Form 8-K

8-K — PayPal Holdings, Inc.

Accession: 0001633917-26-000065

Filed: 2026-05-05

Period: 2026-05-05

CIK: 0001633917

SIC: 7389 (SERVICES-BUSINESS SERVICES, NEC)

Item: Results of Operations and Financial Condition

Item: Financial Statements and Exhibits

Documents

8-K — pypl-20260505.htm (Primary)

EX-99.1 (pypl1q-26earningsrelease.htm)

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GRAPHIC (monogram.jpg)

XML — IDEA: XBRL DOCUMENT (R1.htm)

8-K

8-K (Primary)

Filename: pypl-20260505.htm · Sequence: 1

pypl-20260505

0001633917false00016339172026-05-052026-05-05

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 5, 2026

PayPal Holdings, Inc.

(Exact name of registrant as specified in its charter)

Delaware 001-36859 47-2989869

(State or other jurisdiction (Commission File Number) (I.R.S. Employer

of incorporation) Identification No.)

2211 North First Street

San Jose, CA 95131

(Address of principal executive offices)

(408) 967-7000

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered

Common stock, $0.0001 par value per share PYPL NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02. Results of Operations and Financial Condition

The information in Item 2.02 of this Current Report, including the accompanying Exhibit 99.1, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of Section 18. The information in Item 2.02 of this Current Report shall not be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language contained in such filing.

Financial Results for the Quarter Ended March 31, 2026

On May 5, 2026, PayPal Holdings, Inc. (“PayPal,” the “Company,” “we,” “us,” or “our”) issued a press release announcing its financial results for the quarter ended March 31, 2026. A copy of the press release is furnished as Exhibit 99.1 hereto and is incorporated by reference herein.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits.

99.1

Press release dated May 5, 2026

104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

PayPal Holdings, Inc.

(Registrant)

Date:

May 5, 2026

/s/ Brian Y. Yamasaki

Name: Brian Y. Yamasaki

Title: Vice President, Corporate Legal and Secretary

EX-99.1

Filename: pypl1q-26earningsrelease.htm · Sequence: 2

Document

PayPal Reports First Quarter 2026 Results

Delivers solid results; New leadership taking deliberate steps to sharpen focus and accelerate growth

SAN JOSE, Calif., (May 5, 2026) – PayPal Holdings, Inc. (NASDAQ: PYPL) today reported results for the first quarter ending March 31, 2026.

“I’m energized by the opportunity to improve execution and accelerate PayPal’s growth. The company has valuable assets in our brands, technology, and team – and there is significant potential ahead of us. We are taking deliberate steps to sharpen our strategy, simplify our organization, and improve both our growth trajectory and cost structure by focusing our investments where we believe they will have the greatest impact. I am confident in our ability to put the company on a more durable path to long-term growth and shareholder value creation, and we are executing with urgency.”

Enrique Lores

President and CEO

—————————————————————————————————————————————

1Q'26 Financial Results

•Net revenues increased 7% to $8.4 billion; 5% currency-neutral (“FXN”).

•Transaction margin dollars1 (“TM$”) increased 3% to $3.8 billion; TM$ excluding interest on customer balances1,2 increased 3% to $3.5 billion.

•GAAP operating income decreased 3% to $1.5 billion; non-GAAP operating income decreased 5% to $1.5 billion.

•GAAP operating margin contracted 182 basis points to 17.8%; non-GAAP operating margin contracted 229 basis points to 18.4%.

•GAAP EPS decreased 6% to $1.213; non-GAAP EPS increased 1% to $1.34.

1Q'26 Operating Results

•Total payment volume (“TPV”) increased 11% to $464.0 billion; 8% FXN.

•Payment transactions increased 7% to 6.5 billion. Excluding payment service provider transactions4 (“PSP”), payment transactions increased 7%.

•Payment transactions per active account (“TPA”) on a trailing 12-month basis decreased 1% to 58.7. TPA ex-PSP4 increased 6%.

