Slides
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PayPal 3Q'26 Performance October 27, 2026 Financial results & company highlights
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2©2026 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,” “guidance,” “project,” “forecast,” “outlook,” 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 2026; our capital return program, including share repurchases and dividend payments, if any; our plans with respect to PayPal's business structure and operating model, and the anticipated benefits; our plans to reduce our cost structure, including anticipated cost savings; 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 27, 2026. 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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©2026 PayPal Holdings, Inc. 3 • Continued strong TM$ contribution from Venmo and Braintree. Financial services a key growth driver across PayPal’s three businesses ◦ Delivered +2% TM$ growth, +3% ex-interest on customer balances1,2 ◦ Increasing conviction in targeted branded checkout investments ◦ Branded checkout TPV +1% FXN, despite tariff-related pressure in Europe ◦ Continued acceleration in the US; strength in BNPL and Pay with Venmo ◦ Improving branded checkout TPV trends at merchants where playbook is deployed (experience, presentment, selection) ◦ Robust FCF generation: $2.0B in adjusted FCF and $1.6B in capital return • Raising 2026 TM$, non-GAAP EPS, and adjusted FCF guidance ◦ Raising TM$ guidance to ~$15.7B ◦ Raising non-GAAP EPS guidance to ~$5.60 ◦ Raising adjusted free cash flow to $6.5B+ and reiterating share repurchase Highlights All growth rates reference 3Q'26 year-over-year growth unless otherwise noted. Additional financial detail provided in Supplemental Information. (1) For a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the GAAP to non-GAAP Reconciliations on slides 19-23. (2) Interest on customer balances is reported within OVAS revenue in this presentation and in our quarterly/annual SEC filings and primarily comprises interest and revenue earned on customer assets. (3) MAAs are a subset of active accounts that have completed a transaction at least once during the month of measurement. Profitable growth and proof of traction in 3Q Turning strategy into action • Diversifying beyond checkout into financial services ◦ Expect financial services to be >20% of TM$ and grow double-digits in ‘26 ◦ Expanding BNPL distribution with leading merchants, including Amazon in Germany and Austria, American Eagle, Aerie, and Dick’s Sporting Goods • Accelerating Venmo and Braintree ◦ Venmo: +55% Debit MAAs3; financial services driving higher engagement & ARPA ◦ Braintree: double-digit TPV growth; profitable processing & VAS driving TM$ • Rebalancing towards the consumer side of the network ◦ Prioritizing high-value consumers ◦ Merchant playbook driving improved performance through better experience, presentment and consumer marketing ◦ Simplifying our operating model ◦ On track for at least $1.5B gross run-rate cost savings in 2-3 years, >$700M by YE ◦ Modernizing our technology and leveraging AI to innovate for our customers ◦ New modular risk platform cutting credit decision times nearly in half in 3 markets 1 2 3 4 5
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©2026 PayPal Holdings, Inc. Financial services TM$ growing double-digits with multiple drivers Building for future growth with strong foundation Financial services a key driver of future growth BNPL US Debit2 MAA1 TPV MAA TPV Y/Y in 3Q’26 +23% +25% +44% >60% • Expect financial services to contribute greater than 20% of TM$ and grow double digits in ‘26 • Scaling buy-now-pay-later, credit, debit products to consumers & SMBs • Efficient customer acquisition costs leveraging existing consumer base Superior value proposition & unit economics lift customer lifetime value PayPal Venmo 3-5x 5-6x Higher ARPA3 Higher ARPA4 for financial services customers, LTM Underwriting expertise: Drive credit growth with disciplined underwriting to manage losses Optimizing capital deployment: expanding capital markets capabilities & partnerships