- PayPal (PYPL, Financial) reports a 56% increase in GAAP EPS for Q1 2025, with revenue growth of 1%.
- Total Payment Volume (TPV) rose 3% to $417.2 billion; active accounts grow to 436 million.
- The company maintains its full-year guidance amid global macroeconomic uncertainties.
PayPal Holdings, Inc. (PYPL) announced its first quarter 2025 financial results, showcasing a strong profitability surge despite a modest revenue increase. The company reported a 56% increase in GAAP earnings per share (EPS), reaching $1.29, while non-GAAP EPS rose by 23% to $1.33. This performance was underlined by a 31% increase in GAAP operating income to $1.5 billion, with operating margins expanding substantially by 447 basis points to 19.6%.
In terms of revenue, PayPal generated $7.8 billion, marking a 1% rise from the previous year, or 2% on a currency-neutral basis. Despite this modest top-line growth, the company managed to grow its Total Payment Volume (TPV) by 3%, reaching $417.2 billion. Active accounts also saw an increase of 2% year-over-year, totaling 436 million.
The report highlights a noteworthy decline in total payment transactions by 7%. However, PayPal pointed out that excluding unbranded Payment Service Provider (PSP) transactions, payment transactions actually grew by 6%, indicating a robust performance in its core branded business. The transaction margin dollars increased by 7% to $3.7 billion, reflecting improved transaction economics.
CEO Alex Chriss emphasized PayPal's strategic focus on becoming a leading global commerce platform, stating, "PayPal had a great start to the year and our strategy is working." Despite these positive results, PayPal maintained its full-year 2025 guidance, citing the uncertainty in the global macro environment as a cautionary factor.
For shareholder returns, PayPal continued its aggressive buyback strategy, repurchasing about 19 million shares for $1.5 billion in the first quarter alone. The company's cash holdings stood at $15.8 billion, with a total debt of $12.6 billion, highlighting its strong financial position.
Looking ahead, PayPal's financial guidance for the second quarter projects GAAP EPS between $1.24 and $1.26, and non-GAAP EPS between $1.29 and $1.31. The full-year outlook remains unchanged, with GAAP EPS expected to range from $4.80 to $4.95, and non-GAAP EPS from $4.95 to $5.10.