•Active accounts increased 1% to 439 million. On a sequential basis, active accounts decreased by 0.04%, or by 0.2 million.

Cash Flow

•Cash flow from operations of $1.1 billion and free cash flow of $0.9 billion.

•Adjusted free cash flow of $1.7 billion, which excludes the net timing impact between originating buy now, pay later (“BNPL”) receivables as held for sale and the subsequent sale of those receivables.

Balance Sheet and Liquidity

•Cash, cash equivalents, and investments totaled $13.5 billion as of March 31, 2026.

•Debt totaled $11.6 billion as of March 31, 2026.

•Returned $1.5 billion to stockholders by repurchasing approximately 34 million shares of common stock in 1Q'26.

◦On a trailing 12-month basis, returned $6.0 billion to stockholders by repurchasing approximately 100 million shares of common stock.

Dividend Program

•PayPal’s Board of Directors (the “Board”) declared a cash dividend of $0.14 per share on the Company’s common stock, payable on June 25, 2026, to stockholders of record as of the close of business on June 4, 2026.

1.TM$, TM$ excluding interest on customer balances, non-GAAP operating income, non-GAAP operating margin, non-GAAP EPS, free cash flow, and adjusted free cash flow are non-GAAP financial measures. “Non-GAAP Measures of Financial Performance” and subsequent tables at the end of this press release provide reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures.

2. Interest on customer balances is reported within other value added services (“OVAS”) revenue and primarily comprises interest and revenue earned on customer assets.

3. 1Q'26 GAAP EPS includes a ~$0.08 negative impact from PayPal’s strategic investment portfolio and crypto assets held for investment, compared to a ~$0.03 positive impact in 1Q'25.

4. Payment transactions ex-PSP and TPA ex-PSP exclude unbranded card processing transactions and accounts.

1Q 2026 Results

1Q'26 Financial Results

Presented in millions, except per share data and percentages

1Q'26

1Q'25

YoY

Growth

FXN

YoY Growth

Total payment volume

$463,955

$417,208

11%

GAAP

Net revenues $8,353

$7,791

Operating income $1,488 $1,530 (3%)

Operating margin

17.8%

19.6%

(182bps)

Effective tax rate

20.1%

19.7%

0.4pts

Net income (loss)

$1,113

$1,287

(14%)

Earnings per diluted share

$1.21

$1.29

(6%)

Net cash provided by operating activities

$1,134

$1,160

(2%)

Non-GAAP

Net revenues $8,353 $7,791

Transaction margin dollars $3,810 $3,716 3%

Transaction margin dollars excluding interest on customer balances $3,536 $3,418 3%

Operating income $1,541 $1,616 (5%)

Operating margin

18.4%

20.7%

(229bps)

Effective tax rate

18.8%

19.5%

(0.6pts)

Net income

$1,234

$1,329

(7%)

Earnings per diluted share

$1.34

$1.33

Free cash flow

$903

$964

(6%)

Adjusted free cash flow

$1,720

$1,381

25%

—————————————————————————————————————————————

Financial Guidance

2026 Guidance: PayPal is reiterating full year guidance, building on a solid start to the year while reflecting a complex and dynamic operating environment. Please see PayPal’s 1Q'26 earnings presentation for more detail.

May 2026 Guidance

February 2026 Guidance

Prior year period

2Q'26

GAAP EPS

Mid-single digit decline

N/A

$1.29

Non-GAAP EPS1

High-single digit decline or approximately (-9%)

N/A

$1.40

FY'26

GAAP EPS2

Mid-single digit decline

$5.41

Non-GAAP EPS3

Low-single digit decline to slightly positive

$5.31

Please see “Non-GAAP Measures of Financial Performance” for reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures and important additional information.

1. Estimated non-GAAP amounts for the three months ending June 30, 2026 reflect adjustments of approximately ~$35 million.