Scalable platform: Build once and distribute twice across PayPal & Venmo brands PayPal & Venmo’s scaled two-sided network creates a distribution advantage >15% Higher merchant retention5 for merchants using working capital or business loans (1) MAAs are a subset of active accounts that have completed a transaction at least once during the month of measurement. (2) US Debit refers to both PayPal Debit and Venmo Debit card MAAs and TPV (3) For PayPal users that use either the credit card, debit card, or BNPL on and off the PayPal ecosystem compared to checkout only users (4) For Venmo users that use the debit card on and off the Venmo ecosystem compared to P2P only users (5) Based on 2025 data on PayPal Business Loans and PayPal Working Capital Loans 4
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©2026 PayPal Holdings, Inc. Large merchant examples Social Commerce Platform A Playbook shows encouraging early results Where we are improving experience, presentment, & selection ... 3Q’26 … leads to improved Branded Checkout performance at select merchants Tech Merchant A: Latest experience including biometrics and vaulted payment methods, BNPL upstream messaging, co-marketing & Ads Retail Merchant B: Latest experience including biometrics and vaulted payment methods, co-marketing Social Commerce Merchant C: Latest experience including biometrics and vaulted payment methods, BNPL upstream messaging, co-marketing 2Q’261Q’264Q’25 Marketplace Merchant D: Latest experience including biometrics and vaulted payment methods, BNPL upstream messaging, co-marketing >2.0 indicates Branded TPV growth is outpacing merchant’s growth 5 Driving better outcomes where deploying multiple elements of our playbook. Over time leverage installed consumer base to drive higher financial services attachment Gray lines represent other merchant examples where multiple elements of playbook implemented 1. Calculated as the in-period growth differential compared to 4Q’25’s starting period differential. Growth differential calculated as US Branded Checkout volume growth less merchant’s US ecommerce volume growth Indexed view of PayPal growth relative to merchant US ecommerce growth1 11 merchant examples that make up ~20% of our US branded volume 11 merchant examples that make up ~20% of our US branded volume Growth in-line or faster than merchant
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2026 2027 2028 2029 Targeted gross run-rate savings 1. Simplified structure & alignment ~20-30% of total savings 2. Operational & portfolio optimization ~30-40% of total savings 3. Accelerated AI Adoption ~40% of total savings At least $1.5B Gross run-rate savings Optimize role ratios >$700M gross run-rate expected by year-end ‘26 On track to achieve at least $1.5B gross run- rate savings over the next 2-3 years Improve productivity and performance across business units and enabling functions Drive AI enabled process re-design and execution of AI and automation use cases Simplified operating model Drive productivity, process improvements and efficiencies Integrate AI, automation across the business Reduce spans and layers across organization Refine location strategies Portfolio and geographic optimization Increase efficiency in marketing, outside services & vendor spend Deepen integration further into technology, risk, ops, fraud, and workforce planning Technology modernization and focus on customer support redesign 1. Simplified structure & alignment Optimize spans, layers, and location of workforce 2. Operational & portfolio optimization Drive productivity, process improvements and efficiencies 3. Accelerated AI Adoption Integrate AI, automation across the business ©2026 PayPal Holdings, Inc. 6 >$700M gross run-rate savings by year-end 2026 driven by: 1. Simplified structure & alignment: Reduced headcount by >2,000; reduced managerial roles by more than 25%. 2. Operational & portfolio optimization: Optimizing outside services; consolidating vendors; prioritizing countries for investment. 3. Accelerated AI Adoption: AI chat agents now support customer service across 190 countries and 6 languages, resolving 24M+ contacts YTD.
