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Financials · NASDAQ: PYPL

PayPal: how the business works

PayPal runs the PayPal and Venmo digital wallets and processes payments for merchants, earning revenue of $33.2 billion in FY2025.

By · Checked against filings: . Editorial policy. Corrections

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PayPal Holdings, Inc. · San Jose, California

Updated for Q3 FY2026 · checked

Revenue, FY2025
$33.2B
Net income, FY2025
$5.2B
Payments handled (TPV), FY2025
$1.79 trillion
Active accounts, Dec 31, 2025
439 million
Employees, Dec 31, 2025
About 23,800

For learning only. Cityfort is not a registered investment adviser or broker-dealer and does not recommend buying or selling any security. Prices shown are dated and may be out of date.

The short version

PayPal in 5 points

  1. 1 · What it sells

    PayPal runs the PayPal and Venmo digital wallets and processes payments for merchants, with 439 million active accounts and revenue of $33.2 billion in FY2025.

    More: what it sells

  2. 2 · Who pays it

    PayPal does not disclose revenue by type of payer; in FY2025, transaction fees from merchants and consumers were 89.8% of revenue and other value added services 10.2%.

    More: who pays it

  3. 3 · What it keeps from $100

    Of every $100 that came in during FY2025, PayPal kept $15.7 as net income, helped by a non-recurring tax benefit and gains on strategic investments; operating income was $18.3 per $100 of revenue.

    More: what it keeps from $100

  4. 4 · Where the operating profit comes from

    PayPal reports one segment, so it gives no split of its $6.1 billion of FY2025 operating income; transaction revenues were $29.8 billion of its $33.2 billion revenue.

    More: where the operating profit comes from

  5. 5 · The one thing to watch

    Online branded checkout volume grew 1% in Q3 FY2026 on a currency-neutral basis, down from 5% a year earlier, and was 27% of total payment volume.

    More: the one thing to watch

Sources: From PayPal's FY2025 10-K, Q4 FY2025 earnings release and Q3 FY2026 earnings presentation · checked

See the full receipt and the management scorecard below

Sources (3)
Next: Where $100 goes

01Where the money goes · FY2025

Where does $100 of PayPal's money go?

Of every $100 that came in (revenue plus other income), this is where it went.

PayPal · FY2025

Receipt for every $100

Where $100 of PayPal's money went in FY2025
Transaction expense (processors and banks)$47.9
Transaction and credit losses$5.1
Technology and development$9.3
Sales, marketing, support and admin$17.8
Restructuring and other$1.0
Income tax$3.2
Kept as net income$15.7
Total$100

Each line = amount ÷ total money in × 100. Lines may not add to exactly $100 because of rounding.

How this is worked out

Cityfort calculation from the FY2025 10-K. Of every $100 that came in during FY2025 (revenue of $33,172 million plus $227 million of other income, net): each line = line ÷ $33,399 million × 100.

Sources (1)
Next: The business in one line

Each week: one company explained in 5 points, picked by earnings date.

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02The business in one line

What does PayPal do?

Merchants and consumers pay PayPal fees on each payment; about half goes to the processors and banks that move the money, and $15.7 of every $100 that came in stayed as net income in FY2025.

  • PayPal handled $1.79 trillion of payments for 439 million active accounts in FY2025. Transaction fees were 89.8% of its $33.2 billion revenue.
  • Transaction expense took $16.0 billion. Operating income was $6.1 billion, or $18.3 per $100 of revenue.
Next: Who pays it

03Who pays it

Who pays PayPal?

  • Merchants

    Not disclosed

    Pay transaction fees, mostly a share of each payment, when customers pay with PayPal or Venmo or through unbranded processing. Share not disclosed.

  • Consumers

    Not disclosed

    Pay for currency conversion, cross-border payments, instant transfers to a bank and crypto purchases, plus interest and fees on credit. Share not disclosed.

  • Partners and interest on customer money

    Not disclosed

    Partnership, referral, subscription and gateway fees, and interest on customer balances PayPal holds: $1,230 million in FY2025 ($1,284 million in FY2024), as stated in the Q4 FY2025 earnings release.

How spread out the customers are

PayPal does not disclose revenue by type of payer or any customer's share of revenue. Its two revenue types show what fees are for: transaction revenues were 89.8% of FY2025 revenue and other value added services 10.2%. At Dec 31, 2025, one customer was 12% and one partner institution 23% of net accounts receivable.

Sources (2)
Next: Why it makes money

04Why it makes money

Why does PayPal make money?

Each payment earns PayPal a fee, but close to half of its revenue goes straight out to the processors and banks that fund it.

Revenue rises with payment volume, which reached $1.79 trillion in FY2025. Transaction expense took 0.89% of that volume. PayPal's 10-K says card-funded payments generally cost it more than payments from a bank or a PayPal or Venmo balance.

Operating income per $100 of revenue

$16.8$18.3

FY2021 to FY2025

  1. Consumers open PayPal and Venmo accounts
  2. Merchants add PayPal checkout or its processing
  3. Payments flow through PayPal
  4. PayPal earns a fee on each payment
  5. It pays processors and banks to draw the funds
  6. What is left pays for technology and marketing that add accounts and merchants

↺ Step 6 feeds back into step 1.

Sources (2)
Next: Business segments

05Business segments · FY2025; revenue types, as PayPal reports one segment

Which businesses make up PayPal?

  • Transaction revenues

    90%

    PayPal reports one segment, so there is no profit split. These are fees charged to merchants and consumers on payments, mostly based on volume.

    Revenue $29.8B

  • Other value added services

    10%

    Interest and fees on loans, interest on customer balances, and partnership, referral, subscription and gateway fees.

