PYPL PayPal Holdings, Inc.

Overview and Growth

In fiscal 2025, PayPal Holdings, Inc. recorded $33.17B of revenue, net income of $5.23B, and an operating cash inflow of $6.42B. At $33.17B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. Revenue was 4.3% above fiscal 2024 revenue of $31.80B, marking a year-over-year increase. Diluted earnings per share were $5.41, translating the period’s attributable earnings into the amount reported for each diluted share. Against diluted EPS of $3.99 in fiscal 2024, the current result was 35.6% higher. Total assets stood at $80.17B, showing the scale of resources supporting revenue, earnings, liquidity, and financing. The revenue-to-assets relationship was 0.41x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

The reported operating result was $6.07B, capturing profitability after direct costs and the operating expenses reflected in the statements. Relative to revenue, operating income represented 18.3%, showing how efficiently sales converted into operating profit. The bottom-line result was net income of $5.23B, after the operating, financing, tax, and other items recognized for the period. The final earnings result represented 15.8% of revenue, connecting the absolute net income figure with the company’s top-line scale. The company recognized $1.06B of income tax for the period, completing the transition from pretax income to net income. The relationship between net income and period-end equity was 25.8%, indicating the profitability achieved on book capital. Return on period-end assets was 6.5%, connecting net income with the company’s total asset base.

Liquidity and Capital Structure

Total assets were $80.17B, supported by $59.92B of liabilities and $20.26B of shareholder equity. At period end, current assets of $59.76B compared with current liabilities of $46.44B, defining the company’s short-term resource position. At 1.29x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. Cash and equivalents totaled $8.05B, identifying the most liquid reported component available within the broader current-asset balance. Cash and equivalents represented 17.3% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. Borrowings totaled $9.99B, adding a fixed financing obligation alongside the company’s equity capital. The debt-to-equity relationship was 0.49x, showing how much debt the company carried for each unit of book equity. Debt represented 12.5% of total assets, placing borrowing in the context of the company’s full resource base. Relative to total assets, liabilities measured 74.7%, complementing the separate equity-based view of the company’s capital structure. The cash-to-assets relationship was 10.0%, comparing reported cash and equivalents with the full positive asset balance. Compared with $78.72B in fiscal 2024, the current asset base moved 1.8% and finished higher. Reported equity changed 0.8% from $20.42B in fiscal 2024, placing the current capital base lower year over year. Cash and equivalents were 20.8% higher than fiscal 2024 cash of $6.66B, showing the year-over-year change in liquid resources.

Cash Flow and Earnings Quality

The company reported $6.42B of operating cash flow, a cash inflow that shows the cash generated by operations. The operating-cash-flow-to-net-income relationship was 1.23x, comparing cash generated by operations with the bottom-line earnings result. Capital expenditures used $852.00M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Capital expenditures represented 13.3% of operating cash flow, leaving the remainder available as free cash flow. Free cash flow came to $5.56B, leaving a positive amount after capital expenditures. Free cash flow represented 16.8% of revenue, linking post-investment cash generation with the company’s operating scale. The free-cash-flow-to-assets relationship was 6.9%, comparing post-investment cash with the balance-sheet asset base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.