bennymarty
PayPal Holdings (NASDAQ:PYPL) stock dropped 4.1% in Tuesday premarket trading after the payment app company’s expenses rose more than expected and its cash flow declined.
“We delivered another quarter of profitable growth, driven by continued strength across many of our strategic initiatives, ranging from PayPal and Venmo branded experiences to PSP and value-added services,” said President and CEO Alex Chriss. “Based on our momentum, we are raising our full year transaction margin dollar and EPS guidance.
PayPal (NASDAQ:PYPL) now expects 2025 non-GAAP EPS of $5.15-$5.30, compared with the $5.09 consensus and its previous guidance of $4.95-$5.10. The payment tech company expects Q3 non-GAAP EPS of $1.18-$1.22, vs. the average analyst estimate of $1.20.
Q2 non-GAAP EPS of $1.40, topping the $1.30 consensus, climbed from $1.33 in Q1 and $1.19 in last year’s Q2.
Q2 revenue of $8.29B, beating the average analyst estimate of $8.08B, rose from $7.79B in the previous quarter and $7.89B a year ago.
Total active accounts, at 438M at June 30, 2025, increased from 436M at March 31 and exceeded the Visible Alpha estimate of 437M.
Total payment volume of $443.5B, exceeding the Visible Alpha estimate of $434.3M, rose from $417.2B in Q1 and $416.8B in Q2 2024.
PayPal’s (PYPL) transaction margin dollars rose 7% Y/Y to $3.8B, compared with 7% Y/Y growth in Q1. Excluding interest on customer balances transaction margin dollars increased 8% to $3.5B.
Total operating expenses of $6.78B, vs. the Visible Alpha consensus of $6.24B, increased from $6.26B in Q1 and $6.56B in Q2 2024.
Net cash provided by operating activities was $898M (vs. Visible Alpha estimate of $1.83B), vs. $1.16B in the prior quarter and $1.53B a year ago. Adjusted free cash flow of $692 vs. $1.62B consensus, $1.38B in Q1 and $1.14B in last year’s Q2.
Conference call at 8:00 AM ET.
Earlier, PayPal Non-GAAP EPS of $1.40 beats by $0.10, revenue of $8.3B beats by $220M