Paypal has said its CEO will exit as the company missed earnings estimates last quarter, sending shares down 20.3%.
Revenue was up 4% year-over-year to US$8.68 billion, below LSEG estimates of $8.80 billion. Earnings per share rose 3% to $1.23, under estimates of $1.28.
“In 2025, PayPal delivered solid performance across multiple areas of the business. We grew revenue, transaction margin dollars, and earnings per share, underscoring the strength of our increasingly diversified platform,” said interim CEO Jamie Miller.
“At the same time, our execution has not been where it needs to be, particularly in branded checkout.”
Total payment volume rose 9% to $475.1 billion, and payment transactions were up 2% to 6.8 billion. Payment transactions per active account on a 12-month basis fell by 5%.
Growth in branded checkout payment volumes fell from 6% one year ago to 1%. Branded experiences volume growth also halved from 8% to 4%, although Venmo volume growth rose from 10% to 13%.
It expects full-year earnings per share to range from a low single-digit percentage decrease to a slight increase. LSEG estimates had projected 8% growth.
CEO Alex Chriss will exit PayPal, the company said today. “While some progress has been made in a number of areas over the last two years, the pace of change and execution was not in line with the Board's expectations,” it wrote.
HP CEO Enrique Lores will take over the role on 1 March. Miller, currently the company’s CFO, is acting as interim CEO.
PayPal (NASDAQ: PYPL) shares closed 20.3% lower at $41.70, before rising 1.5% in after-hours trading. Its market capitalisation is $39.02 billion.
