eBay Inc. Reports First Quarter 2026 Results
Rhea-AI Summary
eBay (Nasdaq: EBAY) reported Q1 2026 results with revenue $3.1B (+19% as-reported; +17% FX-neutral) and GMV $22.2B (+18% as-reported; +14% FX-neutral). GAAP EPS was $1.12 and non-GAAP EPS was $1.66. Operating cash flow was $970M and free cash flow $898M. The company returned $639M to shareholders and announced a definitive agreement to acquire Depop for approximately $1.2B.
eBay provided Q2 2026 guidance: revenue $2.97–$3.03B, GMV $21.3–$21.7B, GAAP EPS $1.09–$1.14, non-GAAP EPS $1.46–$1.51.
Positive
- Revenue +19% as-reported ($3.1B)
- GMV +18% as-reported ($22.2B)
- Generated $970M operating cash flow and $898M free cash flow
- Returned $639M to shareholders, including $500M share repurchases
- Definitive agreement to acquire Depop for ~$1.2B
Negative
- GAAP operating margin declined to 19.8% from 23.6% (Q1 2025)
- Q2 guidance implies FX-neutral revenue growth of 8–10%, below Q1's 17% FX-neutral growth
Key Figures
Market Reality Check
Peers on Argus
Pre‑announcement data flagged EBAY’s move as down, while only one peer in momentum (CHWY) was up 0.65%, and others were mixed, suggesting stock‑specific dynamics rather than a broad Internet Retail move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 18 | Q4 2025 earnings | Positive | +3.1% | Q4 2025 revenue $3.0B and GMV $21.2B with EPS growth and buybacks. |
| Oct 29 | Q3 2025 earnings | Positive | -15.9% | Q3 2025 revenue $2.82B and GMV $20.1B grew, but shares fell sharply. |
| Jul 30 | Q2 2025 earnings | Positive | +18.3% | Q2 2025 revenue $2.7B and GMV $19.5B rose with strong ad growth. |
| Apr 30 | Q1 2025 earnings | Positive | -0.7% | Q1 2025 revenue $2.6B and GMV $18.8B increased modestly; stock slipped. |
| Feb 26 | Q4 2024 earnings | Positive | -8.2% | Q4 2024 revenue $2.6B and GMV $19.3B grew, yet shares declined. |
Earnings releases often contained strong growth metrics, but price reactions were mixed: 2 positive moves and 3 negative moves in the last five earnings reports.
Across the last five earnings events from Feb 2024 through Feb 2026, eBay repeatedly reported revenue and GMV growth, expanding advertising revenue and steady shareholder returns via buybacks and dividends. Some quarters, like Q2 2025, saw double‑digit positive reactions, while others, including Q3 2025 and Q4 2024, saw sizable declines, underscoring that strong fundamentals did not always translate into positive next‑day performance.
Historical Comparison
Recent earnings reports often paired revenue and GMV growth with mixed next‑day moves, averaging a -0.67% reaction, so strong Q1 2026 numbers fit a pattern where fundamentals and price do not always align.
Earnings releases from Q1 2025 through Q4 2025 showed rising revenue and GMV, growing advertising contributions, and consistent capital returns, providing a backdrop of operational momentum into Q1 2026.
Regulatory & Risk Context
As of Feb 19, 2026, eBay has an effective S-3ASR shelf registration covering multiple classes of securities, to be issued from time to time for general corporate purposes as detailed in future prospectus supplements. No usage has been recorded in the provided context.
Market Pulse Summary
This announcement delivered Q1 2026 revenue of $3.1 billion, GMV of $22.2 billion, and non‑GAAP EPS of $1.66, alongside $639 million returned to shareholders and a planned $1.2 billion Depop acquisition. Compared with prior earnings, it continues a trend of GMV and advertising growth. Investors may focus on execution of Depop integration, progress versus Q2 guidance, and any future use of the existing shelf registration.
Key Terms
gross merchandise volume financial
gmv financial
fx-neutral financial
gaap financial
non-gaap financial
operating margin financial
free cash flow financial
AI-generated analysis. Not financial advice.
