eBay Inc.
EBAY · Nasdaq
Next quarter
Reports Nov 4, 2026.
Consensus is $1.11 EPS for Sep 2026 across 5 estimates, ranging $1.08 to $1.16.
EBAY Jun 2026
- 4.17%
- -0.91%
- $1.20
- $1.25
- —
- $3.13B
Reported results
- $3.13B
- 73.45%
- $676.00M
- 21.57%
- $550.00M
- $1.21
Highlights
- Demand: Q2 revenue rose 15% year over year to $3.13 billion, while GMV increased 15% to $22.4 billion, or 14% on an FX-neutral basis.
- Earnings: GAAP diluted EPS was $1.21, up from $0.78 a year ago and $1.12 in Q1; the supplied consensus comparison shows reported EPS of $1.25 versus $1.20 expected, a 4.17% surprise.
- U.S. momentum: U.S. GMV grew 24% to $11.7 billion, versus 6% growth internationally; active buyers increased 2% year over year to 136 million.
- Advertising: Advertising revenue rose 24% to $596 million, including $570 million from first-party products, up 25%; advertising represented 2.7% of GMV.
- Profitability: GAAP operating income increased 41% to $676 million and operating margin expanded to 21.6% from 17.6%; non-GAAP margin was 28.5%, up from 28.3%.
- Cash generation: Continuing operating cash flow was $549 million and free cash flow was $326 million, compared with negative $340 million and negative $441 million, respectively, in Q2 2025.
- Depop: eBay closed the Depop acquisition on July 30 for $1.4 billion in cash, including preliminary purchase price adjustments, and Q3 guidance includes its expected contribution.
- Capital returns: eBay returned $448 million in Q2 through $310 million of repurchases and $138 million of dividends; approximately $2.0 billion remained under the repurchase authorization at quarter-end.
- Next quarter: Q3 guidance calls for revenue of $3.07 billion-$3.12 billion, GMV of $22.0 billion-$22.4 billion, GAAP EPS of $0.94-$0.99 and non-GAAP EPS of $1.36-$1.42.
Analysis
eBay’s second quarter was a broad-based acceleration in marketplace activity, with the strongest contribution coming from the U.S. Revenue of $3.13 billion increased 15% year over year and 1.5% from Q1’s $3.09 billion, while GMV rose 15% to $22.4 billion from $19.5 billion a year earlier and $22.2 billion in the prior quarter. GAAP net income reached $552 million from continuing operations, versus $365 million a year ago and $512 million in Q1. GAAP diluted EPS was $1.21, compared with $0.78 and $1.12, respectively. The supplied consensus dataset reports EPS of $1.25 against $1.20 expected, a 4.17% beat, although the release and 10-Q identify $1.21 as GAAP diluted EPS.
The operating story was led by U.S. GMV growth of 24%, versus 6% internationally, and by advertising monetization: advertising revenue rose 24% to $596 million, with first-party advertising up 25% to $570 million. Profit conversion also improved, with GAAP operating margin rising 400 basis points to 21.6%. eBay generated $326 million of free cash flow and returned $448 million to shareholders. The strategic pivot now includes Depop, acquired for $1.4 billion after quarter-end, while Q3 guidance points to slower but still solid 8%-10% FX-neutral revenue growth and 10%-12% FX-neutral GMV growth.
Marketplace momentum
The quarter’s central feature was stronger transaction volume, particularly in the U.S. Management attributed the improvement to strategic initiatives, better U.S. consumer demand and outperformance in focus categories, C2C and recommerce. Take rate was stable at 13.99%, so growth was primarily volume-led rather than a material change in monetization of marketplace activity.
- GMV: Total GMV was $22.4 billion, up 15% as reported and 14% FX-neutral; Q1 GMV was $22.2 billion and Q2 2025 GMV was $19.5 billion.
- Geography: U.S. GMV increased 24% to $11.7 billion, while international GMV rose 6% to $10.7 billion.