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©2026 PayPal Holdings, Inc. Completed Product launch / upgrade and /or technology milestone Area 1H 2025 2H 2025 1H 2026 2H 2026 1H 2027 2H 2027 1H 2028 2H 2028 Customer Offerings PayPal Venmo Merchant Offerings PSP Payouts Other products Core Platform & Services Risk Identity Payments Servicing Checkout BNPL/Credit Enablers Finance Security Infrastructure Data Cloud We’re here On-track Delayed Corrective action needed Internal timelineKey Enhancing our technology platform 7
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8©2026 PayPal Holdings, Inc. • TPV +7% FXN, driven primarily by double digit Braintree growth and mid-teens Venmo growth ◦ Branded checkout +1% FXN, 4th consecutive quarter stabilizing in the 1-2% range, with US improvement and continued strength in BNPL & Pay with Venmo • TM$ +2%, +3% ex. interest on customer balances2 driven by Venmo, Braintree and FX favorability partially offset by strategic investments ◦ Financial services a key growth driver across all three businesses • Non-GAAP operating income +3% driven by a combination of TM$ growth and operating leverage • Non-GAAP EPS +8%, returned $1.5B via share repurchases and ~$120M in dividends All growth rates reference 3Q'26 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 19-23. (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 repayment and sale of those receivables. See slide 23 for more detail. 3Q'26 key financial results (in millions, except % and per share data) 3Q'26 Y/Y growth Total payment volume (TPV) $487,138 6%; 7% FXN Total revenue $8,584 2%; 1% FXN Transaction margin $ (TM$)1 $3,950 2% Non-transaction related expenses1 $2,337 1% Non-GAAP operating income1 $1,613 3% Non-GAAP operating margin %1 18.8% 16bps Non-GAAP EPS1 $1.45 8% Adjusted free cash flow1,3 $2,047 (10)%
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9©2026 PayPal Holdings, Inc. Raising FY’26 TM$ & non-GAAP EPS guidance FY'26 Transaction margin $ ~$15.7B TM$ ex. interest on customer balances1 ~$14.6B Non-GAAP non-transaction operating expenses Mid-single digit growth Non-GAAP effective tax rate ~19% Non-GAAP EPS3 ~$5.60 FY'25: $5.31 GAAP EPS4 ~$5.07 FY'25: $5.41 Adjusted free cash flow $6.5B+ Share repurchase $6B CAPEX ~$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'26 reflect adjustments of $70M. (3) Estimated non-GAAP amounts for FY'26 reflect adjustments of $570M. (4) FY'25 GAAP EPS included a ~$0.14 positive impact from PayPal’s strategic investment portfolio and crypto assets held for investment. 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 19-23 4Q'26 Transaction margin $ Slightly positive TM$ ex. interest on customer balances1 Slightly positive Non-GAAP effective tax rate 19% - 20% Non-GAAP EPS2 ~$1.43 4Q'25: $1.23 GAAP EPS ~$1.37 4Q'25: $1.53
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10©2026 PayPal Holdings, Inc. Q&A 10 As part of the second annual Big Ten Rivalry Series presented by Venmo, Venmo Hall served as the premier kickoff hub for Penn State’s legendary White Out weekend, featuring exclusive perks and access for Venmo Debit Mastercard holders. 10
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11©2026 PayPal Holdings, Inc. Supplemental information
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12©2026 PayPal Holdings, Inc. • Branded experience growth supported by strong omni adoption • Venmo momentum continues, sustaining mid-teens growth • Branded checkout continued stabilization, with improvement in US and continued strength in BNPL & Pay with Venmo offset by pressure from EU tariff changes • P2P & other consumer growth continues to grow double digits reflecting Venmo and debit card momentum • PSP growth supported by Braintree growing double digits TPV mix across PayPal’s platform 3Q'25 2Q'26 3Q'26 Branded experiences (online & offline)1 FXN GROWTH 8% 6% 6% % OF TOTAL 31% 31% 31% Venmo2 FXN GROWTH 14% 14% 14% % OF TOTAL 19% 19% 20% Branded checkout (online)3 FXN GROWTH 5% 2% 1% % OF TOTAL 29% 28% 27% P2P & other consumer4 FXN GROWTH 11% 10% 10% % OF TOTAL 27% 27% 27% Payment service provider (PSP)5 FXN GROWTH 6% 13% 8% % OF TOTAL 45% 45% 45% Total TPV FXN GROWTH 7% 9% 7% *Percent of total may not sum to 100% due to rounding. Additional financial detail provided in Supplemental Information and Definitions on slides 24-25. (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) and debit (PayPal and Venmo), except when used to fund a branded checkout (online) transaction and remittances. (5) PSP: unbranded card processing across Enterprise and SMB, as well as other merchant solutions (e.g., payouts, invoicing, point-of-sale solutions, etc.).
