PayPal Reports Fourth Quarter and Full Year 2024 Results PayPal delivered solid fourth quarter and 2024 results; begins 2025 with strong foundation for continued transformation and new $15 billion share repurchase authorization SAN JOSE, Calif., (February 4, 2025) – PayPal Holdings, Inc. (NASDAQ: PYPL) today reported results for the fourth quarter and full year ending December 31, 2024. “PayPal had a strong finish to a successful 2024 with results that were better than we expected. We set out at the beginning of 2024 to narrow our focus, improve execution, and reposition the business. One year later, I’m proud that we’ve laid a strong foundation for long-term, profitable growth across the company’s most important areas. The improvements we made to branded checkout, peer-to-peer, and Venmo, plus the progress we made on our price-to-value strategy, are beginning to show up in our results. The strong momentum we’ve created sets us up well for 2025, which is about scaling adoption. I’m excited to share more at our Investor Day later this month.” Alex Chriss President and CEO ————————————————————————————————————————————— 4Q'24 Financial Results • Net revenues increased 4% to $8.4 billion; 4% currency-neutral (“FXN”). • Transaction margin dollars increased 7% to $3.9 billion. • GAAP operating income decreased 17% to $1.4 billion; non-GAAP 1 operating income increased 2% to $1.5 billion. • GAAP operating margin contracted 431 basis points to 17.2%; non-GAAP operating margin contracted 34 basis points to 18.0%. • GAAP EPS decreased 15% to $1.11 2 ; non-GAAP EPS increased 5% to $1.19. FY'24 Financial Results • Net revenues increased 7% to $31.8 billion; 7% FXN. • Transaction margin dollars increased 7% to $14.7 billion. • GAAP operating income increased 6% to $5.3 billion; non-GAAP operating income increased 14% to $5.8 billion. • GAAP operating margin contracted 14 basis points to 16.7%; non-GAAP operating margin expanded 116 basis points to 18.4%. • GAAP EPS increased 4% to $3.99 3 ; non-GAAP EPS increased 21% to $4.65. 4Q'24 & FY'24 Operating Results • 4Q'24 total payment volume (“TPV”) increased 7% (7% FXN) to $437.8 billion; FY'24 TPV increased 10% (10% FXN) to $1.68 trillion. • 4Q'24 payment transactions decreased 3% to 6.6 billion; FY'24 payment transactions increased 5% to 26.3 billion. • Payment transactions per active account on a trailing 12-month basis increased 3% to 60.6. • Active accounts increased 2.1%, or by 8.8 million, to 434 million. In 4Q'24, active accounts increased sequentially by 0.6%, or by 2.6 million. 1. “Non-GAAP Measures of Financial Performance” and subsequent tables at the end of this press release provide reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures. 2. 4Q'24 GAAP EPS includes ~$0.04 negative impact from PayPal’s strategic investment portfolio. 4Q'23 GAAP EPS includes ~$0.01 negative impact from PayPal’s strategic investment portfolio and ~$0.25 positive impact from the gain on sale of Happy Returns. 3. FY ' 24 GAAP EPS includes ~$0.23 negative impact from PayPal’s strategic investment portfolio. FY ' 23 GAAP EPS includes ~$0.14 positive impact from PayPal’s strategic investment portfolio and ~$0.24 positive impact from the gain on sale of Happy Returns. 4Q & FY 2024 Results 1 Cash Flow • 4Q'24 cash flow from operations of $2.4 billion and free cash flow of $2.2 billion; FY'24 cash flow from operations of $7.5 billion and free cash flow of $6.8 billion. • Adjusted free cash flow of $2.1 billion in 4Q'24 and $6.6 billion in FY'24, which excludes the net timing impact between originating European buy now, pay later ("BNPL") receivables as held for sale and the subsequent sale of these receivables. Balance Sheet and Liquidity • Cash, cash equivalents, and investments totaled $15.4 billion as of December 31, 2024. • Debt totaled $11.1 billion as of December 31, 2024. • Returned $1.2 billion to stockholders by repurchasing approximately 15 million shares of common stock in 4Q'24. ◦ For full year 2024, returned $6.0 billion to stockholders by repurchasing approximately 92 million shares of common stock. • Announced today that PayPal’s Board of Directors has authorized a new $15 billion stock repurchase program. This new repurchase authorization is in addition to the Company’s June 2022 stock repurchase program, which had $4.86 billion remaining authorization as of December 31, 2024. ————————————————————————————————————————————— Financial Guidance Presented in millions, except per share data and percentages February 2025 Guidance Prior year period 1Q'25 GAAP EPS $1.11 - $1.13 $0.83 Non-GAAP EPS 1 $1.15 - $1.17 $1.08 FY'25 GAAP EPS 2 $4.80 - $4.95 $3.99 Non-GAAP EPS 3 $4.95 - $5.10 $4.65 Please see "Non-GAAP Financial Measures" and "Non-GAAP Measures of Financial Performance" for reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures and important additional information. 