2. FY'25 GAAP EPS included a positive impact of ~$0.14 from PayPal’s strategic investment portfolio and crypto assets held for investment.

3. Estimated non-GAAP amounts for the full year ending December 31, 2026 reflect adjustments of approximately ~$225 million.

1Q 2026 Results

Conference Call & Webcast

PayPal Holdings, Inc. will host a conference call to discuss first quarter 2026 results at 8:00 a.m. Eastern Time today. A live webcast of the conference call, together with a slide presentation that includes supplemental financial information and reconciliations of certain non-GAAP measures to their most directly comparable GAAP measures, can be accessed through the company’s Investor Relations website at https://investor.pypl.com. In addition, an archive of the webcast will be accessible for 90 days through the same link.

Disclosure Channels

PayPal Holdings, Inc. uses the following channels as means of disclosing information about the company and for complying with its disclosure obligations under Regulation FD:

•Investor Relations website (https://investor.pypl.com)

•PayPal Newsroom (https://newsroom.paypal-corp.com/)

•PayPal Corporate website (https://about.pypl.com)

•PayPal’s LinkedIn page (https://www.linkedin.com/company/paypal)

•Enrique Lores’ LinkedIn profile (https://www.linkedin.com/in/enriquelores)

•Jamie Miller’s LinkedIn profile (https://www.linkedin.com/in/jamiesmiller/)

•Steven Winoker’s LinkedIn profile (https://www.linkedin.com/in/steven-winoker-0764548/)

The information that is posted through these channels may be deemed material. Accordingly, investors should monitor these channels in addition to PayPal’s press releases, filings with the Securities and Exchange Commission (“SEC”), public conference calls, and webcasts.

About PayPal

Creating innovative experiences that make moving money, selling, and shopping simple, personalized, and secure, PayPal empowers consumers and businesses in approximately 200 markets to join and thrive in the global economy.

Presentation

All growth rates represent year-over-year comparisons, except as otherwise noted. FXN results are calculated by translating the current period local currency results by the prior period exchange rate. FXN growth rates are calculated by comparing the current period FXN results with the prior period results, excluding the impact from hedging activities. All amounts in tables are presented in U.S. dollars, rounded to the nearest million, except as otherwise noted. As a result, certain amounts and rates may not sum or recalculate using the rounded dollar amounts provided.

Non-GAAP Financial Measures

This press release includes financial measures defined as “non-GAAP financial measures” by the SEC including: non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating income, transaction margin dollars, transaction margin dollars excluding interest on customer balances, non-GAAP operating margin, transaction margin, non-GAAP effective tax rate, free cash flow, and adjusted free cash flow. For an explanation of the foregoing non-GAAP measures, please see “Non-GAAP Measures of Financial Performance” included in this press release. These measures may be different from 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 (“GAAP”). For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures, see “Non-GAAP Measures of Financial Performance,” “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,” “Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income, GAAP Diluted EPS to Non-GAAP Diluted EPS, and GAAP Effective Tax Rate to Non-GAAP Effective Tax Rate,” and “Reconciliation of Operating Cash Flow to Free Cash Flow and Adjusted Free Cash Flow.”

1Q 2026 Results

Forward-looking statements

This press release 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 PayPal’s 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 the second 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 press release, 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 highly talented employees. The forward-looking statements in this release do not include the potential impact of any acquisitions or divestitures that may be announced and/or contemplated after the date hereof.

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 under the captions “Risk Factors,” “Legal Proceedings” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in PayPal’s most recent annual report on Form 10-K and its subsequent quarterly reports on Form 10-Q, copies of which may be obtained by visiting PayPal’s Investor Relations website at https://investor.pypl.com or the SEC’s website at www.sec.gov. All information in this release speaks as of May 5, 2026. For the reasons discussed above, you should not place undue reliance on the forward-looking statements in this press release. PayPal assumes no obligation to update such forward-looking statements.

Contacts

Investor Relations

Media Relations

investorrelations@paypal.com

mediarelations@paypal.com

1Q 2026 Results

PayPal Holdings, Inc.

