TPV increased by 3%, driven by Venmo and PayPal, but offset by a decline in Braintree revenues. Management expects lower volume and transaction revenue growth from Braintree in 2025 due to a focus on profitable growth.

Revenues from other value added services increased by 17% year-over-year due to an increase in interest and fee revenue earned from loans receivable portfolio.

The company repurchased approximately 19 million shares for $1.5 billion during the quarter. As of March 31, 2025, $18.356 billion remained available for future repurchases.

Management initiated a workforce reduction to ensure compliance with a new regulation impacting operations in an international market. This resulted in $39 million in restructuring charges.

The effective tax rate decreased to 20% from 27% in the prior year, primarily due to discrete tax adjustments including tax effects of stock-based compensation.

The company continues to manage foreign exchange risk through various strategies, including cash flow hedges and balance sheet exposure management. A hypothetical 10% adverse change in exchange rates would have a negative impact on income before income taxes.

The company's business is subject to extensive government regulation and oversight, and failure to comply with these regulations could materially harm the business.

Cybersecurity and information security risks for global payments and technology companies like PayPal have increased significantly in recent years, and there is no assurance that security measures will provide sufficient protection.

Adverse global and regional economic conditions could have a material adverse impact on the demand for PayPal's products and services.

Revenues from Braintree products and services declined, driven by a decline in TPV and the number of payment transactions. This is a result of the company's stronger focus on profitable growth.

TPV growth was driven by Venmo and PayPal products and services, indicating strength in these core offerings.

The regulatory treatment of stablecoins is evolving and has drawn significant attention from legislative and regulatory bodies around the world. The company is partnered with a third party issuer (the PYUSD Issuer) that launched a U.S. dollar-denominated stablecoin named PayPal USD (“PYUSD”).

The transaction expense rate decreased due to favorable changes in merchant mix and a volume decline within Braintree products and services.

Customer support and operations expenses decreased due primarily to a decline in employee-related costs associated with the prior year reduction in headcount.

General and administrative expenses increased primarily due to an increase in indirect tax expense and professional services expense, partially offset by lower employee-related costs.

Technology and development expenses decreased primarily due to lower employee-related costs associated with the prior year reduction in headcount.

Technology and development expenses were partially offset by an increase in contractor and consultant costs and higher costs from cloud computing services utilized in delivering products and services.

The company issued fixed and floating rate notes with varying maturity dates for an aggregate principal amount of $1.5 billion. Proceeds may be used for general corporate purposes, including funding debt repayment, share repurchases, and acquisitions.

The company repurchased approximately 19 million shares for $1.5 billion during the quarter, with $18.356 billion remaining available for future repurchases.

PPAU (PayPal Australia Pty Limited) is subject to an enforceable undertaking with AUSTRAC related to self-reported issues regarding AML/CTF compliance. While it doesn't include a monetary penalty, failure to comply could result in penalties.

The company is involved in various legal proceedings, including a securities class action and a civil lawsuit in Hawai'i. These proceedings could have a material adverse impact on the company's business and financial condition.

The company's international operations are subject to significant challenges, uncertainties, and risks, including local regulatory and legal obligations, fluctuations in foreign exchange rates, and political or social instability.

Adverse global and regional economic conditions, such as political unrest, financial market volatility, and unemployment, could have a material adverse impact on the demand for the company's products and services.

Certain countries in which the company does business enacted legislation that became effective as of January 1, 2025, regarding a global minimum tax rate of 15% (Pillar Two). The effective tax rate for the three months ended March 31, 2025 includes the impact of Pillar Two minimum taxes in these jurisdictions.