What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-10-28 compared with 2025-07-29 · 273 added, 231 removed, 1284 unchanged (28% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

September 30,

2025 December 31,

5 unchanged sentences

Loans and interest receivable, held for sale 1,404 541

Loans and interest receivable, net of allowances of $ 524 and $ 461 as of June 30, 2025 and December 31, 2024, respectively

Loans and interest receivable, net of allowances of $ 515 and $ 461 as of September 30, 2025 and December 31, 2024, respectively

Funds receivable and customer accounts 38,668 37,671

19 unchanged sentences

4,000 shares authorized;

960 and 993 shares outstanding as of June 30, 2025 and December 31, 2024, respectively

941 and 993 shares outstanding as of September 30, 2025 and December 31, 2024, respectively

Preferred stock, $ 0.0001 par value;

100 shares authorized, unissued

Treasury stock at cost, 378 and 337 shares as of June 30, 2025 and December 31, 2024, respectively

Treasury stock at cost, 400 and 337 shares as of September 30, 2025 and December 31, 2024, respectively

( 31,624 ) ( 27,085 )

7 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

24 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

5 unchanged sentences

Tax (expense) benefit on foreign CTA, net

( 34 ) 1 ( 59 ) 19

Net investment hedges CTA gains, net

Tax expense on net investment hedges CTA gains, net

Net investment hedges CTA (losses) gains, net

— ( 149 ) — 50

Unrealized (losses) gains on cash flow hedges, net

Tax benefit (expense) on net investment hedges CTA (losses) gains, net

— 35 — ( 12 )

Tax benefit (expense) on unrealized (losses) gains on cash flow hedges, net

Unrealized gains (losses) on cash flow hedges, net

78 ( 148 ) ( 346 ) ( 49 )

Unrealized (losses) gains on available-for-sale debt securities, net

Tax (expense) benefit on unrealized gains (losses) on cash flow hedges, net

Unrealized gains (losses) on available-for-sale debt securities, net

18 60 ( 2 ) 158

Tax benefit (expense) on unrealized (losses) gains on available-for-sale debt securities, net

Tax expense on unrealized gains (losses) on available-for-sale debt securities, net

( 5 ) ( 14 ) — ( 37 )

22 unchanged sentences

Common stock and stock-based awards issued, net of shares withheld for employee taxes 5 — ( 171 ) — — ( 171 )

5 — ( 171 ) — — ( 171 )

Common stock repurchased ( 19 ) ( 1,512 ) — — — ( 1,512 )

5 unchanged sentences

Tax expense on foreign CTA, net

— — — ( 34 ) — ( 34 )

Unrealized losses on cash flow hedges, net

6 unchanged sentences

Common stock and stock-based awards issued, net of shares withheld for employee taxes

3 — ( 2 ) — — ( 2 )

Common stock repurchased ( 22 ) ( 1,514 ) — — — ( 1,514 )

1 unchanged sentence

Balances at June 30, 2025 960 $ ( 30,111 ) $ 21,136 $ ( 739 ) $ 29,915 $ 20,201

Net income — — — — 1,248 1,248

Foreign CTA, net

— — — ( 49 ) — ( 49 )

Unrealized gains on cash flow hedges, net

— — — 78 — 78

Tax expense on unrealized gains on cash flow hedges, net

— — — ( 3 ) — ( 3 )

Unrealized gains on available-for-sale debt securities, net

— — — 18 — 18

Tax expense on unrealized gains on available-for-sale debt securities, net

— — — ( 5 ) — ( 5 )

Common stock and stock-based awards issued, net of shares withheld for employee taxes 2 — ( 66 ) — — ( 66 )

Common stock repurchased ( 21 ) ( 1,513 ) — — — ( 1,513 )

Stock-based compensation — — 289 — — 289

Balances at September 30, 2025 941 $ ( 31,624 ) $ 21,359 $ ( 700 ) $ 31,163 $ 20,198

PayPal Holdings, Inc.

7 unchanged sentences

— — — ( 143 ) — ( 143 )

Tax benefit on foreign CTA, net

— — — 18 — 18

Net investment hedges CTA gains, net — — — 99 — 99

— — — 99 — 99

Tax expense on net investment hedges CTA gains, net — — — ( 23 ) — ( 23 )

— — — ( 23 ) — ( 23 )

Unrealized gains on cash flow hedges, net — — — 96 — 96

— — — 96 — 96

Tax expense on unrealized gains on cash flow hedges, net — — — ( 5 ) — ( 5 )

— — — ( 5 ) — ( 5 )

Unrealized gains on available-for-sale-debt securities, net

11 unchanged sentences

— — — ( 125 ) — ( 125 )

Tax benefit on foreign CTA, net

Net investment hedges CTA gains, net

— — — 100 — 100

Tax expense on net investment hedges CTA gains, net

— — — ( 24 ) — ( 24 )

Unrealized gains on cash flow hedges, net

Unrealized gains on available-for-sale-debt securities, net

— — — 15 — 15

Tax expense on unrealized gains on available-for-sale-debt securities, net

— — — ( 3 ) — ( 3 )

Common stock and stock-based awards issued, net of shares withheld for employee taxes

3 — 13 — — 13

Common stock repurchased ( 24 ) ( 1,516 ) — — — ( 1,516 )

2 unchanged sentences

Balances at June 30, 2024 1,032 $ ( 24,064 ) $ 20,163 $ ( 693 ) $ 25,216 $ 20,622

Net income — — — — 1,010 1,010

Foreign CTA, net

— — — 275 — 275

Net investment hedges CTA losses, net

— — — ( 149 ) — ( 149 )

Tax benefit on net investment hedges CTA losses, net

— — — 35 — 35

Unrealized losses on cash flow hedges, net

— — — ( 148 ) — ( 148 )

Tax benefit on unrealized losses on cash flow hedges, net

Unrealized gains on available-for-sale debt securities, net — — — 60 — 60

Tax expense on unrealized gains on available-for-sale debt securities, net — — — ( 14 ) — ( 14 )

Common stock and stock-based awards issued, net of shares withheld for employee taxes 2 — ( 47 ) — — ( 47 )

Common stock repurchased ( 28 ) ( 1,791 ) — — — ( 1,791 )

Treasury stock reissuance — 4 — — — 4

Stock-based compensation — — 310 — — 310

Balances at September 30, 2024 1,006 $ ( 25,851 ) $ 20,426 $ ( 627 ) $ 26,226 $ 20,174

The accompanying notes are an integral part of these condensed consolidated financial statements.

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Six Months Ended June 30,

Nine Months Ended September 30,

(In millions)

29 unchanged sentences

Other ( 15 ) —

Net cash used in investing activities

Net cash provided by (used in) investing activities

1,095 ( 768 )

14 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS—(continued)

Six Months Ended June 30,

Nine Months Ended September 30,

(In millions)

27 unchanged sentences

If we determine an investment is in a VIE, we then assess if we are the primary beneficiary, which would require consolidation.

As of June 30, 2025 and December 31, 2024, no VIEs qualified for consolidation as the structures of these entities do not provide us with the ability to direct activities that would significantly impact their economic performance.

As of June 30, 2025 and December 31, 2024, the carrying value of our investments in nonconsolidated VIEs was $ 190 million and $ 187 million, respectively, and is included as non-marketable equity securities applying the equity method of accounting in long-term investments on our condensed consolidated balance sheets.

The investments in nonconsolidated VIEs are primarily investments in funds that are limited partnerships or similar structures which are focused on increasing access to capital for underserved communities.

Our maximum exposure to loss related to our nonconsolidated VIEs, which represents funded commitments and any future funding commitments, was $ 246 million as of both June 30, 2025 and December 31, 2024.

As of September 30, 2025 and December 31, 2024, no VIEs qualified for consolidation as the structures of these entities do not provide us with both the ability to direct activities that would significantly impact their economic performance and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE.

As of September 30, 2025 and December 31, 2024, the carrying value of our investments in nonconsolidated VIEs that are primarily investments in funds that are limited partnerships or similar structures which are focused on increasing access to capital for underserved communities was $ 199 million and $ 187 million, respectively, and is included as non-marketable equity securities applying the equity method of accounting in long-term investments on our condensed consolidated balance sheets.

Our maximum exposure to loss related to these nonconsolidated VIEs, which represents funded commitments and any future funding commitments, was $ 246 million as of both September 30, 2025 and December 31, 2024.

