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GameStop’s $2 Billion Buyback Sends a Confusing Signal to InvestorseBay NASDAQ: EBAY outlined its strategy for expanding growth in collectibles, consumer-to-consumer selling, recommerce, live commerce and vehicles during a conference fireside chat featuring Chief Executive Officer Jamie Iannone and Chief Financial Officer Peggy Alford.

Iannone said the company has sharpened its focus around categories and marketplace activities where it sees the strongest momentum. He said approximately 70% of eBay’s business is tied to focus categories, consumer-to-consumer, or C2C, activity, and recommerce. Collectively, those areas grew 20% in the second quarter, according to Iannone.

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Recession Indicator: eBay's Stock Is Up More Than 50% Over the Past YearThe CEO also pointed to investments in artificial intelligence, trust tools and shipping capabilities as foundational components of the company’s strategy. He said newer businesses including eBay Live and vehicles are adding growth opportunities, with the vehicles business reaching “hundreds of millions of dollars of run rate.”

Consumer trends and marketplace differentiation Alford said the company continues to see greater consumer resilience in the United States than in international markets. However, she said eBay’s platform can appeal both to enthusiasts making discretionary purchases and to value-oriented shoppers seeking deals through recommerce.

GameStop's eBay Gamble: Bold Move or Balance Sheet Disaster?“We tend to thrive in environments when the economy's doing really well, as well as in times when it's tougher,” Alford said, citing the diversity of the company’s marketplace.

Iannone said eBay’s competitive position is supported by its scale, including 2.6 billion listings, 136 million buyers and 30 years of marketplace data. He said 90% of the company’s listings are “non-new in-season” goods, creating inventory that may not be readily available elsewhere online.

He also highlighted the company’s authentication, vehicle fitment and transaction-support services. These include Authenticity Guarantee in categories such as watches, sneakers and handbags, eBay Guaranteed Fit for motors parts and accessories, and vehicle-related services such as financing, delivery and title transfer.

Collectibles, live commerce and C2C growth Alford said growth in eBay’s focus categories has been broad-based, with particular strength in collectibles. Trading cards have performed especially well, she said, alongside toys and coins. eBay has developed trust and friction-reduction tools for trading cards, acquired TCGplayer and partnered with PSA, according to Alford.

eBay Live, the company’s live-selling format, grew eightfold year over year in the second quarter, Iannone said. He described the format as combining content, commerce, community and entertainment.

According to Iannone, 90% of sellers that begin using eBay Live remain active on the format, and those sellers have growth rates three times higher than comparable sellers not using it. Buyers in collectibles who begin watching eBay Live purchase 70% more than comparable buyers, he said, with a significant share of that activity occurring in eBay’s core marketplace.

The company has also emphasized converting buyers into sellers. Iannone said buyers who become sellers are two to 2.5 times more valuable as buyers on the platform. These C2C sellers can also bring unique goods to the marketplace that may not be offered by traditional businesses.

Iannone said eBay’s AI-powered Magical Listing feature has simplified the selling process. In the U.S., the company has seen 50% more listings per lister using the technology, he said. The company has also expanded shipping tools, including eBay International Shipping, to help sellers access demand outside their home markets.

AI, younger shoppers and advertising Iannone characterized AI as a structural tailwind for the company. Beyond listing tools, he cited natural-language search, card-scanning technology and marketing applications. The company’s card-scanning tool has generated more than 80 million scans, with roughly 500,000 scans per day, he said.

He also said eBay is seeing new buyers through agentic commerce experiences, and that about half of those buyers later return directly to eBay for another purchase. Trust and enablement features become increasingly important in an AI-driven commerce environment, he added.

The company also discussed its acquisition of Depop, which Iannone said strengthens eBay’s reach with Gen Z and millennial consumers. He called those groups eBay’s fastest-growing demographic and said Depop’s mobile, social-focused marketplace is aligned with younger shoppers’ interest in pre-owned goods and sustainability.

