PayPal Holdings, Inc.: A Quarter of Positive Momentum and Strategic Initiatives

In its third-quarter earnings call for 2025, PayPal Holdings, Inc. showcased broad-based growth across its segments, signaling robust financial health and strategic execution. The company reported a strong 7% growth in transaction margin dollars, excluding interest, indicating a meaningful turnaround compared to negative growth witnessed previously.

PayPal's branded experiences, covering both online and in-store segments, saw an 8% increase in Total Payment Volume (TPV) on a currency-neutral basis, a testament to the company's diversification and customer engagement strategies. This growth was fueled by significant contributions from Buy Now, Pay Later (BNPL), which maintains a 20% volume growth rate and Venmo, whose revenue accelerated by more than 20%. Venmo's intensified monetization efforts and its popularity among young, digitally native consumers are key to its impressive performance.

The company's focus on profitable sectors is reflected in its non-GAAP EPS growth of 12%. PayPal's strategy to enhance these profitable avenues includes optimizing growth investments and now, for the first time, initiating a dividend, further showcasing its commitment to returning capital to shareholders. This new dividend complements the substantial share repurchases of $1.5 billion achieved in the quarter.

Overall, PayPal ended the quarter with over $458 billion in total payment volume, reporting an 8% increase at spot, demonstrating its extensive reach and the sustained demand for its services across various markets. The results have reinforced confidence in PayPal's capabilities and strategic direction, notably with key advancements and partnerships positioned to seize future growth and market potential.