CASH AND CASH EQUIVALENTS, FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS, AND INVESTMENTS

3 Months Ended

Mar. 31, 2026

Investments, Debt and Equity Securities [Abstract]

CASH AND CASH EQUIVALENTS, FUNDS RECEIVABLE AND CUSTOMER ACCOUNTS, AND INVESTMENTS

The following table summarizes the assets underlying our cash and cash equivalents, funds receivable and customer accounts, short-term investments, and long-term investments as of March 31, 2026 and December 31, 2025:


	March 31, 2026		December 31, 2025
	(In millions)
Cash and cash equivalents(1)	$	6,977	$	8,049
Funds receivable and customer accounts:
Cash and cash equivalents(2)	$	15,466	$	15,969
Time deposits	77		94
Available-for-sale debt securities	15,827		14,457
Funds receivable	8,131		7,678
Total funds receivable and customer accounts	$	39,501	$	38,198
Short-term investments:
Time deposits	$	79	$	88
Available-for-sale debt securities	2,286		2,285


Total short-term investments	$	2,365	$	2,373
Long-term investments:
Time deposits	$	6	$	5
Available-for-sale debt securities	2,313		2,421

Strategic investments	1,806		1,904
Total long-term investments	$	4,125	$	4,330

(1) Includes $250 million and nil of available-for-sale debt securities with original maturities of three months or less as of March 31, 2026 and December 31, 2025, respectively.

(2) Includes $187 million and $374 million of available-for-sale debt securities with original maturities of three months or less as of March 31, 2026 and December 31, 2025, respectively.

As of March 31, 2026 and December 31, 2025, the estimated fair value of our available-for-sale debt securities included within cash and cash equivalents, funds receivable and customer accounts, short-term investments, and long-term investments was as follows:


	March 31, 2026(1)
	Gross Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value





	(In millions)
Cash and cash equivalents:
U.S. government and agency securities	$	250	$	—	$	—	$	250

Funds receivable and customer accounts:
U.S. government and agency securities	4,173		1		—		4,174
Foreign government and agency securities	85		—		—		85
Corporate debt securities	2,411		2		(1)		2,412
Mortgage-backed and asset-backed securities	4,232		9		(4)		4,237
Municipal securities	33		—		—		33
Commercial paper	4,475		1		(1)		4,475
Short-term investments:
U.S. government and agency securities	395		—		—		395
Foreign government and agency securities	110		—		—		110
Corporate debt securities	809		—		(1)		808
Mortgage-backed and asset-backed securities	404		—		(1)		403
Commercial paper	570		—		—		570
Long-term investments:
U.S. government and agency securities	480		—		—		480

Corporate debt securities	542		1		—		543
Mortgage-backed and asset-backed securities	1,288		3		(1)		1,290
Total available-for-sale debt securities(2)	$	20,257	$	17	$	(9)	$	20,265

(1) “—” Denotes gross unrealized gain or unrealized loss of less than $1 million in a given position.

(2) Excludes foreign currency denominated available-for-sale debt securities accounted for under the fair value option. Refer to “Note 9—Fair Value Measurement of Assets and Liabilities.”


	December 31, 2025(1)
	Gross Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(In millions)




Funds receivable and customer accounts:
U.S. government and agency securities	$	3,529	$	1	$	—	$	3,530
Foreign government and agency securities	81		—		—		81
Corporate debt securities	2,438		4		(1)		2,441
Mortgage-backed and asset-backed securities	3,825		7		(1)		3,831
Municipal securities	98		—		—		98
Commercial paper	4,229		1		—		4,230
Short-term investments:
U.S. government and agency securities	443		—		—		443
Foreign government and agency securities	60		—		—		60
Corporate debt securities	985		1		(2)		984
Mortgage-backed and asset-backed securities	448		—		—		448
Commercial paper	350		—		—		350
Long-term investments:
U.S. government and agency securities	400		—		—		400
Foreign government and agency securities	50		—		—		50
Corporate debt securities	648		2		—		650
Mortgage-backed and asset-backed securities	1,320		2		(1)		1,321
Total available-for-sale debt securities(2)	$	18,904	$	18	$	(5)	$	18,917

(1) “—” Denotes gross unrealized gain or unrealized loss of less than $1 million in a given position.

