v3.26.1
LEASES
 6 Months Ended
Jun. 30, 2026
Leases [Abstract]  
LEASES LEASES
PayPal enters into various leases, which are primarily real estate operating leases. We use these properties for executive and administrative offices, customer services and operations centers, product development offices, and data centers. PayPal also enters into computer equipment finance leases.

While a majority of our lease agreements do not contain an explicit interest rate, certain of our lease agreements are subject to changes based on the Consumer Price Index or another referenced index. In the event of changes to the relevant index, lease liabilities are not remeasured and are instead treated as variable lease payments and recognized in the period in which the obligation for those payments is incurred.

The short-term lease exemption has been adopted for all leases with a duration of less than 12 months.

PayPal’s lease portfolio includes a small number of subleases. A sublease situation can arise when currently leased real estate space is available and is surplus to operational requirements.

The components of lease expense were as follows:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(In millions)
Operating lease expense$45 $40 $85 $81 
Finance lease expense - amortization of right-of-use (“ROU”) lease assets
4 4 8 8 
Sublease income(2)(2)(4)(4)
Total lease expense, net
$47 $42 $89 $85 

Supplemental cash flow information related to leases during the three and six months ended June 30, 2026 and 2025 were as follows:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(In millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$46 $46 $91 $88 
Financing cash flows from finance leases$4 $4 $6 $6 
ROU lease assets obtained in exchange for operating lease liabilities
$154 $— $149 $5 

Supplemental balance sheet information related to leases was as follows:
June 30, 2026December 31, 2025
(In millions, except weighted-average figures)
Operating leases
Finance leases
Operating leases
Finance leases
ROU lease assets$619 $48 $539 $56 
Current lease liabilities142 5 148 7 
Long-term lease liabilities668 6 548 10 
Total lease liabilities$810 $11 $696 $17 
Weighted-average remaining lease term6.6 years2.9 years5.4 years3.4 years
Weighted-average discount rate5%5%4%5%
Future minimum lease payments for our leases as of June 30, 2026 were as follows:
Operating leasesFinance leases
Fiscal years:(In millions)
Remaining 2026$79 $2 
2027174 6 
2028142 4 
2029125 — 
2030110 — 
Thereafter348 — 
Total$978 $12 
Less: present value discount(168)(1)
Lease liability$810 $11 

Operating lease amounts include minimum lease payments under our non-cancelable operating leases primarily for office and data center facilities. Finance lease amounts include minimum lease payments under our non-cancelable finance leases primarily for computer equipment. The amounts presented are consistent with contractual terms and are not expected to differ significantly from actual results under our existing leases.
LEASES LEASES
PayPal enters into various leases, which are primarily real estate operating leases. We use these properties for executive and administrative offices, customer services and operations centers, product development offices, and data centers. PayPal also enters into computer equipment finance leases.

While a majority of our lease agreements do not contain an explicit interest rate, certain of our lease agreements are subject to changes based on the Consumer Price Index or another referenced index. In the event of changes to the relevant index, lease liabilities are not remeasured and are instead treated as variable lease payments and recognized in the period in which the obligation for those payments is incurred.

The short-term lease exemption has been adopted for all leases with a duration of less than 12 months.

PayPal’s lease portfolio includes a small number of subleases. A sublease situation can arise when currently leased real estate space is available and is surplus to operational requirements.

The components of lease expense were as follows:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(In millions)
Operating lease expense$45 $40 $85 $81 
Finance lease expense - amortization of right-of-use (“ROU”) lease assets
4 4 8 8 
Sublease income(2)(2)(4)(4)
Total lease expense, net
$47 $42 $89 $85 

Supplemental cash flow information related to leases during the three and six months ended June 30, 2026 and 2025 were as follows:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(In millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$46 $46 $91 $88 
Financing cash flows from finance leases$4 $4 $6 $6 
ROU lease assets obtained in exchange for operating lease liabilities
$154 $— $149 $5 

Supplemental balance sheet information related to leases was as follows:
June 30, 2026December 31, 2025
(In millions, except weighted-average figures)
Operating leases
Finance leases
Operating leases
Finance leases
ROU lease assets$619 $48 $539 $56 
Current lease liabilities142 5 148 7 
Long-term lease liabilities668 6 548 10 
Total lease liabilities$810 $11 $696 $17 
Weighted-average remaining lease term6.6 years2.9 years5.4 years3.4 years
Weighted-average discount rate5%5%4%5%
Future minimum lease payments for our leases as of June 30, 2026 were as follows:
Operating leasesFinance leases
Fiscal years:(In millions)
Remaining 2026$79 $2 
2027174 6 
2028142 4 
2029125 — 
2030110 — 
Thereafter348 — 
Total$978 $12 
Less: present value discount(168)(1)
Lease liability$810 $11 

Operating lease amounts include minimum lease payments under our non-cancelable operating leases primarily for office and data center facilities. Finance lease amounts include minimum lease payments under our non-cancelable finance leases primarily for computer equipment. The amounts presented are consistent with contractual terms and are not expected to differ significantly from actual results under our existing leases.