On advertising, Alford said eBay had reached 2.8% penetration toward a near-term target of 3%. She said the company does not view that target as a ceiling and sees further opportunity through greater seller adoption of Promoted Listings, new offsite advertising offerings and Promoted Stores.

Capital allocation and priorities Alford said eBay plans to maintain a balanced capital-allocation approach, investing in growth areas while returning capital to shareholders. The company’s framework calls for returning 90% to 100% of organic free cash flow through dividends and share repurchases, she said.

Looking ahead, Iannone said the company is focused on sustaining growth in focus categories, scaling newer businesses such as vehicles and eBay Live, expanding AI applications, and continuing to invest in trust, authentication and shipping capabilities.

About eBay (NASDAQ:EBAY)eBay Inc NASDAQ: EBAY operates a global commerce platform that connects millions of buyers and sellers. Its marketplace enables individuals, businesses and brands to buy and sell new, used and collectible merchandise across categories including electronics, fashion, automotive parts and accessories, home goods, collectibles and business equipment.

The company provides tools and services that support online commerce, including product listings, search and discovery features, payments, seller advertising, shipping solutions and authentication services for selected categories.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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BlackRock Inc. purchased a new stake in shares of eBay Inc. (NASDAQ:EBAY – Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 39,435,323 shares of the e-commerce company’s stock, valued at approximately $4,406,897,000. BlackRock Inc. owned 8.88% of eBay as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in EBAY. Spire Wealth Management grew its holdings in eBay by 29.7% in the 2nd quarter. Spire Wealth Management now owns 489 shares of the e-commerce company’s stock valued at $55,000 after buying an additional 112 shares in the last quarter. B. Riley Wealth Advisors Inc. boosted its position in eBay by 4.6% in the 2nd quarter. B. Riley Wealth Advisors Inc. now owns 2,818 shares of the e-commerce company’s stock valued at $312,000 after buying an additional 125 shares during the period. Capital Asset Advisory Services LLC grew its stake in eBay by 3.3% during the 1st quarter. Capital Asset Advisory Services LLC now owns 4,035 shares of the e-commerce company’s stock worth $367,000 after purchasing an additional 129 shares in the last quarter. Harfst & Associates Inc. grew its position in shares of eBay by 0.6% during the fourth quarter. Harfst & Associates Inc. now owns 22,461 shares of the e-commerce company’s stock worth $1,956,000 after buying an additional 131 shares in the last quarter. Finally, Commerce Bank increased its position in shares of eBay by 0.5% in the 4th quarter. Commerce Bank now owns 28,313 shares of the e-commerce company’s stock valued at $2,466,000 after purchasing an additional 132 shares during the last quarter. Hedge funds and other institutional investors own 87.48% of the company’s stock.

Insider Activity at eBay In other eBay news, CEO Jamie Iannone sold 11,110 shares of eBay stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $109.59, for a total transaction of $1,217,544.90. Following the completion of the sale, the chief executive officer owned 280,204 shares of the company’s stock, valued at $30,707,556.36. This trade represents a 3.81% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Mazen Rawashdeh sold 50,000 shares of the stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $117.04, for a total value of $5,852,000.00. Following the completion of the transaction, the senior vice president owned 29,217 shares in the company, valued at $3,419,557.68. This represents a 63.12% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 86,112 shares of company stock valued at $9,837,076. Company insiders own 0.67% of the company’s stock.