Unaudited Condensed Consolidated Balance Sheets

March 31,

2026 December 31,

2025

(In millions, except par value)

ASSETS

Current assets:

Cash and cash equivalents $ 6,977 $ 8,049

Short-term investments 2,365 2,373

Accounts receivable, net 843 840

Loans and interest receivable, held for sale 1,825 1,726

Loans and interest receivable, net 6,705 6,746

Funds receivable and customer accounts 39,501 38,198

Prepaid expenses and other current assets 1,779 1,827

Total current assets 59,995 59,759

Long-term investments 4,125 4,330

Property and equipment, net 1,708 1,700

Goodwill 10,946 10,864

Intangible assets, net 206 208

Other assets 3,566 3,312

Total assets $ 80,546 $ 80,173

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable $ 162 $ 240

Funds payable and amounts due to customers 41,501 40,198

Accrued expenses and other current liabilities 5,974 6,005

Total current liabilities 47,637 46,443

Other long-term liabilities 3,476 3,487

Long-term debt 9,409 9,987

Total liabilities 60,522 59,917

Equity:

Common stock, $0.0001 par value; 4,000 shares authorized; 892 and 920 shares outstanding as of March 31, 2026 and December 31, 2025, respectively

— —

Preferred stock, $0.0001 par value; 100 shares authorized, unissued

— —

Treasury stock at cost, 457 and 423 shares as of March 31, 2026 and December 31, 2025, respectively

(34,651) (33,138)

Additional paid-in-capital 21,735 21,582

Retained earnings 33,453 32,470

Accumulated other comprehensive income (loss) (513) (658)

Total equity 20,024 20,256

Total liabilities and equity $ 80,546 $ 80,173

1Q 2026 Results

PayPal Holdings, Inc.

Unaudited Condensed Consolidated Statements of Income (Loss)

Three Months Ended March 31,

2026 2025

(In millions, except per share amounts)

Net revenues $ 8,353 $ 7,791

Operating expenses:

Transaction expense 4,165 3,704

Transaction and credit losses 378 371

Customer support and operations

446 398

Sales and marketing

518 488

Technology and development

793 731

General and administrative

491 503

Restructuring and other

74 66

Total operating expenses 6,865 6,261

Operating income 1,488 1,530

Other income (expense), net (95) 73

Income before income taxes 1,393 1,603

Income tax expense 280 316

Net income (loss) $ 1,113 $ 1,287

Net income (loss) per share:

Basic $ 1.22 $ 1.31

Diluted $ 1.21 $ 1.29

Weighted average shares:

Basic 913 986

Diluted 920 999

1Q 2026 Results

PayPal Holdings, Inc.

Unaudited Condensed Consolidated Statements of Cash Flows

Three Months Ended March 31,

2026 2025

(In millions)

Cash flows from operating activities:

Net income (loss) $ 1,113 $ 1,287

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Transaction and credit losses 378 371

Depreciation and amortization 238 245

Stock-based compensation 259 249

Deferred income taxes (290) (6)

Net (gains) losses on strategic investments 101 (48)

Accretion of discounts on investments, net of amortization of premiums (8) (30)

Adjustments to loans and interest receivable, held for sale 61 25

Other 70 (73)

Originations of loans receivable, held for sale (11,306) (6,629)

Proceeds from repayments and sales of loans receivable, originally classified as held for sale 11,073 6,445

Changes in assets and liabilities:

Accounts receivable (2) (98)

Transaction loss allowance for cash losses, net (313) (311)

Other current assets and non-current assets 249 64

Accounts payable (52) (52)

Other current liabilities and non-current liabilities (437) (279)

Net cash provided by operating activities 1,134 1,160

Cash flows from investing activities:

Purchases of reverse repurchase agreements — (200)

Maturities of reverse repurchase agreements — 87

Purchases of property and equipment (231) (196)

