PayPal Holdings, Inc.

Previous wording

The following table provides a summary of our condensed consolidated financial results for the three and six months ended June 30, 2025 and 2024:

Current wording

The following table provides a summary of our condensed consolidated financial results for the three and nine months ended September 30, 2025 and 2024:

Previous wording

Net revenues increased $403 million, or 5%, in the three months ended June 30, 2025 compared to the same period of the prior year driven primarily by growth in total payment volume (“TPV”) of 6% and an increase in interest and fee revenue earned on our loans receivable portfolio.

Current wording

Net revenues increased $570 million, or 7%, in the three months ended September 30, 2025 compared to the same period of the prior year driven primarily by growth in total payment volume (“TPV”) of 8% and an increase in interest and fee revenue earned on our loans receivable portfolio.

Previous wording

Total operating expenses increased $224 million, or 3%, in the three months ended June 30, 2025 compared to the same period of the prior year due primarily to an increase in transaction and credit losses and sales and marketing expense, partially offset by a decline in general and administrative expense.

Current wording

Total operating expenses increased $441 million, or 7%, in the three months ended September 30, 2025 compared to the same period of the prior year due primarily to an increase in transaction expense and transaction and credit losses.

Previous wording

Operating income increased $179 million, or 14%, in the three months ended June 30, 2025 compared to the same period of the prior year due to the increase in net revenues partially offset by the increase in operating expenses. Our operating margin was 18% and 17% in the three months ended June 30, 2025 and 2024, respectively, reflecting the positive impact of lower transaction expense growth rate and general and administrative expense, partially offset by higher transaction and credit losses and sales and marketing expense.

Current wording

Operating income increased $129 million, or 9%, in the three months ended September 30, 2025 compared to the same period of the prior year due to the increase in net revenues partially offset by the increase in operating expenses. Our operating margin remained consistent at 18% for both the three months ended September 30, 2025 and 2024 reflecting the positive impact of a lower transaction expense growth rate offset by a higher transaction and credit losses growth rate.

Previous wording

Net income increased $133 million, or 12%, in the three months ended June 30, 2025 compared to the same period of the prior year due to the previously discussed increase in operating income of $179 million, partially offset by a decline in other income (expense), net of $49 million.

Current wording

Net income increased $238 million, or 24%, in the three months ended September 30, 2025 compared to the same period of the prior year due to the previously discussed increase in operating income of $129 million and an increase in other income (expense), net of $93 million.

Previous wording

Net revenues increased $495 million, or 3%, in the six months ended June 30, 2025 compared to the same period of the prior year driven primarily by growth in TPV of 5% and an increase in interest and fee revenue earned on our loans receivable portfolio.

Current wording

Net revenues increased $1.1 billion, or 5%, in the nine months ended September 30, 2025 compared to the same period of the prior year driven primarily by growth in TPV of 6% and an increase in interest and fee revenue earned on our loans receivable portfolio.

Previous wording

Total operating expenses decreased $46 million in the six months ended June 30, 2025 compared to the same period of the prior year due primarily to a decline in transaction expense and restructuring and other expenses, partially offset by an increase in sales and marketing expense and transaction and credit losses.

Current wording

Total operating expenses increased $395 million, or 2%, in the nine months ended September 30, 2025 compared to the same period of the prior year due primarily to an increase in transaction and credit losses and sales and marketing expense partially offset by a decline in restructuring and other expenses.

Previous wording

Operating income increased $541 million, or 22%, in the six months ended June 30, 2025 compared to the same period of the prior year due to the increase in net revenues and decline in operating expenses. Our operating margin was 19% and 16% in the six months ended June 30, 2025 and 2024, respectively, reflecting the positive impact of lower transaction expense and restructuring and other expenses, partially offset by higher transaction and credit losses and sales and marketing expense.