Wall Street Analysts Forecast Growth Several analysts have recently weighed in on the company. Cantor Fitzgerald reduced their target price on eBay from $110.00 to $106.00 and set a “neutral” rating for the company in a report on Thursday, August 6th. Arete Research lowered their target price on shares of eBay from $113.00 to $111.00 and set a “neutral” rating on the stock in a report on Tuesday, May 26th. Wedbush reaffirmed an “outperform” rating and set a $135.00 price objective on shares of eBay in a report on Thursday, August 6th. UBS Group increased their target price on shares of eBay from $107.00 to $120.00 and gave the company a “neutral” rating in a report on Tuesday, August 11th. Finally, TD Cowen lifted their price target on eBay from $87.00 to $88.00 and gave the stock a “hold” rating in a research note on Friday, May 1st. Fourteen investment analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, eBay has a consensus rating of “Hold” and an average price target of $117.09. View Our Latest Research Report on eBay

eBay Stock Performance eBay stock opened at $102.27 on Wednesday. The company has a debt-to-equity ratio of 1.10, a current ratio of 1.02 and a quick ratio of 1.02. eBay Inc. has a 12-month low of $78.03 and a 12-month high of $119.31. The firm’s fifty day moving average price is $110.39 and its 200 day moving average price is $102.15. The company has a market capitalization of $45.51 billion, a price-to-earnings ratio of 21.17, a price-to-earnings-growth ratio of 2.49 and a beta of 1.37.

eBay (NASDAQ:EBAY – Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The e-commerce company reported $1.60 earnings per share for the quarter, beating analysts’ consensus estimates of $1.50 by $0.10. The business had revenue of $3.13 billion during the quarter, compared to the consensus estimate of $3.01 billion. eBay had a return on equity of 47.88% and a net margin of 18.50%.The business’s quarterly revenue was up 14.8% on a year-over-year basis. During the same period in the previous year, the business earned $1.37 EPS. eBay has set its Q3 2026 guidance at 1.360-1.420 EPS. On average, research analysts forecast that eBay Inc. will post 4.87 EPS for the current fiscal year.

eBay Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 11th. Shareholders of record on Friday, August 28th will be given a dividend of $0.31 per share. This represents a $1.24 annualized dividend and a yield of 1.2%. The ex-dividend date is Friday, August 28th. eBay’s payout ratio is presently 25.67%.

eBay Company Profile (Free Report)

eBay Inc is a global e-commerce company that operates an online marketplace connecting individual consumers and businesses for the sale and purchase of new, used and collectible goods. Founded in 1995 by Pierre Omidyar and headquartered in San Jose, California, eBay grew from its early auction-style site into a diversified platform offering both auction-format listings and fixed-price “Buy It Now” transactions. The company completed an initial public offering in the late 1990s and has since evolved its platform and services to support a broad range of product categories and buyer preferences.

The company’s core business centers on its marketplace platform, which provides listing, search and transaction capabilities for millions of items across consumer goods, electronics, fashion, collectibles and more.

Further Reading Five stocks we like better than eBay The AI Boom Is Turning This Cable Maker Into a Stock to Watch A Star Investor Just Trimmed Amazon—Here’s What It means Wendy’s Deal Buzz May Give Fast-Food Investors a New Reason to Look Home Depot Analysts See a Path to $375 and Beyond Want to see what other hedge funds are holding EBAY? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for eBay Inc. (NASDAQ:EBAY – Free Report).

Receive News & Ratings for eBay Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for eBay and related companies with MarketBeat.com's FREE daily email newsletter.

Shares of eBay (NASDAQ:EBAY | EBAY Price Prediction) currently trade at $110.14, while BMO Capital Markets carries a Street-high price target of $145. That gap implies roughly 32% upside if the bull case plays out.

eBay runs one of the largest online marketplaces in the world, with brands including eBay, Depop, Goldin, and Tise. Wall Street has circled the name as the marketplace executes a turnaround focused on collectibles, refurbished electronics, luxury, and auto parts. The latest quarter showed GMV of $22.4 billion and revenue growth of 14.8% year over year.

The dislocation matters because the average Wall Street target of $110.29 sits essentially at the current quote. BMO stands alone as the outlier bull, and shares have slipped even as fundamentals accelerated.