1. Estimated non-GAAP amounts for the three months ending March 31, 2025 reflect adjustments of approximately $50 million. 2. FY ' 24 GAAP EPS included a negative impact of ~$0.23 from PayPal’s strategic investment portfolio. 3. Estimated non-GAAP amounts for the full year ending December 31, 2025 reflect adjustments of approximately $200 million. 4Q & FY 2024 Results 2 4Q'24 Financial Results Presented in millions, except per share data and percentages 4Q'24 4Q'23 YoY Growth FXN YoY Growth Total payment volume $437,836 $409,832 7% 7% GAAP Net revenues $8,366 $8,026 4% Transaction margin dollars $3,935 $3,672 7% Operating income $1,441 $1,728 (17%) Operating margin 17.2% 21.5% (431bps) Effective tax rate 20.5% 21.8% (1.3pts) Net income (loss) $1,121 $1,402 (20%) Earnings per diluted share $1.11 $1.29 (15%) Net cash provided by operating activities $2,394 $2,614 (8%) Non-GAAP Net revenues $8,366 $8,026 4% 4% Transaction margin dollars $3,935 $3,672 7% Operating income $1,502 $1,468 2% Operating margin 18.0% 18.3% (34bps) Effective tax rate 21.0% 19.8% 1.2pts Net income $1,209 $1,233 (2%) Earnings per diluted share $1.19 $1.14 5% Free cash flow $2,191 $2,469 (11%) Adjusted free cash flow $2,098 $774 171% FY'24 Financial Results Presented in millions, except per share data and percentages FY'24 FY'23 YoY Growth FXN YoY Growth Total payment volume 1,681,150 1,528,579 10% 10% GAAP Net revenues $31,797 $29,771 7% Transaction margin dollars $14,658 $13,704 7% Operating income $5,325 $5,028 6% Operating margin 16.7% 16.9% (14bps) Effective tax rate 22.2% 21.5% 0.7pts Net income (loss) $4,147 $4,246 (2%) Earnings per diluted share $3.99 $3.84 4% Net cash provided by operating activities $7,450 $4,843 54% Non-GAAP Net revenues $31,797 $29,771 7% 7% Transaction margin dollars $14,658 $13,704 7% Operating income $5,838 $5,121 14% Operating margin 18.4% 17.2% 116bps Effective tax rate 21.1% 20.0% 1.0pts Net income $4,835 $4,240 14% Earnings per diluted share $4.65 $3.83 21% Free cash flow $6,767 $4,220 60% Adjusted free cash flow $6,634 $4,554 46% 4Q & FY 2024 Results 3 Conference Call & Webcast PayPal Holdings, Inc. will host a conference call to discuss fourth quarter and full year 2024 results at 8:00 a.m. Eastern Time today. A live webcast of the conference call, together with a slide presentation that includes supplemental financial information and reconciliations of certain non-GAAP measures to their most directly comparable GAAP measures, can be accessed through the company’s Investor Relations website at https://investor.pypl.com. In addition, an archive of the webcast will be accessible for 90 days through the same link. Disclosure Channels PayPal Holdings, Inc. uses the following channels as means of disclosing information about the company and for complying with its disclosure obligations under Regulation FD: • Investor Relations website (https://investor.pypl.com) • PayPal Newsroom (https://newsroom.paypal-corp.com/) • PayPal Corporate website (https://about.pypl.com) • PayPal’s LinkedIn page (https://www.linkedin.com/company/paypal) • PayPal’s Facebook page (https://www.facebook.com/PayPalUSA/) • PayPal’s YouTube channel (https://www.youtube.com/paypal) • Alex Chriss' LinkedIn profile (https://www.linkedin.com/in/alexchriss/) • Alex Chriss' X profile (https://x.com/acce) • Jamie Miller’s LinkedIn profile (https://www.linkedin.com/in/jamiesmiller/) • Steven Winoker’s LinkedIn profile (https://www.linkedin.com/in/steven-winoker-0764548/) The information that is posted through these channels may be deemed material. Accordingly, investors should monitor these channels in addition to PayPal’s press releases, filings with the Securities and Exchange Commission (“SEC”), public conference calls, and webcasts. About PayPal PayPal has been revolutionizing commerce globally for more than 25 years. The company creates innovative experiences that make moving money, selling, and shopping simple, personalized, and secure. PayPal empowers consumers and businesses in approximately 200 markets to join and thrive in the global economy. Presentation All growth rates represent year-over-year comparisons, except as otherwise noted. FXN results are calculated by translating the current period local currency results by the prior period exchange rate. FXN growth rates are calculated by comparing the current period FXN results with the prior period results, excluding the impact from hedging activities. All amounts in tables are presented in U.S. dollars, rounded to the nearest million, except as otherwise noted. As a result, certain amounts and rates may not sum or recalculate using the rounded dollar amounts provided. Non-GAAP Financial Measures This press release includes financial measures defined as “non-GAAP financial measures” by the SEC including: non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating income, non-GAAP operating margin, non-GAAP effective tax rate, free cash flow, and adjusted free cash flow. For an explanation of the foregoing non-GAAP measures, please see “Non-GAAP Measures of Financial Performance” included in this press release. These measures may be different from non-GAAP financial measures used by other companies. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation of, or as a substitute for, the financial information prepared and presented in accordance with generally accepted accounting principles (“GAAP”). For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures, see “Non-GAAP Measures of Financial Performance,” “Reconciliation of GAAP Operating Income to Non-GAAP Operating Income and GAAP Operating Margin to Non-GAAP Operating Margin,” “Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income, GAAP Diluted EPS to Non-GAAP Diluted EPS, and GAAP Effective Tax Rate to Non-GAAP Effective Tax Rate,” and “Reconciliation of Operating Cash Flow to Free Cash Flow and Adjusted Free Cash Flow.” 4Q & FY 2024 Results 4 Forward-looking statements This press release contains forward-looking statements relating to, among other things, the future results of operations, financial condition, expectations, and plans of PayPal Holdings, Inc. and its consolidated subsidiaries ("PayPal") that reflect PayPal’s current projections and forecasts. Forward-looking statements can be identified by words such as “may,” “will,” “would,” “should,” “could,” “expect,” “anticipate,” “believe,” “estimate,” “intend,” "continue," “strategy,” “future,” “opportunity,” “plan,” “project,” “forecast,” and other similar expressions. Forward-looking statements may include, but are not limited to, statements regarding our guidance and projected financial and operating results for the first quarter and full year 2025; our capital return program; the timing and impact of product launches and acquisitions; and the projected future growth of PayPal’s businesses. Forward-looking statements are based upon various estimates and assumptions, as well as information known to PayPal as of the date of this press release, and are inherently subject to numerous risks and uncertainties. Our actual results could differ materially from those estimated or implied by forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: our ability to compete in markets that are highly competitive and subject to rapid technological change, and to develop and deliver new or enhanced products and services on a timely basis; cyberattacks and security vulnerabilities, and associated impacts; the effect of global and regional political, economic, market and trade conditions, including military conflicts, supply chain issues and related events that affect payments or commerce activity, including inflation and interest rates; the impact of catastrophic events, such as global pandemics, that may disrupt our business, as well as our customers, suppliers, vendors and other business partners; the stability, security and performance of our payments platform; the effect of extensive government regulation and oversight related to our business, products and services in a variety of areas, including, but not limited to, laws covering payments, lending and consumer protection; the impact of complex and changing laws and regulations worldwide, including, but not limited to, laws covering cybersecurity, privacy, data protection, and artificial intelligence; the impact of payment card, bank, or other network rules or practices; risks related to our credit products, including our ability to realize benefits from our agreements with third parties such as our agreement to sell our European BNPL loan receivables; changes in how consumers fund transactions; our ability to effectively detect and prevent the use of our services for fraud, abusive behaviors, illegal activities, or improper purposes; our ability to manage regulatory and litigation risks, and the outcome of legal and regulatory proceedings; our reliance on third parties in many aspects of our business; damage to our reputation or brands; fluctuations in foreign currency exchange rates; changes in tax rates and exposure to additional tax liabilities; changes to our capital allocation, management of operating cash or incurrence of indebtedness; our ability to timely develop and upgrade our technology systems, infrastructure and customer service capabilities; the impact