These condensed consolidated financial statements and accompanying notes should be read in conjunction with the audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Form 10-K”) filed with the United States (“U.S.”) Securities and Exchange Commission (“SEC”) on February 4, 2025.

In the opinion of management, these condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair statement of the condensed consolidated financial statements for all interim periods presented.

Certain amounts for prior periods have been reclassified to conform to the financial statement presentation as of and for the three and six months ended June 30, 2025.

Certain amounts for prior periods have been reclassified to conform to the financial statement presentation as of and for the three and nine months ended September 30, 2025.

Use of estimates

30 unchanged sentences

We are evaluating the impact this amended guidance may have on the notes to our condensed consolidated financial statements.

In September 2025, the FASB issued ASU 2025-06, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40):

Targeted Improvements to the Accounting for Internal-Use Software.

The amended guidance modernizes the accounting for costs related to internal-use software to more closely align with current software development methods.

The guidance removes references to project stages and clarifies when we are required to start capitalizing eligible costs.

The new guidance is effective for fiscal years beginning after December 15, 2027, and interim periods within those fiscal years, with early adoption permitted.

The guidance can be applied on a prospective basis, a modified basis for in-process projects, or a retrospective basis.

We are evaluating the impact this amended guidance may have on our condensed consolidated financial statements.

Recently adopted accounting guidance

7 unchanged sentences

The adoption of this guidance did not have a significant impact on our condensed consolidated financial statements.

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

In January 2025, the SEC released Staff Accounting Bulletin (“SAB”) No.

5 unchanged sentences

The adoption of this guidance did not impact our condensed consolidated statements of income (loss), comprehensive income (loss), stockholders’ equity or cash flows.

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The following table presents the effects of the changes on the presentation of our condensed consolidated balance sheet:

17 unchanged sentences

We record a contract asset when we have a conditional right to consideration for services we have already transferred to our customer.

These contract assets are included in other assets in our condensed consolidated balance sheets and were $ 193 million and $ 207 million as of June 30, 2025 and December 31, 2024, respectively.

These contract assets are included in other assets in our condensed consolidated balance sheets and were $ 203 million and $ 207 million as of September 30, 2025 and December 31, 2024, respectively.

DISAGGREGATION OF REVENUE

1 unchanged sentence

Revenues recorded within these categories are earned from similar products and services for which the nature of associated fees and the related revenue recognition models are substantially similar.

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The following table presents our revenue disaggregated by primary geographical market and category:

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

12 unchanged sentences

(1) No single country included in the other countries category generated more than 10% of total net revenues.

(2) Total net revenues include $ 506 million and $ 520 million for the three months ended June 30, 2025 and 2024, respectively, and $ 1.1 billion and $ 988 million for the six months ended June 30, 2025 and 2024, respectively, which do not represent revenues recognized in the scope of Accounting Standards Codification Topic 606, Revenue from contracts with customers .

(2) Total net revenues include $ 542 million and $ 515 million for the three months ended September 30, 2025 and 2024, respectively, and $ 1.6 billion and $ 1.5 billion for the nine months ended September 30, 2025 and 2024, respectively, which do not represent revenues recognized in the scope of Accounting Standards Codification Topic 606, Revenue from contracts with customers .

Such revenues relate to interest and fees earned on loans and interest receivable, including loans and interest receivable, held for sale, hedging gains or losses, and interest earned and gains or losses on certain assets underlying customer balances.

Net revenues are attributed to the country in which the party paying our fee is located.

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

NOTE 3— NET INCOME (LOSS) PER SHARE

5 unchanged sentences

The following table sets forth the computation of basic and diluted net income (loss) per share for the periods indicated:

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

8 unchanged sentences

Common stock equivalents excluded from net income (loss) per diluted share because their effect would have been anti-dilutive or potentially dilutive 12 8 9 12

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

NOTE 4— BUSINESS COMBINATIONS AND DIVESTITURES

In the second quarter of 2025, we completed an acquisition with a total purchase price of $ 19 million, consisting of cash consideration, which was accounted for as a business combination.

There were no acquisitions accounted for as business combinations in the six months ended June 30, 2024.

There were no divestitures completed in the six months ended June 30, 2025 and 2024.

There were no acquisitions accounted for as business combinations in the nine months ended September 30, 2024.

There were no divestitures completed in the nine months ended September 30, 2025 and 2024.

NOTE 5— GOODWILL AND INTANGIBLE ASSETS

The following table presents goodwill balances and adjustments to those balances during the six months ended June 30, 2025:

2024 Goodwill Acquired Adjustments June 30,

The following table presents goodwill balances and adjustments to those balances during the nine months ended September 30, 2025:

2024 Goodwill Acquired Adjustments September 30,

(In millions)

Total goodwill $ 10,837 $ 7 $ 97 $ 10,941

The adjustments to goodwill during the six months ended June 30, 2025 pertained to foreign currency translation adjustments.

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The adjustments to goodwill during the nine months ended September 30, 2025 pertained to foreign currency translation adjustments.

INTANGIBLE ASSETS

The components of identifiable intangible assets were as follows:

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Gross Carrying Amount Accumulated Amortization

11 unchanged sentences

(1) Excludes intangible assets which have been fully amortized, but are still in use.

Amortization expense for intangible assets was $ 48 million and $ 52 million for the three months ended June 30, 2025 and 2024, respectively.

Amortization expense for intangible assets was $ 95 million and $ 108 million for the six months ended June 30, 2025 and 2024, respectively.

Expected future intangible asset amortization as of June 30, 2025 was as follows (in millions):

Amortization expense for intangible assets was $ 47 million and $ 51 million for the three months ended September 30, 2025 and 2024, respectively.

Amortization expense for intangible assets was $ 142 million and $ 159 million for the nine months ended September 30, 2025 and 2024, respectively.

Expected future intangible asset amortization as of September 30, 2025 was as follows (in millions):

Fiscal years:

Remaining 2025 $ 27

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

NOTE 6— LEASES

7 unchanged sentences

A sublease situation can arise when currently leased real estate space is available and is surplus to operational requirements.

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The components of lease expense were as follows:

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

5 unchanged sentences

$ 43 $ 41 $ 128 $ 112

Supplemental cash flow information related to leases during the three and six months ended June 30, 2025 and 2024 were as follows:

Three Months Ended June 30, Six Months Ended June 30,

Supplemental cash flow information related to leases during the three and nine months ended September 30, 2025 and 2024 was as follows:

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

7 unchanged sentences

Supplemental balance sheet information related to leases was as follows:

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

(In millions, except weighted-average figures)

9 unchanged sentences

Weighted-average discount rate 4 % 5 % 4 % 5 %

Future minimum lease payments for our leases as of June 30, 2025 were as follows:

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Future minimum lease payments for our leases as of September 30, 2025 were as follows:

Operating leases Finance leases

6 unchanged sentences

Lease liability $ 719 $ 17

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Operating lease amounts include minimum lease payments under our non-cancelable operating leases primarily for office and data center facilities.

1 unchanged sentence

The amounts presented are consistent with contractual terms and are not expected to differ significantly from actual results under our existing leases.

As of June 30, 2025, we have additional operating leases, primarily for offices, which will commence in the third quarter of 2025 or later with minimum lease payments aggregating to $ 58 million and lease terms ranging from three to ten years .

As of June 30, 2025, we did no t have any additional finance leases which have not yet commenced.