Why the Stock Slipped After a Strong Quarter Guidance did the damage. eBay guided Q3 adjusted EPS to $1.36 to $1.42, down sequentially from the $1.60 delivered in Q2. Traders read that as management flagging pressure from the Depop acquisition, including integration costs and higher marketing spend for the Gen Z fashion resale platform.

Wells Fargo downgraded eBay to Underweight and cut its target to $92 from $105, citing concerns that Depop could weigh on fiscal 2027 earnings. Shares fell 3.98% over the past month, underperforming the broader market.

The reaction was mild by eBay standards. Shares still sit within reach of the 52-week high of $118.98, suggesting a post-guidance wobble.

BMO’s Bull Case: Focus Categories, Live Commerce, and AI BMO’s Brian Pitz raised his target to $145 from $130 after Q2. His thesis rests on three pillars: Focus Categories now account for over 40% of total GMV and are accelerating; recommerce and live-commerce integrations drive deeper engagement with high-value enthusiast buyers; and generative AI merchant tools pull operating leverage through faster listings, image enhancement, and sharper ad targeting.

The rest of the Street is far less constructive. Consensus ratings currently sit at:

5 Strong Buy 6 Buy 18 Hold 2 Sell Analyst posture leans cautious. Recent revisions have been mixed: BMO raised, Wells Fargo cut, and Citigroup carries a $127 Buy from earlier in the year. The median view essentially matches the current price. BMO provides the optionality.

How Etsy, Amazon, and MercadoLibre Stack Up The peer group has diverged. eBay is the laggard while other marketplaces have rallied or held ground.

Etsy (NASDAQ:ETSY) trades at $82.26 against a consensus target of $77.38, implying roughly 6% downside. Ratings skew Hold at 3 Strong Buy, 6 Buy, 19 Hold, and 1 Sell, and revisions turned defensive after the company announced a 12% workforce cut. Etsy has gained 48.38% year to date, but Wall Street sees no room left.

Amazon (NASDAQ:AMZN) trades near $272.26 with an average target of $323.29, or about 19% upside. Ratings tilt overwhelmingly bullish at 16 Strong Buy, 43 Buy, and 3 Hold, and recent revisions skewed higher. The implied upside sits well below BMO’s read on eBay.

MercadoLibre (NASDAQ:MELI) sits at $1,830 with a target of $2,214.88, roughly 21% upside. Analysts are bullish at 5 Strong Buy, 15 Buy, and 4 Hold, though the stock has slid 21% over the past year on FX and macro pressure across Latin America.

BMO’s 32% implied upside on eBay is the largest single-analyst call posted on any of these marketplace names. That either reflects a real dislocation or a lonely bet on Depop integration risk.

What the Data Says Right Now eBay trades at $110.14 against a consensus target of $110.29, essentially flat, while BMO’s bull call at $145 implies roughly 32% upside. Coverage totals 31 analysts, weighted toward Hold.

Shares are down 3.98% over the past month and 2.98% over the past week. Year to date, eBay is up 27.24%, more than double the S&P 500’s gain.

Valuation looks reasonable. eBay carries a trailing P/E of 26 and a forward multiple of 18, with operating income growing 39.67% year over year and free cash flow up 173.92%. Management returned $310 million in Q2 buybacks with roughly $2.0 billion still authorized.

The Case For and Against The bull thesis works if Focus Categories and AI seller tools absorb Depop’s near-term drag. The path to BMO’s $145 runs through continued double-digit GMV growth, expanding ad revenue toward the current $596 million quarterly run rate, and further margin gains from AI listings. Q3 results and Depop cohort retention will test the re-rating case.

The bear thesis holds if Depop becomes a distraction just as management started delivering. Wells Fargo’s $92 target reflects that worry. Rising marketing spend, a lower Q3 EPS bar, insider selling, and cross-border trade policy risk all support a wait-and-see stance.

Consensus sits at the price, so the median view is fair value with option value tied to execution. At a forward P/E near 18, capital return intact, and BMO’s 32% upside if the flywheel keeps turning, the risk/reward tilts modestly in the bulls’ favor.