Proceeds from sales of property and equipment 8 2

Purchases and originations of loans receivable (3,865) (5,508)

Proceeds from repayments and sales of loans receivable, originally classified as held for investment 3,754 5,477

Purchases of investments (5,923) (5,970)

Maturities and sales of investments 4,521 5,465

Acquisitions, net of cash acquired (122) —

Funds receivable (352) (2,741)

Collateral posted related to derivative instruments, net 110 (53)

Net cash used in investing activities

(2,100) (3,637)

Cash flows from financing activities:

Purchases of treasury stock (1,500) (1,500)

Tax withholdings related to net share settlements of equity awards (127) (277)

Borrowings under financing arrangements 930 1,491

Repayments under financing arrangements (932) —

Funds payable and amounts due to customers 1,094 1,417

Collateral received related to derivative instruments and reverse repurchase agreements, net 108 (135)

Payments of dividends to stockholders (130) —

Other (2) (2)

Net cash (used in) provided by financing activities

(559) 994

1Q 2026 Results

PayPal Holdings, Inc.

Unaudited Condensed Consolidated Statements of Cash Flows—(continued)

Three Months Ended March 31,

2026 2025

(In millions)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash (50) 94

Net change in cash, cash equivalents, and restricted cash (1,575) (1,389)

Cash, cash equivalents, and restricted cash at beginning of period 24,018 22,490

Cash, cash equivalents, and restricted cash at end of period $ 22,443 $ 21,101

Supplemental cash flow disclosures:

Cash paid for interest $ 18 $ 2

Cash paid for income taxes, net $ 7 $ 95

1Q 2026 Results

PayPal Holdings, Inc.

Unaudited Summary of Consolidated Net Revenues

Our revenues are classified into the following two categories:

•Transaction revenues: Net transaction fees charged to merchants and consumers on a transaction basis based on the Total Payment Volume (“TPV”) completed on our payments platform. Growth in TPV is directly impacted by the number of payment transactions that we enable on our payments platform. We generate additional revenue from merchants and consumers: on transactions where we perform currency conversion, when we enable cross-border transactions (i.e., transactions where the merchant and consumer are in different countries), when we facilitate the instant transfer of funds for our customers from their PayPal or Venmo account to their bank account or debit card, when we facilitate the purchase and sale of cryptocurrencies, as contractual compensation from sellers that violate our contractual terms (for example, through fraud or counterfeiting), and other miscellaneous fees.

•Revenues from other value added services: Net revenues derived primarily from revenue earned through partnerships, referral fees, subscription fees, gateway fees, and other services we provide to our consumers and merchants. We also earn revenues from interest and fees earned on our portfolio of loans receivable, and interest earned on certain assets underlying customer balances.

Net Revenues by Type Three Months Ended

March 31,

2026 December 31,

2025 September 30,

2025 June 30,

2025 March 31,

2025

(In millions, except percentages)

Transaction revenues $ 7,501 $ 7,819 $ 7,522 $ 7,441 $ 7,016

Current quarter vs prior quarter (4) % 4 % 1 % 6 % (8) %

Current quarter vs prior year quarter 7 % 3 % 6 % 4 % — %

Percentage of total 90 % 90 % 89 % 90 % 90 %

Revenues from other value added services $ 852 $ 857 $ 895 $ 847 $ 775

Current quarter vs prior quarter (1) % (4) % 6 % 9 % — %

Current quarter vs prior year quarter 10 % 10 % 15 % 16 % 17 %

Percentage of total 10 % 10 % 11 % 10 % 10 %

Total net revenues $ 8,353 $ 8,676 $ 8,417 $ 8,288 $ 7,791

Current quarter vs prior quarter (4) % 3 % 2 % 6 % (7) %

Current quarter vs prior year quarter 7 % 4 % 7 % 5 % 1 %

Net Revenues by Geography Three Months Ended

March 31,

2026 December 31,

2025 September 30,

2025 June 30,

2025 March 31,

2025

(In millions, except percentages)