    Revenue $3.4B

How the mix changed

  • Transaction revenues
  • Other value added services

Revenue by segment, FY2021 to FY2025.

US$

See the numbers
How the mix changed (US$)
YearTransaction revenuesOther value added services
FY2021$23.4B$2.0B
FY2022$25.2B$2.3B
FY2023$26.9B$2.9B
FY2024$28.8B$3.0B
FY2025$29.8B$3.4B
Sources (2)
Next: How has it done

06The numbers · Consolidated · US$

How has PayPal done?

Revenue

$33.2BFY2025

Revenue rose every year, from $25.4 billion in FY2021 to $33.2 billion in FY2025, while yearly growth slowed from 8.5% to 4.3%.

US$

See the numbers
Revenue (US$)
PeriodRevenue (US$)
FY2021$25.4B
FY2022$27.5B
FY2023$29.8B
FY2024$31.8B
FY2025$33.2B
Q4 FY2024$8.4B
Q1 FY2025$7.8B
Q2 FY2025$8.3B
Q3 FY2025$8.4B
Q4 FY2025$8.7B
Q1 FY2026$8.4B
Q2 FY2026$8.7B
Q3 FY2026$8.6B

Net profit

$5.2BFY2025

Net income fell to $2.4 billion in FY2022 on $1.0 billion more income tax, lower operating income and losses on strategic investments, then reached $5.2 billion in FY2025 with help from a non-recurring tax benefit.

US$

See the numbers
Net profit (US$)
PeriodNet profit (US$)EPS ($)
FY2021$4.2B$3.52
FY2022$2.4B$2.09
FY2023$4.2B$3.84
FY2024$4.1B$3.99
FY2025$5.2B$5.41
Q4 FY2024$1.1B$1.11
Q1 FY2025$1.3B$1.29
Q2 FY2025$1.3B$1.29
Q3 FY2025$1.2B$1.30
Q4 FY2025$1.4B$1.53
Q1 FY2026$1.1B$1.21
Q2 FY2026$1.1B$1.25
Q3 FY2026$1.1B$1.25

Profit kept per $100 of revenue

$15.8FY2025

Net income per $100 of revenue was $15.8 in FY2025, up from $13.0 in FY2024 and $8.8 in FY2022.

$ of profit per $100 of revenue (net margin)

See the numbers
Profit kept per $100 of revenue ($ of profit per $100 of revenue (net margin))
YearNet marginEBITDA margin
FY202116.4%21.8%
FY20228.8%18.7%
FY202314.3%20.5%
FY202413.0%20.0%
FY202515.8%21.2%

Free cash flow

$5.6BFY2025

Free cash flow was $5.6 billion in FY2025, down from $6.8 billion in FY2024; stock-based compensation was $1.0 billion, or 3.0% of revenue.

US$ · cash from operations minus spending on plants and equipment

See the numbers
Free cash flow (US$ · cash from operations minus spending on plants and equipment)
YearCash from operationsCapital spendingFree cash flow
FY2021$5.8B$908M$4.9B
FY2022$5.8B$706M$5.1B
FY2023$4.8B$623M$4.2B
FY2024$7.5B$683M$6.8B
FY2025$6.4B$852M$5.6B
See all yearly numbers
PayPal annual financials, FY2021–FY2025, US$
YearRevenueEBITDANet profitEPS ($)Operating cashCapexFree cash
FY2021$25.4B$5.5B$4.2B$3.52$5.8B$908M$4.9B
FY2022$27.5B$5.2B$2.4B$2.09$5.8B$706M$5.1B
FY2023$29.8B$6.1B$4.2B$3.84$4.8B$623M$4.2B
FY2024$31.8B$6.4B$4.1B$3.99$7.5B$683M$6.8B
FY2025$33.2B$7.0B$5.2B$5.41$6.4B$852M$5.6B

EBITDA here = operating income plus depreciation and amortization (from the cash flow statement). Fiscal years are the company's own (December 31; the fiscal year is the calendar year, so Q3 FY2026 is July–September 2026.). Net profit is the share belonging to the company's owners.

Download PayPal's yearly and quarterly numbers (CSV, with source ids)

Learn: Stock-based compensation and dilution: pay that becomes shares

Sources (10)
Next: What they said, and what happened

07Who runs it

Who runs PayPal, and did they deliver?

  • Enrique Lores

    President and Chief Executive Officer · since 2026

    CEO since Mar 1, 2026, after chairing PayPal's board from Jul 2024; former CEO of HP. Owned 1,147,553 shares at Mar 25, 2026.

  • Jamie Miller

    Chief Financial Officer and Chief Operating Officer

    Interim CEO from Feb 3 to Mar 1, 2026.

  • David W. Dorman

    Independent Board Chair · since 2026

    Named Independent Board Chair on Feb 3, 2026, when the board appointed Enrique Lores CEO.

  • Alex Chriss

    Former President and Chief Executive Officer

    CEO until Feb 2026. His 2025 total pay was $25,243,486; the median employee's was $114,331.

  • Alyssa Henry

    Director · since 2026

    Joined the board in Mar 2026.

What they said, and what happened

1 delivered · 1 partly delivered · 3 too early to tell

  1. Said on Feb 3, 2026

    PayPal said it expected Q1 FY2026 GAAP EPS to decline by a mid-single-digit percentage from $1.29.

    What happened

    Q1 FY2026 GAAP EPS was $1.21, down 6%.

    Delivered

  2. Said on Jul 28, 2026

    PayPal said it expected Q3 FY2026 GAAP and non-GAAPThe company's own "adjusted" numbers, not the official (GAAP) ones. Always read them next to the official figure. Learn more EPS each to decline by a low-single-digit percentage, from $1.30 and $1.34.