- Revenue of
$3.1 billion 19% on an as-reported basis and up17% on an FX-Neutral basis - Gross Merchandise Volume ("GMV") of
$22.2 billion 18% on an as-reported basis and up14% on an FX-Neutral basis - GAAP and Non-GAAP earnings per diluted share of
$1.12 $1.66 - GAAP and Non-GAAP operating margins of
19.8% and29.4% , respectively - Returned
$639 million to stockholders in Q1, including$500 million of share repurchases and$139 million paid in cash dividends
"eBay's first quarter results marked a strong start to the year," said Jamie Iannone, Chief Executive Officer at eBay. "We accelerated GMV growth and delivered performance ahead of expectations. Our Focus Categories, C2C and recommerce strategic priorities are driving broad-based momentum, and strengthening our position as the marketplace of choice for enthusiasts."
"Our strong first quarter results, characterized by robust GMV and revenue growth, along with healthy earnings, reflect the powerful operating leverage inherent in our business," said Peggy Alford, Chief Financial Officer at eBay. "We remain committed to disciplined execution of our strategic priorities while continuing to allocate capital thoughtfully to drive long-term value and significant returns for our shareholders."
First Quarter 2026 Business Highlights
- eBay announced a definitive agreement to acquire Depop, a leading consumer-to-consumer ("C2C") fashion marketplace, from Etsy, which would deepen eBay's reach with younger, fashion-forward consumers and expand its presence in one of the most dynamic areas of resale.
- The company expanded eBay Live, its interactive live-stream shopping experience, to
France ,Italy andCanada , growing seller reach and deepening buyer engagement. - eBay launched "The 30/30 Collection" on eBay Live, a Pokémon Day auction that showcased 30 years of iconic cards and memorabilia from top sellers, boosting engagement in one of the marketplace's most popular Focus Categories.
- Goldin, an eBay company, reached an all-time quarterly GMV record in the first quarter, facilitated by a record-breaking
$16.5 million - eBay hosted several Bay Area activations for football's biggest game, including the immersive eBay End Zone pop-up, celebrity-driven eBay Live shopping events and a community watch party. The events showcased eBay's unique inventory and relevance across collectibles, fashion and sports memorabilia.
- eBay's AI-powered card scanning feature, which surfaces historical pricing and population data from a single photo, expanded to include the company's top five collectible card game genres, and surpassed 30 million cumulative scans.
- eBay released "The NYC Edit," an online style guide highlighting what New Yorkers are buying and selling on eBay. The curated storefronts allowed buyers to shop directly from influencers' closets, and was accompanied by a three-day in-person resale experience held in April.
- The company collaborated with Vogue on the Vogue Vintage Market pop-ups in
New York ,London andBerlin , featuring a curated selection of premium vintage pieces handpicked from eBay by leading voices in fashion. Select items were auctioned via eBay Live where customers around the world could participate and bid in real time. - eBay announced a new partnership with Meta for the Facebook affiliate program, allowing creators to feature eBay's inventory directly within their content, and helping sellers reach new, engaged buyers through social commerce.
- eBay expanded its financial services offerings in the
U.K. by partnering with Liberis to add Flexible Growth Financing to its Seller Capital program, and introduced Pay by Bank at checkout through a partnership with TrueLayer, enabling instant, secure payments. - The company announced the appointment of Brian Sharples to its Board of Directors. Mr. Sharples serves as Board Chair of GoDaddy, Inc., and previously co-founded and served as CEO and Chairman of HomeAway, Inc.
Impact
- eBay released its inaugural Climate Transition Plan, a company-wide roadmap to reach net-zero greenhouse gas emissions by 2045. The plan details how eBay is well-positioned to drive sustainable commerce at scale, and as a result, create enduring value for customers, communities and the planet.
- eBay for Charity enabled buyers and sellers to raise nearly
$60 million - eBay received numerous awards, including recognition from Fortune as one of America's Most Innovative Companies 2026, from Newsweek as one of America's Greenest Companies 2026, and from TIME as one of America's Most Iconic Companies 2026.