NOTE 7— OTHER FINANCIAL STATEMENT DETAILS

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for the three months ended June 30, 2025:

The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for the three months ended September 30, 2025:

Unrealized Gains (Losses) on Cash Flow Hedges Unrealized Gains (Losses) on Available-for-sale Debt Securities

10 unchanged sentences

Ending balance $ ( 199 ) $ 12 $ ( 764 ) $ 313 $ ( 62 ) $ ( 700 )

The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for the three months ended June 30, 2024:

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for the three months ended September 30, 2024:

Unrealized Gains (Losses) on Cash Flow Hedges Unrealized Gains (Losses) on Available-for-sale Debt Securities

8 unchanged sentences

Ending balance $ ( 105 ) $ 24 $ ( 724 ) $ 241 $ ( 63 ) $ ( 627 )

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for the six months ended June 30, 2025:

The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for the nine months ended September 30, 2025:

Unrealized Gains (Losses) on Cash Flow Hedges Unrealized Gains (Losses) on Available-for-sale Debt Securities

8 unchanged sentences

Ending balance $ ( 199 ) $ 12 $ ( 764 ) $ 313 $ ( 62 ) $ ( 700 )

The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for the six months ended June 30, 2024:

The following table summarizes the changes in accumulated balances of other comprehensive income (loss) for the nine months ended September 30, 2024:

Unrealized Gains (Losses) on Cash Flow Hedges Unrealized Gains (Losses) on Available-for-sale Debt Securities

8 unchanged sentences

Ending balance $ ( 105 ) $ 24 $ ( 724 ) $ 241 $ ( 63 ) $ ( 627 )

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The following table provides details about reclassifications from AOCI for the periods presented below:

1 unchanged sentence

Affected Line Item in the Statements of Income (Loss)

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

9 unchanged sentences

Total reclassifications for the period $ ( 50 ) $ ( 12 ) $ ( 83 ) $ ( 31 ) Net income (loss)

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

OTHER INCOME (EXPENSE), NET

The following table reconciles the components of other income (expense), net for the periods presented below:

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

5 unchanged sentences

Other income (expense), net $ 13 $ ( 80 ) $ 111 $ 35

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

NOTE 8— CASH AND CASH EQUIVALENTS, FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS, AND INVESTMENTS

The following table summarizes the assets underlying our cash and cash equivalents, funds receivable and customer accounts, short-term investments, and long-term investments as of June 30, 2025 and December 31, 2024:

September 30,

2025 December 31,

19 unchanged sentences

Total long-term investments $ 3,601 $ 4,583

(1) Includes $ 265 million and $ 149 million of available-for-sale debt securities with original maturities of three months or less as of June 30, 2025 and December 31, 2024, respectively.

(1) Includes $ 525 million and nil of available-for-sale debt securities with original maturities of three months or less as of September 30, 2025 and December 31, 2024, respectively.

(2) Includes $ 220 million and $ 149 million of available-for-sale debt securities with original maturities of three months or less as of September 30, 2025 and December 31, 2024, respectively.

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

As of June 30, 2025 and December 31, 2024, the estimated fair value of our available-for-sale debt securities included within cash and cash equivalents, funds receivable and customer accounts, short-term investments, and long-term investments was as follows:

June 30, 2025 (1)

As of September 30, 2025 and December 31, 2024, the estimated fair value of our available-for-sale debt securities included within cash and cash equivalents, funds receivable and customer accounts, short-term investments, and long-term investments was as follows:

September 30, 2025 (1)

Losses Estimated

(In millions)

Cash and cash equivalents:

government and agency securities $ 525 $ — $ — $ 525

Funds receivable and customer accounts:

10 unchanged sentences

Mortgage-backed and asset-backed securities 499 1 — 500

Commercial paper 213 — — 213

Long-term investments:

38 unchanged sentences

Refer to “Note 9 — Fair Value Measurement of Assets and Liabilities.”

Gross amortized cost and estimated fair value balances exclude accrued interest receivable on available-for-sale debt securities, which totaled $ 117 million and $ 140 million at June 30, 2025 and December 31, 2024, respectively, and were included in other current assets on our condensed consolidated balance sheets.

Gross amortized cost and estimated fair value balances exclude accrued interest receivable on available-for-sale debt securities, which totaled $ 121 million and $ 140 million at September 30, 2025 and December 31, 2024, respectively, and were included in other current assets on our condensed consolidated balance sheets.

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

As of June 30, 2025 and December 31, 2024, the gross unrealized losses and estimated fair value of our available-for-sale debt securities included within cash and cash equivalents, funds receivable and customer accounts, short-term investments, and long-term investments for which an allowance for credit losses was not deemed necessary in the current period, aggregated by the length of time those individual securities have been in a continuous loss position, was as follows:

June 30, 2025 (1)

As of September 30, 2025 and December 31, 2024, the gross unrealized losses and estimated fair value of our available-for-sale debt securities included within cash and cash equivalents, funds receivable and customer accounts, short-term investments, and long-term investments for which an allowance for credit losses was not deemed necessary in the current period, aggregated by the length of time those individual securities have been in a continuous loss position, was as follows:

September 30, 2025 (1)

Less than 12 months 12 months or longer Total

3 unchanged sentences

(In millions)

Cash and cash equivalents:

government and agency securities $ 400 $ — $ — $ — $ 400 $ —

Funds receivable and customer accounts:

3 unchanged sentences

Mortgage-backed and asset-backed securities 1,619 ( 2 ) 100 — 1,719 ( 2 )

Municipal securities 14 — — — 14 —

Commercial paper 325 — — — 325 —

3 unchanged sentences

Mortgage-backed and asset-backed securities 247 — 2 — 249 —

Commercial paper 195 — — — 195 —

Long-term investments:

government and agency securities 245 — — — 245 —

Foreign government and agency securities 25 — — — 25 —

Corporate debt securities 90 ( 1 ) 10 — 100 ( 1 )

2 unchanged sentences

(1) “—” Denotes gross unrealized loss or fair value of less than $1 million in a given position.

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

December 31, 2024 (1)

26 unchanged sentences

(1) “—” Denotes gross unrealized loss or fair value of less than $1 million in a given position.

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Unrealized losses have not been recognized into income as we neither intend to sell, nor anticipate that it is more likely than not that we will be required to sell, the securities before recovery of their amortized cost basis.

2 unchanged sentences

The table below presents cash inflows related to available-for-sale debt securities:

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

2 unchanged sentences

$ 7,380 $ 7,170 $ 19,921 $ 27,407

During the three and six months ended June 30, 2025 and the three months ended June 30, 2024, we incurred gross realized losses and gains which were de minimis.

During the six months ended June 30, 2024, we incurred gross realized losses of $ 42 million.

During the three and nine months ended September 30, 2025 and the three months ended September 30, 2024, we incurred gross realized gains and losses which were de minimis.

During the nine months ended September 30, 2024, we incurred gross realized losses of $ 43 million and gains which were de minimis.

Gross realized gains and losses were determined using the specific identification method.

Our available-for-sale debt securities included within cash and cash equivalents, funds receivable and customer accounts, short-term investments, and long-term investments classified by date of contractual maturity were as follows:

June 30, 2025

September 30, 2025

Amortized Cost Fair Value

5 unchanged sentences

Total $ 18,770 $ 18,782

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Actual maturities may differ from contractual maturities as certain securities may be prepaid.

Supplemental cash flow information related to investments

Non-cash investing transactions that were not reflected in the condensed consolidated statement of cash flows for the six months ended June 30, 2025 and 2024 include the purchase of investments, net of sales, of $ 29 million and $ 126 million, respectively, that have not yet settled.

Non-cash investing transactions that were not reflected in the condensed consolidated statement of cash flows for the nine months ended September 30, 2025 and 2024 include the purchase of investments of $ 127 million and $ 75 million, respectively, that have not yet settled.

STRATEGIC INVESTMENTS

1 unchanged sentence

Our marketable equity securities have readily determinable fair values and are recorded as long-term investments on our condensed consolidated balance sheets at fair value with changes in fair value recorded in other income (expense), net on our condensed consolidated statements of income (loss).

Marketable equity securities totaled $ 14 million and $ 23 million as of June 30, 2025 and December 31, 2024, respectively.

Marketable equity securities totaled $ 15 million and $ 23 million as of September 30, 2025 and December 31, 2024, respectively.

Our non-marketable equity securities are recorded as long-term investments on our condensed consolidated balance sheets.

The carrying value of our non-marketable equity securities totaled $ 1.6 billion and $ 1.5 billion as of June 30, 2025 and December 31, 2024, respectively.

As of June 30, 2025 and December 31, 2024, we had non-marketable equity securities of $ 203 million and $ 200 million, respectively, for which we have the ability to exercise significant influence, but not control, over the investee.

The carrying value of our non-marketable equity securities totaled $ 1.6 billion and $ 1.5 billion as of September 30, 2025 and December 31, 2024, respectively.

As of September 30, 2025 and December 31, 2024, we had non-marketable equity securities of $ 213 million and $ 200 million, respectively, for which we have the ability to exercise significant influence, but not control, over the investee.

We account for these equity securities using the equity method of accounting.

1 unchanged sentence

All gains and losses on these investments, realized and unrealized, and our share of earnings or losses from investments accounted for using the equity method are recognized in other income (expense), net on our condensed consolidated statements of income (loss).

