Slides
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PayPal Third Quarter 2025 Performance October 28, 2025 Financial results & company highlights
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2©2025 PayPal Holdings, Inc. Non-GAAP Financial Measures This presentation contains non-GAAP measures relating to our performance. These measures may exclude certain expenses, gains and losses that may not be indicative of our core operating results and business outlook, and, in each case, may be different from the non-GAAP financial measures used by other companies. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation of, or as a substitute for, the financial information prepared and presented in accordance with generally accepted accounting principles. You can find the reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures in the GAAP to non-GAAP reconciliation section of this presentation. Growth Rates All growth rates represent year-over-year comparisons, except as otherwise noted. FX-Neutral (which we also refer to as FXN or currency-neutral) results are calculated by translating the current period’s local currency results by the prior period’s exchange rate. FX-Neutral growth rates are calculated by comparing the current period's FX-Neutral results with the prior period's results, excluding the impact from currency hedging activities. Forward-Looking Statements This presentation contains forward-looking statements relating to, among other things, the future results of operations, financial condition, expectations and plans of PayPal Holdings, Inc. and its consolidated subsidiaries (“PayPal”) that reflect current projections and forecasts. Forward-looking statements can be identified by words such as “may,” “will,” “would,” “should,” “could,” “expect,” “anticipate,” “believe,” “estimate,” “intend,” “continue,” “strategy,” “future,” ”opportunity,” “plan,” “project,” “forecast” and other similar expressions. Forward-looking statements may include, but are not limited to, statements regarding our guidance and projected financial and operating results for fourth quarter and full year 2025; our capital return program, including the implementation of our dividend program and future dividend payments, if any; the timing and impact of product launches and acquisitions; and the projected future growth of PayPal’s businesses. Forward-looking statements are based upon various estimates and assumptions, as well as information known to PayPal as of the date of this presentation and are inherently subject to numerous risks and uncertainties. Our actual results could differ materially from those estimated or implied by forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: our ability to compete in markets that are highly competitive and subject to rapid technological change, and to develop and deliver new or enhanced products and services on a timely basis; cyberattacks and security vulnerabilities, and associated impacts; the effect of global and regional political, economic, market and trade conditions including military conflicts, supply chain issues, tariffs or uncertainty thereof, and related events that affect payments or commerce activity, including inflation and interest rates; the impact of catastrophic events, such as global pandemics, that may disrupt our business, as well as our customers, suppliers, vendors and other business partners; the stability, security and performance of our payments platform; the effect of extensive government regulation and oversight related to our business, products and services in a variety of areas, including, but not limited to, laws covering payments, lending and consumer protection; the impact of complex and changing laws and regulations worldwide, including, but not limited to, laws covering cybersecurity, privacy, data protection, and artificial intelligence; the impact of payment card, bank, or other network rules or practices; risks related to our credit products, including our ability to realize benefits from our agreements with third parties such as our agreements to sell our credit receivables; changes in how consumers fund transactions; our ability to effectively detect and prevent the use of our services for fraud, abusive behaviors, illegal activities, or improper purposes; our ability to manage regulatory and litigation risks, and the outcome of legal and regulatory proceedings; our reliance on third parties in many aspects of our business; damage to our reputation or brands; fluctuations in foreign currency exchange rates; changes in tax rates and exposure to additional tax liabilities; changes to our capital allocation, management of operating cash or incurrence of indebtedness; our ability to timely develop and upgrade our technology systems, infrastructure and customer service capabilities; the impact of proposed or completed acquisitions, divestitures, strategic investments, or entries into new businesses or markets; and our ability to attract, hire, and retain talented employees. The forward-looking statements in this presentation do not include the potential impact of any acquisitions or divestitures that may be announced and/or contemplated after the date of this presentation. More information about factors that could adversely affect PayPal's results of operations, financial condition and prospects or that could cause actual results to differ from those expressed or implied in forward-looking statements is included in PayPal’s most recent annual report on Form 10-K, and its subsequent quarterly reports on Form 10-Q. All information in this presentation is as of October 28, 2025. For the reasons discussed above, you should not place undue reliance on the forward-looking statements in this presentation. PayPal assumes no obligation to update such forward-looking statements.
