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- **Revenue Acceleration**: TM growth (6-7% YoY) driven by 8% branded experiences, 20% BNPL, 14% Venmo, and 6% PSP. U.S. branded experiences TPV up 10%.
- **Strategic Wins**: 
  - **Agentic Commerce**: Partnerships with OpenAI, Google, and Perplexity enable AI-driven payments. 
  - **BNPL**: 21% U.S. MAAs growth, 80 NPS, and in-store expansion. 
  - **Venmo**: 14% TPV growth, 43% debit card MAAs growth, and ARPA upside potential.
- **Capital Return**: $5.7B buybacks + 10% dividend payout ratio. Free cash flow: $6-7B.
- **Challenges**: Macro-driven deceleration in U.S. online checkout (basket size decline) and higher transaction loss provisions.

**【CEO Summary Section】**
- **Revenue Growth**: Transaction margin dollars (TM) grew 6-7% year-over-year, driven by branded experiences (8% growth), BNPL (20% volume), Venmo (14% TPV), and PSP (6% growth). U.S. branded experiences TPV accelerated to 10%.
- **Strategic Initiatives**: 
  - **Agentic Commerce**: Announced partnerships with OpenAI, Google, and Perplexity to enable payments through AI agents. PayPal Agentic Commerce Services allow merchants to sell across multiple LOMs with one integration.
  - **Buy Now, Pay Later (BNPL)**: Volume grew 20% Q3, with U.S. MAAs up 21% and global NPS of 80. Expanded to Canada and in-store U.S. via mobile app.
  - **Venmo**: TPV grew 14% (vs. 9% in 2024), MAAs reached 66M, and debit card MAAs grew 43%. ARPA is 1/3-1/4 of long-term potential.
  - **PSP**: Profitable growth with 6% volume increase, driven by value-added services like payouts and adaptive payment optimization.
- **Capital Allocation**: Initiated dividend (10% payout ratio) alongside $5.7B share buybacks over 4Q. Free cash flow guidance: $6-7B.

**【CFO Financial Commentary】**
- **Q3 Results**: 
  - TM dollars (ex interest): $4.02-4.12B (midpoint +3.5% YoY). TM growth (ex interest): 5% YoY at midpoint.
  - Non-GAAP EPS: $1.27-1.31 (+7-10%), driven by TM growth and buybacks.
  - Adjusted free cash flow: $2.3B Q3, $4.3B YTD.
- **Challenges**: 
  - Macro pressures (basket size decline in U.S. and Europe) offset growth in omnichannel and BNPL.
  - Higher transaction loss provisions due to August service disruption in Germany.
- **4Q Guidance**: 
  - TM growth (ex interest): ~5% YoY (vs. 7% YTD). 
  - Investments in growth (e.g., marketing, product attach) may weigh on near-term margins.

**【Q&A Highlights】**
- **Agentic Commerce**: PayPal Agentic Commerce Services enable merchants to sell across AI platforms with one integration. Early partnerships with OpenAI, Google, and Perplexity provide ubiquity coverage.
- **Branded Checkout**: U.S. growth (5% YoY) offset by macro trends. Redesigned paysheet adoption (25% of global transactions) shows 2-5% conversion lift with biometrics.
- **Venmo Expansion**: College partnerships drove 1M new debit card users Q3. Direct deposit adoption (6x ARPA) and Pay with Venmo (40% growth) accelerate monetization.
- **2026 Outlook**: Investments in product attach (e.g., merchant co-marketing, rewards) and Agentic Commerce may slow near-term TM growth but position for long-term scale.

PayPal (PYPL)-28 Oct 25-2025 Q3 Earnings call transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

PYPL

PYPL fundamentals

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