Current wording

Operating income increased $670 million, or 17%, in the nine months ended September 30, 2025 compared to the same period of the prior year due to the increase in net revenues partially offset by the increase in operating expenses. Our operating margin was 19% and 17% in the nine months ended September 30, 2025 and 2024, respectively, reflecting the positive impact of a lower transaction expense growth rate.

Previous wording

Net income increased $532 million, or 26%, in the six months ended June 30, 2025 compared to the same period of the prior year due to the previously discussed increase in operating income of $541 million partially offset by a decrease of $17 million in other income (expense), net.

Current wording

Net income increased $770 million, or 25%, in the nine months ended September 30, 2025 compared to the same period of the prior year due to the previously discussed increase in operating income of $670 million and an increase of $76 million in other income (expense), net.

Previous wording

We have significant international operations that are denominated in foreign currencies, primarily the British pound, Euro, Australian dollar, and Canadian dollar, subjecting us to foreign exchange risk which may adversely impact our financial results. The strengthening or weakening of the United States (“U.S.”) dollar versus foreign currencies in which we conduct our international operations impacts the translation of our net revenues and expenses generated in these foreign currencies into the U.S. dollar. We generated approximately 43% and 42% of our net revenues from customers domiciled outside of the U.S. in the three and six months ended June 30, 2025 and 2024, respectively. Because we generate substantial net revenues internationally, we are subject to the risks of doing business outside of the U.S. See Part I, Item 1A, Risk Factors in our 2024 Form 10-K, as supplemented and, to the extent inconsistent, superseded (if applicable) below in Part II, Item 1A, Risk Factors of this Form 10-Q.

Current wording

We have significant international operations that are denominated in foreign currencies, primarily the British pound, Euro, Australian dollar, and Canadian dollar, subjecting us to foreign exchange risk which may adversely impact our financial results. The strengthening or weakening of the United States (“U.S.”) dollar versus foreign currencies in which we conduct our international operations impacts the translation of our net revenues and expenses generated in these foreign currencies into the U.S. dollar. We generated approximately 44% and 43% of our net revenues from customers domiciled outside of the U.S. in the three and nine months ended September 30, 2025, respectively. We generated approximately 42% of our net revenues from customers domiciled outside of the U.S. in both the three and nine months ended September 30, 2024. Because we generate substantial net revenues internationally, we are subject to the risks of doing business outside of the U.S. See Part I, Item 1A, Risk Factors in our 2024 Form 10-K, as supplemented and, to the extent inconsistent, superseded (if applicable) below in Part II, Item 1A, Risk Factors of this Form 10-Q.

Previous wording

In the three and six months ended June 30, 2025, year-over-year foreign exchange rate movements relative to the U.S. dollar had the following impact on our reported results:

Current wording

In the three and nine months ended September 30, 2025, year-over-year foreign exchange rate movements relative to the U.S. dollar had the following impact on our reported results:

Previous wording

The components of our net revenues for the three and six months ended June 30, 2025 and 2024 were as follows (in millions):

Current wording

The components of our net revenues for the three and nine months ended September 30, 2025 and 2024 were as follows (in millions):

Previous wording

Transaction revenues increased $288 million, or 4%, and $270 million, or 2%, in the three and six months ended June 30, 2025 compared to the same periods of the prior year. The increase in the three and six months ended June 30, 2025 was driven primarily by an increase in revenue from PayPal and Venmo products and services of $430 million and $600 million, respectively, which was largely driven by growth in TPV and number of payment transactions, partially offset by a decline in revenues of approximately $50 million and $250 million, respectively, from our Braintree products and services predominantly attributable to a decline in the number of payment transactions. Transaction revenues for the three and six months ended June 30, 2025 were also impacted unfavorably by net losses from hedging activities in the current periods compared to net gains in the prior periods.