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3©2025 PayPal Holdings, Inc. All growth rates reference 3Q'25 year-over-year growth unless otherwise noted. For a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the GAAP to non-GAAP Reconciliations on slides 25-28. (1) TM$ is transaction margin dollars. Interest on customer balances is reported within other value added services (OVAS) revenue and primarily comprises interest and revenue earned on customer assets. TM$ and TM$ ex. interest on customer balances are non-GAAP measures. Reconciliations to the most directly comparable GAAP measure on slide 26. (2) Adjusted free cash flow excludes the net impact from timing differences between originating BNPL receivables classified as held for sale and their subsequent sale. See slide 28 for more detail. (3) PayPal’s enterprise payments platform (formerly Braintree). • Momentum driven by focus and execution ◦ TM$ ex. interest on customer balances1 on pace for 6%-7% growth in '25 with multiple drivers • Reinvigorating key parts of the business ◦ Modernizing branded checkout online, offline, and agentic ◦ Venmo and PSP growth accelerating ◦ Omni and buy now, pay later (BNPL) scaling rapidly • Investing for growth and returning capital to shareholders ◦ Initiative traction across the company providing confidence to increase growth investment ◦ Strong capital return program with ~$6B FY'25 expected share repurchase and dividend initiation • Another quarter of profitable growth and strong free cash flow generation ◦ +7% TM$ ex. interest on customer balances1 ◦ $2.3B adjusted free cash flow2 • More diversified and profitable growth drivers ◦ Branded experiences TPV +8% FXN and branded online checkout TPV +5% FXN ◦ Venmo revenue +20% and TPV +14% ◦ PSP TPV +6%, including Enterprise Payments3 TPV +mid-single-digits • Raising FY'25 TM$ and EPS guidance ◦ Now expect 15%-16% non-GAAP EPS growth PayPal is a stronger company today Accelerating momentum across strategic initiatives Accelerating growth while shaping the future of commerce
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4©2025 PayPal Holdings, Inc. Revenue ex. interest on customer balances growth (spot) TM$ ex. interest on customer balances growth (spot) 6% 5% FY’24 YTD’25 For a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the Supplemental Information. (1) Win Checkout: PayPal branded checkout (online), Pay with Venmo, and eBay. (2) Scale Omni and Grow Venmo: P2P (PayPal and Venmo), debit and credit (PayPal and Venmo) and other consumer solutions (e.g., remittances). (3) Drive PSP Profitability: unbranded card processing including Enterprise Payments (formerly Braintree), PayPal Complete Payments and other merchant solutions (e.g., SMB merchant lending, payouts, invoicing, etc.). (4) Transaction loss (TL) expense does not include credit loss. Transaction loss rate as a percent of TPV has averaged 7bps over the last 8 quarters. (5) Year-to-date through the end of September. 5% 7% FY’24 YTD’25 Win Checkout1 Consistent contribution to growth Scale Omni & Grow Venmo2 Faster growth from initiatives (credit, Venmo, and PayPal Everywhere) Drive PSP Profitability3 Contributing to TM$ growth and reaccelerating TPV growth post-reset Transaction loss impact4 Higher ‘25 y/y expense from increased TL provisions, normalization, and August service disruption Next-gen growth vectors Innovating for long-term growth: agentic, ads/personalization, stablecoins, and PayPal World 7% 5%5% 6% PayPal’s growth is diversifying Investor Day strategic drivers contributing to faster TM$ growth 5 5
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5©2025 PayPal Holdings, Inc. Online checkout and omni initiatives accelerating U.S. Branded Experiences TPV growth to 10%; starting to scale globally U.S. Branded Experiences TPV growth 3Q'24 4Q'24 1Q'25 2Q'25 3Q'25 —% 5% 10% 15% All growth rates reference 3Q'25 year-over-year growth unless otherwise noted. (1) Branded experiences TPV includes branded checkout (online) as well as in-store payment methods, including debit (PayPal and Venmo) and tap to pay. (2) Redesigned paysheet penetration of global online branded checkout buyer-started transactions. Advancing strategic growth drivers Scale Omni and Grow Venmo Drive PSP Profitability Scale Next Gen Growth Vectors Win Checkout Branded Experiences Branded Experiences TPV1 +8% FXN; gaining traction online & in store Online • Focused on scaling redesign, improving presentment, biometrics ◦ Redesigned paysheet2 on >20% global branded traffic ◦ Paysheet + biometrics increase conversion 2-5pts in testing • Pay with Venmo TPV grew ~40% and MAA grew ~25% • BNPL TPV and MAA grew >20% Omni • ~65% debit and tap-to-pay TPV growth • Added >2M first time PayPal & Venmo debit card users in the U.S. • 40% Venmo debit card MAA growth • 5M contactless mobile wallet enrollments in Germany since launch • PayPal debit card actives transact ~6X more and generate ~3X ARPA compared to checkout-only actives Launch of PayPal Everywhere in the U.S.
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6©2025 PayPal Holdings, Inc. All growth rates reference 3Q'25 year-over- year growth unless otherwise noted. Scale Omni and Grow Venmo Drive PSP Profitability Scale Next Gen Growth Vectors Win Checkout Branded Experiences Building the future of flexible payments at scale with buy now, pay later (BNPL) ~$40B >20% >20% 80 BNPL TPV growth BNPL MAA growth Expected 2025 BNPL TPV PayPal BNPL Net Promoter Score IMAGERY TBU Expanding product offerings and geographies Launched in Canada, brought BNPL in- store in the U.S. and extended payment terms in Italy and Spain Moving upstream Adding messaging on product pages Rewarding consumers 5% cash back offer on pay later purchases in the U.S. for the holiday season Executing capital light Externalized portion of U.S. BNPL receivables to Blue Owl Capital Advancing strategic growth drivers
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7©2025 PayPal Holdings, Inc. All growth rates reference 3Q'25 year-over-year growth unless otherwise noted. (1) Excludes interest on customer balances. (2) Excludes one-time benefit from renewal and expansion of key payment partner relationship in 2Q’25. (3) P2P revenue includes fees from business profiles, crypto, goods & services P2P, instant transfer, P2P with credit card, and tap-to-pay. (4) Year-to-date through the end of September. Advancing strategic growth drivers Scale Omni and Grow Venmo Drive PSP Profitability Scale Next Gen Growth Vectors Win Checkout Branded Experiences Deepening Venmo engagement and driving faster growth (TPV +14%) ~$1.7B 20% 66M Growing 7% >$25 Growing mid-teens 3Q Venmo revenue1 growth Venmo MAA Expected 2025 Venmo revenue1,2 Venmo ARPA1,2 >45% of Venmo revenue1,2 growth from Pay with Venmo and Venmo Debit Card P2P & other3 Venmo Debit Card Pay with Venmo 10% y/y >20% y/y YTD'23 YTD'25 4 4