First Quarter 2026 Financial Highlights
- Revenue was
$3.1 billion 19% on an as-reported basis and up17% on a foreign exchange ("FX") neutral basis. - GMV was
$22.2 billion 18% on an as-reported basis and up14% on an FX-Neutral basis. - GAAP net income from continuing operations was
$512 million $1.12 - Non-GAAP net income from continuing operations was
$760 million $1.66 - GAAP and Non-GAAP operating margins were
19.8% and29.4% , respectively. - Generated
$970 million of operating cash flow and$898 million - Returned
$639 million to stockholders, including$500 million of share repurchases and$139 million paid in cash dividends.
(In millions, except per share data and percentages) | First Quarter | |||
2026 | 2025 | Change | ||
eBay Inc. | ||||
Net revenues | $ 3,089 | $ 2,585 | $ 504 | 19 % |
GAAP – Continuing Operations | ||||
Net income | $ 512 | $ 501 | $ 11 | 2 % |
Earnings per diluted share | $ 1.12 | $ 1.05 | $ 0.07 | 7 % |
Non-GAAP – Continuing Operations | ||||
Net income | $ 760 | $ 654 | $ 106 | 16 % |
Earnings per diluted share | $ 1.66 | $ 1.37 | $ 0.29 | 21 % |
Other Selected Financial and Operational Results
- Advertising revenue – The company's total advertising offerings generated
$581 million 2.6% of GMV. First-party advertising products on the eBay platform delivered$555 million of revenue in the first quarter of 2026, up33% on an as-reported basis and up28% on an FX-Neutral basis. - Operating margin – GAAP operating margin decreased to
19.8% for the first quarter of 2026, compared to23.6% for the same period last year. Non-GAAP operating margin decreased to29.4% for the first quarter of 2026, compared to29.6% for the same period last year. - Income tax rate – The GAAP effective tax rate for continuing operations for the first quarter of 2026 was
17.1% , compared to20.4% for the first quarter of 2025. The non-GAAP effective tax rate for continuing operations for the first quarter of 2026 was17.5% (1). - Cash flow – The company generated
$970 million $898 million - Capital returns – The company repurchased
$500 million of its common stock, or approximately 6 million shares, in the first quarter of 2026. The company's total repurchase authorization remaining as of March 31, 2026 was approximately$2.3 billion $139 million - Cash and cash equivalents and non-equity investments – The company's cash and cash equivalents and non-equity investments portfolio totaled
$5.1 billion
(1) We are using a non-GAAP effective tax rate of |
Business Outlook
eBay is providing the following guidance for continuing operations for the second quarter 2026.
(In billions, except per share data and percentages) | Q2 2026 Guidance |
Revenue | |
FX-Neutral Y/Y Growth | |
Gross Merchandise Volume | |
FX-Neutral Y/Y Growth | |
Diluted GAAP EPS | |
Diluted Non-GAAP EPS |
Dividend Declaration
eBay's Audit Committee declared a second quarter 2026 cash dividend of
Definitive Agreement to Acquire Depop, Inc.
In February 2026, eBay Inc. and Etsy, Inc. announced that they entered into a definitive agreement for eBay to acquire Depop, Inc. for approximately
Quarterly Conference Call and Webcast
eBay Inc. will host a conference call to discuss first quarter 2026 results at 2:30 p.m. Pacific Time today. A live webcast of the conference call, together with a slide presentation that includes supplemental financial information and reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures, can be accessed through the company's Investor Relations website at https://investors.ebayinc.com. In addition, an archive of the webcast will be accessible for at least three months through the same link.
eBay Inc. uses its Investor Relations website at https://investors.ebayinc.com and social media channels as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor this website, in addition to following our press releases, Securities and Exchange Commission (SEC) filings, public conference calls and webcasts.
About eBay
eBay Inc. (Nasdaq: EBAY) is a global commerce leader that connects people and builds communities to create economic opportunity for all. Our technology empowers millions of buyers and sellers in more than 190 markets around the world, providing everyone the opportunity to grow and thrive. Founded in 1995 in
Presentation
All growth rates represent year-over-year comparisons, except as otherwise noted. All amounts in tables are presented in
New Accounting Standard
In September 2025, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Accounting for and Disclosure of Software Costs. eBay adopted the standard effective January 1, 2026 using the full retrospective method, which required the restatement of each prior reporting period presented.