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13©2026 PayPal Holdings, Inc. (in millions, except % and TPA) 2Q'25 3Q'25 4Q'25 1Q'26 2Q'26 3Q'26 Active accounts1 438 438 439 439 439 440 Y/Y growth 2% 1% 1% 1% —% 1% Monthly active accounts (MAA)2 226 227 231 225 228 228 Y/Y growth 2% 2% 1% 1% 1% —% Number of payment transactions 6,226 6,331 6,754 6,475 6,750 6,796 Y/Y growth (5%) (5%) 2% 7% 8% 7% Number of payment transactions ex. PSP 3,946 4,035 4,284 4,081 4,233 4,307 Y/Y growth 6% 7% 6% 7% 7% 7% Transactions per active account (TPA)3 58.3 57.6 57.7 58.7 60.0 60.8 Y/Y growth (4)% (6%) (5%) (1%) 3% 6% TPA ex. PSP3 35.6 36.2 36.6 37.2 37.9 38.4 Y/Y growth 4% 5% 5% 6% 7% 6% Account and activity metrics detail • Active accounts1 +0.6%; MAA2 +0.4%, largely driven by Venmo • Number of payment transactions +7% driven by growth across the portfolio • 12-month trailing TPA +6%, continuing to inflect positive following price-value actions in Braintree in prior quarters • TPA ex. PSP3 +6%, reflects continued strong Venmo engagement All results & growth rates reference 3Q'26 results & year-over-year growth unless otherwise noted. Definitions on slides 24-25. (1) Active accounts are accounts that have completed a transaction within the past 12 months. (2) MAAs 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. (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 Braintree).
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14©2026 PayPal Holdings, Inc. (in millions, except %) 2Q'25 3Q'25 4Q'25 1Q'26 2Q'26 3Q'26 Total payment volume $443,547 $458,088 $475,135 $463,955 $486,448 $487,138 Y/Y growth 6% 8% 9% 11% 10% 6% FXN Y/Y growth 5% 7% 6% 8% 9% 7% U.S. TPV $276,778 $285,966 $300,798 $300,131 $315,580 $316,524 Y/Y growth 4% 8% 9% 11% 14% 11% International TPV $166,768 $172,122 $174,337 $163,824 $170,868 $170,614 Y/Y growth 10% 10% 8% 11% 2% (1%) FXN Y/Y growth 6% 5% 2% 2% —% —% P2P TPV1 $108,442 $110,746 $109,810 $108,643 $115,198 $116,058 Y/Y growth 8% 8% 7% 7% 6% 5% Venmo TPV $81,976 $85,226 $85,793 $86,206 $93,806 $96,810 Y/Y growth 12% 14% 13% 14% 14% 14% Total take rate 1.87% 1.84% 1.83% 1.80% 1.78% 1.76% Transaction take rate 1.68% 1.64% 1.65% 1.62% 1.61% 1.58% Total revenue $8,288 $8,417 $8,676 $8,353 $8,682 $8,584 Y/Y growth 5% 7% 4% 7% 5% 2% FXN Y/Y growth 5% 6% 3% 5% 3% 1% Transaction revenue $7,441 $7,522 $7,819 $7,501 $7,832 $7,711 Y/Y growth 4% 6% 3% 7% 5% 3% OVAS revenue $847 $895 $857 $852 $850 $873 Y/Y growth 16% 15% 10% 10% —% (2%) US revenue Y/Y growth 3% 5% 4% 9% 7% 5% International revenue FXN Y/Y growth 7% 7% 1% —% (3%) (4%) % international 43% 44% 43% 42% 42% 42% TPV, revenue, & take rate detail All results & growth rates reference 3Q'26 results & year-over-year growth unless otherwise noted. Definitions on slides 24-25. (1) P2P TPV comprises Venmo, PayPal, and Xoom P2P. • US TPV +11%, driven by Braintree, Venmo and branded experiences • International TPV flat FXN with EU tariff headwind in branded checkout offset by debit growth • Transaction take rate -6bps, driven product mix and higher investments in branded checkout & buy now pay later • Transaction revenue +3%, driven by Braintree and Venmo as well as FX favorability • Other value-added services (OVAS) revenue (2)% driven by lower interest on customer balances, partially offset by higher credit revenue