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8©2025 PayPal Holdings, Inc. Powering BigCommerce Payments, new embedded payment solution providing merchants with a dedicated “Money” dashboard within the BigCommerce Control Panel, mirroring key capabilities of merchants’ PayPal dashboard, providing streamlined access to real-time balance insights, top-ups and payouts, bank and card connections, and currency management through a single portal All growth rates reference 3Q'25 year-over-year growth unless otherwise noted. (1) PayPal’s enterprise payments platform (formerly Braintree). Advancing strategic growth drivers Scale Omni and Grow Venmo Drive PSP Profitability Scale Next Gen Growth Vectors Win Checkout Branded Experiences PSP TPV growth accelerated to +6% FXN and continues to contribute to TM$ growth Enterprise Payments1 TPV growth inflected post-price-to-value transition with new services & merchant wins Deepening merchant relationships with integrated value-added services 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 3Q'25 4Q'25E Powering BigCommerce Payments, new embedded payment solution providing merchants with integrated payment processing, BNPL, and unified balance managementEnterprise Payments TPV growth (FXN) Payouts Rapid fund distribution in 200+ countries, 50+ currencies, & 9 payment methods with 50%+ payouts volume sent to PayPal branded wallets Payment optimization Intelligent transaction routing and authentication optimization improves auth rates and Smart Debit Routing reduces transaction costs by 15% FX-as-a- service Multi-currency settlement and foreign exchange services delivering up to 20bps in transaction cost savings Risk & fraud Two-sided network data and machine learning to identify and prevent fraud, along with chargeback protection and dispute automation Omnichannel Physical retail expansion launching in 4Q through Verifone partnership
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9©2025 PayPal Holdings, Inc. Agentic Introducing Agentic Commerce Services to help merchants sell through AI platforms Forging partnerships with industry leaders, including Google, Mastercard, OpenAI, and Perplexity 9©2025 PayPal Holdings, Inc. 9 Advancing strategic growth drivers Scale Omni and Grow Venmo Drive PSP Profitability Scale Next Gen Growth Vectors Win Checkout Branded Experiences Shaping the future of commerce PayPal World Now piloting PayPal World transactions Adding more global payment partners, including e& and Ooredoo Fintech in the Middle East Ads Enabling small businesses to generate effective campaigns and unlock ad revenue with PayPal Ads Manager Crypto & stablecoin Reimagining global money movement with Pay with Crypto and crypto integrated within PayPal P2P PYUSD now >$2.5B in market cap
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10©2025 PayPal Holdings, Inc. • TPV and revenue +2pts vs. 2Q, marking second consecutive quarter of acceleration • Another quarter of high single-digit TM$ growth ex. interest on customer balances • Raising FY'25 TM$ and EPS guidance • Reiterating FY'25 $6B-$7B FCF guidance 3Q'25 snapshot (in millions, except % and per share data) Results Y/Y growth Total payment volume (TPV) $458,088 8%; 7% FXN Revenue $8,417 7%; 6% FXN Transaction margin $ (TM$)1 $3,871 6% TM$ ex. interest on customer balances1,2 $3,550 7% Non-GAAP EPS1 $1.34 12% Adjusted free cash flow1,3 $2,279 48% All growth rates reference 3Q'25 year-over-year growth unless otherwise noted. Additional financial detail provided in Supplemental Information. (1) For a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the GAAP to non-GAAP Reconciliations on slides 25-28. (2) Interest on customer balances is reported within OVAS revenue in this presentation and in our quarterly/annual SEC filings and primarily comprises interest and revenue earned on customer assets. (3) Adjusted free cash flow excludes the net impact from timing differences between originating BNPL receivables classified as held for sale and their subsequent sale. See slide 28 for more detail.
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11©2025 PayPal Holdings, Inc. Account and activity metrics1 (in millions, except % and TPA) 3Q'25 Active accounts2 438 Y/Y growth 1% Monthly active accounts (MAA)3 227 Y/Y growth 2% Number of payment transactions 6,331 Y/Y growth (5%) Number of payment transactions ex. PSP (unbranded card processing) 4,035 Y/Y growth 7% Transactions per active account (TPA)4 57.6 Y/Y growth (6%) TPA ex. PSP4 36.2 Y/Y growth 5% All growth rates reference 3Q'25 year-over-year growth unless otherwise noted. (1) Detailed definitions on slide 29. (2) Active accounts are accounts that have completed a transaction within the past 12 months. (3) MAA are a subset of active accounts (primarily PayPal and Venmo) that have completed a transaction at least once during the month of measurement. MAAs presented at the end of a quarter or year are the average of each month’s MAAs in the respective quarter or year. (4) TPA and TPA ex. PSP are trailing 12-month metrics, reflecting transactions within the previous 12-month period, divided by active accounts at the end of the period. TPA ex. PSP excludes both unbranded card processing transactions and unbranded active accounts (primarily Enterprise Payments). (5) PayPal’s enterprise payments platform (formerly Braintree). • Active accounts2 +1% and MAA3 +2%, with contributions from both PayPal consumer accounts and Venmo • Number of payment transactions -5% and TPA4 -6%, reflecting price-to-value actions driving lower Enterprise Payments5 transactions • Number of payment transactions ex. PSP +7% and TPA ex. PSP4 +5%, reflecting customer engagement with transaction growth in branded experiences (debit and branded checkout), Venmo, and P2P
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12©2025 PayPal Holdings, Inc. TPV mix across PayPal’s platform 3Q'24 2Q'25 3Q'25 Branded experiences (online & offline)1 FXN GROWTH 6% 8% 8% % OF TOTAL 30% 31% 31% Venmo2 FXN GROWTH 8% 12% 14% % OF TOTAL 18% 18% 19% Branded checkout (online)3 FXN GROWTH 5% 5% 5% % OF TOTAL 29% 29% 29% P2P & other consumer4 FXN GROWTH 7% 10% 11% % OF TOTAL 26% 27% 27% Payment service provider (PSP)5 FXN GROWTH 12% 2% 6% % OF TOTAL 45% 44% 45% Total TPV FXN GROWTH 9% 5% 7% *Percent of total may not sum to 100% due to rounding. Additional financial detail provided in Supplemental Information and definitions on slide 30. (1) Branded experiences (online & offline): branded checkout (online) as well as in-store payment methods, including debit (PayPal and Venmo) and tap to pay. (2) Venmo: Venmo P2P, Pay with Venmo and Venmo debit. (3) Branded Checkout (online): PayPal branded checkout, Pay with Venmo and eBay. (4) P2P & Other Consumer: P2P (PayPal and Venmo), debit (PayPal and Venmo) except when used to fund a branded checkout (online) transaction and remittances. (5) PSP: unbranded card processing and other merchant solutions (e.g., payouts, invoicing, point-of-sale solutions, etc.). (6) PayPal’s enterprise payments platform (formerly Braintree). • Branded experiences showed momentum, +8% with U.S. accelerating to +10% • Venmo continued to accelerate +14% vs. +12% in 2Q and +9% in FY‘24 • Branded checkout up mid-single- digits despite mixed global macro trends • P2P & other consumer accelerated on Venmo and debit card momentum • PSP accelerated with Enterprise Payments6 +mid-single-digits
