PayPal Holdings (PYPL) risk factors, FY2025 10-K

PayPal Holdings's FY2025 10-K, filed Feb 03, 2026, lists 35 risk factors in 3 groups. Against the prior year's 35: 3 new, 3 dropped, 20 substantially reworded.

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Risk factors listed
353 groups
New this year
3vs 35 last year
Dropped
3since the prior 10-K
Substantially reworded
20of those kept
Section length
13k wordsItem 1A

What the changes say

  • PayPal added new disclosures concerning strategic transactions, ESG expectations, and its recently initiated cash dividend program.

What changed since the prior 10-K

New

  • NewBUSINESS AND OPERATIONS RISKS

    Acquisitions, dispositions, strategic investments, and other strategic transactions could result in operating difficulties and could harm our business

    Evaluating and integrating strategic transactions such as acquisitions and partnerships could cause operating difficulties or fail to succeed.

  • NewBUSINESS AND OPERATIONS RISKS

    Evolving laws, regulations and stakeholder expectations with respect to environmental, social and governance matters could harm our reputation and adversely affect our business

    Evolving global ESG regulations and conflicting stakeholder expectations regarding environmental and social matters could harm reputation and finances.

  • NewBUSINESS AND OPERATIONS RISKS

    There can be no assurance that we will continue to repurchase stock or declare cash dividends, and stock repurchases or dividends could increase the volatility of our stock price and could diminish our cash reserves

    The newly initiated cash dividend program and ongoing share repurchases might increase stock volatility and diminish cash reserves.

Dropped

  • DroppedBUSINESS AND OPERATIONS RISKS

    We expect to continue to consider and evaluate a wide array of potential strategic transactions as part of our overall business

  • DroppedBUSINESS AND OPERATIONS RISKS

    Environmental, social and governance (“ESG”) issues may have an adverse effect on our business, financial condition and results of operations and damage our reputation

  • DroppedBUSINESS AND OPERATIONS RISKS

    materially and adversely affect our effective tax rate, net income, and cash flows

Reworded

  • 91% rewrittenBUSINESS AND OPERATIONS RISKS

    Changes in tax laws, exposure to unanticipated additional tax liabilities, or implementation of reporting or record-keeping obligations could have a material adverse effect on our business

    Added specific mention of the OECD global minimum tax rate of 15% known as Pillar Two.

  • 45% rewrittenBUSINESS AND OPERATIONS RISKS

    Global and regional economic conditions could harm our business

    Added geopolitical threats including political unrest, international trade disputes, new tariffs, and trade tensions involving the U.S.

  • 43% rewrittenBUSINESS AND OPERATIONS RISKS

    We are subject to risks associated with information disseminated through our products and services

    Refined language regarding third-party content moderation and platform policy enforcement measures.

  • 43% rewrittenBUSINESS AND OPERATIONS RISKS

    Any factors that reduce cross-border trade or make such trade more difficult could harm our business

    Expanded cross-border trade risks to explicitly cite trade disputes, new tariffs, and related uncertainties.

  • 39% rewrittenLEGAL, REGULATORY AND COMPLIANCE RISKS

    Cryptocurrency Regulation and Related Risks

    Added obligations under the Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025.

  • 38% rewrittenBUSINESS AND OPERATIONS RISKS

    There are risks associated with our indebtedness

    Expanded potential uses of debt proceeds and limitations to explicitly include dividend payments.

  • 38% rewrittenLEGAL, REGULATORY AND COMPLIANCE RISKS

    Artificial Intelligence (AI)

    Expanded AI risks to include legal uncertainties surrounding system inputs alongside generated outputs.

  • 37% rewrittenBUSINESS AND OPERATIONS RISKS

    Real or perceived inaccuracies in our key metrics may harm our reputation and negatively affect our business

    Added a policy statement that previously reported key metrics are generally not updated for subsequent adjustments unless material.

  • 36% rewrittenBUSINESS AND OPERATIONS RISKS

    Our international operations subject us to increased risks, which could harm our business

  • 35% rewrittenCYBERSECURITY AND TECHNOLOGY RISKS

    If we cannot keep pace with rapid technological developments to provide new and innovative products and services, the use of our products and services and, consequently, our revenues, could decline

  • 33% rewrittenBUSINESS AND OPERATIONS RISKS

    We may be unable to attract, retain, and develop the highly skilled employees we need to support our business

  • 27% rewrittenBUSINESS AND OPERATIONS RISKS

    We rely on third parties in many aspects of our business, which creates additional risk

  • 26% rewrittenBUSINESS AND OPERATIONS RISKS

    If one or more of our counterparty financial institutions default on their financial or performance obligations to us or fail, we may incur significant losses

  • 26% rewrittenCYBERSECURITY AND TECHNOLOGY RISKS

    Business interruptions or systems failures may impair the availability of our websites, applications, products or services, or otherwise harm our business

  • 26% rewrittenCYBERSECURITY AND TECHNOLOGY RISKS

    Cyberattacks and security vulnerabilities could result in serious harm to our reputation, business, and financial condition

  • 24% rewrittenBUSINESS AND OPERATIONS RISKS

    Use of our payments services for illegal activities or improper purposes could harm our business