    What happened

    GAAP EPS was $1.25, down 4%, after a $152 million workforce-reduction charge. Non-GAAP EPS was $1.45, up 8%.

    Partly delivered

  3. Said on May 5, 2026

    Management said its FY2026 guidance reflected slightly positive to low-single-digit growth in branded checkout volume.

    What happened

    Online branded checkout grew 2% in Q2 FY2026 and 1% in Q3 FY2026, currency-neutral. On Jul 28, 2026 management raised its expectation to low single digits.

    Too early to tell

  4. Said on May 5, 2026

    Management said it expects at least $1.5 billion of gross run-rate savings over the next two to three years.

    What happened

    On Oct 27, 2026 PayPal said it was on track, with more than $700 million expected by the end of 2026.

    Too early to tell

  5. Said on Feb 3, 2026

    Management said Venmo was on track to exceed $2 billion in revenue ahead of plan.

    What happened

    PayPal's filings do not report Venmo revenue. Venmo volume grew 14% in Q3 FY2026.

    Too early to tell
Sources (12)
Next: What could go wrong

08What could go wrong

What could go wrong for PayPal?

  • Competition

    Slower growth at the PayPal button

    Online branded checkout volume grew 1% in Q3 FY2026 on a currency-neutral basis, down from 5% a year earlier, and was 27% of total payment volume. PayPal's 10-K describes competition in payments as intense.

    Watch Online branded checkout growth in each earnings presentation.

  • Pricing

    Funding costs and take rate

    Transaction expense took $47.9 of every $100 that came in during FY2025. Revenue per $100 of payment volume fell from $1.84 in Q3 FY2025 to $1.76 in Q3 FY2026.

    Watch Transaction expense rate and total take rate each quarter.

  • Regulation

    Regulators' investigations

    The FTC, the CFPB, Germany's Federal Cartel Office and the U.K. FCA have open investigations or demands, including an FTC demand from Sep 2026 on fees and purchase protection.

    Watch Updates to the legal note in each 10-Q.

  • Other

    Fraud and credit losses

    Transaction and credit losses rose 19% to $1,720 million in FY2025. Loans held for sale were $3,687 million and loans and interest receivable $5,618 million at Sep 30, 2026.

    Watch Transaction and credit loss rate in each earnings release.

  • Other

    Interest on customer balances

    PayPal earned $1,230 million of interest on customer balances in FY2025 ($1,284 million in FY2024), as stated in the Q4 FY2025 earnings release. It was $289 million in Q3 FY2026.

    Watch Transaction margin with and without this interest in each release.

  • Execution

    New CEO and reorganization

    A new CEO started on Mar 1, 2026, and PayPal reorganized into three businesses in Apr 2026. Q3 FY2026 included a $152 million workforce-reduction charge.

    Watch Restructuring charges and the savings PayPal reports against its $1.5 billion target.

  • Legal

    Securities lawsuits

    Shareholder suits allege PayPal failed to disclose impediments to its branded checkout growth strategy, and seek unspecified damages. Derivative suits name current and former officers.

    Watch Court rulings reported in the 10-Q legal note.

  • Technology

    Cyberattacks

    PayPal's 10-K lists cyberattacks and security weaknesses first among its risk factors. It holds money and data for 439 million active accounts.

    Watch Incidents disclosed in 8-Ks and the 10-K.

Sources (7)
Next: Supporters vs. critics

09Both sides

What do supporters and critics point to?

Facts each side points to. We don't say which side is right.

What supporters point to

  • Revenue rose every year, from $25.4 billion in FY2021 to $33.2 billion in FY2025.
  • Operating income per $100 of revenue rose from $16.8 in FY2021 to $18.3 in FY2025.
  • Venmo volume grew 14% to $96.8 billion in Q3 FY2026.
  • Shares outstanding fell 28.3%, from 1,168 million at Dec 31, 2021 to 837 million at Sep 30, 2026.
  • Free cash flow was $5.6 billion in FY2025, and PayPal started a quarterly dividend in Oct 2025.

What critics point to

  • Online branded checkout volume grew 1% in Q3 FY2026, down from 5% a year earlier.
  • Revenue per $100 of payment volume fell from $1.84 to $1.76 between Q3 FY2025 and Q3 FY2026.
  • Net income for the first nine months of FY2026 fell 13.3% to $3,290 million.
  • Cash and investments minus debt fell from $7.2 billion at Dec 31, 2021 to $1.6 billion at Sep 30, 2026.
  • Shareholder suits allege PayPal failed to disclose impediments to its branded checkout growth strategy.
Next: What to watch next

10What to watch next

What should you watch next at PayPal?

Next event

Q4 FY2026 results

Date not announced yet.

  • Online branded checkout

    It grew 1% in Q3 FY2026, currency-neutral. Management said on Jul 28, 2026 it expected low single-digit growth for the year.

  • Full-year EPS against PayPal's guidance

    PayPal said on Oct 27, 2026 it expects FY2026 GAAP EPS of about $5.07, against $5.41 in FY2025. Q4 FY2025 results came on Feb 3, 2026.

  • Cost savings and restructuring

    PayPal said on Oct 27, 2026 it expects more than $700 million of gross run-rate savings by the end of 2026, toward at least $1.5 billion.

  • PayPal Bank

    The application filed in Dec 2025 had no reported decision in the Q3 FY2026 10-Q.

