PayPal Holdings Inc. (NASDAQ:PYPL) stock slid on Tuesday after it announced dismal fourth-quarter 2025 results and CEO changes.
The Venmo parent reported a quarterly revenue growth of 4% year-over-year to $8.68 billion, lagging the analyst consensus estimate of $8.80 billion.
The adjusted EPS was $1.23, which missed the analyst consensus estimate of $1.28.
Transaction Metrics
Total payment volumes rose by 9% Y/Y, reaching $475.1 billion in the quarter. The payment transactions rose by 2%, totaling 6.8 billion.
On a trailing 12-month basis, the number of payment transactions per active account decreased by 5%, averaging $57.7.
The total number of active accounts increased by 1.1%, reaching 439 million. Sequentially, active accounts rose by 0.3%, or 1.2 million accounts.
The operating margin improved by 19 basis points to 17.4%. The adjusted operating margin decreased by 9 basis points to 17.9%.
The company generated a quarterly operating cash flow of $2.4 billion, free cash flow of $2.2 billion, and an adjusted free cash flow of $2.1 billion.
Cash, cash equivalents, and investments totaled $14.8 billion as of …