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PayPal Holdings, Inc. PYPL Business Segments — Transaction expense

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FOURReportable Segment — Network Costs
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Other financials

Income statement

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Revenue$8.7B+4.8%
Operating income$1.4B-5.1%
Net income$1.1B-12.5%
EPS (diluted)$1.25-3.1%

Balance sheet

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Cash & equivalents$8.3B-56.2%
Total debt$10.9B-9.3%
Total equity$19.8B-1.9%
Total assets$82.7B+3.7%

Cash flow

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Operating cash flow$2.0B+121%
CapEx$208.0M+1.0%
Free cash flow$1.8B+157%

Valuation

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Market cap$49.53B-34.9%
Enterprise value$52.12B-24.6%
P/E10.1×-6.2×
P/S1.5×-0.9×

Profitability

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Operating margin17.4%-0.7pp
Net margin14.4%-0.1pp
FCF margin19.3%+2.9pp

Returns & leverage

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Return on equity24.5%+1.6pp
Debt / equity0.5×0.0×
Current ratio1.3×0.0×

Where this comes from

Reported directly by PayPal Holdings, Inc. in its filing.

Tagged under the XBRL concept pypl:TransactionExpense.

The official record: PayPal Holdings, Inc.’s 10-Q, filed May 5, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is PayPal Holdings, Inc.'s business segments — transaction expense?
PayPal Holdings, Inc. (PYPL) reported business segments — transaction expense of $4.17B in Q1 2026.
How has PayPal Holdings, Inc.'s business segments — transaction expense changed year-over-year?
PayPal Holdings, Inc.'s business segments — transaction expense increased by 12.4% year-over-year, from $3.7B to $4.17B.
What is the long-term trend for PayPal Holdings, Inc.'s business segments — transaction expense?
Over 3 years (2022 to 2025), PayPal Holdings, Inc.'s business segments — transaction expense has grown at a 9.5% compound annual growth rate (CAGR), from $12.17B to $15.99B.
What does business segments — transaction expense mean?
These are the direct costs associated with processing payments, including interchange fees, assessments, and other network costs paid to financial institutions. It is a critical efficiency metric for payment processors, reflecting the cost of goods sold for transaction-based business models. High transaction expenses relative to revenue can compress margins.