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15©2026 PayPal Holdings, Inc. (in millions, except %) 2Q'25 3Q'25 4Q'25 1Q'26 2Q'26 3Q'26 Transaction expense (TE) $3,968 $4,063 $4,252 $4,165 $4,385 $4,248 TE rate 0.89% 0.89% 0.89% 0.90% 0.90% 0.87% Transaction loss (TL) $383 $397 $279 $276 $323 $328 TL rate 0.09% 0.09% 0.06% 0.06% 0.07% 0.07% Credit loss $93 $86 $111 $102 $74 $58 Credit loss rate 0.02% 0.02% 0.02% 0.02% 0.02% 0.01% Volume-based expenses $4,444 $4,546 $4,642 $4,543 $4,782 $4,634 Y/Y growth 4% 8% 5% 11% 8% 2% Transaction margin $1 $3,844 $3,871 $4,034 $3,810 $3,900 $3,950 Y/Y growth 7% 6% 3% 3% 1% 2% Transaction margin1 46.4% 46.0% 46.5% 45.6% 44.9% 46.0% Y/Y change (bps) 62 (58) (54) (208) (146) 3 TM$ ex. interest on customer balances1,2 $3,526 $3,550 $3,741 $3,536 $3,619 $3,661 Y/Y growth 8% 7% 4% 3% 3% 3% Transaction margin (TM) detail • TE rate -2bps, driven by favorable product mix and partner incentives • TL rate -2bps, driven by lower fraud losses and risk mitigation strategies • Credit loss rate -1bps, driven by reserve release related to further externalization plans and supported by disciplined underwriting • TM$ +2%, +3% ex. interest on customer balances2 driven Venmo, Braintree and FX favorability. Financial services a key growth driver across all three businesses ◦ TM$ growth more than offset strategic investments in checkout/BNPL habituation Definitions on slides 24-25. All results & growth rates reference 3Q'26 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 21. (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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16©2026 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 19-23. (in millions, except %) 2Q'25 3Q'25 4Q'25 1Q'26 2Q'26 3Q'26 Customer support and operations $413 $447 $446 $446 $462 $434 Y/Y growth (5%) 5% (1%) 12% 12% (3%) Sales and marketing $542 $482 $666 $495 $523 $485 Y/Y growth 33% 3% 14% 10% (4%) 1% Technology and development $767 $800 $803 $792 $846 $829 Y/Y growth 8% 8% 4% 8% 10% 4% General and administrative $454 $506 $495 $473 $495 $512 Y/Y growth (19%) (1%) (16%) (5%) 9% 1% Restructuring and other $24 $68 $74 $63 $67 $77 Y/Y growth (20%) 143% 100% 133% 179% 13% Non-transaction related expenses $2,200 $2,303 $2,484 $2,269 $2,393 $2,337 Y/Y growth 2% 6% 2% 8% 9% 1% Total operating expenses $6,644 $6,849 $7,126 $6,812 $7,175 $6,971 Y/Y growth 3% 8% 4% 10% 8% 2% Non-GAAP operating income $1,644 $1,568 $1,550 $1,541 $1,507 $1,613 Y/Y growth 13% 6% 3% (5)% (8)% 3% Non-GAAP operating margin % 19.8% 18.6% 17.9% 18.4% 17.4% 18.8% Y/Y change (bps) 132 (19) (9) (229) (248) 16 Non-GAAP EPS $1.40 $1.34 $1.23 $1.34 $1.38 $1.45 Y/Y growth 18% 12% 3% 1% (1)% 8% Non-GAAP1 operating margin detail • Non-transaction opex +1%, driven by strong progress on cost initiatives while continuing to make investments across growth areas, technology, and risk
