Adjusted free cash flow was $656 million, impacted by timing shifts in working capital, with full year free cash flow expected between $6 billion and $7 billion.
Non-GAAP earnings per share increased 18% year-over-year, supported by strong credit performance, branded checkout flow-through, improvements in PSP profitability, and Venmo.
Non-GAAP operating income grew 13% to more than $1.6 billion, with operating margin increasing about 130 basis points to nearly 20%.
PayPal delivered its sixth consecutive quarter of profitable growth with transaction margin dollars growing 8%, excluding interest on customer balances.
Restructuring costs of approximately $92 million were incurred related to workforce actions and tech transformation initiatives.
Share repurchases totaled $1.5 billion in the quarter, with $6 billion repurchased over the past four quarters.
Total active accounts increased by nearly 2 million to 438 million, with monthly active accounts up 2% year-over-year to 226 million.
Total payment volume grew 6% at spot and 5% on a currency-neutral basis to nearly $444 billion.
Transaction revenue accelerated to 4% growth to $7.4 billion, with other value-added services revenue growing 16% to $847 million.
Transaction take rate declined by 4 basis points to 1.68%, driven by foreign exchange hedges, product and merchant mix.
Venmo TPV increased 12%, marking its highest growth rate in 3 years, and branded experiences TPV grew 8% currency neutral.
Dafinchi