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Measurement Alternative adjustments

The adjustments to the carrying value of our non-marketable equity securities accounted for under the Measurement Alternative in the three and six months ended June 30, 2025 and 2024 were as follows:

Three Months Ended June 30, Six Months Ended June 30,

The adjustments to the carrying value of our non-marketable equity securities accounted for under the Measurement Alternative in the three and nine months ended September 30, 2025 and 2024 were as follows:

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

2 unchanged sentences

Adjustments related to non-marketable equity securities:

Net (reductions) additions (1)

Net additions (reductions) (1)

6 20 ( 48 ) 85

2 unchanged sentences

Carrying amount, end of period $ 1,369 $ 1,482 $ 1,369 $ 1,482

(1) Net (reductions) additions include purchases, reductions due to sales of securities, and reclassifications when the Measurement Alternative is subsequently elected or no longer applies.

The following table summarizes the cumulative gross unrealized gains and cumulative gross unrealized losses and impairment related to non-marketable equity securities accounted for under the Measurement Alternative held at June 30, 2025 and December 31, 2024, respectively:

(1) Net additions (reductions) include purchases, reductions due to sales of securities, and reclassifications when the Measurement Alternative is subsequently elected or no longer applies.

September 30,

2025 December 31,

2 unchanged sentences

Cumulative gross unrealized losses and impairments $ ( 457 ) $ ( 562 )

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Unrealized gains (losses) on strategic investments, excluding those accounted for using the equity method

The following table summarizes the net unrealized gains (losses) on marketable and non-marketable equity securities, excluding those accounted for using the equity method, held at June 30, 2025 and 2024, respectively:

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

5 unchanged sentences

FINANCIAL ASSETS AND LIABILITIES MEASURED AND RECORDED AT FAIR VALUE ON A RECURRING BASIS

The following tables summarize our financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2025 and December 31, 2024:

June 30, 2025 Quoted Prices in

The following tables summarize our financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2025 and December 31, 2024:

September 30, 2025 Quoted Prices in

Active Markets for

4 unchanged sentences

Cash and cash equivalents (1)

government and agency securities $ 525 $ — $ 525

Money market fund 4 4 —

Total cash and cash equivalents 529 4 525

Short-term investments (2),(5) :

3 unchanged sentences

Mortgage-backed and asset-backed securities 500 — 500

Commercial paper 213 — 213

Total short-term investments 1,663 — 1,663

70 unchanged sentences

All other financial assets and liabilities are valued using quoted prices for identical instruments in less active markets, readily available pricing sources for comparable instruments, or models using market observable inputs (Level 2).

A majority of our derivative instruments are valued using pricing models that take into account the contractual terms as well as multiple observable inputs where applicable, such as currency rates, interest rate yield curves, option volatility, and equity prices (Level 2).

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

A majority of our derivative instruments are valued using pricing models that take into account the contract terms as well as multiple observable inputs where applicable, such as currency rates, interest rate yield curves, option volatility, and equity prices (Level 2).

As of June 30, 2025 and December 31, 2024, we did not have any assets or liabilities requiring measurement at fair value on a recurring basis with significant unobservable inputs that would require a high level of judgment to determine fair value (Level 3).

As of September 30, 2025 and December 31, 2024, we did not have any assets or liabilities requiring measurement at fair value on a recurring basis with significant unobservable inputs that would require a high level of judgment to determine fair value (Level 3).

We elect to account for available-for-sale debt securities denominated in currencies other than the functional currency of our subsidiaries under the fair value option.

Election of the fair value option allows us to recognize any gains and losses from fair value changes on such investments in other income (expense), net on the condensed consolidated statements of income (loss) to significantly reduce the accounting asymmetry that would otherwise arise when recognizing the corresponding foreign exchange gains and losses relating to customer liabilities.

The following table summarizes the estimated fair value and amortized cost of our available-for-sale debt securities under the fair value option as of June 30, 2025 and December 31, 2024:

June 30, 2025 December 31, 2024

The following table summarizes the estimated fair value and amortized cost of our available-for-sale debt securities under the fair value option as of September 30, 2025 and December 31, 2024:

September 30, 2025 December 31, 2024

Amortized Cost Fair Value Amortized Cost Fair Value

1 unchanged sentence

Funds receivable and customer accounts $ 741 $ 741 $ 566 $ 564

The following table summarizes the gains (losses) from fair value changes recognized in other income (expense), net related to the available-for-sale debt securities under the fair value option for the three and six months ended June 30, 2025 and 2024:

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

2 unchanged sentences

ASSETS MEASURED AND RECORDED AT FAIR VALUE ON A NON-RECURRING BASIS

The following tables summarize our assets held as of June 30, 2025 and December 31, 2024 for which a non-recurring fair value measurement was recorded during the six months ended June 30, 2025 and the year ended December 31, 2024, respectively:

June 30, 2025 Significant Other

The following tables summarize our assets held as of September 30, 2025 and December 31, 2024 for which a non-recurring fair value measurement was recorded during the nine months ended September 30, 2025 and the year ended December 31, 2024, respectively:

September 30, 2025 Significant Other

Observable Inputs

4 unchanged sentences

Total $ 1,646 $ 1,632 $ 14

(1) Excludes non-marketable equity securities of $ 1.1 billion accounted for under the Measurement Alternative for which no observable price changes occurred during the six months ended June 30, 2025.

(1) Excludes non-marketable equity securities of $ 1.1 billion accounted for under the Measurement Alternative for which no observable price changes occurred during the nine months ended September 30, 2025.

December 31, 2024 Significant Other

9 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

We measure loans and interest receivable, held for sale using observable inputs, such as the most recent executed prices for comparable loans sold to a global investment firm as a part of a multi-year agreement to sell certain loans receivable.

Accordingly, loans and interest receivable, held for sale are classified within Level 2 in the fair value hierarchy.

We measure loans and interest receivable, held for sale that are comparable to loans receivable sold to third-party investors using observable inputs, such as the most recent executed prices.

These loans and interest receivable, held for sale are classified within Level 2 in the fair value hierarchy.

Certain loans and interest receivable, held for sale are valued using significant unobservable inputs, such as adjustments to recently executed prices.

These loans and interest receivable, held for sale are classified within Level 3 in the fair value hierarchy.

Refer to “Note 11—Loans and Interest Receivable” for additional information on loans and interest receivable, held for sale.

4 unchanged sentences

Our financial instruments, including cash and certain cash equivalents, restricted cash, time deposits, reverse repurchase agreements, loans and interest receivable, net, certain customer accounts, notes receivable, and long-term debt related to borrowings on our credit facilities are carried at amortized cost, which approximates their fair value.

Our term debt (including current portion) had a carrying value of approximately $ 10.8 billion and fair value of approximately $ 10.2 billion as of June 30, 2025.

Our term debt (including current portion) had a carrying value of approximately $ 10.8 billion and fair value of approximately $ 10.4 billion as of September 30, 2025.

Our term debt (including current portion) had a carrying value of approximately $ 10.5 billion and fair value of approximately $ 9.8 billion as of December 31, 2024.

23 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

As of June 30, 2025, we estimated that $ 277 million of net derivative losses related to our cash flow hedges included in AOCI are expected to be reclassified into earnings within the next 12 months.

During the three and six months ended June 30, 2025 and 2024, we did not discontinue any cash flow hedges because it was probable that the original forecasted transaction would not occur and as such, did not reclassify any gains or losses to earnings prior to the occurrence of the hedged transaction.

As of September 30, 2025, we estimated that $ 199 million of net derivative losses related to our cash flow hedges included in AOCI are expected to be reclassified into earnings within the next 12 months.

During the three and nine months ended September 30, 2025 and 2024, we did not discontinue any cash flow hedges because it was probable that the original forecasted transaction would not occur and as such, did not reclassify any gains or losses to earnings prior to the occurrence of the hedged transaction.

If we elect to discontinue our cash flow hedges and it is probable that the original forecasted transaction will occur, we continue to report the derivative’s gain or loss in AOCI until the forecasted transaction affects earnings, at which point we also reclassify it into earnings.

