PayPal reported its first-quarter 2025 results on April 29, 2025, with net revenues increasing a modest 1% year-over-year to $7,791 million, missing analyst estimates. However, the company demonstrated strong operating leverage, with total operating expenses decreasing by 4% to $6,261 million.
Operating income surged by 31% year-over-year to $1,530 million, and the operating margin expanded notably to 20% from 15%. Net income increased by a robust 45% to $1,287 million, resulting in diluted net income per share of $1.29, which beat estimates and grew by 56%.
Despite a Total Payment Volume (TPV) of $417 billion, up 3% year-over-year, missing estimates, PayPal reaffirmed its full-year 2025 non-GAAP EPS guidance of $4.95 to $5.10 and free cash flow of $6 billion to $7 billion, citing macroeconomic uncertainty. The company also noted that the SEC inquiry into PYUSD was closed without enforcement action, removing a regulatory overhang.
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