Current wording

Transaction revenues increased $455 million, or 6%, and $725 million, or 3%, in the three and nine months ended September 30, 2025 compared to the same periods of the prior year. The increase in the three months ended September 30, 2025 was driven primarily by an increase of approximately $390 million in revenue from PayPal and Venmo products and services, which was largely driven by growth in TPV and number of payment transactions, and an increase in revenue from Braintree products and services of approximately $115 million predominantly attributable to growth in TPV despite a decline in the number of payment transactions over the same period. The increase in the nine months ended September 30, 2025 was primarily attributable to an increase of approximately $1.0 billion in revenue from PayPal and Venmo products and services, which was largely driven by growth in TPV and number of payment transactions, partially offset by a decline in revenue from Braintree products and services of approximately $140 million resulting from a reduction in number of payment transactions. The increase in TPV for Braintree products and services despite a decline in the number of payment transactions is due to our strategic shift as we focus on profitable growth. Transaction revenues in the three and nine months ended September 30, 2025 were also impacted by an unfavorable impact from hedging activities.

Previous wording

As a result of our stronger focus on profitable growth and ongoing negotiations with merchants, we experienced lower volume and transaction revenue from our Braintree offerings in the first half of 2025. In the second half of 2025, we expect volume from our Braintree offerings to return to growth.

Current wording

As a result of our stronger focus on profitable growth and ongoing negotiations with merchants, we experienced lower volume and transaction revenue from our Braintree offerings in the first half of 2025. As noted above, in the third quarter of 2025, revenue and TPV from Braintree offerings grew year-over-year. In the fourth quarter of 2025, we expect volume from our Braintree offerings to continue to grow.

Previous wording

The graphs below present the respective key metrics (in millions) for the three and six months ended June 30, 2025 and 2024:

Current wording

The graphs below present the respective key metrics (in millions) for the three and nine months ended September 30, 2025 and 2024:

Previous wording

We had active accounts of 438 million and 429 million as of June 30, 2025 and 2024, respectively, an increase of 2%. Our total number of payment transactions was 6.2 billion and 6.6 billion for the three months ended June 30, 2025 and 2024, respectively, a decrease of 5%. Our total number of payment transactions was 12.3 billion for the six months ended June 30, 2025, compared to 13.1 billion in the six months ended June 30, 2024, a decrease of 6%. TPV was $444 billion and $417 billion for the three months ended June 30, 2025 and 2024, respectively, an increase of 6%. TPV was $861 billion for the six months ended June 30, 2025 compared to $821 billion in the six months ended June 30, 2024, an increase of 5%.

Current wording

We had active accounts of 438 million and 432 million as of September 30, 2025 and 2024, respectively, an increase of 1%. Our total number of payment transactions was 6.3 billion and 6.6 billion for the three months ended September 30, 2025 and 2024, respectively, a decrease of 5%. Our total number of payment transactions was 18.6 billion for the nine months ended September 30, 2025, compared to 19.7 billion in the nine months ended September 30, 2024, a decrease of 6%. TPV was $458 billion and $423 billion for the three months ended September 30, 2025 and 2024, respectively, an increase of 8%. TPV was $1.3 trillion for the nine months ended September 30, 2025 compared to $1.2 trillion in the nine months ended September 30, 2024, an increase of 6%.

Previous wording

Transaction revenues growth was lower than the growth in TPV in the three and six months ended June 30, 2025 compared to the same periods in the prior year due primarily to changes in product mix, merchant mix and unfavorable impact from foreign exchange hedging.

Current wording

Transaction revenues growth was lower than the growth in TPV in the three and nine months ended September 30, 2025 compared to the same periods in the prior year due primarily to changes in product mix and unfavorable impact from foreign exchange hedging activities.

Previous wording

Revenues from other value added services increased $115 million, or 16%, and $225 million, or 16%, in the three and six months ended June 30, 2025 compared to the same periods in the prior year due primarily to an increase of approximately $80 million and $150 million, respectively, in interest and fee revenue earned from our loans receivable portfolios as well as an increase of $50 million in each of those respective periods from revenue earned from an independent chartered financial institution (“partner institution”). Revenue from the partner institution is earned primarily through revenue share associated with our U.S. revolving consumer credit product and PayPal and Venmo branded credit cards.