U.S. net revenues $ 4,882 $ 4,943 $ 4,753 $ 4,709 $ 4,463

Current quarter vs prior quarter (1) % 4 % 1 % 6 % (6) %

Current quarter vs prior year quarter 9 % 4 % 5 % 3 % — %

Percentage of total 58 % 57 % 56 % 57 % 57 %

International net revenues $ 3,471 $ 3,733 $ 3,664 $ 3,579 $ 3,328

Current quarter vs prior quarter (7) % 2 % 2 % 8 % (8) %

Current quarter vs prior year quarter 4 % 3 % 10 % 7 % 3 %

(FXN) Current quarter vs prior year quarter — % 1 % 7 % 7 % 5 %

Percentage of total 42 % 43 % 44 % 43 % 43 %

Total net revenues $ 8,353 $ 8,676 $ 8,417 $ 8,288 $ 7,791

Current quarter vs prior quarter (4) % 3 % 2 % 6 % (7) %

Current quarter vs prior year quarter 7 % 4 % 7 % 5 % 1 %

(FXN) Current quarter vs prior year quarter 5 % 3 % 6 % 5 % 2 %

1Q 2026 Results

PayPal Holdings, Inc.

Unaudited Supplemental Operating Data

Three Months Ended

March 31,

2026 December 31,

2025 September 30,

2025 June 30,

2025 March 31,

2025

(In millions, except percentages)

Active accounts(1)

439 439 438 438 436

Current quarter vs prior quarter — % — % — % — % — %

Current quarter vs prior year quarter 1 % 1 % 1 % 2 % 2 %

Number of payment transactions(2)

6,475 6,754 6,331 6,226 6,045

Current quarter vs prior quarter (4) % 7 % 2 % 3 % (9) %

Current quarter vs prior year quarter 7 % 2 % (5) % (5) % (7) %

Payment transactions per active account(3)

58.7 57.7 57.6 58.3 59.4

Current quarter vs prior quarter 2 % — % (1) % (2) % (2) %

Current quarter vs prior year quarter (1) % (5) % (6) % (4) % (1) %

TPV(4)

$ 463,955 $ 475,135 $ 458,088 $ 443,547 $ 417,208

Current quarter vs prior quarter (2) % 4 % 3 % 6 % (5) %

Current quarter vs prior year quarter 11 % 9 % 8 % 6 % 3 %

(FXN) Current quarter vs prior year quarter 8 % 6 % 7 % 5 % 4 %

Transaction Expense Rate(5)

0.90 % 0.89 % 0.89 % 0.89 % 0.89 %

Transaction and Credit Loss Rate(6)

0.08 % 0.08 % 0.11 % 0.11 % 0.09 %

Transaction Margin(7)

45.6 % 46.5 % 46.0 % 46.4 % 47.7 %

Amounts in the table are rounded to the nearest million, except as otherwise noted. As a result, certain amounts may not recalculate using the rounded amounts provided.

(1) 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.

(2) 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.

(3) Number of payment transactions per active account 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.

(4) 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.

(5) Transaction expense rate is transaction expense divided by TPV.

(6) Transaction and credit loss rate is transaction and credit losses divided by TPV.

(7) Transaction margin is a non-GAAP financial measure. Transaction margin is net revenues less transaction expense and transaction and credit losses, divided by net revenues. Subsequent tables at the end of this press release provide reconciliation to the closest GAAP measure.

1Q 2026 Results

PayPal Holdings, Inc.

Non-GAAP Measures of Financial Performance

To supplement the company’s condensed consolidated financial statements presented in accordance with generally accepted accounting principles, or GAAP, the company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating income, transaction margin dollars, transaction margin dollars excluding interest on customer balances, non-GAAP operating margin, transaction margin, non-GAAP effective tax rate, free cash flow, and adjusted free cash flow.