Next: Key facts

11Key facts

Key facts about PayPal

What does PayPal do?
PayPal Holdings runs the PayPal and Venmo digital wallets and processes online and in-store payments for merchants. PayPal had 439 million active accounts in about 200 markets at Dec 31, 2025.
How does PayPal make money?
PayPal makes money mainly from fees on the payments it completes: transaction revenues were $29.8 billion of PayPal's $33.2 billion FY2025 revenue (89.8%). The other $3.4 billion came from other value added services, such as interest and fees on loans and interest on customer balances.
Is PayPal profitable?
Yes. PayPal reported FY2025 net income of $5.2 billion and operating income of $6.1 billion on revenue of $33.2 billion; FY2025 net income included a non-recurring tax benefit. In Q3 FY2026, PayPal's net income was $1,073 million on revenue of $8,584 million.
What is PayPal's revenue by segment?
PayPal reports one segment, so it gives no segment split. In FY2025, PayPal's transaction revenues were $29.8 billion and other value added services $3.4 billion; by location, the U.S. was 56.9% of revenue and other countries 43.1%.
Who are PayPal's customers?
PayPal's customers are consumers and merchants, with 439 million active accounts at Dec 31, 2025. PayPal does not disclose revenue by type of customer or by customer.
Who owns PayPal?
PayPal has one class of common stock, listed on Nasdaq. PayPal's 2026 proxy statementThe yearly filing about shareholder votes, the board and executive pay. Learn more lists The Vanguard Group at 10.05% and BlackRock at 8.06%, and its 18 directors and executive officers as a group owned less than 1% at Mar 25, 2026.
How big is Venmo?
PayPal's Venmo handled $96.8 billion of total payment volume in Q3 FY2026, up 14% from a year earlier. PayPal's management said on the Feb 3, 2026 earnings call that Venmo revenue grew about 20% to $1.7 billion in 2025.
What is PayPal's unbranded processing business, including Braintree?
PayPal's unbranded payment processing (PSP), which includes Braintree, was 45% of PayPal's total payment volume in Q3 FY2026 and grew 8% on a currency-neutral basis. PayPal's FY2025 10-K says Braintree revenue rose about $150 million in FY2025 while its number of transactions fell.
How does PayPal earn from loans and customer balances?
PayPal's other value added services revenue was $3.4 billion in FY2025, up 14%, and about $350 million of the increase came from interest and fees on loans. It also includes interest on customer balances: $1,230 million in FY2025 ($1,284 million in FY2024), as stated in the Q4 FY2025 earnings release.
Does PayPal pay a dividend?
Yes. PayPal announced its first quarterly dividend, $0.14 a share, on Oct 28, 2025. PayPal's latest declared dividend of $0.14 is payable on Dec 24, 2026 to holders of record on Dec 4, 2026.
Sources (7)
Next: Go deeper

Terms on this page

Each explains the term in plain English, with the same number from other companies on Cityfort.

Go deeper

More detail from the same filings. Open any section.

12What it sells

12What it sells

What does PayPal sell?

PayPal gives consumers a digital wallet, PayPal or Venmo, to pay online, in stores and to friends. Merchants pay PayPal to accept those payments. It also offers unbranded payment processing, including Braintree, plus pay-later installment loans.

  • PayPal wallet and branded checkout

    Consumers pay with the PayPal button without typing card or address details. Online branded checkout was 27% of total payment volume in Q3 FY2026.

  • Venmo

    A U.S. app to move money between friends and family, and to pay merchants. Venmo handled $96.8 billion of payment volume in Q3 FY2026, up 14%.

  • Unbranded processing (including Braintree)

    Payment processing for merchants that does not show the PayPal brand. It was 45% of total payment volume in Q3 FY2026.

  • Pay-later loans and credit

    Installment loans in the U.S., Germany, France, the U.K., Australia and other markets, Paidy in Japan, PayPal Credit and business financing.

  • Other services

    Currency conversion, instant transfers to a bank, crypto purchases, in-person point of sale, payouts (Hyperwallet), money transfer (Xoom) and Honey.

What it does

  • Does: Charges fees on payments it completes, mostly based on the volume processed
  • Does: Charges for currency conversion, cross-border payments, instant transfers to a bank and crypto purchases
  • Does: Lends through pay-later installment loans and other credit products, and earns interest and fees
  • Does: Earns interest on customer balances it holds

What it does not do

  • Does not: Does not yet have its own bank: it applied in Dec 2025 to set up PayPal Bank, a proposed Utah industrial loan company, with no assurance of approval
  • Does not: Does not own the card networks: it pays processors and banks to draw funds from customers' cards and bank accounts
  • Does not: Does not count customer money as its own cash: $38.4 billion of customer funds sat on its balance sheet at Sep 30, 2026
  • Does not: Does not keep all its European pay-later loans: it sells them to KKR under an agreement renewed in Nov 2025
Sources (2)
13How the money flows

13How the money flows · FY2025

How does money flow through PayPal?

Money in

  • Revenue (transaction revenues plus other value added services)$33.2B
  • Other income (expense), net, after $441 million of interest expense$227M

The company

PayPal

$33.4B came in

Money out

  • Transaction expense (fees to processors and banks)$16.0B
  • Transaction and credit losses$1.7B
  • Technology and development$3.1B
  • Sales, marketing, customer support and administration$6.0B
  • Restructuring and other$331M
  • Income tax$1.1B
  • Net income$5.2B
  1. Merchants and consumers paid PayPal $33.2 billion of revenue in FY2025, on $1.79 trillion of payments.
  2. Transaction expense took $16.0 billion. These are mostly fees to processors and banks for drawing customers' card and bank funds.
  3. Transaction and credit losses took $1.7 billion. Technology and development cost $3.1 billion.
  4. Sales, marketing, customer support and administration took $6.0 billion. Restructuring took $0.3 billion.
  5. After $0.2 billion of other income, net, and $1.1 billion of tax, $5.2 billion was left as net income.
Sources (1)
14What it needs to run

14What it needs to run

What does PayPal need to run?