Current wording

Revenues from other value added services increased $115 million, or 15%, and $340 million, or 16%, in the three and nine months ended September 30, 2025 compared to the same periods in the prior year due primarily to an increase of approximately $65 million and $220 million, respectively, in interest and fee revenue earned from our loans receivable portfolios as well as an increase of approximately $50 million and $100 million, respectively, from revenue earned from an independent chartered financial institution (“partner institution”). Revenue from the partner institution is earned primarily through revenue share associated with our U.S. revolving consumer credit product and PayPal and Venmo branded credit cards.

Previous wording

Transaction expense for the three and six months ended June 30, 2025 and 2024 was as follows (in millions):

Current wording

Transaction expense for the three and nine months ended September 30, 2025 and 2024 was as follows (in millions):

Previous wording

Transaction expense increased $26 million, or 1%, and decreased $187 million, or 2%, in the three and six months ended June 30, 2025 compared to the same periods of the prior year. The increase in transaction expense for the three months ended June 30, 2025 was primarily attributable to the increase in TPV of 6%, partially offset by favorable changes in merchant mix to lower cost merchants as well as regional mix within our Braintree products and services. The decrease in transaction expense for the six months ended June 30, 2025 compared to the same period of the prior year was primarily due to a decline in volume of Braintree products and services, which generally have higher expense rates than other products and services, and favorable changes in merchant mix and regional mix, partially offset by an increase in volume from PayPal products and services. The decline in transaction expense rate for the three and six months ended June 30, 2025 compared to the same periods of the prior year was primarily attributable to a lower proportion of TPV from Braintree products and services and changes in merchant mix and regional mix.

Current wording

Transaction expense increased $222 million, or 6%, and stayed relatively consistent, in the three and nine months ended September 30, 2025 compared to the same periods of the prior year. The increase in transaction expense for the three and nine months ended September 30, 2025 was primarily attributable to the increase in TPV of 8% and 6%, respectively, partially offset by favorable changes in merchant mix to lower cost merchants within our Braintree products and services. The decline in transaction expense rate for the three and nine months ended September 30, 2025 compared to the same periods of the prior year was primarily attributable to a lower proportion of TPV from Braintree products and services and changes in merchant mix.

Previous wording

Our transaction expense rate is impacted by changes in product mix, merchant mix, regional mix, funding mix, and fees paid to payment processors and other financial institutions. The cost of funding a transaction with a credit or debit card is generally higher than the cost of funding a transaction from a bank or through internal sources such as a PayPal or Venmo account balance or our consumer credit products. The cost of funding a transaction is also impacted by the geographic region or country in which a transaction occurs, as we generally pay lower rates for transactions funded with credit or debit cards outside the U.S. For the three months ended June 30, 2025 and 2024, approximately 38% and 36%, respectively, of TPV was generated outside of the U.S. For both the six months ended June 30, 2025 and 2024, approximately 36% of TPV was generated outside of the U.S.

Current wording

Our transaction expense rate is impacted by changes in product mix, merchant mix, regional mix, funding mix, and fees paid to payment processors and other financial institutions. The cost of funding a transaction with a credit or debit card is generally higher than the cost of funding a transaction from a bank or through internal sources such as a PayPal or Venmo account balance or our consumer credit products. The cost of funding a transaction is also impacted by the geographic region or country in which a transaction occurs, as we generally pay lower rates for transactions funded with credit or debit cards outside the U.S. For the three months ended September 30, 2025 and 2024, approximately 38% and 37%, respectively, of TPV was generated outside of the U.S. For the nine months ended September 30, 2025 and 2024, approximately 37% and 36%, respectively, of TPV was generated outside of the U.S.