of proposed or completed acquisitions, divestitures, strategic investments, or entries into new businesses or markets; and our ability to attract, hire, and retain highly talented employees. The forward-looking statements in this release do not include the potential impact of any acquisitions or divestitures that may be announced and/or contemplated after the date hereof. More information about factors that could adversely affect PayPal’s results of operations, financial condition and prospects, or that could cause actual results to differ from those expressed or implied in forward-looking statements is included under the captions “Risk Factors,” “Legal Proceedings” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in PayPal’s most recent annual report on Form 10-K and its subsequent quarterly reports on Form 10-Q, copies of which may be obtained by visiting PayPal’s Investor Relations website at https://investor.pypl.com or the SEC’s website at www.sec.gov. All information in this release speaks as of February 4, 2025. For the reasons discussed above, you should not place undue reliance on the forward-looking statements in this press release. PayPal assumes no obligation to update such forward-looking statements. Contacts Investor Relations Media Relations investorrelations@paypal.com mediarelations@paypal.com © 2025 PayPal Holdings, Inc. All rights reserved. 4Q & FY 2024 Results 5 PayPal Holdings, Inc. Unaudited Condensed Consolidated Balance Sheets December 31, 2024 December 31, 2023 (In millions, except par value) ASSETS Current assets: Cash and cash equivalents $ 6,561 $ 9,081 Short-term investments 4,262 4,979 Accounts receivable, net 984 1,069 Loans and interest receivable, held for sale 541 563 Loans and interest receivable, net 6,422 5,433 Funds receivable and customer accounts 37,671 38,935 Prepaid expenses and other current assets 4,651 2,509 Total current assets 61,092 62,569 Long-term investments 4,583 3,273 Property and equipment, net 1,508 1,488 Goodwill 10,837 11,026 Intangible assets, net 326 537 Other assets 3,265 3,273 Total assets $ 81,611 $ 82,166 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 227 $ 139 Funds payable and amounts due to customers 39,671 41,935 Accrued expenses and other current liabilities 8,478 6,392 Total current liabilities 48,376 48,466 Other long-term liabilities 2,939 2,973 Long-term debt 9,879 9,676 Total liabilities 61,194 61,115 Equity: Common stock, $0.0001 par value; 4,000 shares authorized; 993 and 1,072 shares outstanding as of December 31, 2024 and December 31, 2023, respectively — — Preferred stock, $0.0001 par value; 100 shares authorized, unissued — — Treasury stock at cost, 337 and 245 shares as of December 31, 2024 and December 31, 2023, respectively (27,085) (21,045) Additional paid-in-capital 20,705 19,642 Retained earnings 27,347 23,200 Accumulated other comprehensive income (loss) (550) (746) Total equity 20,417 21,051 Total liabilities and equity $ 81,611 $ 82,166 4Q & FY 2024 Results 6 PayPal Holdings, Inc. Unaudited Condensed Consolidated Statements of Income (Loss) Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 (In millions, except per share data) Net revenues $ 8,366 $ 8,026 $ 31,797 $ 29,771 Operating expenses: Transaction expense 3,997 3,958 15,697 14,385 Transaction and credit losses 434 396 1,442 1,682 Customer support and operations (1) 451 465 1,768 1,919 Sales and marketing (1) 626 466 2,001 1,809 Technology and development (1) 773 770 2,979 2,973 General and administrative (1) 594 554 2,147 2,059 Restructuring and other (1) 50 (311) 438 (84) Total operating expenses 6,925 6,298 26,472 24,743 Operating income 1,441 1,728 5,325 5,028 Other income (expense), net (31) 65 4 383 Income before income taxes 1,410 1,793 5,329 5,411 Income tax expense 289 391 1,182 1,165 Net income (loss) $ 1,121 $ 1,402 $ 4,147 $ 4,246 Net income (loss) per share: Basic $ 1.12 $ 1.30 $ 4.03 $ 3.85 Diluted $ 1.11 $ 1.29 $ 3.99 $ 3.84 Weighted average shares: Basic 997 1,077 1,029 1,103 Diluted 1,014 1,084 1,039 1,107 (1) Includes stock-based compensation as follows: Customer support and operations $ 60 $ 78 $ 233 $ 305 Sales and marketing 35 47 143 179 Technology and development 112 159 478 612 General and administrative 82 119 339 434 Restructuring and other 12 — 100 — $ 301 $ 403 $ 1,293 $ 1,530 4Q & FY 2024 Results 7 PayPal Holdings, Inc. Unaudited Condensed Consolidated Statements of Cash Flows Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 (In millions) Cash flows from operating activities: Net income (loss) $ 1,121 $ 1,402 $ 4,147 $ 4,246 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Transaction and credit losses 434 396 1,442 1,682 Depreciation and amortization 249 263 1,032 