  • Access to cards and bank accounts

    PayPal pays processors and banks to draw funds from customers' cards and bank accounts. This transaction expense was $15,987 million in FY2025, or 0.89% of payment volume.

  • Customer money it holds

    At Sep 30, 2026, funds receivable and customer accounts were $38,424 million, held against $40,924 million owed to customers.

  • Money to fund loans

    PayPal sells European pay-later installment loans to KKR under an agreement renewed in Nov 2025: a commitment of up to €6 billion, covering up to €65 billion of loans.

  • Licenses and regulators

    PayPal's 10-K says its business is subject to extensive government regulation and oversight. In Dec 2025 it applied to set up PayPal Bank in Utah.

  • People

    About 23,800 employees at Dec 31, 2025: 46% in the Americas, 42% in Asia-Pacific and 12% in Europe and the Middle East.

Sources (3)
15Where it sells

15Where it sells · FY2025

Where does PayPal sell?

  • United States57%
  • Other countries43%
Sources (1)
16Where growth could come from

16Where growth could come from

Where could PayPal's growth come from?

PayPal said on Oct 27, 2026 that it expects FY2026 GAAP EPS of about $5.07 and non-GAAP EPS of about $5.60, against $5.41 and $5.31 in FY2025. For Q4 FY2026 it expects GAAP EPS of about $1.37 and non-GAAP EPS of about $1.43. Its Q3 FY2026 presentation said it expects financial services to exceed 20% of transaction margin dollars in 2026.
Management statement, Oct 27, 2026. Reported as a statement, not our forecast.

  • Venmo

    Working

    +14% volume, Q3 FY2026

    Venmo volume grew 14% to $96.8 billion in Q3 FY2026. Management said on Feb 3, 2026 that Venmo revenue grew about 20% to $1.7 billion in 2025.

    Status: Working, on track against what the company said.

  • Online branded checkout

    Behind

    +1% in Q3 FY2026

    Currency-neutral growth was 1% in Q3 FY2026, against 5% a year earlier. On Jul 28, 2026 management said it expected low single-digit growth for the year.

    Status: Behind, behind the company's own plan.

  • Loans and other services

    Working

    +14% in FY2025

    Other value added services revenue grew 14% to $3.4 billion in FY2025, about $350 million of it from interest and fees on loans.

    Status: Working, on track against what the company said.

  • Unbranded processing (Braintree)

    Mixed

    +8% volume, Q3 FY2026

    Payment transactions fell 4% in FY2025 after PayPal renegotiated Braintree contracts; excluding unbranded processing they rose 6%. Its volume grew 8% currency-neutral in Q3 FY2026.

    Status: Mixed, partly on track.

  • Cost savings program

    New

    At least $1.5B, 2-3 years

    Management said on May 5, 2026 it expects at least $1.5 billion of gross run-rate savings in two to three years. Q3 FY2026 included a $152 million workforce-reduction charge.

    Status: New, recently announced.

  • PayPal Bank

    Early

    Applied Dec 2025

    PayPal applied to Utah and the FDIC to set up PayPal Bank, an industrial loan company. Its 10-K says there is no assurance of approval.

    Status: Early, too early to judge.

Status compares progress with what the company itself said it would do: Working = on track against what the company said; Mixed = partly on track; Behind = behind the company's own plan; New = recently announced; Early = too early to judge.

Sources (8)
17The company's own measures (non-GAAP)

17The company's own measures · FY2025 and Q3 FY2026

What do PayPal's own measures show?

Adjusted (non-GAAP) figures and operating measures are PayPal's own, shown next to the official (GAAP) number where one exists. They are never added together.

  • Official (GAAP): Operating income, FY2025

    $6.1B

    Company's own measure: Transaction margin dollars, FY2025

    $15.5B

    Revenue minus transaction expense and transaction and credit losses. It leaves out every other operating cost, so it is not a profit figure.

  • Official (GAAP): Operating income, FY2025

    $6.1B

    Company's own measure: Transaction margin dollars excluding interest on customer balances, FY2025

    $14.2B

    The same measure without the interest PayPal earns on customer balances.

  • Official (GAAP): Operating income, FY2025

    $6.1B

    Company's own measure: Non-GAAP operating income, FY2025

    $6.4B

    PayPal adds back amortization of acquired intangible assets and restructuring and other charges.

  • Official (GAAP): Net income, FY2025

    $5.2B

    Company's own measure: Non-GAAP net income, FY2025

    $5.1B

    Lower than GAAP because it leaves out the Q4 FY2025 non-recurring tax benefit and gains on strategic investments.

  • Official (GAAP): Diluted EPS, FY2025

    $5.41

    Company's own measure: Non-GAAP diluted EPS, FY2025

    $5.31

    The same exclusions as non-GAAP net income.

  • Official (GAAP): Diluted EPS, Q3 FY2026

    $1.25

    Company's own measure: Non-GAAP diluted EPS, Q3 FY2026

    $1.45

    Leaves out restructuring charges and acquired-intangible amortization, among other items.

  • Official (GAAP): Free cash flow (cash from operations minus capital spending), FY2025

    $5.6B

    Company's own measure: Adjusted free cash flow, FY2025

    $6.4B

    Leaves out the timing effect of pay-later loans held for sale.

  • Official (GAAP)

    No official figure measures this; it is the company's own operating measure.