Previous wording

The components of our transaction and credit losses for the three and six months ended June 30, 2025 and 2024 were as follows (in millions):

Current wording

The components of our transaction and credit losses for the three and nine months ended September 30, 2025 and 2024 were as follows (in millions):

Previous wording

Transaction losses increased $124 million, or 48%, and $142 million, or 27%, in three and six months ended June 30, 2025 compared to the same periods of the prior year. Transaction loss rate (transaction losses divided by TPV) was 0.09% and 0.08% for the three and six months ended June 30, 2025, respectively, compared to 0.06% for both the three and six months ended June 30, 2024. The increase in transaction losses and the associated transaction loss rate in the three and six months ended June 30, 2025 compared to the same periods of the prior year was primarily due to an increase in losses driven by fraud incidents from our PayPal products and services and, to a lesser extent, from our Venmo products and services.

Current wording

Transaction losses increased $133 million, or 50%, and $275 million, or 35%, in the three and nine months ended September 30, 2025 compared to the same periods of the prior year. Transaction loss rate (transaction losses divided by TPV) was 0.09% and 0.08% for the three and nine months ended September 30, 2025, respectively, compared to 0.06% for both the three and nine months ended September 30, 2024. The increase in transaction losses and the associated transaction loss rate in the three and nine months ended September 30, 2025 compared to the same periods of the prior year was primarily due to an increase in losses driven by fraud incidents from our PayPal products and services.

Previous wording

Credit losses increased $17 million and $49 million in the three and six months ended June 30, 2025, respectively, compared to the same periods of the prior year. The components of credit losses for the three and six months ended June 30, 2025 and 2024 were as follows (in millions):

Current wording

Credit losses decreased $2 million and increased $47 million in the three and nine months ended September 30, 2025, respectively, compared to the same periods of the prior year. The components of credit losses for the three and nine months ended September 30, 2025 and 2024 were as follows (in millions):

Previous wording

Credit losses in the three and six months ended June 30, 2025 were primarily attributable to loan originations during the period. Credit losses in the three and six months ended June 30, 2024 were attributable to loan originations partially offset by improvement in the credit quality of loans outstanding.

Current wording

Credit losses in the three and nine months ended September 30, 2025 were primarily attributable to loan originations during the period, partially offset by the reclassification of certain loans to held for sale. Credit losses in the three and nine months ended September 30, 2024 were attributable to loan originations during the period partially offset by improvement in the credit quality of loans outstanding.

Previous wording

The consumer loans and interest receivable balance as of June 30, 2025 and 2024 was $5.8 billion and $4.6 billion, respectively, net of participation interest sold, representing an increase of 27%. The increase was driven primarily by growth of approximately $590 million and $290 million in our installment credit products driven by growth in Japan and the U.S., respectively, and growth of approximately $370 million in our revolving credit product in the U.K.

Current wording

The consumer loans and interest receivable balance as of September 30, 2025 and 2024 was $5.2 billion and $5.1 billion, respectively, net of participation interest sold, representing an increase of 1%. The increase was driven primarily by growth of our installment credit products in the U.S. and Japan of approximately $225 million and $190 million, respectively, and an increase in our revolving credit product in the United Kingdom (“U.K.”) of approximately $160 million. The consumer loans and interest receivable balance was also impacted by the reclassification of our U.S. short-term, non-interest bearing installment loans to held for sale in the third quarter of 2025.

Previous wording

In response to changing portfolio performance and macroeconomic environment, we continue to monitor risk and evaluate and modify our acceptable risk parameters. Modifications to the acceptable risk parameters did not have a material impact on our consumer loans for the three and six months ended June 30, 2025.

Current wording

In response to changing portfolio performance and macroeconomic environment, we continue to monitor risk and evaluate and modify our acceptable risk parameters. Modifications to the acceptable risk parameters did not have a material impact on our consumer loans for the three and nine months ended September 30, 2025.

Previous wording

We offer access to merchant finance products for certain small and medium-sized businesses, which we refer to as our merchant finance offerings. Total merchant loans, advances, and interest and fees receivable outstanding, net of participation interest sold, as of June 30, 2025 and 2024 was $1.7 billion and $1.2 billion, respectively, reflecting an increase of 41%. The increase was due primarily to growth of approximately $260 million in our PayPal Working Capital product portfolio, primarily from Germany, the U.S., and the U.K. and growth of approximately $230 million in our PayPal Business Loans (“PPBL”) product in the U.S.