1,072 Stock-based compensation 283 388 1,230 1,475 Deferred income taxes 223 (229) 231 (668) Net (gains) losses on strategic investments 59 4 285 (201) Gain on divestiture of business, excluding transaction costs — (356) — (356) Accretion of discounts on investments, net of amortization of premiums (45) (102) (335) (367) Adjustments to loans and interest receivable, held for sale 33 4 125 53 Other 135 (102) (3) (104) Originations of loans receivable, held for sale (7,325) (5,765) (24,498) (11,470) Proceeds from repayments and sales of loans receivable, originally classified as held for sale 7,193 7,119 24,352 10,795 Changes in assets and liabilities: Accounts receivable 54 (79) 85 (114) Accounts payable 59 13 83 7 Other assets and liabilities (79) (342) (726) (1,207) Net cash provided by operating activities 2,394 2,614 7,450 4,843 Cash flows from investing activities: Purchases of reverse repurchase agreements (125) — (424) — Maturities of reverse repurchase agreements 111 — 337 — Purchases of property and equipment (203) (145) (683) (623) Proceeds from sales of property and equipment 1 1 1 45 Purchases and originations of loans receivable (6,433) (5,396) (21,807) (25,198) Proceeds from repayments and sales of loans receivable, originally classified as held for investment 5,567 5,341 20,272 26,660 Purchases of investments (5,390) (7,005) (26,209) (21,980) Maturities and sales of investments 5,783 8,185 26,962 24,295 Proceeds from divestiture of business, net of cash divested — 466 — 466 Funds receivable 2,756 (1,927) 2,908 (2,943) Collateral posted related to derivative instruments, net 131 (64) 73 (56) Other 259 10 159 86 Net cash provided by (used in) investing activities 2,457 (534) 1,589 752 Cash flows from financing activities: Borrowings from repurchase agreements — — 656 — Repayments of repurchase agreements — — (656) — Proceeds from issuance of common stock 40 45 95 127 Purchases of treasury stock (1,269) (607) (6,047) (5,002) Tax withholdings related to net share settlements of equity awards (80) (32) (351) (257) Borrowings under financing arrangements — 699 1,546 1,528 Repayments under financing arrangements (1,250) (111) (1,661) (1,053) Funds payable and amounts due to customers (1,183) 3,138 (1,954) 1,861 Collateral received related to derivative instruments and reverse repurchase agreements, net 157 (132) 156 (197) Other — — (60) — Net cash (used in) provided by financing activities (3,585) 3,000 (8,276) (2,993) 4Q & FY 2024 Results 8 PayPal Holdings, Inc. Unaudited Condensed Consolidated Statements of Cash Flows—(continued) Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 (In millions) Effect of exchange rate changes on cash, cash equivalents, and restricted cash (310) 171 (207) 76 Net change in cash, cash equivalents, and restricted cash 956 5,251 556 2,678 Cash, cash equivalents, and restricted cash at beginning of period 21,434 16,583 21,834 19,156 Cash, cash equivalents, and restricted cash at end of period $ 22,390 $ 21,834 $ 22,390 $ 21,834 Supplemental cash flow disclosures: Cash paid for interest $ 198 $ 164 $ 366 $ 331 Cash paid for income taxes, net $ 52 $ 1,060 $ 1,027 $ 2,118 4Q & FY 2024 Results 9 PayPal Holdings, Inc. Unaudited Summary of Consolidated Net Revenues Our revenues are classified into the following two categories: • Transaction revenues : Net transaction fees charged to merchants and consumers on a transaction basis based on the Total Payment Volume (“TPV”) completed on our payments platform. Growth in TPV is directly impacted by the number of payment transactions that we enable on our payments platform. We generate additional revenue from merchants and consumers: on transactions where we perform currency conversion, when we enable cross-border transactions (i.e., transactions where the merchant and consumer are in different countries), to facilitate the instant transfer of funds for our customers from their PayPal or Venmo account to their bank account or debit card, to facilitate the purchase and sale of cryptocurrencies, as contractual compensation from sellers that violate our contractual terms (for example, through fraud or counterfeiting), and other miscellaneous fees. • Revenues from other value added services : Net revenues derived primarily from revenue earned through partnerships, referral fees, subscription fees, gateway fees, and other services we provide to our consumers and merchants. We also earn revenues from interest and fees earned on our portfolio of loans receivable, and interest earned on certain assets underlying customer balances. Net Revenues by Type Three Months Ended December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 (In millions, except percentages) Transaction revenues $ 7,588 $ 7,067 $ 7,153 $ 7,034 $ 7,283 Current quarter vs prior quarter 7 % (1) % 2 % (3) % 9 % Current quarter vs prior year quarter 4 % 6 % 9 % 11 % 9 % Percentage of total 91 % 90 % 91 % 91 % 91 % Revenues from other value added services $ 778 $ 780 $ 732 $ 665 $ 743 Current quarter vs prior quarter — % 7 % 10 % (10) % (3) % Current quarter vs prior year quarter 5 % 2 % — % (2) % 9 % Percentage of total 9 % 10 % 9 % 9 % 9 % Total net revenues $ 8,366 $ 7,847 $ 7,885 $ 7,699 $ 8,026 Current quarter vs prior quarter 7 % — % 2 % (4) % 8 % Current quarter vs prior year quarter 4 % 6 % 8 % 9 % 9 % Net Revenues by Geography Three Months Ended December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 (In millions, except percentages) U.S. net revenues $ 4,732 $ 4,518 $ 4,550 $ 4,467 $ 4,639 Current quarter vs prior quarter 5 % (1) % 2 % (4) % 9 % Current quarter vs prior year quarter 2 % 6 % 8 % 8 % 8 % Percentage of total 57 % 58 % 58 % 58 % 58 % International net revenues $ 3,634 $ 3,329 $ 3,335 $ 3,232 $ 3,387 Current quarter vs prior quarter 9 % — % 3 % (5) % 7 % Current quarter vs prior year quarter 7 % 5 % 8 % 12 % 10 % (FXN) Current quarter vs prior year quarter 7 % 6 % 10 % 14 % 12 % Percentage of total 43 % 42 % 42 % 42 % 42 % Total net revenues $ 8,366 $ 7,847 $ 7,885 $ 7,699 $ 8,026 Current quarter vs prior quarter 7 % — % 2 % (4) % 8 % Current quarter vs prior year quarter 4 % 6 % 8 % 9 % 9 % (FXN) Current quarter vs prior year quarter 4 % 6 % 9 % 10 % 9 % 4Q & FY 2024 Results 10 PayPal Holdings, Inc. Unaudited Supplemental Operating Data Three Months Ended December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 (In millions, except percentages) Active accounts (1) 434 432 429 427 426 Current quarter vs prior quarter 1 % 1 % — % — % (1) % Current quarter vs prior year quarter 2 % 1 % — % (1) % (2) % Number of payment transactions (2) 6,619 6,631 6,580 6,505 6,798 Current quarter vs prior quarter — % 1 % 1 % (4) % 8 % Current quarter vs prior year quarter (3) % 6 % 8 % 11 % 13 % Payment transactions per active account (3) 60.6 61.4 60.9 60.0 58.7 Current quarter vs prior quarter (1) % 1 % 2 % 2 % 4 % Current quarter vs prior year quarter 3 % 9 % 11 % 13 % 14 % TPV (4) $ 437,836 $ 422,641 $ 416,814 $ 403,860 $ 409,832 Current quarter vs prior quarter 4 % 1 % 3 % (1) % 6 % Current quarter vs prior year quarter 7 % 9 % 11 % 14 % 15 % (FXN) Current quarter vs prior year quarter 7 % 9 % 11 % 14 % 13 % Transaction Expense Rate (5) 0.91 % 0.91 % 0.95 % 0.97 % 0.97 % Transaction and Credit Loss Rate (6) 0.10 % 0.08 % 0.08 % 0.08 % 0.10 % Transaction Margin (7) 47.0 % 46.6 % 45.8 % 45.0 % 45.8 % Amounts in the table are rounded to the nearest million, except as otherwise noted. As a result, certain amounts may not recalculate using the rounded amounts provided. (1) An active account is an account registered directly with PayPal or a platform access partner that has completed a transaction on our platform, not including gateway-exclusive transactions, within the past 12 months. A platform access partner is a third party whose customers are provided access to PayPal’s platform or services through such third-party’s login credentials, including individuals and entities that utilize Hyperwallet’s payout capabilities. A user may register on our platform to access different products and may register more than one account to access a product. Accordingly, a user may have more than one active account. The number of active accounts provides management with additional perspective on the overall scale of our platform, but may not have a direct relationship to our operating results. (2) Number of payment transactions is the total number 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. (3) Number of payment transactions per active account reflects the total number of payment transactions within the previous 12-month period, divided by active accounts at the end of the period. The number of payment transactions per active account provides management with insight into the average number of times an account engages in payments activity on our payments platform in a given period. The number of times a consumer account or a merchant account transacts on our platform may vary significantly from the average number of payment transactions per active account. (4) 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. (5) Transaction expense rate is transaction expense divided by TPV. (6) Transaction and credit loss rate is transaction and credit losses divided by TPV. (7) Transaction margin is net revenues less transaction expense and transaction and credit losses, divided by net revenues. 