    Company's own measure: Total payment volume (TPV), FY2025

    1.8 trillion dollars

    The value of payments completed on PayPal's platform, up 7% in FY2025. Revenue for the same year was $33.2 billion.

  • Official (GAAP)

    No official figure measures this; it is the company's own operating measure.

    Company's own measure: Total take rate, Q3 FY2026

    1.76%

    Revenue divided by payment volume, down from 1.84% in Q3 FY2025.

  • Official (GAAP)

    No official figure measures this; it is the company's own operating measure.

    Company's own measure: Monthly active accounts, Q3 FY2026

    228 million

    Accounts active in the month, against 440 million active accounts, which PayPal counts over the past 12 months.

These are the company's own measures, defined by the company. They are not comparable across companies, and they are not added together. Each sits beside the nearest official (GAAP) figure.

Learn: Non-GAAP measures: what a company's "adjusted" numbers leave out

Sources (4)
18Financial strength and debt

18Financial strength · Sep 30, 2026

How much debt does PayPal have?

At Sep 30, 2026, PayPal's cash and investments exceeded its debt by $1.6 billion, down from $3.2 billion at Dec 31, 2025; customer funds are not counted as cash.
  • Total debt$13.5B
  • Cash and investments$15.1B
  • Net cash (cash minus debt)$1.6B
  • Net worth (shareholders' money)$19.5B
Debt to equity
0.69×
$ of debt for every $1 of shareholders' money
  • Net cash is a Cityfort calculation from the Q3 FY2026 earnings release: cash, cash equivalents and investments of $15,065 million minus short-term debt of $2,533 million and long-term debt of $10,939 million. PayPal states its debt as $13.5 billion.
  • Customer funds are left out: funds receivable and customer accounts were $38,424 million at Sep 30, 2026, held against $40,924 million owed to customers.
  • Loans held for sale rose to $3,687 million at Sep 30, 2026 from $1,726 million at Dec 31, 2025; loans and interest receivable were $5,618 million.
  • PayPal issued $2.0 billion of notes due 2028, 2031 and 2036 in May 2026, and had $200 million of commercial paper outstanding under a $5.0 billion program.
  • Total equity was $20,024 million at Mar 31, 2026 and $19,820 million at Jun 30, 2026.
  • The FY2025 10-K shows Dec 31, 2024 total assets of $78,725 million, against $81,611 million first reported in the FY2024 10-K.
Sources (8)
19Who owns it

19Who owns it · ownership as of Mar 25, 2026

Who owns PayPal?

PayPal has one class of common stock with one vote per share, so no holder has extra votes. At the Mar 25, 2026 record date, 18 directors and executive officers as a group owned 5,663,031 shares, 0.63% (Cityfort calculation from the 2026 proxy statement).
Officers and directors (as a group), shares
0.6%
Officers and directors (as a group), votes
0.6%
Share classes
PayPal share classes: shares outstanding (millions) and votes per share
ClassShares (millions)Votes per shareHeld by% of shares% of votesTraded
Common stock (Shares on Oct 21, 2026 (10-Q cover), down from 899.67 million on the Mar 25, 2026 record date after buybacks.)830.71–––Yes
Holders of 5% or more
PayPal holders of 5% or more, from the proxy statement or later Schedule 13G filings; each row shows its own date
HolderSharesVotesAs ofSourceNote
The Vanguard Group10.1%–Jan 30, 2026S16Proxy figure, from a Schedule 13G/A filed Jan 30, 2026 (90,375,902 shares at Dec 31, 2025).
BlackRock8.1%–Jan 26, 2024S16Proxy figure, from a Schedule 13G/A filed Jan 26, 2024 (72,523,555 shares). No later BlackRock filing was checked.

From the company's proxy statement (DEF 14A), later Schedule 13G filings and the share counts on its latest annual or quarterly report. Each holder row shows the date of its own filing.

Learn: How to read a proxy statement (DEF 14A): Nvidia's 2026 proxy · Form 4 insider filings: who files, the codes and the footnotes

Sources (2)
20What it does with profit

20What it does with profit

What does PayPal do with its profit?

PayPal announced a $0.14 quarterly dividend on Oct 28, 2025, with a targeted payout of 10% of non-GAAP net income. Shares outstanding fell from 1,168 million at Dec 31, 2021 to 837 million at Sep 30, 2026, down 28.3% (Cityfort calculation from the FY2022 10-K and the Q3 FY2026 earnings release).

Dividend per share

$0.14FY2025

Dividend paid for each share, by financial year.

$ per share

See the numbers
Dividend per share ($ per share)
YearDividend per shareShare of profit paid out
FY2025$0.14–

  • Buyback · Sep 30, 2026

    First nine months of FY2026: 94 million shares at an average of $47.78. About $9.4 billion of authorization was left at Sep 30, 2026.

    $4.5B

  • Buyback · Dec 31, 2025

    FY2025: repurchases of common stock.

    $6.1B

  • Buyback · Dec 31, 2024

    FY2024: repurchases of common stock.

    $6.0B

  • Buyback · Dec 31, 2023

    FY2023: repurchases of common stock.

    $5.0B

  • Buyback · Dec 31, 2022

    FY2022: repurchases of common stock.

    $4.2B

  • Buyback · Dec 31, 2021

    FY2021: repurchases of common stock.

    $3.4B

  • Money raised · May 15, 2026

    Issued $2.0 billion of notes: $650 million at 4.550% due 2028, $850 million at 4.950% due 2031 and $500 million at 5.550% due 2036.

    $2.0B

Sources (5)
21Governance signals

21Governance signals

What do PayPal's governance filings show?