Contact [email protected] for any questions or corrections.

As eBay tries to keep up with competitors like Whatnot and TikTok Shop, the online marketplace is making a bigger push into live shopping after seeing record results. 

During its second-quarter earnings call on Wednesday, the company noted that eBay Live’s gross merchandise volume (GMV) jumped about eight times year-over-year across seven markets, along with increases in viewers, watch time, and items sold. It plans to expand eBay Live to more international markets in the coming weeks and months.

“These results reinforce our confidence that Live can deepen engagement, broaden discovery, and increase velocity across the broader eBay marketplace,” CEO Jamie Iannone told investors. 

However, it’s important to note that eBay didn’t share the exact GMV number, making it difficult to assess how significant the growth is. 

That said, eBay clearly sees Live as a key growth area, and the feedback from sellers and buyers looks promising. eBay reports that over 90% of sellers who stream regularly have seen their GMV grow, and those who use Live sell about three times more than those who don’t. 

Buyers are also spending more. First-time shoppers in the collectibles category are dropping around 70% more than their non-Live shopping counterparts.

eBay launched Live as invite-only in the U.S. in 2022, then expanded internationally, starting with a beta in the U.K. in 2024, and it has since rolled it out in countries like Germany, Australia, France, Italy, and Canada. 

Last month, the company moved past its invite-only model and now offers self-service onboarding for eligible sellers in over 300 categories, which include everything from electronics to fashion and collectibles. 

The company also pointed to recent product improvements, including discovery features across its homepage and mobile app to make live events easier to find. Iannone added that eBay also simplified event creation, inventory preparation, and live item management for sellers, while improving “bidding responsiveness” to create smoother, faster livestreams.

The growth comes as live shopping in the U.S. moves beyond a niche trend, with more companies beginning to treat it more seriously rather than a side experiment. Even resale giant StockX recently introduced live shopping capabilities. Whatnot continues to find success, with a valuation of more than $11 billion. Additionally, TikTok Shop is reportedly testing a paid membership that offers free shipping and exclusive discounts.

When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

Lauren covers media, streaming, apps and platforms at TechCrunch.

You can contact or verify outreach from Lauren by emailing [email protected] or via encrypted message at laurenforris22.25 on Signal.

eBay Inc. (EBAY) Q2 2026 Earnings Call August 5, 2026 5:30 PM EDT

Company Participants

John Egbert - Vice President of Investor Relations
Jamie Iannone - CEO, President & Director
Peggy Alford - Senior VP & CFO

Conference Call Participants

Colin Sebastian - Robert W. Baird & Co. Incorporated, Research Division
Michael Morton - MoffettNathanson LLC
Kenneth Gawrelski - Wells Fargo Securities, LLC, Research Division
Ross Sandler - Barclays Bank PLC, Research Division
Deepak Mathivanan - Cantor Fitzgerald & Co., Research Division
Thomas Champion - Piper Sandler & Co., Research Division
Michael McGovern - BofA Securities, Research Division
Nikhil Devnani - Bernstein Institutional Services LLC, Research Division

Presentation

Operator

Good day, everyone. My name is Kate, and I will be your conference operator today. At this time, I would like to welcome you to the eBay Second Quarter 2026 Earnings Call. [Operator Instructions]

At this time, I would like to turn the call over to John Egbert, Vice President of Investor Relations.

John Egbert
Vice President of Investor Relations

Good afternoon. Thank you all for joining us for eBay's Second Quarter 2026 Earnings Conference Call. Joining me today on the call are Jamie Iannone, our Chief Executive Officer; and Peggy Alford, our Chief Financial Officer. We're providing a slide presentation to accompany our commentary during the call, which is available through the Investor Relations section of the eBay website at investors.ebayinc.com.