4Q & FY 2024 Results 11 PayPal Holdings, Inc. Non-GAAP Measures of Financial Performance To supplement the company’s condensed consolidated financial statements presented in accordance with generally accepted accounting principles, or GAAP, the company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating income, non-GAAP operating margin, non-GAAP effective tax rate, free cash flow, and adjusted free cash flow. These non-GAAP measures are not in accordance with, or an alternative to, measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the company’s results of operations as determined in accordance with GAAP. These measures should be used to evaluate the company’s results of operations only in conjunction with the corresponding GAAP measures. Reconciliation of all non-GAAP measures to the most directly comparable GAAP measures can be found in the subsequent tables included in this press release. These non-GAAP measures are provided to enhance investors’ overall understanding of the company’s current financial performance and its prospects for the future. Specifically, the company believes the non-GAAP measures provide useful information to both management and investors by excluding certain expenses, gains and losses, as the case may be, that may not be indicative of its core operating results and business outlook. In addition, because the company has historically reported certain non-GAAP results to investors, the company believes that the inclusion of non-GAAP measures provides consistency in the company’s financial reporting. For its internal budgeting process, and as discussed further below, the company’s management uses financial measures that do not include amortization or impairment of acquired intangible assets, impairment of goodwill, restructuring-related charges, certain other gains, losses, benefits, or charges that are not indicative of the company’s core operating results, and the income taxes associated with the foregoing. In addition to the corresponding GAAP measures, the company’s management also uses the foregoing non-GAAP measures in reviewing the financial results of the company. The company excludes the following items from non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating income, non-GAAP operating margin, and non-GAAP effective tax rate: Amortization or impairment of acquired intangible assets, impairment of goodwill, and transaction expenses from the acquisition or disposal of a business. We incur amortization or impairment of acquired intangible assets and goodwill in connection with acquisitions and may incur significant gains or losses or transactional expenses from the acquisition or disposal of a business and therefore exclude these amounts from our non-GAAP measures. We exclude these items because management does not believe they are reflective of our ongoing operating results. Restructuring. These consist of expenses related to workforce reduction and include employee severance and benefits costs, real estate and facilities charges, stock-based compensation expense, and other exit and disposal costs. The company excludes significant restructuring charges primarily because management does not believe they are reflective of ongoing operating results. Gains and losses on strategic investments . The gains and losses we record on our strategic investments are tied to the performance of the companies that we invest in. We exclude such gains and losses in full because the operations of the investee and the related gains and losses are not indicative of our ongoing operating results. Certain other significant gains, losses, benefits, or charges that are not indicative of the company’s core operating results. These are significant gains, losses, benefits, or charges during a period that are the result of isolated events or transactions that have not occurred frequently in the past and are not expected to occur regularly in the future. The company excludes these amounts from its non-GAAP results because management does not believe they are indicative of our current or ongoing operating results. Tax effect of non-GAAP adjustments. This adjustment is made to present the amounts described above on an after-tax basis consistent with the presentation of non-GAAP net income. Free cash flow represents operating cash flows less purchases of property and equipment. The company uses free cash flow as a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after the purchases of property, buildings, and equipment, which can then be used to, among other things, invest in the company’s business, make strategic acquisitions and investments, and repurchase stock. A limitation of the utility of free cash flow as a measure of financial performance is that it does not represent the total increase or decrease