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Investor Presentaiton

Hedging impacts and credit reserve builds and releases (in millions, except %) Hedging Impacts (1) Favorable (unfavorable) impact to net revenues (exclusive of hedging impact) Hedging impact Favorable (unfavorable) impact to net revenues Favorable (unfavorable) impact to operating expense Net favorable (unfavorable) impact to operating income Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 (48) $ (123) $ (242) $ (307) $ (277) $ (139) 2 47 107 156 152 76 (46) (76) (135) (151) (125) (63) 22 57 131 162 142 78 $ (24) $ (19) $ (4) $ 11 $ 17 $ 15 Credit net charge-offs, reserve builds (releases) and credit losses Net charge-offs (2) $ 53 $ 52 $ 60 $ 69 $ 86 $ 110 Reserve build (release)(3) Credit Losses $ (9) 44 $ (5) 8 44 88 32 47 $ 68 $ 113 $ 174 $ 142 (1) Foreign currency movements relative to the US dollar. We calculate the year-over-year impact of foreign currency movements on our business using prior period foreign currency exchange rates applied to current period transactional currency amounts. (2) Net charge-offs includes the principal charge-offs partially offset by recoveries for consumer and merchant receivables. (3) Reserve build (release) represents change in allowance for principal receivables excluding foreign currency remeasurement. PayPal ©2023 PayPal Holdings, Inc. Q1-23 Investor Update • 26
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