Filing Flows › PayPal Holdings (PYPL) › Q2 2025
PayPal Holdings (PYPL) Q2 2025 earnings results (second quarter 2025)
10-Q filed Jul 29, 2025
PayPal Holdings (PYPL) reported revenue of $8.3B for the second quarter 2025 (Q2 2025), +5% from a year earlier and +6% from the quarter before. Operating margin was 18.1%, net earnings $1.3B (15.2% of revenue).
PayPal Holdings, Q2 2025: revenue $8.3B (+5% year over year), operating margin 18.1%, net earnings $1.3B, operating cash flow $898M. The chart follows the revenue to costs, profit and cash.
| Q2 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $8.3B | +6% | +5% |
| Operating profit | $1.5B | -2% | +14% |
| Net earnings | $1.3B | -2% | +12% |
| Operating cash flow | $898M | -23% | -41% |
| Free cash flow | $692M | — | -49% |
What changed
Revenue was $8.3B in Q2 2025, up 5% year over year and up 6% from the previous quarter. Transaction revenues was the largest line at 90% of revenue. Transaction revenues added $0.29B year over year (up 4%), 71% of the total change.
Operating profit was $1.5B, a 18.1% margin (up 1.3 points year over year). Of the extra revenue versus a year earlier, 44% reached operating profit, above the 17% margin then. Total costs grew 3% against revenue growth of 5%. The fastest-growing cost line was Sales & marketing (+31%). Net earnings were $1.3B, up 12% year over year. The effective tax rate was 17.5%.
Operating cash flow was $0.90B (down 41% year over year), 71% of net earnings. Non-cash charges added back $0.24B of depreciation and amortization and $0.29B of share-based compensation. Working capital and other items used $0.89B. After purchases of property and equipment ($0.21B), free cash flow as the company reports it was $0.69B.
Questions
What was PayPal Holdings' revenue in the second quarter 2025?
PayPal Holdings (PYPL) reported revenue of $8.3B for the second quarter 2025 (Q2 2025), +5% from a year earlier and +6% from the quarter before.
Was PayPal Holdings profitable in the second quarter 2025?
Operating profit was $1.5B (18.1% of revenue) and net earnings $1.3B.
Source: PayPal Holdings 10-Q on SEC EDGAR.