13 unchanged sentences

FAIR VALUE OF DERIVATIVE CONTRACTS

The fair value of our outstanding derivative instruments as of June 30, 2025 and December 31, 2024 was as follows:

Balance Sheet Location June 30,

The fair value of our outstanding derivative instruments as of September 30, 2025 and December 31, 2024 was as follows:

Balance Sheet Location September 30,

2025 December 31,

16 unchanged sentences

The following tables provide the location in the condensed consolidated statements of income (loss) and amount of recognized gains or losses related to our derivative instruments:

Three Months Ended June 30,

Three Months Ended September 30,

(In millions)

11 unchanged sentences

$ ( 49 ) $ 62 $ ( 12 ) $ ( 157 )

Six Months Ended June 30,

Nine Months Ended September 30,

(In millions)

14 unchanged sentences

The following table provides the amount of pre-tax unrealized gains or losses included in the assessment of hedge effectiveness related to our derivative instruments designated as hedging instruments that are recognized in other comprehensive income (loss):

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

3 unchanged sentences

Unrealized net gains (losses) on foreign exchange contracts designated as net investment hedges

— ( 149 ) — 50

Total unrealized net gains (losses) recognized from derivative contracts designated as hedging instruments in the condensed consolidated statements of comprehensive income (loss)

4 unchanged sentences

The notional amount is generally not exchanged, but is used only as the underlying basis on which the value of foreign currency exchange payments under these contracts is determined.

The following table provides the notional amounts of our outstanding derivatives:

The following table provides the notional amounts of our outstanding derivative instruments:

September 30,

2025 December 31,

19 unchanged sentences

(In millions)

As of June 30, 2025

As of September 30, 2025

Derivative assets (3)

12 unchanged sentences

(In millions)

As of June 30, 2025

As of September 30, 2025

Derivative liabilities (3)

7 unchanged sentences

For reverse repurchase agreements, these securities are not included in the condensed consolidated balance sheet unless the counterparty defaults.

(3) We received cash collateral from derivative counterparties totaling $ 17 million and $ 162 million as of June 30, 2025 and December 31, 2024, respectively, and securities from derivative counterparties with a fair value of nil and $ 30 million as of June 30, 2025 and December 31, 2024, respectively.

We posted $ 323 million and $ 7 million of cash collateral as of June 30, 2025 and December 31, 2024, respectively.

(3) We received cash collateral from derivative counterparties totaling $ 7 million and $ 162 million as of September 30, 2025 and December 31, 2024, respectively, and securities from derivative counterparties with a fair value of $ 35 million and $ 30 million as of September 30, 2025 and December 31, 2024, respectively.

We posted $ 214 million and $ 7 million of cash collateral as of September 30, 2025 and December 31, 2024, respectively, and securities to derivative counterparties with a fair value of $ 50 million and nil as of September 30, 2025 and December 31, 2024, respectively.

(4) PayPal is permitted by contract to sell or repledge collateral relating to its reverse repurchase agreements.

The fair value of this collateral was nil and $ 96 million as of June 30, 2025 and December 31, 2024, respectively.

As of June 30, 2025 and December 31, 2024, we have not sold or repledged collateral relating to reverse repurchase agreements.

The fair value of this collateral was nil and $ 96 million as of September 30, 2025 and December 31, 2024, respectively.

As of September 30, 2025 and December 31, 2024, we have not sold or repledged collateral relating to reverse repurchase agreements.

NOTE 11— LOANS AND INTEREST RECEIVABLE

LOANS AND INTEREST RECEIVABLE, HELD FOR SALE

In June 2023, we entered into a multi-year agreement with a global investment firm to sell our eligible consumer installment receivables portfolio, including a forward-flow arrangement for the sale of future originations.

In December 2024, this agreement was amended and restated to extend the commitment period to December 2026 and to increase the maximum balance of loans that can be sold at a time.

Loans and interest receivable, held for sale are recorded at the lower of cost or fair value, determined on an aggregate basis, with valuation changes and any associated charge-offs recorded in restructuring and other on our condensed consolidated statements of income (loss).

As of June 30, 2025 and December 31, 2024, loans and interest receivable, held for sale was $ 817 million and $ 541 million, respectively.

During the six months ended June 30, 2025, we derecognized loans with an unpaid balance of $ 11.6 billion and had net proceeds of $ 11.6 billion from loans and interest receivable sold in connection with the above-mentioned agreement.

During the six months ended June 30, 2024, we derecognized loans with an unpaid balance of $ 9.7 billion and had net proceeds of $ 9.6 billion, from loans and interest receivable sold in connection with the above-mentioned agreement.

We classify our loans and interest receivable based on management intent.

When PayPal has the intent to sell the loans to third-party investors they are classified as loans and interest receivable, held for sale on our condensed consolidated balance sheets and are recorded at the lower of cost or fair value, determined on an aggregate basis, with valuation changes and any associated charge-offs recorded in restructuring and other on our condensed consolidated statements of income (loss).

In connection with the sale of certain portfolios to third-party investors and the reclassification and measurement of those portfolios as held for sale, we reverse the previously recorded allowances for credit losses associated with those loans and interest receivable balances.

We receive a market-based service fee for servicing the loans sold.

When PayPal has the intent and ability to hold the loans for the foreseeable future they are classified as loans and interest receivable, net on our condensed consolidated balance sheets and are reported at their outstanding balances, net of any participation interests sold, unamortized deferred origination fees and costs, and allowance for credit losses.

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

LOANS AND INTEREST RECEIVABLE, HELD FOR SALE

As of September 30, 2025 and December 31, 2024, loans and interest receivable, held for sale was $ 1.4 billion and $ 541 million, respectively, and include both loans reclassified to held for sale and loans originated as held for sale.

During the nine months ended September 30, 2025 we reclassified approximately $ 574 million of loans and interest receivable, net to loans and interest receivable, held for sale.

During the nine months ended September 30, 2025, we derecognized loans with an unpaid balance of $ 18.3 billion and had net proceeds of $ 18.2 billion from loans and interest receivable sold.

During the nine months ended September 30, 2024, we derecognized loans with an unpaid balance of $ 14.8 billion and had net proceeds of $ 14.7 billion, from loans and interest receivable sold.

LOANS AND INTEREST RECEIVABLE, NET

1 unchanged sentence

We offer revolving and installment credit products as a funding option for consumers in certain checkout transactions on our payments platform.

Our revolving credit product consists of PayPal Credit in the U.K., which is made available to consumers as a funding source in their PayPal wallet once they are approved for credit.

Our revolving credit product consists of PayPal Credit in the United Kingdom (“U.K.”), which is made available to consumers as a funding source in their PayPal wallet once they are approved for credit.

Additionally, we offer installment credit products at the time of checkout in various markets, including the U.S., several markets across Europe, Australia, and Japan.

2 unchanged sentences

consumers by an independent chartered financial institution (“partner institution”) and are responsible for the servicing functions related to that portfolio.

During the six months ended June 30, 2025 and 2024, we purchased approximately $ 602 million and $ 217 million in consumer receivables, respectively.

As of June 30, 2025 and December 31, 2024, the outstanding balance of consumer receivables, which consisted of revolving and installment loans and interest receivable, was $ 5.8 billion and $ 5.4 billion, respectively, net of the participation interest sold to the partner institution of $ 26 million and $ 23 million, respectively.

During the nine months ended September 30, 2025 and 2024, we purchased approximately $ 934 million and $ 390 million in consumer receivables, respectively.

As of September 30, 2025 and December 31, 2024, the outstanding balance of consumer receivables, which consisted of revolving and installment loans and interest receivable, was $ 5.2 billion and $ 5.4 billion, respectively, net of the participation interest sold to the partner institution of $ 28 million and $ 23 million, respectively.

We closely monitor the credit quality of our consumer receivables to evaluate and manage our related exposure to credit risk.

2 unchanged sentences

We use delinquency status and trends to assist in making (or, for interest-bearing installment loans in the U.S., to assist the partner institution in making) new and ongoing credit decisions, to adjust our models, to plan our collection practices and strategies, and in determining our allowance for consumer loans and interest receivable.

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Consumer receivables delinquency and allowance

2 unchanged sentences

The “current” category represents balances that are within 29 days of the billing date or contractual repayment date, as applicable.

June 30, 2025

September 30, 2025

(In millions, except percentages)

8 unchanged sentences

Total $ 2,696 $ 1,778 $ 516 $ 179 $ 6 $ — $ 5,175 100 %

Gross charge-offs for the six months ended June 30, 2025

Gross charge-offs for the nine months ended September 30, 2025

$ 103 $ 18 $ 96 $ 10 $ 1 $ — $ 228

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

December 31, 2024

11 unchanged sentences

$ 138 $ 39 $ 133 $ 14 $ — $ — $ 324

The following table summarizes the activity in the allowance for consumer loans and interest receivable for the six months ended June 30, 2025 and 2024:

June 30, 2025 June 30, 2024

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The following table summarizes the activity in the allowance for consumer loans and interest receivable for the nine months ended September 30, 2025 and 2024:

September 30, 2025 September 30, 2024

Consumer Loans Receivable Interest Receivable Total Allowance (1)

2 unchanged sentences

Beginning balance $ 341 $ 7 $ 348 $ 357 $ 23 $ 380

Changes in allowance due to reclassification of loans and interest receivable to or from held for sale ( 23 ) — ( 23 ) — — —

Provisions 181 10 191 175 5 180

3 unchanged sentences

Ending balance $ 348 $ 4 $ 352 $ 346 $ 11 $ 357

(1) Beginning balances, provisions and charge-offs include amounts related to loans and interest receivable prior to their reclassification to loan and interest receivable, held for sale during the period.