These non-GAAP measures are not in accordance with, or an alternative to, measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the company’s results of operations as determined in accordance with GAAP. These measures should be used to evaluate the company’s results of operations only in conjunction with the corresponding GAAP measures.

Reconciliation of all non-GAAP measures to the most directly comparable GAAP measures can be found in the subsequent tables included in this press release.

These non-GAAP measures are provided to enhance investors’ overall understanding of the company’s current financial performance and its prospects for the future. Specifically, the company believes the non-GAAP measures provide useful information to both management and investors by excluding certain expenses, gains and losses, as the case may be, that may not be indicative of its core operating results and business outlook. In addition, because the company has historically reported certain non-GAAP results to investors, the company believes that the inclusion of non-GAAP measures provides consistency in the company’s financial reporting.

For its internal budgeting process, and as discussed further below, the company’s management uses financial measures that do not include amortization or impairment of acquired intangible assets, impairment of goodwill, transaction expenses from the acquisition or disposal of a business, restructuring-related charges, gains and losses on strategic investments including related crypto assets held for investment, certain other gains, losses, benefits, or charges that are not indicative of the company’s core operating results, and the income taxes associated with the foregoing. In addition to the corresponding GAAP measures, the company’s management also uses the foregoing non-GAAP measures in reviewing the financial results of the company.

The company excludes the following items from non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating income, non-GAAP operating margin, and non-GAAP effective tax rate:

Amortization or impairment of acquired intangible assets, impairment of goodwill, and transaction expenses from the acquisition or disposal of a business. We incur amortization or impairment of acquired intangible assets and goodwill in connection with acquisitions and may incur significant gains or losses or transactional expenses from the acquisition or disposal of a business and therefore exclude these amounts from our non-GAAP measures. We exclude these items because management does not believe they are reflective of our ongoing operating results.

Restructuring. These consist of expenses related to workforce reduction including employee severance and benefits costs and stock-based compensation expense, real estate and facilities charges, other asset impairments, accelerated depreciation charges, and other restructuring costs including non-recurring third-party costs. The company excludes significant restructuring charges primarily because management does not believe they are reflective of ongoing operating results as they are not normal, recurring cash operating expenses necessary to operate our business.

Gains and losses on strategic investments including related crypto assets held for investment. The gains and losses we record on our strategic investments are tied to the performance of the portfolio companies. The gains and losses we record on crypto assets held for investment are influenced by factors like market sentiment including trading, regulatory changes, and underlying company performance. We exclude such gains and losses in full because we do not actively trade our strategic investments or crypto assets nor do we rely on them to fund our ongoing operations.

Certain other significant gains, losses, benefits, or charges that are not indicative of the company’s core operating results. These are significant gains, losses, benefits, or charges during a period that are the result of isolated events or transactions that have not occurred frequently in the past and are not expected to occur regularly in the future. The company excludes these amounts from its non-GAAP results because management does not believe they are indicative of our current or ongoing operating results.

Tax effect of non-GAAP adjustments. This adjustment is made to present the amounts described above on an after-tax basis consistent with the presentation of non-GAAP net income.

Transaction margin dollars represents operating income, excluding the following expenses: (i) Customer support and operations, (ii) Sales and marketing, (iii) Technology and development, (iv) General and administrative, and (v) Restructuring and other. Transaction margin dollars is a measure used by management to evaluate the economic value generated by activity on the company’s platform, including the impact of transaction and credit losses. Accordingly, we believe that transaction margin dollars provides useful information to investors and others in understanding and evaluating our financial results in the same manner as management. Transaction margin dollars can also be calculated as total net revenues less transaction expense and transaction and credit losses.

Transaction margin dollars excluding interest on customer balances: Interest earned on certain assets underlying customer account balances is primarily driven by the movement in interest rates and level of account balances. The company excludes interest revenue earned on customer balances from transaction margin dollars because the impact of changes in interest rates on customer balances is not within the company’s control. Management uses this metric to further isolate the economic value generated by activity on the company’s platform.