Current wording

We offer access to merchant finance products for certain small and medium-sized businesses, which we refer to as our merchant finance offerings. Total merchant loans, advances, and interest and fees receivable outstanding, net of participation interest sold, as of September 30, 2025 and 2024 was $1.7 billion and $1.4 billion, respectively, reflecting an increase of 28%. The increase was due primarily to growth in our PayPal Business Loans product in the U.S. of approximately $250 million and growth in our PayPal Working Capital product portfolio, primarily from Germany, the U.S., and the U.K., of approximately $130 million.

Previous wording

In response to changing portfolio performance and macroeconomic environment, we continue to monitor risk and evaluate and modify our acceptable risk parameters. Modifications to the acceptable risk parameters did not have a material impact on our merchant loans for the three and six months ended June 30, 2025.

Current wording

In response to changing portfolio performance and macroeconomic environment, we continue to monitor risk and evaluate and modify our acceptable risk parameters. Modifications to the acceptable risk parameters did not have a material impact on our merchant loans for the three and nine months ended September 30, 2025.

Previous wording

Customer support and operations expenses for the three and six months ended June 30, 2025 and 2024 were as follows (in millions):

Current wording

Customer support and operations expenses for the three and nine months ended September 30, 2025 and 2024 were as follows (in millions):

Previous wording

Customer support and operations expenses decreased $23 million, or 5%, and $79 million, or 9%, in the three and six months ended June 30, 2025 compared to the same periods of the prior year. The decline in the three and six months ended June 30, 2025 was due primarily to a decline in employee-related costs, and to a lesser extent, a decline in software expenses.

Current wording

Customer support and operations expenses increased $20 million, or 5%, and decreased $59 million, or 4%, in the three and nine months ended September 30, 2025 compared to the same periods of the prior year. The increase in the three months ended September 30, 2025 was due primarily to an increase in other operating charges, partially offset by a decline in employee-related costs and software expenses. The decrease in the nine months ended September 30, 2025 was primarily attributable to a decline in employee-related costs and software expenses, partially offset by an increase in other operating charges.

Previous wording

Sales and marketing expenses for the three and six months ended June 30, 2025 and 2024 were as follows (in millions):

Current wording

Sales and marketing expenses for the three and nine months ended September 30, 2025 and 2024 were as follows (in millions):

Previous wording

Sales and marketing expenses increased $137 million, or 31%, and $204 million, or 24%, in the three and six months ended June 30, 2025 compared to the same periods of the prior year due primarily to higher spend of approximately $150 million and $240 million, respectively, on marketing and brand advertising, including our PayPal Everywhere and Venmo Everything advertising campaigns, partially offset by lower employee-related costs.

Current wording

Sales and marketing expenses increased $13 million, or 3%, and $217 million, or 16%, in the three and nine months ended September 30, 2025 compared to the same periods of the prior year. The increase in the three months ended September 30, 2025 was due primarily to higher spend on marketing and brand advertising, including our Venmo Everything advertising campaign, partially offset by lower costs associated with Honey rewards programs. The increase in the nine months ended September 30, 2025 was primarily due to higher spend of approximately $265 million on marketing and brand advertising, including our PayPal Everywhere and Venmo Everything advertising campaigns, partially offset by lower employee-related costs and lower costs associated with Honey rewards programs.

Previous wording

Technology and development expenses for the three and six months ended June 30, 2025 and 2024 were as follows (in millions):

Current wording

Technology and development expenses for the three and nine months ended September 30, 2025 and 2024 were as follows (in millions):

Previous wording

Technology and development expenses increased $49 million, or 7%, and $38 million, or 3%, in the three and six months ended June 30, 2025 compared to the same periods of the prior year. The increase in technology and development expenses in the three months ended June 30, 2025 was primarily due to increases in employee-related costs, contractor and consultant costs, and software maintenance costs, partially offset by a decline in depreciation expense. The increase in technology and development expenses in the six months ended June 30, 2025 was driven by increases in contractor and consultant costs, software maintenance costs, and costs from cloud computing services utilized in delivering our products and services, partially offset by a decline in depreciation and amortization expense.