(2) Includes amounts related to foreign currency remeasurement.

The allowance for credit losses at June 30, 2025 for our consumer receivable portfolio was $ 377 million, an increase from $ 348 million at December 31, 2024.

The increase in allowance for credit losses was primarily attributable to growth in revolving loans in the U.K.

and installment loans in Japan.

The allowance for credit losses at September 30, 2025 for our consumer receivable portfolio remained consistent with the allowance for credit losses at December 31, 2024.

In the second quarter of 2025, we updated our expected credit loss model for our revolving loans in the U.K.

6 unchanged sentences

merchants by a partner institution and are responsible for the servicing functions related to that portfolio.

During the six months ended June 30, 2025 and 2024, we purchased approximately $ 1.0 billion and $ 774 million in merchant receivables, respectively.

As of June 30, 2025 and December 31, 2024, the total outstanding balance in our pool of merchant loans, advances, and interest and fees receivable was $ 1.7 billion and $ 1.5 billion, net of the participation interest sold to the partner institution of $ 59 million and $ 53 million, respectively.

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

During the nine months ended September 30, 2025 and 2024, we purchased approximately $ 1.6 billion and $ 1.2 billion in merchant receivables, respectively.

As of September 30, 2025 and December 31, 2024, the total outstanding balance in our pool of merchant loans, advances, and interest and fees receivable was $ 1.7 billion and $ 1.5 billion, net of the participation interest sold to the partner institution of $ 62 million and $ 53 million, respectively.

Through our PPWC product, merchants can borrow a certain percentage of their annual payment volume processed by PayPal and are charged a fixed fee for the loan or advance based on the overall credit assessment of the merchant.

10 unchanged sentences

For PPBL, we receive fixed periodic payments over the contractual term of the loan, which generally ranges from 3 to 12 months.

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

We actively monitor receivables with repayment periods greater than the original expected or contractual repayment period, as well as the credit quality of our merchant loans and advances that we extend or purchase, so that we can evaluate, quantify, and manage our credit risk exposure.

6 unchanged sentences

The “current” category represents balances that are within 29 days of the expected repayment date or contractual repayment date, as applicable.

June 30, 2025

September 30, 2025

(In millions, except percentages)

7 unchanged sentences

Total $ 1,511 $ 196 $ 16 $ 9 $ 1 $ 3 $ 1,736 100.0 %

Gross charge-offs for the six months ended June 30, 2025

Gross charge-offs for the nine months ended September 30, 2025

$ 6 $ 69 $ 17 $ 3 $ — $ 2 $ 97

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

December 31, 2024

10 unchanged sentences

$ 10 $ 96 $ 42 $ — $ 8 $ — $ 156

The following table summarizes the activity in the allowance for merchant loans, advances, and interest and fees receivable for the six months ended June 30, 2025 and 2024:

June 30, 2025 June 30, 2024

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The following table summarizes the activity in the allowance for merchant loans, advances, and interest and fees receivable for the nine months ended September 30, 2025 and 2024:

September 30, 2025 September 30, 2024

Merchant Loans and Advances Interest and Fees Receivable Total Allowance Merchant Loans and Advances Interest and Fees Receivable Total Allowance

6 unchanged sentences

(1) Includes amounts related to foreign currency remeasurement.

The allowance for credit losses at June 30, 2025 for our merchant receivable portfolio was $ 147 million, an increase from $ 113 million at December 31, 2024.

The allowance for credit losses at September 30, 2025 for our merchant receivable portfolio was $ 163 million, an increase from $ 113 million at December 31, 2024.

The increase in allowance for credit losses was related to a decline in credit quality of merchant loans outstanding primarily from modifications in acceptable risk parameters in 2024, which included broadened eligibility.

1 unchanged sentence

These changes did not have a material impact on our allowance for credit losses in the period.

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

NOTE 12— DEBT

4 unchanged sentences

Interest on the 2035 Notes is payable on April 1 and October 1 of each year, beginning on October 1, 2025.

In May 2024, June 2023, May 2022, May 2020, and September 2019, we issued fixed rate notes with varying maturity dates for an aggregate principal amount of $ 1.3 billion, ¥ 90 billion (approximately $ 622 million as of June 30, 2025), $ 3.0 billion, $ 4.0 billion and $ 5.0 billion, respectively.

In May 2024, June 2023, May 2022, May 2020, and September 2019, we issued fixed rate notes with varying maturity dates for an aggregate principal amount of $ 1.3 billion, ¥ 90 billion (approximately $ 606 million as of September 30, 2025), $ 3.0 billion, $ 4.0 billion and $ 5.0 billion, respectively.

The notes issued from the March 2025, May 2024, June 2023, May 2022, May 2020, and September 2019 debt issuances are senior unsecured obligations and are collectively referred to as the “Notes.” Except for the June 2023 debt issuance and 2028 Floating Rate Notes, we may redeem the Notes in whole at any time or in part from time to time, prior to maturity, at their redemption prices.

4 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

As of June 30, 2025 and December 31, 2024, we had an outstanding aggregate principal amount of $ 10.9 billion and $ 10.6 billion, respectively, related to the Notes.

As of September 30, 2025 and December 31, 2024, we had an outstanding aggregate principal amount of $ 10.9 billion and $ 10.6 billion, respectively, related to the Notes.

The following table summarizes the Notes outstanding:

Maturities Effective Interest Rate June 30,

Maturities Effective Interest Rate September 30,

2025 December 31,

46 unchanged sentences

(1) Principal amounts represent the U.S.

dollar equivalent as of June 30, 2025 and December 31, 2024, respectively.

dollar equivalent as of September 30, 2025 and December 31, 2024, respectively.

(2) The current portion of term debt is included within “accrued expenses and other current liabilities” on our condensed consolidated balance sheets.

The effective interest rates for the Notes include interest on the Notes, amortization of debt issuance costs, and amortization of the debt discount.

The interest expense recorded for the Notes, including amortization of the debt discount and debt issuance costs, was $ 110 million and $ 208 million for the three and six months ended June 30, 2025, respectively.

The interest expense recorded for the Notes, including amortization of the debt discount and debt issuance costs, was $ 90 million and $ 174 million for the three and six months ended June 30, 2024, respectively.

The interest expense recorded for the Notes, including amortization of the debt discount and debt issuance costs, was $ 107 million and $ 315 million for the three and nine months ended September 30, 2025, respectively.

The interest expense recorded for the Notes, including amortization of the debt discount and debt issuance costs, was $ 100 million and $ 274 million for the three and nine months ended September 30, 2024, respectively.

PayPal Holdings, Inc.

2 unchanged sentences

Paidy credit agreement

In February 2022, we entered into a credit agreement (the “Paidy Credit Agreement”) with Paidy as co-borrower, which provided for an unsecured revolving credit facility of ¥ 60.0 billion, which was modified in September 2022 to increase the borrowing capacity by ¥ 30.0 billion for a total borrowing capacity of ¥ 90.0 billion (approximately $ 622 million as of June 30, 2025).

As of June 30, 2025 and December 31, 2024, ¥ 90.0 billion (approximately $ 622 million) and ¥ 90.0 billion (approximately $ 574 million) was drawn down under the Paidy Credit Agreement, respectively, which was recorded in long-term debt on our condensed consolidated balance sheets.

At June 30, 2025, no borrowing capacity was available for the purposes permitted by the Paidy Credit Agreement.

During the three and six months ended June 30, 2025 and 2024, the total interest expense and fees we recorded related to the Paidy Credit Agreement were de minimis.

As of September 30, 2025 and December 31, 2024, ¥ 90.0 billion (approximately $ 606 million) and ¥ 90.0 billion (approximately $ 574 million) was drawn down under the Paidy Credit Agreement, respectively, which was recorded in long-term debt on our condensed consolidated balance sheets.

