PayPal pushes stablecoins, records $81M crypto adjustment

PayPal reported second-quarter earnings of $1.26 per share on Tuesday, down from $1.30 a year earlier and below analysts’ $1.28 estimate. Revenue for the quarter was $8.68 billion, up from $8.29 billion a year earlier and above the $8.47 billion consensus.

The company recorded an $81 million non-GAAP adjustment to reflect valuation changes from strategic investments and crypto assets held for investment. PayPal excludes those gains and losses from non-GAAP results on the basis that it does not actively trade the assets or use them to fund ongoing operations. The adjustment appears in the quarter’s GAAP-to-non-GAAP reconciliation.

Investor presentation materials tied to the quarter outlined plans to expand into stablecoins, agentic payments and identity and biometric technologies. PayPal intends to leverage its payments network, risk infrastructure and trust capabilities to develop the offerings. The presentation described agentic payments as systems that allow software or automated agents to execute payments on behalf of users.

PayPal highlighted activity on its PayPal World platform, reporting roughly $200 million in total payment volume between Venmo and PayPal. The company confirmed that crypto holdings remain part of GAAP reporting even when associated gains and losses are treated as non-GAAP adjustments.

Company materials presented stablecoins and AI-driven payment tools as areas for product development rather than immediate revenue drivers.