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13©2025 PayPal Holdings, Inc. All growth rates reference 3Q'25 year-over-year growth unless otherwise noted. Additional financial detail provided in Supplemental Information. (1) For a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the GAAP to non-GAAP Reconciliations on slides 25-28. (2) Interest on customer balances is reported within OVAS revenue in this presentation and in our quarterly/annual SEC filings and primarily comprises interest and revenue earned on customer assets. 3Q'25 key financial results (in millions, except % and per share data) 3Q'25 Total revenue $8,417 Y/Y growth 7% FXN Y/Y growth 6% Transaction margin $1 $3,871 Y/Y growth 6% Y/Y growth ex. int. on cust. balances1,2 7% Non-transaction related expenses1 $2,303 Y/Y growth 6% Non-GAAP operating income1 $1,568 Y/Y growth 6% Non-GAAP operating margin %1 18.6% Y/Y change (19bps) Non-GAAP EPS1 $1.34 Y/Y growth 12% • Transaction revenue +6%, driven by growth across the portfolio, including branded experiences, PSP, and Venmo • Other value-added services (OVAS) revenue +15%, driven primarily by strong performance in consumer and merchant credit • TM$ ex. interest on customer balances +7% from multiple sources: credit, branded checkout, PSP, and Venmo ◦ Growth across these areas was partially offset by higher transaction loss provisions in the quarter • Non-transaction opex +6%, which includes impact from U.S. BNPL externalization and investment in key growth initiatives • Returned $1.5B via share repurchases, $5.7B on a trailing 12-month basis, reducing weighted average shares by 6%
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14©2025 PayPal Holdings, Inc. Raising FY’25 TM$ & EPS guidance 4Q'25 Transaction margin $ $4.02B - $4.12B 2% - 5% growth 4% - 6% growth ex. interest on customer balances1 Non-GAAP effective tax rate ~24% Non-GAAP EPS2 $1.27 - $1.31 7% - 10% growth GAAP EPS $1.23 - $1.27 FY'25 October 2025 guidance July 2025 guidance Transaction margin $ $15.45B - $15.55B 5% - 6% growth $15.35B - $15.5B 5% - 6% growth Includes ($60M) from lower interest on customer balances1 6% - 7% growth ex. interest on customer balances1 Includes ($125M) from lower interest on customer balances1 6% - 7% growth ex. interest on customer balances1 Non-GAAP non-transaction operating expenses ~3% growth Low single-digit growth Non-GAAP effective tax rate ~20% ~20% Non-GAAP EPS3 $5.35 - $5.39 15% - 16% growth $5.15 - $5.30 11% - 14% growth GAAP EPS $5.11 - $5.15 $4.90 - $5.05 Free cash flow $6B - $7B $6B - $7B Share repurchase ~$6B ~$6B CAPEX ~$1B ~$1B (1) Interest on customer balances is reported within OVAS revenue in this presentation and in our quarterly/annual SEC filings and primarily comprises interest and revenue earned on customer assets. (2) Estimated non-GAAP amounts for 4Q'25 reflect adjustments of ~$40M. (3) Estimated non-GAAP amounts for FY'25 reflect adjustments of ~$255M. For a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the GAAP to non-GAAP Reconciliations on slides 25-28.
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15©2025 PayPal Holdings, Inc. • Reinvigorated and more diversified business driving continued profitable growth across Branded Experiences, PSP, and Venmo • Investing to scale adoption and amplify impact of enhanced experiences and next-gen growth vectors • Strong cash flow generation enabling growth investments and capital return through continued share repurchase and dividend initiation Execution driving profitable growth across PayPal’s platform 15
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©2025 PayPal Holdings, Inc. 16 Q&A Power payments Drive growth Operate smarter Pay your way Get the most value Pay everywhere Online In-store Agentic PayPal is building the next- generation commerce platform 16
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©2025 PayPal Holdings, Inc. 17 Supplemental information
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18©2025 PayPal Holdings, Inc. • U.S. TPV +8%, driven by Venmo, PSP, branded checkout, and debit cards • International TPV +5% FXN, driven by continued growth in Europe • Cross-border TPV1 +4% FXN, driven predominantly by intra-European corridors • Transaction take rate -3bps, driven by product mix and the impact of foreign currency hedges (in millions, except %) 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 3Q'25 Total payment volume $416,814 $422,641 $437,836 $417,208 $443,547 $458,088 Y/Y growth 11% 9% 7% 3% 6% 8% FXN Y/Y growth 11% 9% 7% 4% 5% 7% U.S. TPV $265,526 $265,706 $275,911 $269,916 $276,778 $285,966 Y/Y growth 11% 9% 7% 4% 4% 8% International TPV $151,288 $156,934 $161,925 $147,293 $166,768 $172,122 Y/Y growth 10% 8% 7% 2% 10% 10% FXN Y/Y growth 11% 8% 7% 5% 6% 5% Cross-border TPV1 $49,089 $50,186 $53,022 $49,767 $54,174 $54,316 Y/Y growth 5% 8% 8% 3% 10% 8% FXN Y/Y growth 6% 7% 9% 6% 7% 4% P2P TPV2 $100,802 $102,353 $102,663 $101,383 $108,442 $110,746 Y/Y growth 6% 6% 7% 5% 8% 8% Venmo TPV $73,290 $74,848 $75,610 $75,942 $81,976 $85,226 Y/Y growth 8% 8% 10% 10% 12% 14% Total take rate 1.89% 1.86% 1.91% 1.87% 1.87% 1.84% Transaction take rate 1.72% 1.67% 1.73% 1.68% 1.68% 1.64% Total revenue $7,885 $7,847 $8,366 $7,791 $8,288 $8,417 Y/Y growth 8% 6% 4% 1% 5% 7% FXN Y/Y growth 9% 6% 4% 2% 5% 6% Transaction revenue $7,153 $7,067 $7,588 $7,016 $7,441 $7,522 Y/Y growth 9% 6% 4% —% 4% 6% OVAS revenue $732 $780 $778 $775 $847 $895 Y/Y growth —% 2% 5% 17% 16% 15% US revenue Y/Y growth 8% 6% 2% —% 3% 5% International revenue FXN Y/Y growth 10% 6% 7% 5% 7% 7% % international 42% 42% 43% 43% 43% 44% TPV, revenue, & take rate detail All results & growth rates reference 3Q'25 results & year-over-year growth unless otherwise noted. Definitions on slide 29-30. (1) Cross-border TPV is captured in both U.S. and international TPV and includes branded checkout and P2P, but does not include PSP TPV (unbranded processing). In a typical purchase transaction, cross-border TPV is counted in the region where the merchant is based. For example, in the case of a U.S. seller and a German buyer, the TPV is counted in the U.S. (2) P2P TPV comprises Venmo, PayPal, and Xoom P2P.
