PayPal, $81 Million Unrealized Loss in Cryptocurrency...Will its Payment Business Prevent the Shock?

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PayPal (PayPal, PYPL) recorded an $81 million unrealized loss in cryptocurrency. Its payment business exceeded Wall Street expectations, preventing an earnings shock.

According to U.Today, a cryptocurrency specialized media outlet, on July 28 (local time), PayPal recorded an $81 million unrealized loss in strategic investments and held cryptocurrencies in Q2 2026. In Q1, it also incurred a $74 million loss in the same segment. Cryptocurrency-related losses continued for six consecutive months.

The loss reduced GAAP net income to $1.104 billion. It acted as a $0.07 drag on earnings per share. PayPal explained that its cryptocurrency investment assets are separate from operating expenses. It stated that there is no direct impact on the cost structure of its core payment business.

The payment business exceeded market expectations. Revenue was $8.68 billion, surpassing Wall Street's forecast of $8.46 billion. Adjusted earnings per share (EPS) was $1.38, exceeding the estimated $1.27. Total payment volume (TPV) was recorded at $486.45 billion.

Venmo accounted for $93.81 billion of the total transaction volume. The expansion of its in-app debit card business supported this growth. PYUSD expanded its service to 70 countries. Users can receive 4% earnings on their held balances.

PayPal raised its annual earnings per share (EPS) forecast to $5.38. It maintained its annual capital expenditure plan at $1 billion. There are also market speculations that Stripe could acquire PayPal for $53 billion. The Q2 results showed that despite cryptocurrency losses, the core payment business maintained a stable revenue base.

[Article Key Summary]

-PayPal recorded an $81 million unrealized loss in cryptocurrency and strategic investment assets in Q2.

-Revenue was $8.68 billion, and adjusted EPS was $1.38, exceeding market forecasts.

-PayPal raised its annual EPS forecast to $5.38 and maintained its capital expenditure plan at $1 billion.

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