(2) Excludes foreign currency denominated available-for-sale debt securities accounted for under the fair value option. Refer to “Note 9—Fair Value Measurement of Assets and Liabilities.”

Gross amortized cost and estimated fair value balances exclude accrued interest receivable on available-for-sale debt securities, which totaled $97 million and $101 million at March 31, 2026 and December 31, 2025, respectively, and were included in other current assets on our condensed consolidated balance sheets.

As of March 31, 2026 and December 31, 2025, the gross unrealized losses and estimated fair value of our available-for-sale debt securities included within cash and cash equivalents, funds receivable and customer accounts, short-term investments, and long-term investments for which an allowance for credit losses was not deemed necessary in the current period, aggregated by the length of time those individual securities have been in a continuous loss position, was as follows:


	March 31, 2026(1)
	Less than 12 months				12 months or longer				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	(In millions)
Cash and cash equivalents:
U.S. government and agency securities	$	250	$	—	$	—	$	—	$	250	$	—

Funds receivable and customer accounts:
U.S. government and agency securities	2,159		—		15		—		2,174		—
Foreign government and agency securities	49		—		—		—		49		—
Corporate debt securities	1,000		(1)		—		—		1,000		(1)
Mortgage-backed and asset-backed securities	1,661		(4)		57		—		1,718		(4)

Commercial paper	1,999		(1)		—		—		1,999		(1)
Short-term investments:
U.S. government and agency securities	295		—		—		—		295		—
Foreign government and agency securities	25		—		20		—		45		—
Corporate debt securities	233		—		94		(1)		327		(1)
Mortgage-backed and asset-backed securities	247		(1)		53		—		300		(1)
Commercial paper	470		—		—		—		470		—
Long-term investments:
U.S. government and agency securities	210		—		—		—		210		—

Corporate debt securities	235		—		—		—		235		—
Mortgage-backed and asset-backed securities	389		(1)		6		—		395		(1)
Total available-for-sale debt securities	$	9,222	$	(8)	$	245	$	(1)	$	9,467	$	(9)

(1) “—” Denotes gross unrealized loss or fair value of less than $1 million in a given position.


	December 31, 2025(1)
	Less than 12 months				12 months or longer				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	(In millions)


Funds receivable and customer accounts:
U.S. government and agency securities	$	1,261	$	—	$	50	$	—	$	1,311	$	—
Foreign government and agency securities	56		—		—		—		56		—
Corporate debt securities	309		(1)		—		—		309		(1)
Mortgage-backed and asset-backed securities	1,000		(1)		206		—		1,206		(1)

Commercial paper	1,375		—		—		—		1,375		—
Short-term investments:
U.S. government and agency securities	443		—		—		—		443		—
Foreign government and agency securities	—		—		20		—		20		—
Corporate debt securities	94		(1)		109		(1)		203		(2)
Mortgage-backed and asset-backed securities	354		—		6		—		360		—
Commercial paper	200		—		—		—		200		—
Long-term investments:

Foreign government and agency securities	25		—		—		—		25		—
Corporate debt securities	20		—		—		—		20		—
Mortgage-backed and asset-backed securities	368		(1)		35		—		403		(1)
Total available-for-sale debt securities	$	5,505	$	(4)	$	426	$	(1)	$	5,931	$	(5)

(1) “—” Denotes gross unrealized loss or fair value of less than $1 million in a given position.

Unrealized losses have not been recognized into income as we neither intend to sell, nor anticipate that it is more likely than not that we will be required to sell, the securities before recovery of their amortized cost basis. The decline in fair value was due primarily to changes in market interest rates, rather than credit losses. We will continue to monitor the performance of the investment portfolio and assess whether impairment due to expected credit losses has occurred.

