The company raised guidance, embedded stablecoins in its innovation agenda and grouped PYUSD with Braintree and merchant processing inside Payment Services & Crypto.
PayPal processed $486.4 billion in total payment volume in the second quarter, up 10% from a year earlier, while giving crypto a more explicit place in its operating structure through the Payment Services & Crypto unit. The division is not a standalone digital asset business; it combines PYUSD with Braintree, small-business processing, merchant processing and other platform services. Net revenue rose 5% to $8.68 billion, transaction margin dollars increased 1% to $3.9 billion, adjusted free cash flow reached $1.83 billion and non-GAAP earnings were $1.38 per share, down 1% year over year, while GAAP net income fell 12% to $1.10 billion and GAAP operating margin narrowed to 16.4% from 18.1%. PayPal raised its full-year non-GAAP earnings guidance to about $5.38 per share and lifted its transaction margin dollar outlook to roughly $15.6 billion, helping send shares up about 4% on earnings day. The company also listed stablecoins alongside agentic commerce and identity and biometrics in its formal innovation plan and said it expects more merchant products supported by PYUSD and agentic payments over time. PYUSD circulating supply stood near $2.7 billion in early August, below the more than $4 billion recorded in March, showing that broader distribution has not translated into uninterrupted on-chain growth. PayPal recorded $81 million in net losses on strategic investments and crypto assets held for investment, but it did not break out how much of that came from crypto alone.