CEO of PayPal Alex Chriss speaks through the Semafor 2025 World Economic system Summit at Conrad Washington on in Washington, D.C., on April 24, 2025.
Alex Wong | Getty Pictures
PayPal reported better-than-expected earnings for the primary quarter, however the firm missed on income and reaffirmed its steerage for 2025 as a result of macro uncertainty. The inventory was little modified.
Here is how the corporate did in contrast with Wall Road estimates, based mostly on a survey of analysts by LSEG:
- Earnings per share: $1.33 adjusted vs. $1.16 anticipated
- Income: $7.79 billion vs. $7.85 billion anticipated
Whereas gross sales elevated simply 1% from $7.7 billion a yr earlier, PayPal stated the outcomes mirror a method to prioritize profitability over quantity, rolling off lower-margin income streams.
Transaction margin {dollars}, the corporate’s key measure of profitability, grew 7% to $3.7 billion, marking the corporate’s fifth consecutive quarter of worthwhile development beneath CEO Alex Chriss.
PayPal shares are down 24% this yr, whereas the Nasdaq has dropped 10%
Whole cost quantity, a sign of how digital funds are faring within the broader economic system, missed estimates, coming in at $417.2 billion, versus the almost $418 billion analysts projected.
The variety of energetic accounts rose 2% from a yr earlier to 436 million.
Greater than 45% of U.S. branded checkout is now operating by way of PayPal’s upgraded expertise, Chriss stated through the earnings name, and the corporate expects to see this speed up even sooner because it rolls out into Europe. He additionally highlighted robust debit card momentum, with almost two million first-time PayPal and Venmo debit card customers within the quarter — a rise of almost 90% from final yr.
Venmo income rose 20% yr over yr, although the corporate didn’t present a greenback determine. Whole cost quantity for Venmo elevated 10% to $75.9 billion. Pay with Venmo transaction quantity climbed 50% within the quarter and Venmo debit card month-to-month energetic customers elevated about 40%.
Chriss has targeted on higher monetizing key acquisitions comparable to Braintree and Venmo. DoorDash, Starbucks and Ticketmaster are amongst companies now accepting Venmo as a technique customers pays.
Forward of PayPal’s earnings report, some analysts had struck a cautious tone regardless of the corporate’s concentrate on margin enlargement. Morgan Stanley analysts warned in a be aware on Monday that investor sentiment remained bearish because of the potential impact of tariffs, aggressive stress from Apple and Shopify and the chance of a long-term slowdown in branded checkout development.
Jefferies analysts highlighted PayPal’s China cross-border publicity as an rising danger tied to potential new tariffs and adjustments to the de minimis exemption.
On the corporate’s earnings name, Chief Monetary Officer Jamie Miller downplayed the chance, noting that lower than 2% of PayPal’s branded checkout whole cost quantity comes from Chinese language retailers promoting into the U.S., together with each direct shipments and U.S.-based entities delivery from China.
“We’re globally diversified. Our service provider base, our area base, it is simply very, very world and various, and we’re nicely positioned to seize shifts in spending as they occur,” Miller stated.
For the second quarter, PayPal issued better-than-expected steerage, forecasting adjusted earnings per share of $1.29 to $1.31, above the typical analyst estimate of $1.21. Transaction margin {dollars} will enhance 4% to five% to between $3.75 billion and $3.8 billion, the corporate stated.
Nonetheless, for the complete yr, PayPal selected to reaffirm its steerage, citing “world macroeconomic uncertainty.” The corporate expects earnings per share of $4.95 to $5.10 for the yr and free money move within the vary of $6 billion to $7 billion.
PayPal shares are down 24% this yr, whereas the Nasdaq has dropped 10%.
WATCH: PayPal’s crypto lead on permitting retailers to purchase and promote digital belongings
