PayPal reported better-than-expected earnings for the second quarter, driven by strong transaction margin dollars growth. The company’s revenue grew 5% year over year, beating estimates. However, growth in key metrics slowed sequentially.
The company’s adjusted free cash flow fell short of expectations, and expenses rose. Total operating expenses increased to $6.78 billion, up from $6.26 billion in the first quarter.
Despite the mixed results, PayPal’s shares have fallen 8.4% for the year due to concerns about slowing growth. However, Venmo revenue grew more than 20% year over year, driven by continued expansion into new markets and businesses accepting the service as a payment option.
PayPal expects adjusted earnings per share of $5.15 to $5.30 for the full year, up from its prior forecast. The company also projects free cash flow of $6 billion to $7 billion for the year.
CEO Alex Chriss attributed the company’s success to strategic initiatives and growth across multiple platforms. However, the company faces challenges in maintaining momentum and expects a stronger fourth quarter due to updated guidance.
Source: https://www.cnbc.com/2025/07/29/paypal-pypl-q2-2025-earnings.html