Paypal Holdings, Inc. · NASDAQ:PYPL
Paypal — Q3 2026 Earnings Presentation
26 slides from Paypal's earnings presentation, Oct 27, 2026
Slide 1: PayPal 3Q'26 Performance
PayPal 3Q'26 Performance Financial results & company highlights October 27, 2026
Slide 2: Non-GAAP Financial Measures, Growth Rates, Forward-Looking Statements
Non-GAAP Financial Measures This presentation contains non-GAAP measures relating to our performance. These measures may exclude certain expenses, gains and losses that may not be indicative of our core operating results and business outlook, and, in each case, may be different from the non-GAAP fin
Slide 3: Highlights
Highlights Profitable growth and proof of traction in 3Q Turning strategy into action • Continued strong TM$ contribution from Venmo and Braintree. Financial •1 Diversifying beyond checkout into financial services services a key growth driver across PayPal’s three businesses ◦ Expect financial servi
Slide 4: Financial services a key driver of future growth
Financial services a key driver of future growth Financial services TM$ growing Superior value proposition & unit Building for future growth with strong double-digits with multiple drivers economics lift customer lifetime value foundation Y/Y in 3Q’26 >60% 3-5x 5-6x +44% Underwriting expertise: Driv
Slide 5: Playbook shows encouraging early results
Playbook shows encouraging early results Driving better outcomes where deploying multiple elements of our playbook. Over time leverage installed consumer base to drive higher financial services attachment Where we are improving experience, presentment, & selection ... … leads to improved Branded Che
Slide 6: On track to achieve at least $1.5B gross run-rate savings over the next 2-3 years
On track to achieve at least $1.5B gross run- rate savings over the next 2-3 years >$700M gross run-rate expected by year-end ‘26 Targeted gross run-rate 2026 2027 2028 2029 savings Simplified operating model 1. Simplified structure & alignment Optimize role ratios 1. Simplified structure & alignmen
Slide 7: Enhancing our technology platform
Enhancing our technology platform Area 1H 2025 2H 2025 1H 2026 2H 2026 1H 2027 2H 2027 1H 2028 2H 2028 Customer PayPal Offerings Venmo Merchant PSP Offerings Payouts Other products Core Platform & Risk Services Identity Payments Servicing Checkout BNPL/Credit Enablers Finance Security Infrastructure
Slide 8: 3Q'26 key financial results
3Q'26 key financial results (in millions, except % and per share data) 3Q'26 Y/Y growth • TPV +7% FXN, driven primarily by double digit Braintree growth and mid-teens Venmo growth Total payment volume (TPV) $487,138 6%; 7% FXN ◦ Branded checkout +1% FXN, 4th consecutive quarter Total revenue $8,584
Slide 9: Raising FY'26 TM$ & non-GAAP EPS guidance
Raising FY’26 TM$ & non-GAAP EPS guidance 4Q'26 FY'26 Transaction margin $ Slightly positive Transaction margin $ ~$15.7B TM$ ex. interest on customer TM$ ex. interest on customer balances1 Slightly positive balances1 ~$14.6B Non-GAAP non-transaction Non-GAAP effective tax rate 19% - 20% operating e
Slide 10: Q&A
Q&A As part of the second annual Big Ten Rivalry Series presented by Venmo, Venmo Hall served as the premier kickoff hub for Penn State’s legendary White Out weekend, featuring exclusive perks and access for Venmo Debit Mastercard holders. ©2026 PayPal Holdings, Inc. 10
Slide 11: Supplemental information
Supplemental information ©2026 PayPal Holdings, Inc. 11
Slide 12: TPV mix across PayPal's platform
TPV mix across PayPal’s platform 3Q'25 2Q'26 3Q'26 • Branded experience growth FXN GROWTH 8% 6% 6% supported by strong omni adoption Branded experiences (online & offline)1 % OF TOTAL 31% 31% 31% • Venmo momentum continues, sustaining mid-teens growth FXN GROWTH 14% 14% 14% Venmo 2 % OF TOTAL 19% 19
Slide 13: Account and activity metrics detail
Account and activity metrics detail (in millions, except % and TPA) 2Q'25 3Q'25 4Q'25 1Q'26 2Q'26 3Q'26 • Active accounts1 +0.6%; MAA2 +0.4%, largely driven by Venmo Active accounts1 438 438 439 439 439 440 Y/Y growth 2% 1% 1% 1% —% 1% • Number of payment transactions +7% driven by growth across the
Slide 14: TPV, revenue, & take rate detail
TPV, revenue, & take rate detail (in millions, except %) 2Q'25 3Q'25 4Q'25 1Q'26 2Q'26 3Q'26 • US TPV +11%, driven by Braintree, Venmo and Total payment volume $443,547 $458,088 $475,135 $463,955 $486,448 $487,138 Y/Y growth 6% 8% 9% 11% 10% 6% branded experiences FXN Y/Y growth 5% 7% 6% 8% 9% 7% U.
