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Branded Margins, Buybacks, and Balance Sheet
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Transaction margin dollars rose 7% YoY to $3.84B
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Adj. FCF: $656M, down 42% YoY but stable sequentially
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Buybacks: 22M shares repurchased for $1.5B in Q2 alone
Balance sheet remains robust with $13.7B in cash/investments and net debt well-covered. Capital returns remain a priority.
Paypal (NASDAQ: PYPL) delivered a solid Q2 2025 performance with non-GAAP EPS of $1.40, beating the Street’s $1.30 estimate, and revenue of $8.29B, edging past consensus of $8.08B. While growth in transaction margin and branded volumes impressed, the platform continues to face pressure on core engagement metrics like payment transactions per user and overall activity.
Despite the top and bottom line beat, the stock is down 5.3% in pre-market trading.
| Metric | Estimate | Actual | Result |
|---|---|---|---|
| Revenue | $8.08B | $8.29B |  Beat |
| Adj. EPS | $1.30 | $1.40 | Beat |
| Total Payment Volume (TPV) | ~$443B | $443.5B | Inline |
| Payment Transactions | ~6.6B est. | 6.2B |  Miss |
| Active Accounts | ~438M est. | 438M | In line |
Guidance Update
PayPal raised its full-year EPS forecast, reflecting confidence in margin expansion and cost discipline:
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FY25 Non-GAAP EPS: Raised to $5.15–$5.30 (from $4.95–$5.10)
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Q3 EPS (non-GAAP): $1.18–$1.22, vs. $1.20 last year
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Free Cash Flow: Maintains guidance of $5.0B+
The company also reaffirmed full-year transaction margin dollar growth and disciplined capital allocation as tailwinds.
We delivered another quarter of profitable growth, driven by strength across PayPal and Venmo branded experiences… Innovations like agentic commerce, ads, stablecoins, and PayPal World will broaden our reach globally.
CEO Alex Chriss
Chriss positioned PayPal as a leaner, more product-focused enterprise ready to reaccelerate in 2026.
The post Live: Paypal (PYPL) Drops After Q2 Earnings appeared first on 24/7 Wall St..
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Author: Joel South
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