1Q 2026 Results

PayPal Holdings, Inc.

Non-GAAP Measures of Financial Performance—(continued)

Free cash flow represents operating cash flows less purchases of property and equipment. The company uses free cash flow as a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after the purchases of property, buildings, and equipment, which can then be used to, among other things, invest in the company’s business, make strategic acquisitions and investments, and repurchase stock. Adjusted free cash flow excludes the net timing impact between originating credit receivables as held for sale and the subsequent sale of receivables from free cash flow. Excluding this activity provides a clearer picture of the cash generated by the business. A limitation of the utility of free cash flow or adjusted free cash flow as measures of financial performance is that it does not represent the total increase or decrease in the company’s cash balance for the period.

In addition to the non-GAAP measures discussed above, the company also analyzes certain measures, including net revenues and operating expenses, on an FX-neutral basis to better measure the comparability of operating results between periods. The company believes that changes in foreign currency exchange rates are not indicative of the company’s operations and evaluating growth in net revenues and operating expenses on an FX-neutral basis provides an additional meaningful and comparable assessment of these measures to both management and investors. FX-neutral results are calculated by translating the current period’s local currency results with the prior period’s exchange rate. FX-neutral growth rates are calculated by comparing the current period’s FX-neutral results by the prior period’s results, excluding the impact from hedging activities.

1Q 2026 Results

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 March 31,

2026 2025

(In millions, except percentages)

(unaudited)

GAAP operating income $ 1,488 $ 1,530

Amortization of acquired intangible assets 32 47

Restructuring

11 39

Other(1)

10 —

Total non-GAAP operating income adjustments 53 86

Non-GAAP operating income $ 1,541 $ 1,616

Transaction margin adjustments:

Customer support and operations 446 398

Sales and marketing 495 448

Technology and development 792 731

General and administrative 473 496

Restructuring and other 63 27

Non transaction-related expense 2,269 2,100

Transaction margin dollars 3,810 3,716

Interest on customer balances 274 298

Transaction margin dollars ex-interest on customer balances

$ 3,536 $ 3,418

GAAP net revenues $ 8,353 $ 7,791

GAAP operating margin 18 % 20 %

Non-GAAP operating margin 18 % 21 %

Transaction margin

46 % 48 %

(1) Represents CEO exit costs associated with Alex Chriss' separation agreement, including severance payments and acceleration of restricted stock awards.

1Q 2026 Results

PayPal Holdings, Inc.

Reconciliation of GAAP Net Income (Loss) 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 March 31,

2026 2025

(In millions, except per share data and percentages)

(unaudited)

GAAP income before income taxes $ 1,393 $ 1,603

GAAP income tax expense 280 316

GAAP net income (loss) 1,113 1,287

Non-GAAP adjustments to net income (loss):

Non-GAAP operating income adjustments (see table above) 53 86

Net (gains) losses on strategic investments and crypto assets held for investment

74 (39)

Tax effect of non-GAAP adjustments (6) (5)

Non-GAAP net income $ 1,234 $ 1,329

Diluted net income (loss) per share:

GAAP $ 1.21 $ 1.29

Non-GAAP $ 1.34 $ 1.33

Shares used in GAAP diluted share calculation 920 999

Shares used in non-GAAP diluted share calculation 920 999

GAAP effective tax rate 20 % 20 %

Tax effect of non-GAAP adjustments to net income (loss) (1) % (1) %

Non-GAAP effective tax rate 19 % 19 %

Reconciliation of Operating Cash Flow to Free Cash Flow and Adjusted Free Cash Flow

Three Months Ended March 31,

2026 2025

(In millions)

(unaudited)

Net cash provided by operating activities $ 1,134 $ 1,160

Less: Purchases of property and equipment (231) (196)

Free cash flow 903 964

Net timing impact between originating credit receivables as held for sale and the subsequent sale of receivables

817 417

Adjusted free cash flow $ 1,720 $ 1,381

1Q 2026 Results

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