Slide 15: Transaction margin (TM) detail
Transaction margin (TM) detail (in millions, except %) 2Q'25 3Q'25 4Q'25 1Q'26 2Q'26 3Q'26 • TE rate -2bps, driven by favorable product Transaction expense (TE) $3,968 $4,063 $4,252 $4,165 $4,385 $4,248 mix and partner incentives TE rate 0.89% 0.89% 0.89% 0.90% 0.90% 0.87% Transaction loss (TL) $383
Slide 16: Non-GAAP operating margin detail
Non-GAAP1 operating margin detail (in millions, except %) 2Q'25 3Q'25 4Q'25 1Q'26 2Q'26 3Q'26 Customer support and operations $413 $447 $446 $446 $462 $434 Y/Y growth (5%) 5% (1%) 12% 12% (3%) • Non-transaction opex +1%, driven by strong Sales and marketing $542 $482 $666 $495 $523 $485 progress on
Slide 17: Free cash flow (FCF) and capital allocation detail
Free cash flow (FCF) and capital allocation detail (in millions, except %) 2Q'25 3Q'25 4Q'25 1Q'26 2Q'26 3Q'26 • Generated 3Q'26 adjusted FCF of $2.0B Free cash flow $692 $1,718 $2,190 $903 $1,775 $1,431 Y/Y growth (49%) 19% —% (6%) 157% (17%) Adjusted free cash flow1 $656 $2,279 $2,095 $1,720 $1,83
Slide 18: Hedging impacts and credit reserve builds and releases
Hedging impacts and credit reserve builds and releases (in millions, except %) 2Q'25 3Q'25 4Q'25 1Q'26 2Q'26 3Q'26 Hedging Impacts (1) Favorable (unfavorable) impact to net revenues (exclusive of hedging impact) $111 $134 $198 $257 $74 $(20) Hedging impact (70) (49) (82) (86) 6 23 Favorable (unfavor
Slide 19: GAAP to non-GAAP reconciliations
GAAP to non-GAAP reconciliations ©2026 PayPal Holdings, Inc. 19
Slide 20: Reconciliation of GAAP operating expenses to non-GAAP operating expenses
Reconciliation of GAAP operating expenses to non-GAAP operating expenses Three Months Ended Year Ended December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, December 31, September 30, June 30, (In Millions/Unaudited) Note 2025 2024 2023 2026 2026 2026 2025 2025
Slide 21: Reconciliation of GAAP operating income to non-GAAP operating income and transaction margin
Reconciliation of GAAP operating income to non-GAAP operating income, Transaction margin dollars, and Transaction margin dollars ex-interest on customer balances and GAAP operating margin to non-GAAP operating margin and Transaction margin Three Months Ended Year Ended December 31, September 30, Jun
Slide 22: Reconciliation of GAAP net income to non-GAAP net income and EPS
Reconciliation of GAAP net income to non-GAAP net income, GAAP diluted EPS to non- GAAP diluted EPS, and GAAP effective tax rate to non-GAAP effective tax rate Three Months Ended Year Ended December 31, (In Millions, Except Percentages and Per Share September 30, June 30, March 31, December 31, Sept
Slide 23: Reconciliation of operating cash flow to free cash flow and adjusted free cash flow
Reconciliation of operating cash flow to free cash flow and adjusted free cash flow Three Months Ended Year Ended December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31, December 31, September 30, June 30, (In Millions/Unaudited) 2025 2024 2023 2026 2026 2026 2025
Slide 24: Definitions (page 1 of 2)
Definitions (page 1 of 2) Our key metrics are calculated using internal company data based on the activity we measure on our payments platform and compiled from multiple systems, including systems that are internally developed or acquired through business combinations. While the measurement of our k
Slide 25: Definitions (page 2 of 2)
Definitions (page 2 of 2) Total payment volume or “TPV” is the value of payments, net of payment reversals, successfully completed on our payments platform, or enabled by PayPal via a partner payment solution, not including gateway-exclusive transactions. Branded checkout (online) TPV comprises PayP
Slide 26: Upcoming calendar
Upcoming calendar Fourth Quarter 2026 Earnings February 2, 2027 ©2026 PayPal Holdings, Inc. 26