Auditor
PricewaterhouseCoopers LLP, since 2015
Auditor changes
None in the period covered
Audit qualifications
None reported
Related-party dealings
The Audit Committee reviews related person transactions over $120,000 under a written policy. The 2026 proxy statement describes the policy and names no individual related person transaction.
Credit rating
Moody's, S&P and Fitch (expected ratings of PayPal's May 2026 notes, as stated in its term sheet) A3 (Moody's) / A- (S&P) / A- (Fitch) (outlook not stated in the term sheet), May 12, 2026

A credit rating describes the company's ability to repay debt. It is not a rating of the share.

Flags to know about

  • regulatory · Oct 27, 2026

    Federal Trade Commission investigations

    PayPal has received three civil investigative demands from the FTC: in Feb 2022 on merchants submitting charges for others, in Aug 2025 on merchant onboarding and due diligence, and in Sep 2026 on whether it used deceptive or unfair practices around fees and purchase protection. PayPal says it is cooperating.

  • regulatory

    Consumer Financial Protection Bureau demands

    The CFPB has sent demands on error resolution under Regulation E and linked bank accounts, and in Aug 2024 on PayPal Credit and backup payment options. PayPal says it is cooperating.

  • regulatory

    Competition reviews in Germany and the U.K.

    Germany's Federal Cartel Office has reviewed PayPal's merchant terms on surcharging and parity since Jan 2023. In Mar 2026 the U.K. FCA opened Competition Act investigations into terms in PayPal's agreements with Visa and Mastercard.

  • other · Aug 10, 2026

    Securities class actions

    A suit consolidated on May 21, 2026 alleges PayPal failed to disclose impediments to its branded checkout growth strategy, for a class period of Feb 7, 2024 to Feb 2, 2026. An earlier suit over net new active accounts was dismissed with prejudice on Mar 31, 2026; plaintiffs appealed.

  • other · Feb 3, 2026

    Leadership change

    On Feb 3, 2026 the board named Enrique Lores CEO from Mar 1, 2026, saying the pace of change and execution was not in line with its expectations.

  • other · May 21, 2026

    2026 annual meeting votes

    On May 19, 2026, shareholders backed executive pay with 90.2% of votes, the 2026 equity plan with 72.5% and PwC as auditor with 91.2%.

  • disclosure

    One segment and no revenue by brand

    PayPal reports one segment and gives no revenue split between PayPal, Venmo and Braintree. The Apr 2026 reorganization into three businesses had not changed segment reporting by the Q3 FY2026 10-Q.

Sources (7)
22What the market paid

22What the market paid · price as of Nov 5, 2026

What did the market pay for PayPal on Nov 5, 2026?

Price as of Nov 5, 2026 (shown for education; prices change daily).

Price as of Nov 5, 2026: PayPal closed at $58.96 on Nasdaq, from Nasdaq's historical price table. Market value of about $49.0 billion (Cityfort calculation from the Nov 5, 2026 closing price and the Q3 FY2026 10-Q) = $58.96 × 830.7 million shares (Oct 21, 2026). P/E is price ÷ earnings per share: 10.9 on FY2025 diluted EPS of $5.41. Dividend yield is 0.95%: the declared $0.14 a quarter × 4 = $0.56 a year ÷ the price.

Share price
$58.96
Market value (market cap)
$49.0B
P/E
10.9×

More price-based ratios · as of Nov 5, 2026

Each ratio divides a number from the company's filings by the market value or share price on Nov 5, 2026. Prices change daily, so these ratios do too.

Shares used for the market value: 830.66 million ($58.96 × 830.66 million shares ≈ $49.0B). Source: Form 10-Q, Q3 FY2026 (quarter ended Sep 30, 2026); 2026 proxy statement (DEF 14A), annual meeting May 19, 2026

Source: PYPL historical quotes, Nasdaq, Oct 29 to Nov 5, 2026 (Nov 5, 2026 close $58.96); Form 10-Q, Q3 FY2026 (quarter ended Sep 30, 2026); Form 10-K, fiscal year 2025 (ended Dec 31, 2025) and 1 more

Sources (8)
23How it got here

23How it got here

How did PayPal get here?

  1. 2015

    Business-model change

    Separation from eBay

    PayPal Holdings separated from eBay and became an independent public company in Jul 2015.

  2. 2021

    Business-model change

    Paidy in Japan

    PayPal bought Paidy, a pay-later installment lender in Japan; 3.2 million Paidy accounts joined its count.

  3. 2022

    Crisis

    Profit drop

    Net income fell 42% to $2,419 million, with lower operating income, losses on strategic investments and $1.0 billion more income tax.

  4. 2023

    Milestone

    Happy Returns sold

    PayPal sold Happy Returns to UPS for about $466 million in cash, booking a $339 million pre-tax gain.

  5. 2025

    Milestone

    First dividend

    On Oct 28, 2025 PayPal announced a quarterly dividend of $0.14 a share.

  6. 2025

    Milestone

    PayPal Bank application

    In Dec 2025 PayPal applied to set up PayPal Bank, a proposed Utah industrial loan company.

  7. 2026

    Crisis

    CEO replaced

    The board named Enrique Lores CEO from Mar 1, 2026, citing the pace of change and execution.

  8. 2026

    Business-model change

    Three businesses

    In Apr 2026 PayPal reorganized into Checkout Solutions & PayPal; Consumer Financial Services & Venmo; and Payment Services & Crypto.

  9. 2026

    Milestone

    Workforce reduction

    Q3 FY2026 included a $152 million workforce-reduction charge under a plan expected to save about $340 million a year.

