PayPal Beats on Strong Venmo Growth
PayPal beat top- and bottom-line expectations, posting 6% revenue and 18% earnings-per-share growth.
The company raised its full-year guidance and said it continues to make progress on key initiatives related to stablecoins and other new tech.
Expenses came in higher than last quarter, and free cash flow fell, but PayPal continues to reduce its share count.
10 stocks we like better than PayPal ›
Here's our initial take on PayPal's (NASDAQ: PYPL) latest financial report.
Key Metrics
Metric
Q2 2024
Q2 2025
Change
vs. Expectations
Revenue
$7.9 billion
$8.3 billion
5%
Beat
Adjusted EPS
$1.19
$1.40
18%
Beat
Total payment volume
$416.8 billion
$443.5 billion
6%
n/a
Active accounts
429 million
438 million
2%
n/a
PayPal Exceeds Expectations on Key Metrics
PayPal grew revenue by 6% in the quarter and earnings per share by 18%, topping Wall Street expectations for both, as the campaign by CEO Alex Chriss to boost profitability at the payments giant appears to be gaining traction.
Transaction margin dollars, a way to measure profitability, increased by 7% to $3.8 billion, and total payment volume climbed by 6% to $443.5 billion. PayPal is still finding ways to add new users to its ecosystem, boosting its number of active accounts by 2% year over year and 0.4% sequentially to 438 million.
The company also reported 20% Venmo revenue growth and said that its Braintree payment processing solution returned to transaction growth.
Free cash flow for the quarter totaled $692 million, about half of what was generated a year ago. And PayPal's $6.8 billion in operating expenses was up 3% year over year and up 8% from the $6.3 billion in the previous quarter.
But PayPal continues to put its cash to use for shareholders. The company returned $1.5 billion in the quarter, including repurchasing 22 million shares of its stock. Over the past three years, the company has reduced its share count by more than 13%.
Immediate Market Reaction
There had been a lot of positive commentary from Wall Street analysts ahead of earnings, and investors apparently were hoping for more from PayPal. The company's stock traded down 5% following the earnings report release but ahead of the market's opening in New York on Tuesday morning.
What to Watch
PayPal expects to earn between $1.18 and $1.22 per share in the current quarter, in line with Wall Street's $1.20-per-share consensus estimate. The company did boost its full-year guidance to $5.15 to $5.30 per share, ahead of its previous estimate of $4.95 to $5.10 per share. Even at the low end, that's higher than the $5.09 per share analysts had forecast.
Chriss started at PayPal in September 2023 with a mandate to focus operations and boost profitability. Results from the quarters since his appointment suggest the CEO is well on his way toward accomplishing that goal. PayPal, through Venmo and its checkout options, is already a major force in payments processing, and the company is investing heavily in areas like AI and stablecoins that represent both future opportunities and competitive threats.
For long-term-focused investors, PayPal appears to be on the right course.
Helpful Resources
Full earnings report
Investor relations page
Should you invest $1,000 in PayPal right now?
Before you buy stock in PayPal, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and PayPal wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $633,452!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,083,392!*
Now, it's worth noting Stock Advisor's total average return is 1,046% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of July 29, 2025
Lou Whiteman has positions in PayPal. The Motley Fool has positions in and recommends PayPal. The Motley Fool recommends the following options: long January 2027 $42.50 calls on PayPal and short September 2025 $77.50 calls on PayPal. The Motley Fool has a disclosure policy.
PayPal Beats on Strong Venmo Growth was originally published by The Motley Fool
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
15 minutes ago
- Yahoo
HCM III Acquisition Corp. Announces Pricing of $220 Million Initial Public Offering
STAMFORD, CT, July 31, 2025 (GLOBE NEWSWIRE) -- HCM III Acquisition Corp. (the 'Company'), a blank check company whose business purpose is to effect a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses, announced today that it has priced its initial public offering of 22,000,000 units at $10.00 per unit. Each unit consists of one Class A ordinary share and one-third of one redeemable warrant. The units will be listed on the Nasdaq Global Market ('Nasdaq') and will begin trading tomorrow, August, 1, 2025, under the ticker symbol 'HCMAU." Each whole warrant is exercisable to purchase one Class A ordinary share of the Company at a price of $11.50 per share. Only whole warrants are exercisable and will trade. Once the securities comprising the units begin separate trading, the Class A ordinary shares and warrants are expected to be listed on the Nasdaq under the symbols 'HCMA' and 'HCMAW,' respectively. Cantor Fitzgerald & Co. is acting as sole bookrunner for the offering. The Company has granted the underwriters a 45-day option to purchase up to an additional 3,300,000 units at the initial public offering price to cover over-allotments, if any. The Company intends to focus on identifying businesses which provide disruptive technology or innovations within the financial services industry. The Company's efforts will be focused on acquiring established businesses that it believes are fundamentally sound, but in need of assistance to maximize their potential value. The Company is led by Shawn Matthews, Chairman and Chief Executive Officer; and Steve Bischoff, Chief Financial Officer. The public offering is being made only by means of a prospectus. When available, copies of the prospectus relating to the offering may be obtained from: Cantor Fitzgerald & Co., Attention Capital Markets, 499 Park Avenue, New York, NY 10022, or by e-mail at prospectus@ A registration statement relating to the securities was filed with, and declared effective by, the Securities and Exchange Commission ('SEC') on July 31, 2025. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. FORWARD-LOOKING STATEMENTS This press release contains statements that constitute 'forward-looking statements.' Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the 'Risk Factors' section of the Company's registration statement filed with the SEC and the preliminary prospectus included therein. Copies of these documents are available on the SEC's website, The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law. About HCM III Acquisition Corp. HCM III Acquisition Corp. is a newly organized blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. The Company intends to focus on identifying businesses which provide disruptive technology or innovations within the financial services industry. The Company's efforts will be focused on acquiring established businesses that it believes are fundamentally sound, but in need of assistance to maximize their potential value. Media Contact:Steve Bischoff sbischoff@ in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
MicroStrategy earnings beats expectations by over 35,000%
MicroStrategy earnings beats expectations by over 35,000% originally appeared on TheStreet. MicroStrategy (NASDAQ: MSTR) posted outstanding quarterly earnings of $32.52 per share, above the average expectation of -$0.09 by 35,447.83%. This is a 4,378.95% improvement over the -$0.76 per share loss posted in the same period previous year. The firm also reported sales of $114.49 million, which was slightly more than the projected $112.96 million and above projections by 1.35%. Sales increased 2.73% from $111.44 million in the same quarter a year earlier. Strategy, previously known as MicroStrategy, is the world's first and largest Bitcoin Treasury Company. These results come on the heels of Strategy increasing its preferred 'Stretch' stock offering to fund $2.47 billion to cover additional Bitcoin purchases. Previous quarter EPS losses Strategy's financial performance has been far from steady over the past ten years; its recent trajectory was primarily due to its aggressive buying of Bitcoin. MicroStrategy's profits have been somewhat volatile, primarily and likely due to the company's significant investment in corporation reported a substantial loss in the first quarter of 2025, amounting to -$16.49 per share, which was far worse than the expected -$2.44. This was a 575% negative earnings surprise. This happened following a string of growing losses in 2024. Earnings Per Share (EPS) for the fourth quarter was -$3.03, representing a 3,214% surprise compared to the prediction of -$0.09. EPS for the third quarter was -$1.72, a 1,298% surprise compared to the predicted -$0.12. This trend follows a longer-term pattern: MicroStrategy made steady but small profits from 2010 to 2019, but its recent turn to Bitcoin has amplified its earnings fluctuations. The habit of underperformance began in the first quarter of 2024, when EPS missed its expectation of -$0.05 by -$0.31. The second quarter of 2023, on the other hand, had a +900% surprise, with EPS of $0.15 instead of the expected -$0.02. These significant changes indicate that MicroStrategy's finances remain highly sensitive to fluctuations in the crypto market, as pointed by analysts, making it challenging for traditional investors to estimate earnings and understand the company's financials. The company is also going to discuss its second quarter results in a webinar at 5PM ET. MicroStrategy earnings beats expectations by over 35,000% first appeared on TheStreet on Jul 31, 2025 This story was originally reported by TheStreet on Jul 31, 2025, where it first appeared.
Yahoo
an hour ago
- Yahoo
Materials Dividends Spotlight: Linde's (LIN) Consistent Payout and Global Reach
Linde plc (NASDAQ:LIN) is included among the 13 Best Materials Dividend Stocks to Buy Right Now. A scientist in a lab coat inspecting a cylinder filled with industrial gas. Linde plc (NASDAQ:LIN) holds the position as the leading industrial gas company globally, providing a wide variety of gases used across multiple industries. Its main operations center around atmospheric gases like oxygen and nitrogen, along with process gases such as carbon dioxide and hydrogen. The stock has surged by over 3% since the start of 2025. In recent years, Linde plc (NASDAQ:LIN) has placed greater emphasis on clean energy initiatives and securing long-term contracts with clients. It has also advanced its technological capabilities, particularly in hydrogen technologies and specialized gas processing methods. The company's broad global presence and exclusive technologies have played a significant role in driving its continued growth. On July 29, Linde plc (NASDAQ:LIN) declared a quarterly dividend of $1.50 per share, which was in line with its previous dividend. The company has overall raised its payouts for 32 consecutive years. As of July 29, the stock supports a dividend yield of 1.29%. While we acknowledge the potential of LIN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None.