Before we begin, I'll remind you that during this conference call, we will discuss certain non-GAAP measures related to our performance. You can find the reconciliation of these measures to the nearest comparable GAAP measures in our accompanying slide presentation.

Additionally, all growth rates noted in our prepared remarks will reflect organic FX-neutral year-over-year comparisons, and all earnings per share amounts reflect earnings per diluted share, unless indicated otherwise. Additionally, all year-over-year growth rates versus 2025 are based on recast financials, reflecting

Revenue of $3.1 billion, up 15% on an as-reported basis and up 14% on an FX-Neutral basis Gross Merchandise Volume ("GMV") of $22.4 billion, up 15% on an as-reported basis and up 14% on an FX-Neutral basis GAAP and Non-GAAP earnings per diluted share of $1.21 and $1.60, respectively, on a continuing operations basis GAAP and Non-GAAP operating margins of 21.6% and 28.5%, respectively Returned $448 million to stockholders in Q2, including $310 million of share repurchases and $138 million paid in cash dividends , /PRNewswire/ -- eBay Inc. (Nasdaq: EBAY), a global commerce leader that connects millions of buyers and sellers around the world, today reported financial results for its second quarter ended June 30, 2026.

"eBay's second quarter delivered meaningful, broad-based momentum driven by continued innovation and focused execution against our strategic roadmap," said Jamie Iannone, Chief Executive Officer at eBay. "This quarter once again demonstrated our ability to focus on our strategic priorities while still delivering strong growth in operating income and EPS."

"Our second quarter results and continued GMV growth reflect our leadership in the categories that matter most to our buyers and sellers while building an even stronger, more resilient eBay," said Peggy Alford, Chief Financial Officer at eBay. "Given the strong momentum we are seeing in our business, we are increasing our full-year top- and bottom-line outlook."

Second Quarter 2026 Business Highlights

On July 30, 2026, eBay closed its acquisition of Depop Limited (Depop), a leading consumer-to-consumer (C2C) fashion marketplace with a highly engaged Gen Z and Millennial audience, strengthening eBay's leadership in circular fashion and recommerce. eBay Live posted another record quarter, with GMV growing by roughly eight times year-over-year across its seven markets. eBay Live continued to deepen global engagement across categories by delivering timely, high-impact experiences that aligned with major cultural moments like the World Cup. These experiences mobilized enthusiasts across the platform while connecting fans to eBay's unique inventory of curated collectibles and memorabilia. eBay expanded coverage of Authenticity Guarantee to more than 100 fashion brands in the U.S. and U.K. The company also integrated Enquirus, the trusted global database of registered luxury watches, across the U.S., U.K. and Germany, strengthening buyer confidence in eBay's luxury resale offering. eBay reinforced its leadership position in Collectibles by expanding Authenticity Guarantee for U.K. trading cards valued at over £500 and broadening eligibility for its PSA Grading option to include pack-pulled autographed trading cards in the U.S. eBay further enhanced the C2C experience in Australia, streamlining the end-to-end selling experience with AI-powered listing tools, simplified shipping, secure payments and stronger buyer protections. In Motors Parts & Accessories (P&A), eBay launched Easy and Free Returns in the U.K. to give buyers greater confidence through a simpler, no-cost returns experience, and expanded the Guaranteed Fit program to Canada, where it also began automatically enriching listings with fitment data to help shoppers find compatible parts. In Vehicles, eBay introduced new listing capabilities in the eBay mobile app, making it easier for sellers to bring new inventory onto the platform. Additionally, by leveraging AI and automation to simplify the transaction process, eBay significantly reduced the average time to vehicle pickup. The latest generation of eBay's Magical Listing tool was expanded to include all new and reactivated listers in the U.K. and Germany, further accelerating consumer supply by making it faster and easier to list and sell on eBay. eBay's AI-powered card scanning feature recently surpassed 80 million cumulative scans as collectors increasingly used the tool to quickly identify cards, understand pricing and list or shop with greater confidence. The company also enhanced Trading Card listings with richer market pricing insights, including Card Ladder indexes that help collectors track the value of specific players, characters, sports and collectible card game genres over time. Goldin, an eBay company, continued to drive demand for premium collectibles through record-setting sales, including a solo Michael Jordan card for $4.3 million and Wayne Gretzky's Stanley Cup-winning jersey for $2.8 million, the most ever paid for a hockey jersey. eBay returned to the Met Gala for the fourth consecutive year as designers and creators sourced one-of-a-kind pieces for looks worn by SZA, Wisdom Kaye, Paloma Elsesser and others, reinforcing its marketplace as a destination for pre-loved fashion. Impact

