Stripe Swings to a Profit as Business Rebounds

Payments giant Stripe, a bellwether of the startup world, kept a lid on spending for engineers and salespeople this year after business slowed in 2022. Now it’s reaping the benefits: as revenue growth has re-accelerated, it’s making money again.

Stripe’s net revenues—what the firm takes in from payments it processes after it passes a large cut to credit card companies and other financial institutions—grew by about 35% to roughly $1 billion in the third quarter, people familiar with the matter said. Meanwhile, Stripe started producing significant cash, reversing the payments giant’s fortunes after a sluggish and unprofitable 2022, the people said. Stripe generated more than $150 million in operating income in the quarter, excluding stock-based compensation expenses, and nearly $200 million in the first nine months.