Second-quarter revenue grew 3% ignoring exchange rates to $8.7bn ($8.5bn expected), lagging payment volume growth of 9%.
Adjusted operating profit fell 8% to $1.5bn ($1.4bn expected), as higher transaction costs and continued investment in the business pushed margins down.
Adjusted free cash flow rose from $0.7bn to $1.8bn, while net debt ended the quarter at $2.1bn. PayPal declared a dividend of $0.14 per share and repurchased $1.5bn of shares during the quarter.
For the coming quarter, adjusted earnings per share (EPS) is expected to see a low single digit decline. Full-year guidance was upgraded, with adjusted EPS now expected to grow slightly in 2026.
The shares fell 1.9% in pre-market trading.
Our view
HL view to follow.
PayPal key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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