PayPal(US:PYPL)2025-10-28 11:01Financial Performance - Net revenues increased by 7% to $8.4 billion, with a 6% currency-neutral growth[6] - GAAP EPS increased by 32% to $1.30, while non-GAAP EPS rose by 12% to $1.34[6] - Net revenues for Q3 2025 reached $8,417 million, a 7.3% increase from $7,847 million in Q3 2024[24] - Operating income for Q3 2025 was $1,520 million, up 9.3% from $1,391 million in Q3 2024[24] - Net income for Q3 2025 was $1,248 million, compared to $1,010 million in Q3 2024, reflecting a 23.5% increase[24] - GAAP net revenues reached $8,417 million in Q3 2025, compared to $7,847 million in Q3 2024, indicating a year-over-year increase of 7.3%[54] - GAAP net income for Q3 2025 was $1,248 million, up from $1,010 million in Q3 2024, reflecting a growth of 23.5%[55] - Non-GAAP net income increased to $1,288 million in Q3 2025 from $1,228 million in Q3 2024, representing a growth of 4.9%[55] - GAAP diluted EPS for Q3 2025 was $1.30, compared to $0.99 in Q3 2024, indicating a growth of 31.3%[55] - Non-GAAP diluted EPS rose to $1.34 in Q3 2025 from $1.20 in Q3 2024, reflecting a growth of 11.7%[55] Cash Flow and Shareholder Returns - Cash flow from operations was $2.0 billion, and free cash flow reached $1.7 billion[6] - The company returned $1.5 billion to stockholders through share repurchases in Q3 2025[6] - PayPal initiated a quarterly cash dividend program, declaring a cash dividend of $0.14 per share[6] - Free cash flow for Q3 2025 was $1,718 million, an increase from $1,445 million in Q3 2024, marking a growth of 18.9%[57] - Adjusted free cash flow for Q3 2025 was $2,279 million, significantly higher than $1,540 million in Q3 2024, showing a growth of 48.0%[57] Transaction and Payment Metrics - Total payment volume (TPV) rose by 8% to $458.1 billion, reflecting a 7% currency-neutral growth[6] - Payment transactions decreased by 5% to 6.3 billion, but increased by 7% when excluding payment service provider transactions[6] - Total Payment Volume (TPV) for Q3 2025 was $458,088 million, reflecting a 3% increase from the prior quarter and an 8% increase year-over-year[35] - The number of payment transactions in Q3 2025 was 6,331 million, a 2% increase from the previous quarter but a 5% decrease year-over-year[35] - Transaction revenues accounted for $7,522 million, representing 89% of total revenues, with a 1% increase from the prior quarter and a 6% increase year-over-year[32] - Revenues from other value-added services were $895 million, up 6% from the previous quarter and 15% year-over-year, making up 11% of total revenues[32] Operational Metrics - Active accounts grew by 1% to 438 million, with a sequential increase of 0.1%[6] - Active accounts remained stable at 438 million, with a 1% increase year-over-year[35] - Total operating expenses for Q3 2025 were $6,897 million, an increase from $6,456 million in Q3 2024[24] - The company incurred transaction expenses of $4,063 million in Q3 2025, compared to $3,841 million in Q3 2024[24] - The transaction expense rate was 0.89%, consistent with the previous quarter, while the transaction and credit loss rate was 0.11%[35] - The transaction margin for Q3 2025 was 46.0%, slightly down from 46.4% in the previous quarter[35] Tax and Guidance - The effective tax rate improved to 18.6%, down from 23.0% in the previous year[7] - The company raised its full-year guidance for transaction margin dollar growth to 6% to 7%[2] - The company reported a GAAP effective tax rate of 19% for Q3 2025, down from 23% in Q3 2024[55] Asset and Liability Overview - Total current assets increased to $60,176 million as of September 30, 2025, from $58,206 million as of December 31, 2024[22] - Total liabilities rose to $59,603 million as of September 30, 2025, compared to $58,308 million as of December 31, 2024[22] - Cash, cash equivalents, and restricted cash at the end of Q3 2025 were $23,853 million, up from $21,534 million at the end of Q3 2024[28]