$PYPL

PayPal Holdings, Inc.

CIK:0001633917|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Net revenues	$ 8,682	$ 8,288	$ 17,035	$ 16,079
Operating expenses:
Transaction expense	4,385	3,968	8,550	7,672
Transaction and credit losses	397	476	775	847
Customer support and operations	462	413	908	811
Sales and marketing	546	583	1,064	1,071
Technology and development	849	767	1,642	1,498
General and administrative	503	461	994	964
Restructuring and other	113	116	187	182
Total operating expenses	7,255	6,784	14,120	13,045
Operating income	1,427	1,504	2,915	3,034
Other income (expense), net	(117)	25	(212)	98
Income before income taxes	1,310	1,529	2,703	3,132
Income tax expense	206	268	486	584
Net income (loss)	$ 1,104	$ 1,261	$ 2,217	$ 2,548
Net income (loss) per share:
Basic (in dollars per share)	$ 1.26	$ 1.30	$ 2.48	$ 2.61
Diluted (in dollars per share)	$ 1.25	$ 1.29	$ 2.46	$ 2.58
Weighted average shares:
Basic (in shares)	877	969	895	977
Diluted (in shares)	882	977	901	988

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income (loss)	$ 2,217	$ 2,548
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Transaction and credit losses	775	847
Depreciation and amortization	484	484
Stock-based compensation	534	535
Deferred income taxes	(175)	(89)
Net (gains) losses on strategic investments	175	(59)
Accretion of discounts on investments, net of amortization of premiums	(19)	(57)
Adjustments to loans and interest receivable, held for sale	126	52
Other	79	(297)
Originations of loans receivable, held for sale	(23,779)	(14,358)
Proceeds from repayments and sales of loans receivable, originally classified as held for sale	23,373	14,112
Changes in assets and liabilities:
Accounts receivable	78	(115)
Transaction loss allowance for cash losses, net	(602)	(655)
Other current assets and non-current assets	57	(389)
Accounts payable	2	(50)
Other current liabilities and non-current liabilities	(208)	(451)
Net cash provided by operating activities	3,117	2,058
Cash flows from investing activities:
Purchases of reverse repurchase agreements	0	(201)
Maturities of reverse repurchase agreements	0	288
Purchases of property and equipment	(439)	(402)
Proceeds from sales of property and equipment	19	3
Purchases and originations of loans receivable	(8,026)	(11,490)
Proceeds from repayments and sales of loans receivable, originally classified as held for investment	7,595	11,210
Purchases of investments	(12,983)	(11,564)
Maturities and sales of investments	9,659	11,595
Acquisitions, net of cash acquired	(122)	0
Funds receivable	(824)	(2,785)
Collateral posted related to derivative instruments, net	136	(316)
Other	0	(15)
Net cash used in investing activities	(4,985)	(3,677)
Cash flows from financing activities:
Borrowings from repurchase agreements	0	405
Repayments of repurchase agreements	0	(405)
Proceeds from issuance of common stock	60	74
Purchases of treasury stock	(3,052)	(3,051)
Tax withholdings related to net share settlements of equity awards	(185)	(249)
Borrowings under financing arrangements	3,514	1,491
Repayments under financing arrangements	(1,676)	(1,207)
Funds payable and amounts due to customers	1,323	913
Collateral received related to derivative instruments and reverse repurchase agreements, net	118	(145)
Payments of dividends to stockholders	(252)	0
Other	(6)	(6)
Net cash used in financing activities	(156)	(2,180)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(21)	289
Net change in cash, cash equivalents, and restricted cash	(2,045)	(3,510)
Cash, cash equivalents, and restricted cash at beginning of period	24,018	22,490
Cash, cash equivalents, and restricted cash at end of period	21,973	18,980
Supplemental cash flow disclosures:
Cash paid for interest	212	191
Cash paid for income taxes, net	225	837
The table below reconciles cash, cash equivalents, and restricted cash as reported in the condensed consolidated balance sheets to the total of the same amounts shown in the condensed consolidated statements of cash flows:
Cash and cash equivalents	8,306	6,688
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows	21,973	18,980
Funds receivable and customer accounts
The table below reconciles cash, cash equivalents, and restricted cash as reported in the condensed consolidated balance sheets to the total of the same amounts shown in the condensed consolidated statements of cash flows:
Funds receivable and customer accounts	$ 13,667	$ 12,292

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 8,306	$ 8,049
Short-term investments	2,950	2,373
Accounts receivable, net	763	840
Loans and interest receivable, held for sale	1,914	1,726
Loans and interest receivable, net of allowances of $533 and $539 as of June 30, 2026 and December 31, 2025, respectively	6,847	6,746
Funds receivable and customer accounts	39,743	38,198
Prepaid expenses and other current assets	1,823	1,827
Total current assets	62,346	59,759
Long-term investments	4,009	4,330
Property and equipment, net	1,731	1,700
Goodwill	10,929	10,864
Intangible assets, net	178	208
Other assets	3,544	3,312
Total assets	82,737	80,173
Current liabilities:
Accounts payable	208	240
Funds payable and amounts due to customers	41,743	40,198
Short-term debt	2,505	1,596
Accrued expenses and other current liabilities	3,950	4,409
Total current liabilities	48,406	46,443
Other long-term liabilities	3,616	3,487
Long-term debt	10,895	9,987
Total liabilities	62,917	59,917
Commitments and contingencies (Note 13)
Equity:
Common stock, $0.0001 par value; 4,000 shares authorized; 862 and 920 shares outstanding as of June 30, 2026 and December 31, 2025, respectively	0	0
Preferred stock, $0.0001 par value; 100 shares authorized, unissued	0	0
Treasury stock at cost, 490 and 423 shares as of June 30, 2026 and December 31, 2025, respectively	(36,165)	(33,138)
Additional paid-in-capital	22,056	21,582
Retained earnings	34,432	32,470
Accumulated other comprehensive income (loss)	(503)	(658)
Total equity	19,820	20,256
Total liabilities and equity	$ 82,737	$ 80,173