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Operating cash flow averaged $1.8 billion per quarter with OCF/NI ranging from 0.71 to 1.80, while the company returned $1.5-$1.6 billion quarterly via buybacks and initiated dividends of $122-$130 million in 2026.
PayPal Holdings, Inc. (PYPL) cash flow statement — 13-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 |
|---|
| Cash from Operations | 7.47B | 6.42B | 7.45B | 4.84B | 5.81B | 5.8B | 5.85B | 4.07B | 5.48B | 2.53B | 3.16B | 2.55B | 2.22B | 1.99B |
| Operating CF Growth % | 140.47% | -13.88% | 53.83% | -16.69% | 0.28% | -0.97% | 43.8% | -25.71% | 116.52% | -19.85% | 24.04% | 14.68% | 11.39% | - |
| Net Income | 4.9B | 5.23B | 4.15B | 4.25B | 2.42B | 4.17B | 4.2B | 2.46B | 2.06B | 1.79B | 1.4B | 1.23B | 419M | 955M |
| Depreciation & Amortization | 963M | 963M | 1.03B | 1.07B | 1.32B | 1.26B | 1.19B | 912M | 776M | 805M | 724M | 608M | 516M | 453M |
| Deferred Taxes | 131M | 217M | 231M | -668M | -811M | -482M | 165M | -269M | -171M | -1.3B | 52M | 127M | 680M | 52M |
| Other Non-Cash Items | 575M | 65M | 1.37B | 32M | 2.08B | 1.11B | -356M | 1.02B | 1.35B | 1.08B | 1.02B | 743M | 605M | 426M |
| Working Capital Changes | -97M | -1.06B | -558M | -1.31B | -454M | -1.65B | -722M | -1.07B | 619M | -581M | -481M | -506M | -299M | -146M |
| Cash from Investing | -511M | 797M | 1.69B | 752M | -3.33B | -5.15B | -16.22B | -5.74B | 821M | -4.49B | -5.9B | -8.04B | -2.88B | -1.72B |
| Purchase of Investments | -25.98B | -20.6B | -26.63B | -21.98B | -20.22B | -40.12B | -41.51B | -27.88B | -22.38B | -19.42B | -21.04B | -21.63B | -8.74B | -610M |
| Sale/Maturity of Investments | 24.84B | 23.22B | 337M | 24.3B | 23.41B | 39.7B | 30.91B | 24.88B | 21.9B | 18.45B | 18.43B | 16.15B | 7.77B | 320M |
| Net Investment Activity | -1.14B | 2.62B | -26.3B | 2.31B | 3.19B | -418M | -10.61B | -3B | -483M | -970M | -2.61B | -5.48B | -978M | -290M |
| Acquisitions | -122M | 0 | 0 | 466M | 0 | -2.76B | -3.61B | -70M | -2.12B | -323M | -19M | -1.23B | -2M | -731M |
| Other Investing | 1.64B | -972M | 28.67B | -1.41B | -5.81B | -1.06B | -1.14B | -1.97B | 4.25B | -2.52B | -2.6B | -613M | -1.41B | -309M |
| Cash from Financing | -3.93B | -5.96B | -8.28B | -2.99B | -1.2B | -557M | 12.49B | 4.19B | -1.24B | 4.08B | 2.04B | 4.73B | 1.28B | -85M |
| Dividends Paid | -382M | -130M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -6.05B | -6.05B | -6.05B | -5B | -4.2B | -3.37B | -1.64B | -1.41B | -3.52B | -1.01B | -995M | 0 | 0 | 0 |
| Stock Issued | 103M | 117M | 95M | 127M | 143M | 162M | 137M | 138M | 144M | 144M | 109M | 75M | 0 | 0 |
| Net Stock Activity | -5.95B | -5.93B | -5.95B | -4.88B | -4.06B | -3.21B | -1.5B | -1.27B | -3.38B | -862M | -886M | 75M | 0 | 0 |
| Debt Issuance (Net) | 0 | 1000K | -1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | -1000K | -1000K | -1000K | -1000K |
| Other Financing | 362M | -375M | -2.21B | 1.41B | 1.06B | 2.74B | 10.02B | 2.5B | 1.18B | 4.13B | 2.94B | 5.51B | 1.3B | 48M |
| Net Change in Cash | 2.99B | 1.53B | 656M | 2.68B | 1.13B | -11M | 2.3B | 2.51B | 4.95B | 2.17B | -708M | -808M | 597M | 190M |
| Exchange Rate Effect | -37M | 273M | -207M | 76M | -155M | -102M | 169M | -6M | -113M | 36M | 0 | -44M | -26M | 3M |
| Cash at Beginning | 22.44B | 22.49B | 21.83B | 19.16B | 18.03B | 18.04B | 15.74B | 13.23B | 8.29B | 6.12B | 6.83B | 2.2B | 1.6B | 1.41B |
| Cash at End | 21.97B | 24.02B | 22.49B | 21.83B | 19.16B | 18.03B | 18.04B | 15.74B | 13.23B | 8.29B | 6.12B | 1.39B | 2.2B | 1.6B |
| Interest Paid | 427M | 406M | 366M | 331M | 280M | 231M | 190M | 78M | 69M | 6M | 4M | 16M | 19M | 14M |
| Income Taxes Paid | 487M | 1.1B | 1.03B | 2.12B | 878M | 474M | 565M | 665M | 328M | 117M | 48M | 216M | 47M | 28M |