At September 30, 2025, no borrowing capacity was available for the purposes permitted by the Paidy Credit Agreement.

During the three and nine months ended September 30, 2025 and 2024, the total interest expense and fees we recorded related to the Paidy Credit Agreement were de minimis.

FUTURE PRINCIPAL PAYMENTS

As of June 30, 2025, the future principal payments associated with our term debt were as follows (in millions):

Remaining 2025

As of September 30, 2025, the future principal payments associated with our term debt were as follows (in millions):

Thereafter 6,350

14 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Amounts accrued for legal and regulatory proceedings for which we believe a loss is probable and reasonably estimable were not material as of June 30, 2025.

Amounts accrued for legal and regulatory proceedings for which we believe a loss is probable and reasonably estimable were not material as of September 30, 2025.

Except as otherwise noted for the proceedings described in this Note 13, we have concluded, based on currently available information, that reasonably possible losses arising directly from the proceedings (i.e., monetary damages or amounts paid in judgment or settlement) in excess of our recorded accruals are also not material.

3 unchanged sentences

Regulatory proceedings

PayPal Australia Pty Limited (“PPAU”) self-reported a potential violation to the Australian Transaction Reports and Analysis Centre (“AUSTRAC”) on May 22, 2019.

This self-reported matter relates to PPAU incorrectly filing required international funds transfer instructions over a period of time under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (“AML/CTF Act”).

On September 23, 2019, PPAU received a notice from AUSTRAC requiring that PPAU appoint an external auditor (a partner of a firm which is not our independent auditor) to review certain aspects of PPAU’s compliance with its obligations under the AML/CTF Act.

The external auditor was appointed on November 1, 2019.

AUSTRAC had notified PPAU that its enforcement team was investigating the matters reported upon by the external auditor in its August 31, 2020 final report.

As a resolution of this investigation, on March 17, 2023, AUSTRAC’s Chief Executive Officer accepted an enforceable undertaking from PPAU in relation to the self-reported issues.

The enforceable undertaking did not include a monetary penalty.

PPAU was required to deliver an Assurance Action Plan (“AAP”) under the enforceable undertaking to demonstrate that the governance and oversight arrangements following the remedial work completed by PPAU are sustainable and appropriate.

The enforceable undertaking required PPAU to appoint an external auditor.

The external auditor was appointed on June 22, 2023 to assess and report on the appropriateness, sustainability and efficacy of the actions to be taken under the AAP.

PPAU provided the external auditor’s final report to AUSTRAC on April 16, 2024.

The successful completion of the enforceable undertaking was subject to AUSTRAC’s ultimate review and decision based on the external auditor’s final report.

On July 22, 2025, AUSTRAC gave PPAU written notice of its decision with immediate effect to cancel the enforceable undertaking.

This matter is now concluded.

In February 2022, we received a Civil Investigative Demand (“CID”) from the Federal Trade Commission (“FTC”) related to PayPal’s practices relating to commercial customers that submit charges on behalf of other merchants or sellers, and related activities.

The CID requests the production of documents and answers to written questions.

We are cooperating with the FTC in connection with this CID.

In August 2025, we received an additional CID investigating whether deceptive schemes and other unlawful activities by merchants using PayPal’s platform were facilitated or furthered by the Company’s onboarding, due diligence, and other practices.

The CIDs request the production of documents and answers to written questions, as well as other information.

We are cooperating with the FTC in connection with these CIDs.

In January 2023, we received notice of an administrative proceeding and a related request for information from the German Federal Cartel Office (“FCO”) related to terms in PayPal (Europe) S.à.r.l.

8 unchanged sentences

We are cooperating with the CFPB in connection with this CID.

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Legal proceedings

13 unchanged sentences

On March 17, 2025, the lead plaintiff filed an amended complaint.

Defendants have filed a motion to dismiss the amended complaint.

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

On November 2, 2022, a putative shareholder derivative action captioned Shah v.

19 unchanged sentences

On July 14, 2023, the court denied Defendants’ motion to dismiss the complaint.

Trial is scheduled to begin in October 2025.

We expect to reach a final settlement in this matter in the fourth quarter of 2025.

General matters

4 unchanged sentences

Intellectual property claims, whether meritorious or not, are time-consuming and costly to defend and resolve, could require expensive changes in our methods of doing business, or could require us to enter into costly royalty or licensing agreements on unfavorable terms or make substantial payments to settle claims or to satisfy damages awarded by courts.

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

From time to time, we are involved in other disputes or regulatory inquiries that arise in the ordinary course of business, including suits by our consumers (individually or as class actions), merchants or regulators alleging, among other things, improper disclosure of our prices, rules, or policies, that our practices, prices, rules, policies, or user, product, business or merchant agreements violate applicable law, or that we have acted unfairly or not acted in conformity with such prices, rules, policies, or agreements.

2 unchanged sentences

Any claims or regulatory actions against us, whether meritorious or not, could be time consuming, result in costly litigation, settlement payments, damage awards (including statutory damages for certain causes of action in certain jurisdictions), fines, penalties, injunctive relief, or increased costs of doing business through adverse judgment or settlement, require us to change our products, services, or business practices in expensive ways, require significant amounts of management time, result in the diversion of significant operational resources, or otherwise harm our business.

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

INDEMNIFICATION PROVISIONS

13 unchanged sentences

We have agreed, under certain circumstances, to indemnify the chartered financial institution and its assignee of a portion of these loans in connection with the services provided for loans made under this program.

As part of the agreement to sell a portion of our consumer installment receivables portfolio, in certain circumstances such as breaches in loan warranties, we may be required to indemnify the global investment firm that purchased the loans or repurchase the loans.

As part of agreements to sell certain loans receivable portfolios, in certain circumstances such as breaches in loan warranties, we may be required to indemnify the third-party investors that purchased the loans or repurchase the loans.

The estimate of the maximum potential amount of future payments we may be required to make is equal to the current outstanding balances of the loans sold;

however, the maximum potential amount of the indemnification is not, in our view, representative of the expected future exposure.

As of June 30, 2025 and December 31, 2024, the current outstanding balances of the loans sold was $ 3.2 billion and $ 2.9 billion, respectively.

The terms of the indemnification align to the maturities of the loans sold.

As of September 30, 2025 and December 31, 2024, the current outstanding balances of the loans sold was $ 3.4 billion and $ 2.9 billion, respectively.

The term of the indemnification obligations align to the maturities of the loans sold.

To date, no significant costs have been incurred, either individually or collectively, in connection with our indemnification provisions.

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

OFF-BALANCE SHEET ARRANGEMENTS

As of June 30, 2025 and December 31, 2024, we had no off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on our consolidated financial condition, results of operations, liquidity, capital expenditures, or capital resources.

As of September 30, 2025 and December 31, 2024, we had no off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on our consolidated financial condition, results of operations, liquidity, capital expenditures, or capital resources.

PROTECTION PROGRAMS

6 unchanged sentences

The allowance for negative customer balances represents our estimate of current expected credit losses on negative customer balances.

At June 30, 2025 and December 31, 2024, the allowance for transaction losses was $ 89 million and $ 86 million, respectively.

The allowance for negative customer balances was $ 263 million and $ 256 million at June 30, 2025 and December 31, 2024, respectively.

The following table shows changes in the allowance for transaction losses and negative customer balances related to our protection programs for the three and six months ended June 30, 2025 and 2024:

Three Months Ended June 30, Six Months Ended June 30,

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

At September 30, 2025 and December 31, 2024, the allowance for transaction losses was $ 85 million and $ 86 million, respectively.

The allowance for negative customer balances was $ 334 million and $ 256 million at September 30, 2025 and December 31, 2024, respectively.

The following table shows changes in the allowance for transaction losses and negative customer balances related to our protection programs for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

5 unchanged sentences

Recoveries (2)

41 53 109 117

Ending balance $ 419 $ 306 $ 419 $ 306

2 unchanged sentences

NOTE 14— STOCK REPURCHASE PROGRAMS

During the six months ended June 30, 2025, we repurchased approximately 41 million shares of our common stock for approximately $ 3.0 billion at an average cost of $ 72.45 , excluding excise tax.

During the nine months ended September 30, 2025, we repurchased approximately 63 million shares of our common stock for approximately $ 4.5 billion at an average cost of $ 71.78 , excluding excise tax.

These shares were purchased in the open market under our stock repurchase program authorized in June 2022.