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17©2026 PayPal Holdings, Inc. (in millions, except %) 2Q'25 3Q'25 4Q'25 1Q'26 2Q'26 3Q'26 Free cash flow $692 $1,718 $2,190 $903 $1,775 $1,431 Y/Y growth (49%) 19% —% (6%) 157% (17%) Adjusted free cash flow1 $656 $2,279 $2,095 $1,720 $1,832 $2,047 Y/Y growth (42%) 48% —% 25% 179% (10)% Free cash flow (FCF) and capital allocation detail All results & growth rates reference 3Q'26 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 19-23. (1) Adjusted free cash flow excludes the net timing impact between originating loan receivables as held for sale and the subsequent repayment and sale of those receivables. • Generated 3Q'26 adjusted FCF of $2.0B • Returned $1.5B in capital to stockholders through share repurchases and ~$120M in dividends ◦ On a trailing 12-month basis, share repurchases of $6.0B reduced weighted average shares by 11% • Cash, cash equivalents, and investments totaled $15.1B and debt totaled $13.5B as of September 30, 2026
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18©2026 PayPal Holdings, Inc. (in millions, except %) 2Q'25 3Q'25 4Q'25 1Q'26 2Q'26 3Q'26 Hedging Impacts(1) Favorable (unfavorable) impact to net revenues (exclusive of hedging impact) $111 $134 $198 $257 $74 $(20) Hedging impact (70) (49) (82) (86) 6 23 Favorable (unfavorable) impact to net revenues 41 85 116 171 80 3 Favorable (unfavorable) impact to operating expense (50) (69) (101) (139) (25) 3 Net favorable (unfavorable) impact to operating income $(9) $16 $15 $32 $55 $6 Credit net charge-offs, reserve builds (releases) and credit losses Net charge-offs(2) $75 $90 $85 $74 $101 $103 Reserve build (release)(3) 18 (4) 26 28 (27) (45) Credit Losses $93 $86 $111 $102 $74 $58 (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, 2026, estimated next 12 months hedging gains are $106M. (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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19©2026 PayPal Holdings, Inc. GAAP to non-GAAP reconciliations
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20©2026 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, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 2025 2024 2023 GAAP operating expenses: Transaction expense $ 4,248 $ 4,385 $ 4,165 $ 4,252 $ 4,063 $ 3,968 $ 3,704 $ 3,997 $ 3,841 $ 3,942 $ 15,987 $ 15,697 $ 14,385 Transaction and credit losses 386 397 378 390 483 476 371 434 352 335 1,720 1,442 1,682 Customer support and operations 434 462 446 446 447 413 398 451 427 436 1,704 1,768 1,919 Sales and marketing 508 546 518 691 521 583 488 626 508 446 2,283 2,001 1,809 Technology and development 831 849 793 804 801 767 731 773 746 718 3,103 2,979 2,973 General and administrative 520 503 491 502 513 461 503 594 519 570 1,979 2,147 2,059 Restructuring and other 255 113 74 80 69 116 66 50 63 113 331 438 (84) Total operating expenses $ 7,182 $ 7,255 $ 6,865 $ 7,165 $ 6,897 $ 6,784 $ 6,261 $ 6,925 $ 6,456 $ 6,560 $ 27,107 $ 26,472 $ 24,743 Non-GAAP operating expense adjustments: Sales and marketing (a) (23) (23) (23) (25) (39) (41) (40) (40) (40) (40) (145) (162) (166) Technology and development (a) (2) (3) (1) (1) (1) — — (1) (4) (5) (2) (17) (33) General and administrative (a) (8) (8) (8) (7) (7) (7) (7) (7) (7) (7) (28) (28) (28) (d) — — (10) — — — — — — — — — — (e) — — — — — — — — — — — — (4) Restructuring and other (b) (178) (46) (11) (6) (1) (92) (39) (13) (36) (83) (138) (307) (122) (c) — — — — — — — — 1 — — 1 (58) (e) — — — — — — — — — — — — (21) (f) — — — — — — — — — — — — 339 Total operating expenses $ (211) $ (80) $ (53) $ (39) $ (48) $ (140) $ (86) $ (61) $ (86) $ (135) $ (313) $ (513) $ (93) Non-GAAP operating expenses: Transaction expense 4,248 4,385 4,165 4,252 4,063 3,968 3,704 3,997 3,841 3,942 $ 15,987 $ 15,697 $ 14,385 Transaction and credit losses 386 397 378 390 483 476 371 434 352 335 1,720 1,442 1,682 Customer support and operations 434 462 446 446 447 413 398 451 427 436 1,704 1,768 1,919 Sales and marketing 485 523 495 666 482 542 448 586 468 406 2,138 1,839 1,643 Technology and development 829 846 792 803 800 767 731 772 742 713 3,101 2,962 2,940 General and administrative 512 495 473 495 506 454 496 587 512 563 1,951 2,119 2,027 Restructuring and other 77 67 63 74 68 24 27 37 28 30 193 132 54 Total operating expenses $ 6,971 $ 7,175 $ 6,812 $ 7,126 $ 6,849 $ 6,644 $ 6,175 $ 6,864 $ 6,370 $ 6,425 $ 26,794 $ 25,959 $ 24,650 (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) CEO exit costs associated with Alex Chriss' separation agreement, including severance payments and acceleration of restricted stock awards. (e) Fees related to credit externalization. (f) Gain on divestiture of business, net of transaction costs.
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21©2026 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, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 2025 2024 2023 GAAP operating income $ 1,402 $ 1,427 $ 1,488 $ 1,511 $ 1,520 $ 1,504 $ 1,530 $ 1,441 $ 1,391 $ 1,325 $ 6,065 $ 5,325 $ 5,028 Amortization of acquired intangible assets 33 34 32 33 47 48 47 48 51 52 175 207 227 Restructuring 178 46 11 6 1 92 39 13 35 83 138 306 180 Other — — 10 — — — — — — — — — (314) Total non-GAAP operating income adjustments 211 80 53 39 48 140 86 61 86 135 313 513 93 Non-GAAP operating income 1,613 1,507 1,541 1,550 1,568 1,644 1,616 1,502 1,477 1,460 6,378 5,838 5,121 Transaction margin adjustments: Customer support and operations 434 462 446 446 447 413 398 451 427 436 1,704 1,768 1,919 Sales and marketing 485 523 495 666 482 542 448 586 468 406 2,138 1,839 1,643 Technology and development 829 846 792 803 800 767 731 772 742 713 3,101 2,962 2,940 General and administrative 512 495 473 495 506 454 496 587 512 563 1,951 2,119 2,027 Restructuring and other 77 67 63 74 68 24 27 37 28 30 193 132 54 Non transaction-related expense 2,337 2,393 2,269 2,484 2,303 2,200 2,100 2,433 2,177 2,148 9,087 8,820 8,583 Transaction margin dollars 3,950 3,900 3,810 4,034 3,871 3,844 3,716 3,935 3,654 3,608 15,465 14,658 13,704 Interest on customer balances 289 281 274 293 321 318 298 332 339 341 1,230 1,284 918 Transaction margin dollars ex-interest on customer balances $ 3,661 $ 3,619 $ 3,536 $ 3,741 $ 3,550 $ 3,526 $ 3,418 $ 3,603 $ 3,315 $ 3,267 $ 14,235 $ 13,374 $ 12,786 GAAP net revenues $ 8,584 $ 8,682 $ 8,353 $ 8,676 $ 8,417 $ 8,288 $ 7,791 $ 8,366 $ 7,847 $ 7,885 $ 33,172 $ 31,797 $ 29,771 GAAP operating margin 16.3 % 16.4 % 17.8 % 17.4 % 18.1 % 18.1 % 19.6 % 17.2 % 17.7 % 16.8 % 18.3 % 16.7 % 16.9 % Non-GAAP operating margin 18.8 % 17.4 % 18.4 % 17.9 % 18.6 % 19.8 % 20.7 % 18.0 % 18.8 % 18.5 % 19.2 % 18.4 % 17.2 % Transaction margin 46.0 % 44.9 % 45.6 % 46.5 % 46.0 % 46.4 % 47.7 % 47.0 % 46.6 % 45.8 % 46.6 % 46.1 % 46.0 %
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22©2026 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, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 2025 2024 2023 GAAP income before income taxes $ 1,374 $ 1,310 $ 1,393 $ 1,627 $ 1,533 $ 1,529 $ 1,603 $ 1,410 $ 1,311 $ 1,399 $ 6,292 $ 5,329 $ 5,411 GAAP income tax expense 301 206 280 190 285 268 316 289 301 271 1,059 1,182 1,165 GAAP net income 1,073 1,104 1,113 1,437 1,248 1,261 1,287 1,121 1,010 1,128 5,233 4,147 4,246 Non-GAAP adjustments to net income: Non-GAAP operating income adjustments (see table above) 211 80 53 39 48 140 86 61 86 135 313 513 93 Net (gains) losses on strategic investments and crypto assets held for investment 3 81 74 (117) (9) (12) (39) 59 171 6 (177) 285 (201) Other certain significant gains, losses, or charges — (12) — (223) — — — — — — (223) 31 39 Tax effect of non-GAAP adjustments (42) (34) (6) 19 1 (19) (5) (32) (39) (26) (4) (141) 63 Non-GAAP net income $ 1,245 $ 1,219 $ 1,234 $ 1,155 $ 1,288 $ 1,370 $ 1,329 $ 1,209 $ 1,228 $ 1,243 $ 5,142 $ 4,835 $ 4,240 Shares used in diluted share calculation: GAAP 858 882 920 939 960 977 999 1,014 1,024 1,047 968 1,039 1,107 Non-GAAP 858 882 920 939 960 977 999 1,014 1,024 1,047 968 1,039 1,107 Net income per diluted share: GAAP $ 1.25 $ 1.25 $ 1.21 $ 1.53 $ 1.30 $ 1.29 $ 1.29 $ 1.11 $ 0.99 $ 1.08 $ 5.41 $ 3.99 $ 3.84 Non-GAAP $ 1.45 $ 1.38 $ 1.34 $ 1.23 $ 1.34 $ 1.40 $ 1.33 $ 1.19 $ 1.20 $ 1.19 $ 5.31 $ 4.65 $ 3.83 GAAP effective tax rate 22 % 16 % 20 % 12 % 19 % 18 % 20 % 20 % 23 % 19% 17 % 22 % 22 % Tax effect of non-GAAP adjustments to net income —% 1% (1%) 13% (1%) (1%) (1%) 1% (1%) —% 3% (1%) (2%) Non-GAAP effective tax rate 22 % 17 % 19 % 25 % 18 % 17 % 19 % 21 % 22 % 19 % 20 % 21 % 20 %
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23©2026 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, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 2025 2024 2023 Net cash provided by operating activities $ 1,592 $ 1,983 $ 1,134 $ 2,384 $ 1,974 $ 898 $ 1,160 $ 2,394 $ 1,614 $ 1,525 $ 6,416 $ 7,450 $ 4,843 Less: Purchases of property and equipment (161) (208) (231) (194) (256) (206) (196) (203) (169) (157) (852) (683) (623) Free cash flow 1,431 1,775 903 2,190 1,718 692 964 2,191 1,445 1,368 5,564 6,767 4,220 Net timing impact for loan receivables held for sale 616 57 817 (95) 561 (36) 417 (93) 95 (228) 847 (133) 334 Adjusted free cash flow $ 2,047 $ 1,832 $ 1,720 $ 2,095 $ 2,279 $ 656 $ 1,381 $ 2,098 $ 1,540 $ 1,140 $ 6,411 $ 6,634 $ 4,554
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24©2026 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 Braintree, Hyperwallet, Zettle, and certain other products that do not reflect engagement from a consumer perspective. (2) Unbranded Card Processing primarily comprises 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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25©2026 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 across Enterprise & SMB, 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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26©2026 PayPal Holdings, Inc. Upcoming calendar Fourth Quarter 2026 Earnings February 2, 2027