PayPal’s Q1 revenue grew 7% YoY, trailing competitors like SoFi and Robinhood, while active users rose just 1%
PayPal’s stock has fallen over 25% year to date, trading at a P/E ratio of 8, as its growth narrative fades. The company reported 7% year-over-year revenue growth in Q1, lagging behind fintech peers like SoFi Technologies (41% growth) and Robinhood Markets (15%).
PayPal’s revenue compound annual growth rate (CAGR) has declined, dropping from a 10-year CAGR of 13.9% to 7.2% over the past three years. Active users grew just 1% YoY to 439 million in Q1, far below SoFi’s 35% user growth and Meta Platforms’ 4% growth, which translated into 33% revenue growth.
CEO Enrique Lores acknowledged the challenge of returning to durable long-term growth, citing competitive pressures squeezing margins. The company faces an uphill battle to regain its premium valuation without stronger performance metrics.