Non-GAAP Financial Measures
This press release includes the following financial measures defined as "non-GAAP financial measures" by the SEC: non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating income and margin, non-GAAP effective tax rate, free cash flow and FX-Neutral basis. These non-GAAP financial measures are presented on a continuing operations basis. These measures may be different from non-GAAP financial measures used by other companies. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation of, or as a substitute for, the financial information prepared and presented in accordance with generally accepted accounting principles ("GAAP"). For a reconciliation of these non-GAAP financial measures, except for figures in this press release presented on an "FX-Neutral basis," to the nearest comparable GAAP measures, see "Non-GAAP Measures of Financial Performance," "Reconciliation of GAAP Operating Income to Non-GAAP Operating Income," "Reconciliation of GAAP Net Income to Non-GAAP Net Income and GAAP Effective Tax Rate to Non-GAAP Effective Tax Rate" and "Reconciliation of Operating Cash Flow to Free Cash Flow" included in this press release. For figures in this press release reported "on an FX-Neutral basis," we calculate the year-over-year impact of foreign currency movements using prior period foreign currency rates, excluding hedging activity, applied to current year transactional currency amounts.
Forward-Looking Statements
This press release contains forward-looking statements relating to, among other things, the future performance of eBay Inc. and its consolidated subsidiaries that are based on the company's current expectations, forecasts and assumptions and involves risks and uncertainties. These statements include, but are not limited to, management's vision for the future of eBay and our ability to accomplish our vision, expected financial results for the second quarter and full year 2026 and expected drivers thereof, the future growth in our business, and our ability to drive sustainable long-term growth and create lasting value for our stockholders, the impact of current and contemplated strategic initiatives and offerings, partnerships with and acquisitions of other companies, and new and updated product features or programs, including the initiatives, offerings, partnerships, acquisitions, features and programs discussed in our business highlights, the effects of foreign currency volatility and our ability to respond to such effects, operating efficiency and margins, and dividends and share repurchases.
Actual results could differ materially from those expressed or implied and reported results should not be considered as an indication of future performance. Factors that could cause or contribute to such differences include, but are not limited to: significant variation in our operating and financial results, including GMV and net revenues; our ability to compete in the markets in which we participate; our ability to generate revenue from our advertising products, including our Promoted Listings; our ability to generate consumer engagement and spending; our ability to keep pace with technological changes, including emerging AI technologies, and with changes in consumer demands and expectations; our ability to operate internationally and generate revenue from our international operations and our exposure to costs and risks in connection therewith; the impact of changes in global trade policies on our revenue, profit and ability to support cross-border trade; our ability to manage our buyer and seller trust protection programs; the risk of systems failures and business interruptions to our business; operation of and ongoing investment into our payments and financial services offerings; risk of fraud on our platforms; the impact of any cyberattacks or data security breaches; our ability to attract, retain and develop our senior managers and other key employees; our and our customers' dependence on third-party providers, some of which are our competitors; the impact of our current, contemplated and future acquisitions, dispositions, joint ventures, strategic partnerships and strategic investments, including our expectations regarding the time to close, and our ability to close, and subsequently realize the projected benefits from, the pending Depop acquisition; the impact of extensive and increasing regulation and oversight that affect our business; the risk of liability for the actions of our customers, including products sold by sellers on our platforms; the impact of increasing levels of regulation in the areas of privacy, protection of user data and cybersecurity; the risks associated with third party allegations relating to intellectual property rights; current and potential litigation and regulatory and government inquiries, investigations and litigation involving us; the impact of evolving sales and other tax regimes in various jurisdictions; our ability to protect or enforce our intellectual property rights; risks and costs relating to stakeholder expectations around environmental, social and governance matters; potential exposure to claims and liabilities as a result of the distribution of PayPal; the risk of exposure to greater than anticipated tax liabilities; fluctuations in interest rates, and changes in regulatory guidance relating thereto; fluctuations in foreign currency exchange rates; our ability to generate sufficient cash flow to service our indebtedness and to comply with financial covenants in our outstanding debt instruments; and the risk that our stock repurchases may not be effected or may not achieve the desired objectives.
The forward-looking statements in this release do not include the potential impact of any acquisitions or divestitures that may be announced and/or completed after the date hereof.
