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PYPL's Q1 Earnings Top Estimates, Revenues Up Y/Y, Shares Rise
PYPLPayPal(PYPL) ZACKS·2025-04-29 18:15

Core Viewpoint - PayPal Holdings reported strong first-quarter 2025 results with non-GAAP earnings exceeding estimates, although net revenues slightly lagged consensus expectations Financial Performance - Non-GAAP earnings were 1.33pershare,surpassingtheZacksConsensusEstimateby15.651.33 per share, surpassing the Zacks Consensus Estimate by 15.65% and increasing 23.1% year over year [1] - Net revenues reached 7.79 billion, a 1.2% year-over-year increase on a reported basis and 2% on a forex-neutral basis, but fell short of the consensus mark by 0.43% [1] - Total payment volume was 417.2billion,up3417.2 billion, up 3% year over year on a reported basis and 4% on a forex-neutral basis [2] - Transaction revenues were 7 billion, accounting for 90.1% of net revenues, down 0.3% year over year, while Value Added Services revenues were 775million,up16.5775 million, up 16.5% year over year [3] Operational Metrics - Total active accounts grew by 2% year over year to 436 million, while total payment transactions decreased by 7% to 6.045 billion [4] - Operating expenses were 6.26 billion, down 4.1% year over year, and represented 80.4% of net revenues, a decrease of 450 basis points [5] - Transaction margin improved to 47.7%, an increase of 270 basis points [5] Balance Sheet and Cash Flow - As of March 31, 2025, cash, cash equivalents, and investments totaled 15.8billion,withlong−termdebtat15.8 billion, with long-term debt at 12.6 billion [6] - The company generated 1.2billionincashfromoperationsandreportedadjustedfreecashflowof1.2 billion in cash from operations and reported adjusted free cash flow of 1.4 billion [6] - PayPal returned 1.5billiontoshareholdersthroughsharerepurchases[6]Guidance−For2025,PayPalanticipatesnon−GAAPearningsbetween1.5 billion to shareholders through share repurchases [6] Guidance - For 2025, PayPal anticipates non-GAAP earnings between 4.95 and 5.10pershare,withtransactionmarginexpectedtogrowinthe4−55.10 per share, with transaction margin expected to grow in the 4-5% range [7] - Free cash flow is projected to be between 6 billion and 7billion,withsharerepurchaseplansofapproximately7 billion, with share repurchase plans of approximately 6 billion [8] - For Q2 2025, non-GAAP earnings are expected to be between 1.29and1.29 and 1.31 per share, with transaction margin anticipated between 3.75billionand3.75 billion and 3.80 billion [8]