| Free Cash Flow | 6.59B | 5.56B | 6.77B | 4.22B | 5.11B | 4.89B | 4.99B | 3.37B | 4.66B | 1.86B | 2.49B | 1.82B | 1.73B | 1.6B |
| FCF Growth % | 24.45% | -17.78% | 60.36% | -17.37% | 4.46% | -1.98% | 48.14% | -27.7% | 149.84% | -25.11% | 36.46% | 5.56% | 7.87% | - |
Quick answers to the most common questions about buying PYPL stock.
PayPal Holdings, Inc. (PYPL) generated $6.42B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
PayPal Holdings, Inc. (PYPL) generated $5.56B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
PayPal Holdings, Inc. (PYPL) spent $852.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, PayPal Holdings, Inc. (PYPL) returned $130.0M to shareholders via cash dividends and spent $6.05B on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Branded checkout erosion
Metrics are mathematically derived from official filings.
Cash Conversion Remains Solid
Operating cash flow averaged $1.8 billion per quarter over the last year, with OCF/NI ranging from 0.71 to 1.80. According to recent financial statements, this indicates robust earnings quality despite modest net income growth.
The OCF/NI ratio above 1 in most quarters suggests that reported earnings are well-backed by cash generation, though the 0.71 in Q2 2025 warrants attention. This cash generation capacity appears sufficient to fund ongoing buybacks and strategic investments without straining the balance sheet.
Securities Portfolio Churns Actively
Investment purchases and sales have been volatile, with Q2 2026 showing $11.2 billion in purchases and $9.0 billion in sales. As reported in quarterly filings, this suggests active portfolio management rather than a passive hold-to-maturity strategy.
The large swings in investment activity, particularly the $28.4 billion purchase in Q4 2024, indicate that PayPal is actively managing its securities portfolio, likely for liquidity and yield purposes. The net cash outflow from investments in recent quarters may reflect a strategic shift toward longer-duration assets or a response to interest rate expectations.
Loan Book Growth Mirrors Consumer Credit
Loan loss provisions have risen from $4.2 billion in Q1 2024 to $4.7 billion in Q2 2026, a 12% increase. Based on reported figures, this aligns with modest loan growth and suggests credit quality remains stable.
The steady increase in loan loss provisions, while not alarming, indicates that PayPal's credit portfolio is expanding, likely driven by its BNPL and merchant lending products. The provision growth is proportional to revenue growth, implying that credit risk is being managed consistently, though investors should monitor for any acceleration in charge-offs.
Buybacks Steady, Dividends Emerge
Share repurchases have been consistent at $1.5-$1.6 billion per quarter, while dividends resumed in Q1 2026 at $122-$130 million. According to recent SEC filings, this reflects a balanced approach to capital return.
The initiation of a dividend in 2026, after none in prior quarters, signals a shift toward a more shareholder-friendly capital return policy. Combined with steady buybacks, PayPal appears committed to returning excess capital, which is supported by its strong cash generation. However, the sustainability of this payout will depend on maintaining OCF levels.
Cash Flow Masks SBC Impact
Operating cash flow does not directly reflect stock-based compensation, which historically has been a significant non-cash expense. As noted in company disclosures, this may overstate true cash generation relative to GAAP earnings.
While OCF/NI ratios appear healthy, the gap between GAAP and non-GAAP earnings due to SBC suggests that actual cash available for distribution may be lower than reported. Investors should adjust for SBC when assessing the sustainability of dividends and buybacks, as the company's cash flow statement may not fully capture this dilution.