The table below presents cash inflows related to available-for-sale debt securities:


	Three Months Ended March 31,
	2026		2025
	(In millions)
Proceeds from sales and maturities of available-for-sale debt securities	$	5,279	$	5,472

During the three months ended March 31, 2026 and 2025, we incurred gross realized gains and losses which were de minimis. Gross realized gains and losses were determined using the specific identification method.

Our available-for-sale debt securities included within cash and cash equivalents, funds receivable and customer accounts, short-term investments, and long-term investments classified by date of contractual maturity were as follows:


	March 31, 2026
	Amortized Cost		Fair Value
	(In millions)
One year or less	$	10,214	$	10,213
After one year through five years	4,579		4,582
After five years through ten years	2,391		2,387
After ten years	3,073		3,083
Total	$	20,257	$	20,265

Actual maturities may differ from contractual maturities as certain securities may be prepaid.

STRATEGIC INVESTMENTS

Our strategic investments include marketable equity securities, which are publicly traded, and non-marketable equity securities, which are primarily investments in privately held companies. Our marketable equity securities have readily determinable fair values and are recorded as long-term investments on our condensed consolidated balance sheets at fair value with changes in fair value recorded in other income (expense), net on our condensed consolidated statements of income (loss). Marketable equity securities totaled $106 million and $180 million as of March 31, 2026 and December 31, 2025, respectively. As of March 31, 2026, we held marketable equity securities with a fair value of $94 million with a time-based contractual sale restriction, which is set to expire in May 2026.

Our non-marketable equity securities are recorded as long-term investments on our condensed consolidated balance sheets. The carrying value of our non-marketable equity securities totaled $1.7 billion as of both March 31, 2026 and December 31, 2025. As of both March 31, 2026 and December 31, 2025, we had non-marketable equity securities of $215 million for which we have the ability to exercise significant influence, but not control, over the investee. We account for these equity securities using the equity method of accounting. The remaining non-marketable equity securities do not have a readily determinable fair value and we measure these equity investments at cost minus impairment, if any, and adjust for changes resulting from observable price changes in orderly transactions for an identical or similar investment in the same issuer (the “Measurement Alternative”). All gains and losses on these investments, realized and unrealized, and our share of earnings or losses from investments accounted for using the equity method are recognized in other income (expense), net on our condensed consolidated statements of income (loss).

Measurement Alternative adjustments

The adjustments to the carrying value of our non-marketable equity securities accounted for under the Measurement Alternative in the three months ended March 31, 2026 and 2025 were as follows:


	Three Months Ended March 31,
	2026		2025
	(In millions)
Carrying amount, beginning of period	$	1,509	$	1,336
Adjustments related to non-marketable equity securities:
Net additions (reductions)(1)	(1)		22
Gross unrealized gains	45		55
Gross unrealized losses and impairments	(68)		—
Carrying amount, end of period	$	1,485	$	1,413

(1) Net additions (reductions) include purchases, reductions due to sales of securities, and reclassifications when the Measurement Alternative is subsequently elected or no longer applies.

The following table summarizes the cumulative gross unrealized gains and cumulative gross unrealized losses and impairment related to non-marketable equity securities accounted for under the Measurement Alternative held at March 31, 2026 and December 31, 2025, respectively:


	March 31, 2026		December 31, 2025
	(In millions)
Cumulative gross unrealized gains	$	917	$	872
Cumulative gross unrealized losses and impairments	$	(421)	$	(353)

Unrealized gains (losses) on strategic investments, excluding those accounted for using the equity method

The following table summarizes the net unrealized gains (losses) on marketable and non-marketable equity securities, excluding those accounted for using the equity method, held at March 31, 2026 and 2025, respectively:


	Three Months Ended March 31,
	2026		2025
	(In millions)
Net unrealized gains (losses)	$	(97)	$	48

Supplemental cash flow information related to investments

Non-cash investing transactions that were not reflected in the condensed consolidated statement of cash flows for the three months ended March 31, 2026 and 2025 include the purchase of investments of $25 million and $125 million, respectively, that have not yet settled.