditions, including inflation and interest rates, which could impact consumer spending and credit losses. The company expects to continue leveraging its strong cash position, with $6.688 billion in cash and cash equivalents as of June 30, 2025, to support its operations and strategic initiatives.