Sources (8)

24Sources and changes

Where every number on this page comes from

Sources (29 documents)
  1. S1Form 10-K, fiscal year 2025 (ended Dec 31, 2025) · PayPal Holdings, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 3, 2026
  2. S2Form 10-K, fiscal year 2024 (ended Dec 31, 2024) · PayPal Holdings, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 4, 2025
  3. S3Form 10-K, fiscal year 2023 (ended Dec 31, 2023) · PayPal Holdings, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 8, 2024
  4. S4Form 10-K, fiscal year 2022 (ended Dec 31, 2022) · PayPal Holdings, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 10, 2023
  5. S5Form 10-Q, Q3 FY2026 (quarter ended Sep 30, 2026) · PayPal Holdings, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Oct 27, 2026
  6. S6Form 10-Q, Q2 FY2026 (quarter ended Jun 30, 2026) · PayPal Holdings, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jul 28, 2026
  7. S7Form 10-Q, Q1 FY2026 (quarter ended Mar 31, 2026) · PayPal Holdings, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · May 5, 2026
  8. S8Q3 FY2026 earnings release (8-K Ex. 99.1, Oct 27, 2026) · PayPal Holdings, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Oct 27, 2026
  9. S9Q2 FY2026 earnings release (8-K Ex. 99.1, Jul 28, 2026) · PayPal Holdings, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jul 28, 2026
  10. S10Q1 FY2026 earnings release (8-K Ex. 99.1, May 5, 2026) · PayPal Holdings, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · May 5, 2026
  11. S11Q4 and full-year 2025 earnings release (8-K Ex. 99.1, Feb 3, 2026) · PayPal Holdings, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 3, 2026
  12. S12Q3 FY2025 earnings release (8-K Ex. 99.1, Oct 28, 2025) · PayPal Holdings, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Oct 28, 2025
  13. S13Q2 FY2025 earnings release (8-K Ex. 99.1, Jul 29, 2025) · PayPal Holdings, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jul 29, 2025
  14. S14Q1 FY2025 earnings release (8-K Ex. 99.1, Apr 29, 2025) · PayPal Holdings, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Apr 29, 2025
  15. S15Q4 and full-year 2024 earnings release (8-K Ex. 99.1, Feb 4, 2025) · PayPal Holdings, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 4, 2025
  16. S162026 proxy statement (DEF 14A), annual meeting May 19, 2026 · PayPal Holdings, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Apr 7, 2026
  17. S178-K filed Feb 3, 2026 (Item 5.02): Enrique Lores appointed President and CEO effective Mar 1, 2026; David W. Dorman independent Board Chair · PayPal Holdings, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 3, 2026
  18. S188-K filed Apr 30, 2026 (Items 5.02, 7.01): strategic reorganization into three businesses · PayPal Holdings, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Apr 30, 2026
  19. S198-K filed May 15, 2026 (Item 8.01): $2.0 billion senior notes due 2028, 2031 and 2036 · PayPal Holdings, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · May 15, 2026
  20. S20Free writing prospectus (pricing term sheet), May 12, 2026, for the 2028, 2031 and 2036 notes: anticipated ratings A3 (Moody's), A- (S&P), A- (Fitch) · PayPal Holdings, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · May 12, 2026
  21. S218-K filed May 21, 2026 (Items 5.02, 5.07): 2026 annual meeting voting results · PayPal Holdings, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · May 21, 2026
  22. S228-K filed Mar 25, 2026 (Item 5.02): Alyssa Henry joins the Board; Gail J. McGovern to retire · PayPal Holdings, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Mar 25, 2026
  23. S238-K filed Nov 14, 2025 (Item 1.01): commercial paper program · PayPal Holdings, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Nov 14, 2025
  24. S248-K filed Nov 17, 2025 (Item 1.01): renewed agreement with KKR for European buy now, pay later receivables · PayPal Holdings, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Nov 17, 2025
  25. S25Q3 FY2026 earnings presentation (Oct 27, 2026) · PayPal Holdings, Inc. Investor Relations · Tier 1: company or exchange filing · Oct 27, 2026
  26. S26Q2 FY2026 earnings call transcript (Jul 28, 2026) · PayPal Holdings, Inc. Investor Relations (FactSet CallStreet) · Tier 1: company or exchange filing · Jul 28, 2026
  27. S27Q1 FY2026 earnings call transcript (May 5, 2026) · PayPal Holdings, Inc. Investor Relations (FactSet CallStreet) · Tier 1: company or exchange filing · May 5, 2026
  28. S28Q4 FY2025 earnings call transcript (Feb 3, 2026) · PayPal Holdings, Inc. Investor Relations (FactSet CallStreet) · Tier 1: company or exchange filing · Feb 3, 2026
  29. S29PYPL historical quotes, Nasdaq, Oct 29 to Nov 5, 2026 (Nov 5, 2026 close $58.96) · Nasdaq, Inc. · Tier 1: company or exchange filing · Nov 5, 2026
Changes to this page (v1 · Nov 6, 2026)
  1. v1 · Nov 6, 2026First version, through Q3 FY2026 (quarter ended Sep 30, 2026). (first version)

Numbers come only from tier 1 and tier 2 sources. Read how we research.

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All information is taken from publicly available sources, mainly company filings with the SEC, which are listed on each page with dates. We work to keep it accurate and correct errors publicly, but we do not guarantee that it is complete, accurate or up to date. Any market price or price-based ratio shown is dated, may be out of date by the time you read it, and is included only to explain concepts.

Statements by company management, including forward-looking statements and guidance, are reported as the company's statements, with their date and source; they are not our forecasts. Adjusted (non-GAAP) figures are the company's own measures and are shown next to the official (GAAP) figures.