More information about factors that could affect the company's operating results is included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, copies of which may be obtained by visiting the company's Investor Relations website at https://investors.ebayinc.com or the SEC's website at www.sec.gov. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to the company on the date hereof. The company assumes no obligation to update such statements.
eBay Inc. | |||
Unaudited Condensed Consolidated Balance Sheet | |||
March 31, | December 31, | ||
(In millions) | |||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 2,894 | $ 1,867 | |
Short-term investments | 966 | 1,052 | |
Customer accounts and funds receivable | 1,490 | 1,280 | |
Other current assets | 909 | 887 | |
Total current assets | 6,259 | 5,086 | |
Long-term investments | 2,010 | 2,767 | |
Property and equipment, net | 1,198 | 1,165 | |
Goodwill | 4,463 | 4,467 | |
Operating lease right-of-use assets | 446 | 428 | |
Deferred tax assets | 2,949 | 2,959 | |
Other assets | 568 | 565 | |
Total assets | $ 17,893 | $ 17,437 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Short-term debt | $ 750 | $ 750 | |
Accounts payable | 311 | 242 | |
Customer accounts and funds payable | 1,491 | 1,280 | |
Accrued expenses and other current liabilities | 2,457 | 2,257 | |
Income taxes payable | 125 | 108 | |
Total current liabilities | 5,134 | 4,637 | |
Operating lease liabilities | 332 | 315 | |
Deferred tax liabilities | 1,438 | 1,431 | |
Long-term debt | 5,994 | 5,996 | |
Other liabilities | 583 | 575 | |
Total liabilities | 13,481 | 12,954 | |
Total stockholders' equity | 4,412 | 4,483 | |
Total liabilities and stockholders' equity | $ 17,893 | $ 17,437 | |
eBay Inc. | |||
Unaudited Condensed Consolidated Statement of Income | |||
Three Months Ended March 31, | |||
2026 | 2025 | ||
(In millions, except per share | |||
Net revenues | $ 3,089 | $ 2,585 | |
Cost of net revenues (1) | 802 | 697 | |
Gross profit | 2,287 | 1,888 | |
Operating expenses: | |||
Sales and marketing (1) | 673 | 536 | |
Product development (1) | 450 | 393 | |
General and administrative (1) | 410 | 261 | |
Transaction losses | 138 | 81 | |
Amortization of acquired intangible assets | 5 | 6 | |
Total operating expenses | 1,676 | 1,277 | |
Income from operations | 611 | 611 | |
Interest and other: | |||
Gain (loss) on equity investments and warrants, net | 2 | (2) | |
Interest expense | (61) | (61) | |
Interest income and other, net | 66 | 81 | |
Income from continuing operations before income taxes | 618 | 629 | |
Income tax provision | (106) | (128) | |
Income from continuing operations | 512 | 501 | |
Loss from discontinued operations, net of income taxes | — | (2) | |
Net income | $ 512 | $ 499 | |
Income per share – basic: | |||
Continuing operations | $ 1.14 | $ 1.07 | |
Discontinued operations | — | — | |
Net income per share – basic | $ 1.14 | $ 1.07 | |
Income per share – diluted: | |||
Continuing operations | $ 1.12 | $ 1.05 | |
Discontinued operations | — | — | |
Net income per share – diluted | $ 1.12 | $ 1.05 | |
Weighted average shares: | |||
Basic | 448 | 467 | |
Diluted | 457 | 475 | |
(1) Includes stock-based compensation as follows: | |||
Cost of net revenues | $ 11 | $ 9 | |
Sales and marketing | 47 | 20 | |
Product development | 76 | 69 | |
General and administrative | 22 | 38 | |
$ 156 | $ 136 | ||
eBay Inc. | |||
Unaudited Condensed Consolidated Statement of Cash Flows | |||
Three Months Ended March 31, | |||
2026 | 2025 | ||
(In millions) | |||
Cash flows from operating activities: | |||
Net income | $ 512 | $ 499 | |
Loss from discontinued operations, net of income taxes | — | 2 | |
Adjustments: | |||
Transaction losses | 138 | 81 | |
Depreciation and amortization | 93 | 52 | |
Stock-based compensation | 156 | 136 | |
Loss (gain) on investments and other, net | (31) | 2 | |
Deferred income taxes | 21 | 30 | |
Change in fair value of warrants | 9 | — | |