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19©2025 PayPal Holdings, Inc. (in millions, except % and TPA) 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 3Q'25 Active accounts1 429 432 434 436 438 438 Y/Y growth —% 1% 2% 2% 2% 1% Monthly active accounts (MAA)2 221 222 228 224 226 227 Y/Y growth 3% 2% 2% 2% 2% 2% Number of payment transactions 6,580 6,631 6,619 6,045 6,226 6,331 Y/Y growth 8% 6% (3%) (7%) (5%) (5%) Number of payment transactions ex. PSP 3,719 3,770 4,052 3,805 3,946 4,035 Y/Y growth 6% 6% 7% 6% 6% 7% Transactions per active account (TPA)3 60.9 61.4 60.6 59.4 58.3 57.6 Y/Y growth 11% 9% 3% (1%) (4%) (6%) TPA ex. PSP3 34.2 34.5 34.9 35.2 35.6 36.2 Y/Y growth 6% 5% 4% 4% 4% 5% Account and activity metrics detail All results & growth rates reference 3Q'25 results & year-over-year growth unless otherwise noted. Definitions on slide 29. (1) Active accounts are accounts that have completed a transaction within the past 12 months. (2) MAA are a subset of active accounts (primarily PayPal and Venmo) that have completed a transaction at least once during the month of measurement. MAAs presented at the end of a quarter or year are the average of each month’s MAAs in the respective quarter or year. MAAs have been updated to exclude certain credit product accounts that are less reflective of consumer engagement on our platform. This resulted in an immaterial impact on each period’s total MAAs and no change to reported growth rates. (3) TPA and TPA ex. PSP are trailing 12-month metrics, reflecting transactions within the previous 12-month period, divided by active accounts at the end of the period. TPA ex. PSP excludes both unbranded card processing transactions and unbranded active accounts (primarily Enterprise Payments, formerly Braintree). • Active accounts2 +1% and MAA3 +2%, with contributions from both PayPal consumer accounts and Venmo • Number of payment transactions -5% and TPA3 -6%, reflecting price-to-value actions driving lower Enterprise Payments transactions • Number of payment transactions ex. PSP +7% and TPA ex. PSP3 +5%, reflecting customer engagement with transaction growth in branded experiences (debit and branded checkout), Venmo, and P2P
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20©2025 PayPal Holdings, Inc. (in millions, except %) 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 3Q'25 Transaction expense (TE) $3,942 $3,841 $3,997 $3,704 $3,968 $4,063 TE rate 0.95% 0.91% 0.91% 0.89% 0.89% 0.89% Transaction loss (TL) $259 $264 $331 $278 $383 $397 TL rate 0.06% 0.06% 0.08% 0.07% 0.09% 0.09% Credit loss $76 $88 $103 $93 $93 $86 Credit loss rate 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% Volume-based expenses $4,277 $4,193 $4,431 $4,075 $4,444 $4,546 Y/Y growth 9% 4% 2% (4%) 4% 8% Transaction margin $1 $3,608 $3,654 $3,935 $3,716 $3,844 $3,871 Y/Y growth 8% 8% 7% 7% 7% 6% Transaction margin1 45.8% 46.6% 47.0% 47.7% 46.4% 46.0% Y/Y change (bps) (19) 115 128 274 62 (58) TM$ ex. interest on customer balances1,2 $3,267 $3,315 $3,603 $3,418 $3,526 $3,550 Y/Y growth 5% 6% 6% 7% 8% 7% Transaction margin (TM) detail • TE rate -2bps, driven by favorable product and merchant mix • TL rate +3bps, driven by higher transaction loss provisions, including impact from the temporary service disruption in August • Credit loss rate in line with 3Q’24, supported by disciplined underwriting and further externalization of a portion of BNPL portfolio to Blue Owl Definitions on slides 29-30. All results & growth rates reference 3Q'25 results & year- over-year growth unless otherwise noted. (1) TM, TM$ and TM$ ex. interest on customer balances are non-GAAP measures. A reconciliation to the most directly comparable GAAP measure is included on slide 26. (2) TM$ is transaction margin dollars. Interest on customer balances is reported within other value added services (OVAS) revenue in this presentation and in our quarterly/ annual SEC filings and primarily comprises interest and revenue earned on customer assets.
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21©2025 PayPal Holdings, Inc. (1) Non-transaction related expenses, total operating expenses, non-GAAP operating income, non-GAAP operating margin, and non-GAAP EPS are non-GAAP financial measures. For a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures and additional detail, please see the GAAP to non-GAAP Reconciliations on slides 25-28. (in millions, except %) 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 3Q'25 Customer support and operations $436 $427 $451 $398 $413 $447 Y/Y growth (11%) (10%) (3%) (12%) (5%) 5% Sales and marketing $406 $468 $586 $448 $542 $482 Y/Y growth (4%) 17% 38% 18% 33% 3% Technology and development $713 $742 $772 $731 $767 $800 Y/Y growth (3%) 2% 1% (1%) 8% 8% General and administrative $563 $512 $587 $496 $454 $506 Y/Y growth 16% 3% 7% 9% (19%) (1%) Restructuring and other $30 $28 $37 $27 $24 $68 Y/Y growth (12%) 65% 1133% (27%) (20%) 143% Non-transaction related expenses $2,148 $2,177 $2,433 $2,100 $2,200 $2,303 Y/Y growth (1%) 3% 10% 2% 2% 6% Total operating expenses $6,425 $6,370 $6,864 $6,175 $6,644 $6,849 Y/Y growth 5% 3% 5% (2%) 3% 8% Non-GAAP operating income $1,460 $1,477 $1,502 $1,616 $1,644 $1,568 Y/Y growth 24% 18% 2% 16% 13% 6% Non-GAAP operating margin % 18.5% 18.8% 18.0% 20.7% 19.8% 18.6% Y/Y change (bps) 231 194 (34) 257 132 (19) Non-GAAP EPS $1.19 $1.20 $1.19 $1.33 $1.40 $1.34 Y/Y growth 36% 22% 5% 23% 18% 12% Non-GAAP1 operating margin detail • Non-transaction opex +6%, which includes impact from U.S. BNPL externalization as well as investment in key growth initiatives
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22©2025 PayPal Holdings, Inc. (in millions, except %) 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 3Q'25 Free cash flow $1,368 $1,445 $2,191 $964 $692 $1,718 Y/Y growth ** 31% (11%) (45%) (49%) 19% Adjusted free cash flow1 $1,140 $1,540 $2,098 $1,381 $656 $2,279 Y/Y growth 31% (19%) 171% (26%) (42%) 48% Free cash flow (FCF) and capital allocation detail • Generated 3Q adjusted FCF of $2.3B with YTD adjusted FCF of $4.3B • Returned $1.5B in capital to stockholders through share repurchases ◦ On a trailing 12-month basis, share repurchases of $5.7B reduced weighted average shares by 6% • As of 3Q, cash, cash equivalents and investments totaled $14.4B and debt totaled $11.4B All results & growth rates reference 3Q'25 results & year-over-year growth unless otherwise noted. Free cash flow and adjusted free cash flow are non-GAAP financial metrics. For a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures and additional detail, please see the GAAP to non-GAAP Reconciliations on slides 25-28. (1) Adjusted free cash flow excludes the net timing impact between originating BNPL receivables as HFS and the subsequent sale of receivables. ** Not meaningful. 2Q'23 free cash flow of ($0.4B) included a $1.2B negative timing impact from European BNPL loans originated as HFS, which were sold in 4Q'23.