  • 23% rewrittenLEGAL, REGULATORY AND COMPLIANCE RISKS

    Our business is subject to extensive government regulation and oversight. Our failure to comply with extensive, complex, overlapping, and frequently changing rules, regulations, and legal interpretations could materially harm our business

  • 22% rewrittenLEGAL, REGULATORY AND COMPLIANCE RISKS

    Privacy and Protection of Customer Data

  • 21% rewrittenBUSINESS AND OPERATIONS RISKS

    Our credit products expose us to additional risks

  • 21% rewrittenBUSINESS AND OPERATIONS RISKS

    If our reputation or our brands are damaged, our business and operating results may be harmed

All 35 risk factors

Headings as the filing states them, in filing order.

CYBERSECURITY AND TECHNOLOGY RISKS

  1. 01Cyberattacks and security vulnerabilities could result in serious harm to our reputation, business, and financial condition26% rewritten
  2. 02Any cybersecurity incidents, including cyberattacks or data security breaches affecting the IT or infrastructure of our customers, partners, or vendors (including data center and cloud computing providers) or of companies we acquire, could have similar negative effects
  3. 03Business interruptions or systems failures may impair the availability of our websites, applications, products or services, or otherwise harm our business26% rewritten
  4. 04If we cannot keep pace with rapid technological developments to provide new and innovative products and services, the use of our products and services and, consequently, our revenues, could decline35% rewritten
  5. 05website; AI; developments in technologies supporting our regulatory and compliance obligations; and in-store, digital, agentic and social commerce

LEGAL, REGULATORY AND COMPLIANCE RISKS

  1. 06Our business is subject to extensive government regulation and oversight. Our failure to comply with extensive, complex, overlapping, and frequently changing rules, regulations, and legal interpretations could materially harm our business23% rewritten
  2. 07Cryptocurrency Regulation and Related Risks39% rewritten
  3. 08Anti-Money Laundering and Counter-Terrorist Financing; Economic and Trade Sanctions
  4. 09Privacy and Protection of Customer Data22% rewritten
  5. 10Artificial Intelligence (AI)38% rewritten
  6. 11We are subject to regulatory scrutiny and may be subject to legal proceedings under antitrust and competition laws
  7. 12We are regularly subject to general litigation, regulatory scrutiny, and government inquiries
  8. 13Third parties may allege that we are infringing their patents and other intellectual property rights
  9. 14We may be unable to protect or enforce our intellectual property

BUSINESS AND OPERATIONS RISKS

  1. 15We face substantial and increasingly intense competition worldwide in the global payments industry
  2. 16Changes to payment card networks or bank fees, rules, or practices could harm our business
  3. 17Changes in how consumers fund their PayPal transactions could harm our business
  4. 18Our credit products expose us to additional risks21% rewritten
  5. 19We rely on third parties in many aspects of our business, which creates additional risk27% rewritten
  6. 20Any factors that reduce cross-border trade or make such trade more difficult could harm our business43% rewritten
  7. 21Failure to deal effectively with fraud, abusive behaviors, bad transactions, and negative customer experiences may increase our loss rate and could severely diminish merchant and consumer confidence in and use of our services and negatively impact our business
  8. 22Use of our payments services for illegal activities or improper purposes could harm our business24% rewritten
  9. 23Acquisitions, dispositions, strategic investments, and other strategic transactions could result in operating difficulties and could harm our businessNew
  10. 24Our international operations subject us to increased risks, which could harm our business36% rewritten
  11. 25Global and regional economic conditions could harm our business45% rewritten
  12. 26If our reputation or our brands are damaged, our business and operating results may be harmed21% rewritten
  13. 27Real or perceived inaccuracies in our key metrics may harm our reputation and negatively affect our business37% rewritten
  14. 28Evolving laws, regulations and stakeholder expectations with respect to environmental, social and governance matters could harm our reputation and adversely affect our businessNew
  15. 29If one or more of our counterparty financial institutions default on their financial or performance obligations to us or fail, we may incur significant losses26% rewritten
  16. 30If we are unable, or perceived as unable, to effectively manage customer funds, our business could be harmed
  17. 31There are risks associated with our indebtedness38% rewritten
  18. 32Changes in tax laws, exposure to unanticipated additional tax liabilities, or implementation of reporting or record-keeping obligations could have a material adverse effect on our business91% rewritten
  19. 33We may be unable to attract, retain, and develop the highly skilled employees we need to support our business33% rewritten
  20. 34We are subject to risks associated with information disseminated through our products and services43% rewritten
  21. 35There can be no assurance that we will continue to repurchase stock or declare cash dividends, and stock repurchases or dividends could increase the volatility of our stock price and could diminish our cash reservesNew

Other PayPal Holdings 10-Ks

  • FY2024 10-K risk factors
    35 risks

    PayPal faces intense regulatory oversight across global payments, cryptocurrency, artificial intelligence, anti-money laundering, and antitrust. Cybersecurity, fraud mitigation, and heavy reliance on third-party payment networks and bank partners dominate operational risks.

    Filed Feb 04, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.