Changes in assets and liabilities, net of acquisition effects | 72 | (47) | |
Net cash provided by continuing operating activities | 970 | 755 | |
Net cash used in discontinued operating activities | (1) | — | |
Net cash provided by operating activities | 969 | 755 | |
Cash flows from investing activities: | |||
Purchases of property and equipment | (72) | (111) | |
Purchases of investments | (364) | (3,043) | |
Maturities of investments | 352 | 4,587 | |
Sales of investments | 684 | — | |
Shareholder distributions from equity investments | 194 | — | |
Acquisitions and other | (11) | (89) | |
Net cash provided by investing activities | 783 | 1,344 | |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock | 2 | — | |
Repurchases of common stock | (486) | (615) | |
Payments for taxes related to net share settlements of restricted stock units and awards | (106) | (69) | |
Payments for dividends | (139) | (134) | |
Repayment of senior notes | — | (800) | |
Proceeds from issuance of commercial paper | — | 568 | |
Repayment of commercial paper | — | (441) | |
Net funds receivable and payable activity | 168 | 243 | |
Net cash used in financing activities | (561) | (1,248) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (12) | 19 | |
Net increase in cash, cash equivalents and restricted cash | 1,179 | 870 | |
Cash, cash equivalents and restricted cash at beginning of period | 3,055 | 3,286 | |
Cash, cash equivalents and restricted cash at end of period | $ 4,234 | $ 4,156 | |
eBay Inc. | |||||||||
Unaudited Summary of Consolidated Net Revenues | |||||||||
Three Months Ended | |||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||
(In millions, except percentages) | |||||||||
Total net revenues (1)(2) | $ 3,089 | $ 2,965 | $ 2,820 | $ 2,730 | $ 2,585 | ||||
Current quarter vs prior year quarter | 19 % | 15 % | 9 % | 6 % | 1 % | ||||
Percent from international | 44 % | 46 % | 48 % | 49 % | 48 % | ||||
(1) Hedge gain/(loss) | $ (13) | $ (19) | $ (24) | $ (6) | $ 8 | ||||
(2) Foreign currency impact | $ 78 | $ 16 | $ 20 | $ 32 | $ (21) | ||||
eBay Inc. | |||||||||
Unaudited Supplemental Operating Data | |||||||||
Three Months Ended | |||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||
(In millions, except percentages) | |||||||||
Active Buyers (1) | 136 | 135 | 134 | 134 | 134 | ||||
Current quarter vs prior year quarter | 1 % | 1 % | 1 % | 1 % | 1 % | ||||
Active Buyers excluding Tise (2) | 135 | 134 | |||||||
Gross Merchandise Volume (3) | |||||||||
$ 11,503 | $ 10,721 | $ 9,872 | $ 9,428 | $ 9,066 | |||||
Current quarter vs prior year quarter | 27 % | 19 % | 13 % | 7 % | 1 % | ||||
International | $ 10,694 | $ 10,516 | $ 10,233 | $ 10,086 | $ 9,687 | ||||
Current quarter vs prior year quarter | 10 % | 2 % | 7 % | 5 % | 0 % | ||||
Total Gross Merchandise Volume | $ 22,197 | $ 21,237 | $ 20,105 | $ 19,514 | $ 18,753 | ||||
Current quarter vs prior year quarter | 18 % | 10 % | 10 % | 6 % | 1 % | ||||
(1) | Active Buyers consist of all buyers who paid for a transaction on our Marketplace platforms within the previous 12-month period. Buyers may register more than once, and as a result, may have more than one account. |
(2) | On October 1, 2025, we completed the acquisition of Tise AS. |
(3) | Gross Merchandise Volume consists of the total value of all paid transactions between users on our Marketplace platforms during the applicable period inclusive of shipping fees and taxes, without adjustment for returns or cancellations. |
eBay Inc.
Business Outlook
The guidance figures provided below and elsewhere in this press release are forward-looking statements, reflect a number of estimates, assumptions and other uncertainties, and are approximate in nature because the company's future performance is difficult to predict. Such guidance is based on information available on the date of this press release, and the company assumes no obligation to update it.