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23©2025 PayPal Holdings, Inc. (in millions, except %) 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 3Q'25 Hedging Impacts(1) Favorable (unfavorable) impact to net revenues (exclusive of hedging impact) $(33) $12 $(29) $(104) $111 $134 Hedging impact 22 (12) 38 35 (70) (49) Favorable (unfavorable) impact to net revenues (11) — 9 (69) 41 85 Favorable (unfavorable) impact to operating expense 25 (10) 26 52 (50) (69) Net favorable (unfavorable) impact to operating income $14 $(10) $35 $(17) $(9) $16 Credit net charge-offs, reserve builds (releases) and credit losses Net charge-offs(2) $91 $81 $77 $78 $75 $90 Reserve build (release)(3) (15) 7 26 15 18 (4) Credit Losses $76 $88 $103 $93 $93 $86 (1) Foreign currency movements relative to the US dollar. We calculate the year-over-year impact of foreign currency movements on our business using prior period foreign currency exchange rates applied to current period transactional currency amounts. Hedging impact is recognized in international transaction revenue. Based on exchange rates on derivative positions as of September 30, 2025, estimated next 12 months hedging losses are $199M. (2) Net charge-offs includes principal charge-offs partially offset by recoveries for consumer and merchant receivables. (3) Reserve build (release) represents change in allowance for principal receivables excluding foreign currency remeasurement. Hedging impacts and credit reserve builds and releases
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©2025 PayPal Holdings, Inc. 24 GAAP to non-GAAP reconciliations
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25©2025 PayPal Holdings, Inc. Reconciliation of GAAP operating expenses to non-GAAP operating expenses Three Months Ended Year Ended December 31, (In Millions/Unaudited) Note September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 2024 2023 2022 GAAP operating expenses: Transaction expense $ 4,063 $ 3,968 $ 3,704 $ 3,997 $ 3,841 $ 3,942 $ 3,917 $ 3,958 $ 3,603 $ 3,541 $ 15,697 $ 14,385 $ 12,173 Transaction and credit losses 483 476 371 434 352 335 321 396 446 398 1,442 1,682 1,572 Customer support and operations 447 413 398 451 427 436 454 465 474 492 1,768 1,919 2,120 Sales and marketing 521 583 488 626 508 446 421 466 442 465 2,001 1,809 2,257 Technology and development 801 767 731 773 746 718 742 770 739 743 2,979 2,973 3,253 General and administrative 513 461 503 594 519 570 464 554 507 491 2,147 2,059 2,099 Restructuring and other 69 116 66 50 63 113 212 (311) 39 24 438 (84) 207 Total operating expenses $ 6,897 $ 6,784 $ 6,261 $ 6,925 $ 6,456 $ 6,560 $ 6,531 $ 6,298 $ 6,250 $ 6,154 $ 26,472 $ 24,743 $ 23,681 Non-GAAP operating expense adjustments: Sales and marketing (a) (39) (41) (40) (40) (40) (40) (42) (41) (42) (42) (162) (166) (215) Technology and development (a) (1) — — (1) (4) (5) (7) (6) (9) (9) (17) (33) (232) General and administrative (a) (7) (7) (7) (7) (7) (7) (7) (7) (7) (7) (28) (28) (24) (d) — — — — — — — — (4) — — (4) — Restructuring and other (b) (1) (92) (39) (13) (36) (83) (175) (2) (3) — (307) (122) (122) (c) — — — — 1 — — (2) (19) 10 1 (58) (85) (d) — — — — — — — (21) — — — (21) — (e) — — — — — — — 339 — — — 339 — Total operating expenses $ (48) $ (140) $ (86) $ (61) $ (86) $ (135) $ (231) $ 260 $ (84) $ (48) $ (513) $ (93) $ (678) Non-GAAP operating expenses: Transaction expense 4,063 3,968 3,704 3,997 3,841 3,942 3,917 3,958 3,603 3,541 $ 15,697 $ 14,385 $ 12,173 Transaction and credit losses 483 476 371 434 352 335 321 396 446 398 1,442 1,682 1,572 Customer support and operations 447 413 398 451 427 436 454 465 474 492 1,768 1,919 2,120 Sales and marketing 482 542 448 586 468 406 379 425 400 423 1,839 1,643 2,042 Technology and development 800 767 731 772 742 713 735 764 730 734 2,962 2,940 3,021 General and administrative 506 454 496 587 512 563 457 547 496 484 2,119 2,027 2,075 Restructuring and other 68 24 27 37 28 30 37 3 17 34 132 54 — Total operating expenses $ 6,849 $ 6,644 $ 6,175 $ 6,864 $ 6,370 $ 6,425 $ 6,300 $ 6,558 $ 6,166 $ 6,106 $ 25,959 $ 24,650 $ 23,003 (a) Amortization of acquired intangible assets. (b) Restructuring. (c) Right-of-use asset impairment and other charges associated with exiting certain leased properties as well as gains and losses associated with early lease terminations and owned property held for sale or sold. (d) Fees related to credit externalization. (e) Gain on divestiture of business, net of transaction costs.