Current wording

Technology and development expenses increased $55 million, or 7%, and $93 million, or 4%, in the three and nine months ended September 30, 2025 compared to the same periods of the prior year due primarily to increases in contractor and consultant costs, costs from cloud computing services utilized in delivering our products and services, and software maintenance costs. Technology and development expenses in the nine months ended September 30, 2025 were also impacted by an increase in employee-related costs, partially offset by a decline in depreciation and amortization expense.

Previous wording

General and administrative expenses for the three and six months ended June 30, 2025 and 2024 were as follows (in millions):

Current wording

General and administrative expenses for the three and nine months ended September 30, 2025 and 2024 were as follows (in millions):

Previous wording

General and administrative expenses decreased $109 million, or 19%, and $70 million, or 7%, in the three and six months ended June 30, 2025 compared to the same periods of the prior year due primarily to a decline in indirect tax expense of approximately $80 million and $60 million, respectively, a contingency reserve in the prior periods for which there was no similar activity in the current periods, and a decline in employee-related expenses. The decline in the six months ended June 30, 2025 was partially offset by increases in professional services expense, costs associated with enterprise software services and facilities expense.

Current wording

General and administrative expenses decreased $6 million, or 1%, and $76 million, or 5%, in the three and nine months ended September 30, 2025 compared to the same periods of the prior year. The decrease in the three months ended September 30, 2025 was due primarily to a decline in employee-related costs, partially offset by an increase in indirect tax expense. The decrease in the nine months ended September 30, 2025 was primarily attributable to declines in employee-related costs, indirect tax expense, and contingency reserve compared to the prior period, partially offset by increases in professional services expense and costs associated with enterprise software services.

Previous wording

Restructuring and other for the three and six months ended June 30, 2025 and 2024 were as follows (in millions):

Current wording

Restructuring and other for the three and nine months ended September 30, 2025 and 2024 were as follows (in millions):

Previous wording

Restructuring and other increased $3 million and decreased $143 million in the three and six months ended June 30, 2025, respectively, compared to the same periods of the prior year. The decline in the six months ended June 30, 2025 was due primarily to a decline in restructuring charges compared to the prior period.

Current wording

Restructuring and other increased $6 million and decreased $137 million in the three and nine months ended September 30, 2025, respectively, compared to the same periods of the prior year.

Previous wording

During the second quarter of 2025, management undertook a large-scale initiative (the “Q2 2025 Plan”) to reengineer our existing technology infrastructure to improve scalability, reduce network latency, decrease operational costs, and optimize our workforce. The Q2 2025 Plan is a transformative unified program designed to streamline operations and includes exiting certain data centers to migrate to more efficient cloud-based solutions. The plan is expected to be executed over a period of 18 to 42 months with the workforce component to be substantially completed in 2027 and the technology infrastructure component to be substantially completed in 2028. The associated restructuring charges during both the three and six months ended June 30, 2025 were $95 million and included employee severance and benefits costs.

Current wording

During the second quarter of 2025, management undertook a large-scale initiative (the “Q2 2025 Plan”) to reengineer our existing technology infrastructure to improve scalability, reduce network latency, decrease operational costs, and optimize our workforce. The Q2 2025 Plan is a transformative unified program designed to streamline operations and includes exiting certain data centers to migrate to more efficient cloud-based solutions. The plan is expected to be executed over a period of 18 to 42 months with the workforce component to be substantially completed in 2027 and the technology infrastructure component to be substantially completed in 2028. The associated restructuring charges during the three and nine months ended September 30, 2025 were de minimis and $96 million and included employee severance and benefits costs.