The company's future performance involves risks and uncertainties, and the company's actual results could differ materially from the information below and elsewhere in this press release. Some of the factors that could affect the company's operating results are set forth under the caption "Forward-Looking Statements" above in this press release. More information about factors that could affect the company's operating results is included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, copies of which may be obtained by visiting eBay's investor relations website at https://investors.ebayinc.com or the SEC's website at www.sec.gov.
eBay Inc.
Three Months Ending | |||
June 30, 2026 | |||
(In billions, except per share amounts) | GAAP | Non-GAAP (a) | |
Net revenues | |||
Diluted EPS from continuing operations | |||
Gross Merchandise Volume | |||
(a) Estimated non-GAAP amounts above for the three months ending June 30, 2026 reflect adjustments that exclude the estimated amortization of acquired intangible assets of approximately | |||
eBay Inc.
Non-GAAP Measures of Financial Performance
To supplement the company's condensed consolidated financial statements presented in accordance with generally accepted accounting principles, or GAAP, the company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating income and margin, non-GAAP effective tax rate, free cash flow and figures in this press release presented on an "FX-Neutral basis." These non-GAAP financial measures are presented on a continuing operations basis.
These non-GAAP measures are not in accordance with, or an alternative to, measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the company's results of operations as determined in accordance with GAAP. These measures should only be used to evaluate the company's results of operations in conjunction with the corresponding GAAP measures.
Reconciliation to the nearest GAAP measure of all non-GAAP measures included in this press release, except for figures in this press release presented on an "FX-Neutral basis," can be found in the tables included in this press release. For figures in this press release reported on an "FX-Neutral basis," the company calculates the year-over-year impact of foreign currency movements using prior period foreign currency rates, excluding hedging activity, applied to current year transactional currency amounts.
These non-GAAP measures are provided to enhance investors' overall understanding of the company's current financial performance and its prospects for the future. Specifically, the company believes the non-GAAP measures provide useful information to both management and investors by excluding certain expenses, gains and losses, or net purchases of property and equipment, as the case may be, that may not be indicative of its core operating results and business outlook. In addition, because the company has historically reported certain non-GAAP results to investors, the company believes that the inclusion of non-GAAP measures provides consistency in the company's financial reporting.
For its internal budgeting process, and as discussed further below, the company's management uses financial measures that do not include stock-based compensation expense, employer payroll taxes on stock-based compensation, amortization or impairment of acquired intangible assets, impairment of goodwill, amortization of deferred tax assets associated with the realignment of its legal structure and related foreign exchange effects, significant gains or losses from the disposal/acquisition of a business, certain gains and losses on investments including changes in fair value, changes in foreign currency exchange rates and the impact of any related foreign exchange derivative instruments, gains or losses associated with a warrant agreement that the company entered into with Adyen, restructuring-related charges and the income taxes associated with the foregoing. In addition to the corresponding GAAP measures, the company's management also uses the foregoing non-GAAP measures in reviewing the financial results of the company.
The company excludes the following items from non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating income and margin and non-GAAP effective tax rate:
Stock-based compensation expense and related employer payroll taxes. This expense consists of expenses for stock options, restricted stock and employee stock purchases. The company excludes stock-based compensation expense from its non-GAAP measures primarily because they are non-cash expenses that management does not believe are reflective of ongoing operating results. The related employer payroll taxes are dependent on the company's stock price and the vesting of restricted stock by employees and the timing and size of stock option exercises, over which management has limited to no control, and as such management does not believe it correlates to the company's operation of the business.
Amortization or impairment of acquired intangible assets, impairment of goodwill, certain amortization of deferred tax assets and related foreign exchange effects, significant gains or losses and transaction expenses from the acquisition or disposal of a business and certain gains or losses on investments. The company incurs amortization or impairment of acquired intangible assets and goodwill in connection with acquisitions and may incur significant gains or losses from the acquisition or disposal of a business and therefore excludes these amounts from its non-GAAP measures. The company also excludes certain gains and losses on investments. The company excludes the non-cash amortization of deferred tax assets associated with the realignment of its legal structure, which is not reduced by the effects of the Tax Cuts and Jobs Act, and related foreign exchange effects. The company excludes these items because management does not believe they correlate to the ongoing operating results of the company's business.