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26©2025 PayPal Holdings, Inc. Reconciliation of GAAP operating income to non-GAAP operating income, Transaction margin dollars, and Transaction margin dollars ex-interest on customer balances and GAAP operating margin to non-GAAP operating margin and Transaction margin Three Months Ended Year Ended December 31, (In Millions, Except Percentages/Unaudited) September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 2024 2023 2022 GAAP operating income $ 1,520 $ 1,504 $ 1,530 $ 1,441 $ 1,391 $ 1,325 $ 1,168 $ 1,728 $ 1,168 $ 1,133 $ 5,325 $ 5,028 $ 3,837 Amortization of acquired intangible assets 47 48 47 48 51 52 56 54 58 58 207 227 471 Restructuring 1 92 39 13 35 83 175 4 22 (10) 306 180 207 Other — — — — — — — (318) 4 — — (314) — Total non-GAAP operating income adjustments 48 140 86 61 86 135 231 (260) 84 48 513 93 678 Non-GAAP operating income 1,568 1,644 1,616 1,502 1,477 1,460 1,399 1,468 1,252 1,181 5,838 5,121 4,515 Transaction margin adjustments: Customer support and operations 447 413 398 451 427 436 454 465 474 492 1,768 1,919 2,120 Sales and marketing 482 542 448 586 468 406 379 425 400 423 1,839 1,643 2,042 Technology and development 800 767 731 772 742 713 735 764 730 734 2,962 2,940 3,021 General and administrative 506 454 496 587 512 563 457 547 496 484 2,119 2,027 2,075 Restructuring and other 68 24 27 37 28 30 37 3 17 34 132 54 — Non transaction-related expense 2,303 2,200 2,100 2,433 2,177 2,148 2,062 2,204 2,117 2,167 8,820 8,583 9,258 Transaction margin dollars 3,871 3,844 3,716 3,935 3,654 3,608 3,461 3,672 3,369 3,348 14,658 13,704 13,773 Interest on customer balances 321 318 298 332 339 341 272 286 246 226 1,284 918 268 Transaction margin dollars ex-interest on customer balances $ 3,550 $ 3,526 $ 3,418 $ 3,603 $ 3,315 $ 3,267 $ 3,189 $ 3,386 $ 3,123 $ 3,122 $ 13,374 $ 12,786 $ 13,505 GAAP net revenues $ 8,417 $ 8,288 $ 7,791 $ 8,366 $ 7,847 $ 7,885 $ 7,699 $ 8,026 $ 7,418 $ 7,287 $ 31,797 $ 29,771 $ 27,518 GAAP operating margin 18.1 % 18.1 % 19.6 % 17.2 % 17.7 % 16.8 % 15.2 % 21.5 % 15.7 % 15.5 % 16.7 % 16.9 % 13.9 % Non-GAAP operating margin 18.6 % 19.8 % 20.7 % 18.0 % 18.8 % 18.5 % 18.2 % 18.3 % 16.9 % 16.2 % 18.4 % 17.2 % 16.4 % Transaction margin 46.0 % 46.4 % 47.7 % 47.0 % 46.6 % 45.8 % 45.0 % 45.8 % 45.4 % 45.9 % 46.1 % 46.0 % 50.1 %
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27©2025 PayPal Holdings, Inc. Reconciliation of GAAP net income to non-GAAP net income, GAAP diluted EPS to non- GAAP diluted EPS, and GAAP effective tax rate to non-GAAP effective tax rate Three Months Ended Year Ended December 31, (In Millions, Except Percentages and Per Share Amount/Unaudited) September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 2024 2023 2022 GAAP income before income taxes $ 1,533 $ 1,529 $ 1,603 $ 1,410 $ 1,311 $ 1,399 $ 1,209 $ 1,793 $ 1,241 $ 1,303 $ 5,329 $ 5,411 $ 3,366 GAAP income tax expense 285 268 316 289 301 271 321 391 221 274 1,182 1,165 947 GAAP net income 1,248 1,261 1,287 1,121 1,010 1,128 888 1,402 1,020 1,029 4,147 4,246 2,419 Non-GAAP adjustments to net income: Non-GAAP operating income adjustments (see table above) 48 140 86 61 86 135 231 (260) 84 48 513 93 678 Net (gains) losses on strategic investments and crypto assets held for investment (9) (12) (39) 59 171 6 49 4 (24) (133) 285 (201) 304 Other certain significant gains, losses, or charges — — — — — — 31 21 — — 31 39 410 Tax effect of non-GAAP adjustments 1 (19) (5) (32) (39) (26) (44) 66 (3) 27 (141) 63 (229) Non-GAAP net income $ 1,288 $ 1,370 $ 1,329 $ 1,209 $ 1,228 $ 1,243 $ 1,155 $ 1,233 $ 1,077 $ 971 $ 4,835 $ 4,240 $ 3,582 Shares used in diluted share calculation: GAAP 960 977 999 1,014 1,024 1,047 1,072 1,084 1,098 1,114 1,039 1,107 1,158 Non-GAAP 960 977 999 1,014 1,024 1,047 1,072 1,084 1,098 1,114 1,039 1,107 1,158 Net income per diluted share: GAAP $ 1.30 $ 1.29 $ 1.29 $ 1.11 $ 0.99 $ 1.08 $ 0.83 $ 1.29 $ 0.93 $ 0.92 $ 3.99 $ 3.84 $ 2.09 Non-GAAP $ 1.34 $ 1.40 $ 1.33 $ 1.19 $ 1.20 $ 1.19 $ 1.08 $ 1.14 $ 0.98 $ 0.87 $ 4.65 $ 3.83 $ 3.09 GAAP effective tax rate 19 % 18 % 20 % 20 % 23 % 19 % 27 % 22 % 18 % 21% 22 % 22 % 28 % Tax effect of non-GAAP adjustments to net income (1%) (1%) (1%) 1% (1%) —% (5%) (2%) (1%) (1%) (1%) (2%) (10%) Non-GAAP effective tax rate 18 % 17 % 19 % 21 % 22 % 19 % 22 % 20 % 17 % 20 % 21 % 20 % 18 %
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28©2025 PayPal Holdings, Inc. Reconciliation of operating cash flow to free cash flow and adjusted free cash flow Three Months Ended Year Ended December 31, (In Millions/Unaudited) September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 2024 2023 2022 Net cash provided by (used in) operating activities $ 1,974 $ 898 $ 1,160 $ 2,394 $ 1,614 $ 1,525 $ 1,917 $ 2,614 $ 1,259 $ (200) $ 7,450 $ 4,843 $ 5,813 Less: Purchases of property and equipment (256) (206) (196) (203) (169) (157) (154) (145) (158) (150) (683) (623) (706) Free cash flow 1,718 692 964 2,191 1,445 1,368 1,763 2,469 1,101 (350) 6,767 4,220 5,107 Net timing impact between originating credit receivables as HFS and the subsequent sale of receivables 561 (36) 417 (93) 95 (228) 93 (1,695) 810 1,219 (133) 334 — Adjusted free cash flow 2,279 656 1,381 2,098 1,540 1,140 1,856 774 1,911 869 6,634 4,554 5,107