As of June 30, 2025, a total of approximately $ 1.9 billion and $ 15.0 billion remained available for future repurchases of our common stock under our June 2022 and February 2025 stock repurchase programs, respectively.

For both the six months ended June 30, 2025 and 2024, we recorded $ 25 million in excise tax within treasury stock on our condensed consolidated balance sheets.

As of September 30, 2025, a total of approximately $ 355 million and $ 15.0 billion remained available for future repurchases of our common stock under our June 2022 and February 2025 stock repurchase programs, respectively.

For the nine months ended September 30, 2025 and 2024, we recorded $ 38 million and $ 40 million in excise tax within treasury stock on our condensed consolidated balance sheets.

The payable associated with the excise tax is a non-cash financing activity which is not reflected on the condensed consolidated statement of cash flows until settlement.

2 unchanged sentences

2015 Equity Incentive Award Plan.

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

STOCK-BASED COMPENSATION EXPENSE

Stock-based compensation expense is measured based on the estimated fair value of shares at the time of grant and recognized over the award’s vesting period.

The following table summarizes the impact of stock-based compensation expense on our results of operations for the three and six months ended June 30, 2025 and 2024:

Three Months Ended June 30, Six Months Ended June 30,

The following table summarizes the impact of stock-based compensation expense on our results of operations for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

7 unchanged sentences

Capitalized as part of internal use software and website development costs $ 33 $ 32 $ 101 $ 77

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

NOTE 16— INCOME TAXES

Our effective tax rate for the three and six months ended June 30, 2025 was 18 % and 19 %, respectively.

Our effective tax rate for the three and six months ended June 30, 2024 was 19 % and 23 %, respectively.

Our effective tax rate for both the three and nine months ended September 30, 2025 was 19 %.

Our effective tax rate for both the three and nine months ended September 30, 2024 was 23 %.

The difference between our effective tax rate and the U.S.

2 unchanged sentences

Certain countries in which we do business have enacted legislation that became effective as of January 1, 2025.

Our effective tax rate for the three and six months ended June 30, 2025 includes the impact of Pillar Two minimum taxes in these jurisdictions.

Our effective tax rate for the three and nine months ended September 30, 2025 includes the impact of Pillar Two minimum taxes in these jurisdictions.

On July 4, 2025, the One Big Beautiful Bill Act (the “Act”) was enacted into law in the U.S., with certain provisions of the Act effective in 2025 and other provisions becoming effective in 2026 and beyond.

We are in the process of evaluating the impacts of the Act to our consolidated financial statements.

Gross unrecognized tax benefits were approximately $ 2.4 billion and $ 2.3 billion as of June 30, 2025 and December 31, 2024, respectively.

The provisions of the Act effective in 2025 were not material and have been reflected in our results, as applicable.

Gross unrecognized tax benefits were approximately $ 2.5 billion and $ 2.3 billion as of September 30, 2025 and December 31, 2024, respectively.

Due to various factors, including uncertainties of the judicial, administrative, and regulatory processes in certain jurisdictions, the timing of the resolution of these unrecognized tax benefits is highly uncertain.

1 unchanged sentence

These adjustments or settlements could result in changes to our unrecognized tax benefits related to positions on prior year tax filings.

Given the number of years remaining subject to examination and the number of matters being examined, we were unable to estimate the full range of possible adjustments to the balance of gross unrecognized tax benefits.

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Given the number of years remaining subject to examination and the number of matters being examined, we are unable to estimate the full range of possible adjustments to the balance of gross unrecognized tax benefits.

NOTE 17— RESTRUCTURING AND OTHER

5 unchanged sentences

The plan is expected to be executed over a period of 18 to 42 months with the workforce component to be substantially completed in 2027 and the technology infrastructure component to be substantially completed in 2028.

The associated restructuring charges for both the three and six months ended June 30, 2025 were $ 95 million and included employee severance and benefits costs.

The associated restructuring charges for the three and nine months ended September 30, 2025 were de minimis and $ 96 million, respectively, and included employee severance and benefits costs.

In connection with this restructuring, we expect to incur employee severance and benefits costs of approximately $ 90 million to $ 100 million, asset impairment and accelerated depreciation charges of approximately $ 40 million to $ 60 million, and other restructuring costs of approximately $ 110 million to $ 140 million over the term of the Q2 2025 Plan.

1 unchanged sentence

The timing of activities and cost estimates continue to be developed and are subject to change.

The following table summarizes the restructuring reserve activity during the six months ended June 30, 2025:

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

The following table summarizes the restructuring reserve activity during the nine months ended September 30, 2025:

Employee Severance and Benefits Costs

1 unchanged sentence

Accrued liability as of January 1, 2025

Accrued liability as of June 30, 2025

Payments ( 15 )

Accrued liability as of September 30, 2025

During the first quarter of 2025, management initiated a workforce reduction to ensure compliance with a new regulation impacting operations in an international market.

The associated restructuring charges during the six months ended June 30, 2025 were $ 36 million and included employee severance and benefits costs, which were substantially completed as of June 30, 2025.

The following table summarizes the restructuring reserve activity during the six months ended June 30, 2025:

The associated restructuring charges during the nine months ended September 30, 2025 were $ 36 million and included employee severance and benefits costs, which was completed in the third quarter of 2025.

The following table summarizes the restructuring reserve activity during the nine months ended September 30, 2025:

Employee Severance and Benefits Costs

2 unchanged sentences

Payments ( 36 )

Accrued liability as of June 30, 2025

Accrued liability as of September 30, 2025

During the first quarter of 2024, management initiated a global workforce reduction intended to streamline operations, focus resources on core strategic priorities, and improve our cost structure.

The associated restructuring charges during the three and nine months ended September 30, 2024 were $ 36 million and $ 294 million, respectively, and included employee severance and benefits costs and stock-based compensation expense, which were substantially completed in the fourth quarter of 2024.

During the three and nine months ended September 30, 2025, approximately $ 70 million and $ 122 million, respectively, of losses were recorded in restructuring and other, which included net loss on sale of loans and interest receivable previously held for sale and fair value adjustments to measure loans and interest receivable, held for sale, at the lower of cost or fair value.

During the three and nine months ended September 30, 2024, approximately $ 28 million and $ 92 million, respectively, of losses were recorded in restructuring and other, which included net loss on sale of loans and interest receivable previously held for sale and fair value adjustments to measure loans and interest receivable, held for sale, at the lower of cost or fair value.

PayPal Holdings, Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

During the first quarter of 2024, management initiated a global workforce reduction intended to streamline operations, focus resources on core strategic priorities, and improve our cost structure.

The associated restructuring charges during the three and six months ended June 30, 2024 were $ 83 million and $ 258 million, and included employee severance and benefits costs and stock-based compensation expense, which were substantially completed in the fourth quarter of 2024.

During the three and six months ended June 30, 2025, approximately $ 27 million and $ 52 million, respectively, of losses were recorded in restructuring and other, which included net loss on sale of loans and interest receivable previously held for sale and fair value adjustments to measure loans and interest receivable, held for sale, at the lower of cost or fair value.

During the three and six months ended June 30, 2024, approximately $ 27 million and $ 64 million, respectively, of losses were recorded in restructuring and other, which included net loss on sale of loans and interest receivable previously held for sale and fair value adjustments to measure loans and interest receivable, held for sale, at the lower of cost or fair value.

NOTE 18— SEGMENT INFORMATION

3 unchanged sentences

The following table sets forth our segment information for revenue, segment profit (loss), and significant expenses:

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

17 unchanged sentences

(1) Includes depreciation and amortization expense.

For the three and six months ended June 30, 2025, total depreciation and amortization expense was $ 239 million and $ 484 million, respectively.

For the three and six months ended June 30, 2024, total depreciation and amortization expense was $ 263 million and $ 528 million, respectively.

For the three and nine months ended September 30, 2025, total depreciation and amortization expense was $ 245 million and $ 729 million, respectively.

For the three and nine months ended September 30, 2024, total depreciation and amortization expense was $ 255 million and $ 783 million, respectively.

There are no reconciling items or adjustments between segment net revenues, net income, total assets and consolidated net revenues, net income, and total assets.

For disclosure of geographical information, please refer to “Note 2—Revenue”.

NOTE 19— SUBSEQUENT EVENTS

On October 27, 2025, the Company’s Board of Directors declared a cash dividend of $ 0.14 per share on our common stock, totaling approximately $ 130 million.

The dividend will be payable on December 10, 2025, to stockholders of record of our common stock as of the close of business on November 19, 2025.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements