Filing Flows › PayPal Holdings (PYPL) › Q1 2025
PayPal Holdings (PYPL) Q1 2025 earnings results (first quarter 2025)
10-Q filed Apr 29, 2025
PayPal Holdings (PYPL) reported revenue of $7.8B for the first quarter 2025 (Q1 2025), +1% from a year earlier and -7% from the quarter before. Operating margin was 19.6%, net earnings $1.3B (16.5% of revenue).
PayPal Holdings, Q1 2025: revenue $7.8B (+1% year over year), operating margin 19.6%, net earnings $1.3B, operating cash flow $1.2B. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $7.8B | -7% | +1% |
| Operating profit | $1.5B | +6% | +31% |
| Net earnings | $1.3B | +15% | +45% |
| Operating cash flow | $1.2B | -52% | -39% |
| Free cash flow | $964M | — | -45% |
What changed
Revenue was $7.8B in Q1 2025, up 1% year over year and down 7% from the previous quarter. Transaction revenues was the largest line at 90% of revenue. Revenues from other value added services added $0.11B year over year (up 17%), 120% of the total change.
Operating profit was $1.5B, a 19.6% margin (up 4.5 points year over year). Of the extra revenue versus a year earlier, 393% reached operating profit, above the 15% margin then. Total costs fell 4% while revenue rose 1%. The fastest-growing cost line was Sales & marketing (+16%). Net earnings were $1.3B, up 45% year over year. The effective tax rate was 19.7%.
Operating cash flow was $1.2B (down 39% year over year), 90% of net earnings. Non-cash charges added back $0.24B of depreciation and amortization and $0.25B of share-based compensation. Working capital and other items used $0.62B. After purchases of property and equipment ($0.20B), free cash flow as the company reports it was $1.0B.
Questions
What was PayPal Holdings' revenue in the first quarter 2025?
PayPal Holdings (PYPL) reported revenue of $7.8B for the first quarter 2025 (Q1 2025), +1% from a year earlier and -7% from the quarter before.
Was PayPal Holdings profitable in the first quarter 2025?
Operating profit was $1.5B (19.6% of revenue) and net earnings $1.3B.
Source: PayPal Holdings 10-Q on SEC EDGAR.