in the company’s cash balance for the period. In addition to the non-GAAP measures discussed above, the company also analyzes certain measures, including net revenues and operating expenses, on an FX-neutral basis to better measure the comparability of operating results between periods. The company believes that changes in foreign currency exchange rates are not indicative of the company’s operations and evaluating growth in net revenues and operating expenses on an FX-neutral basis provides an additional meaningful and comparable assessment of these measures to both management and investors. FX-neutral results are calculated by translating the current period’s local currency results with the prior period’s exchange rate. FX-neutral growth rates are calculated by comparing the current period’s FX-neutral results by the prior period’s results, excluding the impact from hedging activities. 4Q & FY 2024 Results 12 PayPal Holdings, Inc. Reconciliation of GAAP Operating Income to Non-GAAP Operating Income and GAAP Operating Margin to Non-GAAP Operating Margin Three Months Ended December 31, Year Ended December 31, 2024 2023 (1) 2024 2023 (1) (In millions, except percentages) (unaudited) GAAP net revenues $ 8,366 $ 8,026 $ 31,797 $ 29,771 GAAP operating income 1,441 1,728 5,325 5,028 Amortization of acquired intangible assets 48 54 207 227 Restructuring (2) 13 4 306 180 Other (3) — (318) — (314) Total non-GAAP operating income adjustments 61 (260) 513 93 Non-GAAP operating income $ 1,502 $ 1,468 $ 5,838 $ 5,121 GAAP operating margin 17 % 22 % 17 % 17 % Non-GAAP operating margin 18 % 18 % 18 % 17 % (1) As announced on February 7, 2024, the Company’s non-GAAP results now include the impact of stock-based compensation expense and related employer payroll taxes. Prior period non-GAAP results have been recast to reflect this change. (2) Beginning in 2024, restructuring includes any stock-based compensation associated with the restructuring activities. The three months and year ended December 31, 2024 include $12 million and $100 million of stock-based compensation expense. The year ended December 31, 2023 primarily includes $61 million in asset impairment charges for right-of-use lease assets and related leasehold improvements in conjunction with exiting certain leased properties. (3) The three months and year ended December 31, 2023 primarily includes $339 million in pre-tax gain, net of transaction costs, related to the sale of Happy Returns and $21 million in fees related to credit externalization. 4Q & FY 2024 Results 13 PayPal Holdings, Inc. Reconciliation of GAAP Net Income (Loss) 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 December 31, Year Ended December 31, 2024 2023 (1) 2024 2023 (1) (In millions, except per share data and percentages) (unaudited) GAAP income before income taxes $ 1,410 $ 1,793 $ 5,329 $ 5,411 GAAP income tax expense 289 391 1,182 1,165 GAAP net income (loss) 1,121 1,402 4,147 4,246 Non-GAAP adjustments to net income (loss): Non-GAAP operating income adjustments (see table above) 61 (260) 513 93 Net (gains) losses on strategic investments 59 4 285 (201) Other (2) — 21 31 39 Tax effect of non-GAAP adjustments (32) 66 (141) 63 Non-GAAP net income $ 1,209 $ 1,233 $ 4,835 $ 4,240 Diluted net income (loss) per share: GAAP $ 1.11 $ 1.29 $ 3.99 $ 3.84 Non-GAAP $ 1.19 $ 1.14 $ 4.65 $ 3.83 Shares used in GAAP diluted share calculation 1,014 1,084 1,039 1,107 Shares used in non-GAAP diluted share calculation 1,014 1,084 1,039 1,107 GAAP effective tax rate 20 % 22 % 22 % 22 % Tax effect of non-GAAP adjustments to net income (loss) 1 % (2) % (1) % (2) % Non-GAAP effective tax rate 21 % 20 % 21 % 20 % (1) As announced on February 7, 2024, the Company’s non-GAAP results now include the impact of stock-based compensation expense and related employer payroll taxes. Prior period non-GAAP results have been recast to reflect this change. (2) The year ended December 31, 2024 and the three months and year ended December 31, 2023 consist primarily of tax expense related to intra-group transfer of assets. Reconciliation of Operating Cash Flow to Free Cash Flow and Adjusted Free Cash Flow Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 (In millions) (unaudited) Net cash provided by operating activities $ 2,394 $ 2,614 $ 7,450 $ 4,843 Less: Purchases of property and equipment (203) (145) (683) (623) Free cash flow 2,191 2,469 6,767 4,220 Net timing impact between originating European BNPL receivables as held for sale and the subsequent sale of receivables (93) (1,695) (133) 334 Adjusted free cash flow $ 2,098 $ 774 $ 6,634 $ 4,554 4Q & FY 2024 Results 14

the item shown at left

other guidance in this release

Text is the filed exhibit, verbatim.