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29©2025 PayPal Holdings, Inc. Our key metrics are calculated using internal company data based on the activity we measure on our payments platform and compiled from multiple systems, including systems that are internally developed or acquired through business combinations. While the measurement of our key metrics is based on what we believe to be reasonable methodologies and estimates, there are inherent challenges and limitations in measuring our key metrics globally at scale. The methodologies used to calculate our key metrics require significant judgment. We regularly review our processes for calculating these key metrics, and from time to time we may make adjustments to improve the accuracy or relevance of our metrics. For example, we continuously apply models, processes, and practices designed to detect and prevent fraudulent account creation on our platforms, and work to improve and enhance those capabilities. When we detect a significant volume of illegitimate activity, we generally remove the activity identified from our key metrics. Although such adjustments may impact key metrics reported in prior periods, we generally do not update previously reported key metrics to reflect these subsequent adjustments unless the retrospective impact of process improvements or enhancements is determined by management to be material. Active accounts: An active account is an account registered directly with PayPal or a platform access partner that has completed a transaction on our platform, not including gateway-exclusive transactions, within the past 12 months. A platform access partner is a third party whose customers are provided access to PayPal’s platform or services through such third party’s login credentials, including individuals and entities that utilize Hyperwallet’s payout capabilities. A user may register on our platform to access different products and may register more than one account to access a product. Accordingly, a user may have more than one active account. The number of active accounts provides management with additional perspective on the overall scale of our platform, but may not have a direct relationship to our operating results. Monthly active accounts or “MAA” are a subset of Active Accounts (primarily PayPal and Venmo)1 that have completed a transaction on our platform at least once during the month of measurement. The number of MAAs provides management with perspective on the overall scale of our platform reflecting recent usage but may not have a direct relationship to our operating results. MAAs presented at of the end of a quarter or year are the average of each month’s MAAs in the respective quarter or year. Number of payment transactions is the total number of payments, net of payment reversals, successfully completed on our payments platform or enabled by PayPal via a partner payment solution, not including gateway-exclusive transactions. Number of payment transactions excluding Unbranded Card Processing2 or “transactions ex. PSP” is the total number of payments, net of reversals, successfully completed on our payments platform or enabled by PayPal via a partner payment solution, excluding all unbranded card processing transactions and gateway-exclusive transactions. Number of payment transactions per active account or “TPA” reflects the total number of payment transactions within the previous 12-month period, divided by active accounts at the end of the period. The number of payment transactions per active account provides management with insight into the average number of times an account engages in payments activity on our payments platform in a given period. The number of times a consumer account or a merchant account transacts on our platform may vary significantly from the average number of payment transactions per active account. Number of payment transactions per active account excluding unbranded card processing2 or “TPA ex. PSP” reflects the total number of payment transactions within the previous 12-month period excluding all unbranded card processing transactions, divided by active accounts at the end of the period excluding unbranded card processing accounts. This metric provides management with insight into the average number of times an account engages in payments activity on our payments platform in a given period, apart from unbranded card processing activity. Definitions (page 1 of 2) (1) MAAs exclude Enterprise Payments (formerly Braintree), Hyperwallet, Zettle, and certain other products that do not reflect engagement from a consumer perspective. (2) Unbranded Card Processing primarily comprises Enterprise Payments (formerly Braintree) full-stack transactions and does not include gateway-exclusive transactions. Unbranded processing also includes unbranded credit and debit card processing on the PayPal platform.
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30©2025 PayPal Holdings, Inc. Definitions (page 2 of 2) Total payment volume or “TPV” is the value of payments, net of payment reversals, successfully completed on our payments platform, or enabled by PayPal via a partner payment solution, not including gateway-exclusive transactions. Branded checkout (online) TPV comprises PayPal branded checkout, Pay with Venmo and eBay. P2P & other consumer TPV comprises P2P (PayPal and Venmo), debit (PayPal and Venmo) except when used to fund a branded checkout (online) transaction and remittances. PSP TPV comprises unbranded card processing as well as other merchant solutions (e.g., payouts, invoicing, point-of-sale solutions, etc.). Branded experiences (online & offline) TPV comprises branded checkout (online), debit (PayPal and Venmo) and tap to pay. Venmo TPV comprises Venmo P2P, Pay with Venmo and Venmo debit. Total take rate is total revenue divided by TPV. Transaction take rate is transaction revenue divided by TPV. Transaction expense rate is transaction expense divided by TPV. Transaction loss rate is transaction losses divided by TPV. Credit loss rate is credit losses divided by TPV. Transaction margin or “TM” is total revenue less transaction expense and transaction and credit losses, divided by total revenue. Transaction margin dollars ($) or “TM$” is total revenue less transaction expense and transaction and credit losses. Transaction margin dollars excluding interest on customer balances is total revenue excluding interest on customer balances, less transaction expense and transaction and credit losses. Interest on customer balances is captured as part of Other Value Added Services (OVAS) revenue in this presentation and in our quarterly/annual SEC filings.
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©2025 PayPal Holdings, Inc. 31 Upcoming calendar Fourth Quarter 2025 Earnings February 3, 2026