Restructuring. These charges consist of expenses for employee severance and other exit and disposal costs. The company excludes significant restructuring charges primarily because management does not believe they are reflective of ongoing operating results.
Other certain significant gains, losses, or charges that are not indicative of the company's core operating results. These are significant gains, losses, or charges during a period that are the result of isolated events or transactions which have not occurred frequently in the past and are not expected to occur regularly or be repeated in the future. The company excludes these amounts from its results primarily because management does not believe they are indicative of its current or ongoing operating results. These amounts include changes in fair value and the related change in foreign currency exchange rates of equity securities with readily determinable fair values, globally.
Change in fair market value of warrants. These are gains or losses associated with warrant agreements entered into with vendors, which are attributable to changes in fair value during the period.
Income tax effects and adjustments. We are using a non-GAAP tax rate of
In addition to the non-GAAP measures discussed above, the company also uses free cash flow. Free cash flow represents operating cash flows less purchases of property and equipment. The company considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after the purchases of property, buildings, and equipment, which can then be used to, among other things, invest in the company's business, make strategic acquisitions, repurchase stock and pay dividends. A limitation of the utility of free cash flow as a measure of financial performance is that it does not represent the total increase or decrease in the company's cash balance for the period and does not exclude certain non-discretionary expenditures, such as mandatory debt service requirements.
eBay Inc. | |||
Reconciliation of GAAP Operating Income to Non-GAAP Operating Income | |||
Three Months Ended | |||
2026 | 2025 | ||
(In millions, except | |||
GAAP operating income | $ 611 | $ 611 | |
Stock-based compensation expense and related employer payroll taxes | 167 | 144 | |
Amortization of acquired intangible assets within cost of net revenues and operating expenses | 12 | 12 | |
Restructuring and executive bonuses | 104 | — | |
Other general and administrative expenses | 13 | — | |
Total non-GAAP operating income adjustments | 296 | 156 | |
Non-GAAP operating income | $ 907 | $ 767 | |
GAAP operating margin | 19.8 % | 23.6 % | |
Non-GAAP operating margin | 29.4 % | 29.6 % | |
Presented on a continuing operations basis | |||
Reconciliation of GAAP Net Income to Non-GAAP Net Income and | |||
GAAP Effective Tax Rate to Non-GAAP Effective Tax Rate | |||
Three Months Ended | |||
2026 | 2025 | ||
(In millions, except per share | |||
GAAP income from continuing operations before income taxes | $ 618 | $ 629 | |
GAAP provision for income taxes | (106) | (128) | |
GAAP net income from continuing operations | $ 512 | $ 501 | |
Non-GAAP adjustments to net income from continuing operations: | |||
Non-GAAP operating income from continuing operations adjustments (see table above) | $ 296 | $ 156 | |
Change in fair value of other equity investments | (1) | (3) | |
Change in fair value of warrants | 9 | — | |
Income tax effects and adjustments | (56) | — | |
Non-GAAP net income from continuing operations | $ 760 | $ 654 | |
Diluted net income from continuing operations per share: | |||
GAAP | $ 1.12 | $ 1.05 | |
Non-GAAP | $ 1.66 | $ 1.37 | |
Shares used in GAAP diluted net income per share calculation | 457 | 475 | |
Shares used in non-GAAP diluted net income per share calculation | 457 | 475 | |
GAAP effective tax rate – Continuing operations | 17.1 % | 20.4 % | |
Income tax effects and adjustments to net income from continuing operations | 0.4 % | (3.9) % | |
Non-GAAP effective tax rate – Continuing operations | 17.5 % | 16.5 % | |
Presented on a continuing operations basis | |||
Reconciliation of Operating Cash Flow to Free Cash Flow | |||
Three Months Ended | |||
2026 | 2025 | ||
(In millions) | |||
Net cash provided by continuing operating activities | $ 970 | $ 755 | |
Less: Purchases of property and equipment | (72) | (111) | |
Free cash flow | $ 898 | $ 644 | |
Presented on a continuing operations basis | |||
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SOURCE eBay Inc.