- Categories: Collectibles, Motors Parts & Accessories, Fashion and Refurbished Goods were particularly strong, with C2C growth ahead of B2C in the U.S., U.K. and Germany.
- Users: Active buyers reached 136 million, up 2% year over year and unchanged from Q1.
Advertising monetisation
Advertising remained a faster-growing revenue stream than the marketplace itself. eBay cited higher first-party advertising adoption and attribution changes that improved its ability to convert ads, helping monetization grow without a reported increase in the overall take rate.
- Advertising revenue: Total advertising revenue increased 24% year over year to $596 million, equal to 2.7% of GMV.
- First-party products: First-party advertising revenue rose 25% on an as-reported basis and 24% FX-neutral to $570 million.
- Revenue mix: Marketplace revenue increased 13% to $2.54 billion, while advertising grew faster and lifted total revenue to $3.13 billion.
Margin and earnings
eBay converted the higher volume into substantially better GAAP earnings despite increased payment processing, site operations and transaction-loss costs. The year-ago comparison also benefited from lower general and administrative costs, including the absence of $55 million of restructuring costs recorded in Q2 2025.
- Operating income: GAAP operating income rose 41% to $676 million from $479 million; Q1 operating income was $611 million.
- Margins: GAAP operating margin expanded to 21.6% from 17.6% a year ago, while non-GAAP margin increased modestly to 28.5% from 28.3%.
- Net income: GAAP income from continuing operations increased 51% to $552 million; the effective tax rate declined to 17.1% from 22.6%.
- Cost pressures: Transaction losses rose 54% to $133 million, including $31 million from unfavorable fraud and recovery-rate fluctuations and $14 million from higher volume.
Depop acquisition
Depop moved from announced strategy to consolidated ownership just after quarter-end. eBay expects the acquisition to strengthen its position in circular fashion and recommerce, but the initial purchase accounting was incomplete at the filing date and the Q3 outlook is the first guidance period to include Depop.
- Closing: The transaction closed on July 30, 2026, for $1.4 billion in cash, compared with the previously announced $1.2 billion purchase price subject to adjustments.
- Strategic fit: Depop adds a C2C fashion marketplace with a highly engaged Gen Z and Millennial audience.
- Near-term disclosure: eBay has not yet provided the provisional allocation of acquired assets, liabilities and goodwill; those disclosures are expected in future periods.
Cash and capital returns
Cash generation improved sharply against the unusually weak year-ago quarter, supporting continued shareholder distributions and the Depop purchase. eBay ended June with $4.9 billion of cash, cash equivalents and non-equity investments, excluding $1.2 billion held on behalf of customers.
- Cash flow: Continuing operating cash flow was $549 million and free cash flow was $326 million, versus negative $340 million and negative $441 million in Q2 2025.
- Shareholder returns: eBay repurchased approximately 3 million shares for $310 million and paid $138 million in dividends during the quarter.
- Authorization: Approximately $2.0 billion remained available for future repurchases at June 30, after $810 million of repurchases during the first half.
- Debt: eBay repaid $750 million of senior notes due in May and had $750 million of commercial paper outstanding at quarter-end.
Third-quarter outlook
The Q3 outlook embeds a moderation from Q2’s 14% FX-neutral revenue growth while retaining double-digit FX-neutral GMV growth. It also incorporates Depop, making the guidance a marker for the pace at which the new asset enters the reported business.
- Revenue: Q3 revenue is guided to $3.07 billion-$3.12 billion, implying 8%-10% FX-neutral year-over-year growth.
- GMV: Q3 GMV is expected at $22.0 billion-$22.4 billion, implying 10%-12% FX-neutral growth.
- EPS: GAAP diluted EPS is guided to $0.94-$0.99, while non-GAAP diluted EPS is guided to $1.36-$1.42.
- Dividend: eBay declared a Q3 dividend of $0.31 per share, payable September 11, 2026.