eBay released its annual Impact Report, highlighting progress in advancing sustainability, recommerce and economic opportunity. In 2025, eBay maintained 100% renewable energy across its operations and generated $5.3 billion in positive economic impact through recommerce. eBay for Charity enabled buyers and sellers on the platform to raise $58 million worldwide in the second quarter. Highlights included a more than $9 million winning bid for a private lunch with Warren Buffett and Steph and Ayesha Curry that helped raise $27 million for nonprofit organizations GLIDE and Eat. Learn. Play. Additionally, a partnership with The Late Show with Stephen Colbert raised more than $2 million for World Central Kitchen through the auction of iconic Ed Sullivan Theater memorabilia. eBay was recognized with numerous awards, including the Wall Street Journal's Best Companies for the Future, TIME's World's Most Sustainable Companies 2026, U.S. News & World Report's Best Companies To Work For (Overall) and Newsweek's America's Greatest Workplaces in Tech 2026. Second Quarter 2026 Financial Highlights

Revenue was $3.1 billion, up 15% on an as-reported basis and up 14% on a foreign exchange ("FX") neutral basis. GMV was $22.4 billion, up 15% on an as-reported basis and up 14% on an FX-Neutral basis. GAAP net income from continuing operations was $552 million, or $1.21 per diluted share. Non-GAAP net income from continuing operations was $727 million, or $1.60 per diluted share. GAAP and Non-GAAP operating margins were 21.6% and 28.5%, respectively. Generated $549 million of operating cash flow and $326 million of free cash flow from continuing operations. Returned $448 million to stockholders, including $310 million of share repurchases and $138 million paid in cash dividends. (In millions, except per share data and percentages)

Second Quarter

2026

2025

Change

eBay Inc.

Net revenues

$  3,134

$  2,730

$    404

15 %

GAAP – Continuing Operations

Net income

$    552

$    365

$    187

51 %

Earnings per diluted share

$    1.21

$    0.78

$    0.43

56 %

Non-GAAP – Continuing Operations

Net income

$    727

$    640

$      87

13 %

Earnings per diluted share

$    1.60

$    1.36

$    0.24

17 %

Other Selected Financial and Operational Results

Advertising revenue – The company's total advertising offerings generated $596 million of revenue in the second quarter of 2026, representing 2.7% of GMV. First-party advertising products on the eBay platform delivered $570 million of revenue in the second quarter of 2026, up 25% on an as-reported basis and up 24% on an FX-Neutral basis. Operating margin – GAAP operating margin increased to 21.6% for the second quarter of 2026, compared to 17.6% for the same period last year. Non-GAAP operating margin increased to 28.5% for the second quarter of 2026, compared to 28.3% for the same period last year. Income tax rate – The GAAP effective tax rate for continuing operations for the second quarter of 2026 was 17.1%, compared to 22.6% for the second quarter of 2025. The non-GAAP effective tax rate for continuing operations for the second quarter of 2026 was 17.5%(1). Cash flow – The company generated $549 million of operating cash flow and $326 million of free cash flow during the second quarter of 2026 from continuing operations. Capital returns – The company repurchased $310 million of its common stock, or approximately 3 million shares, in the second quarter of 2026. The company's total repurchase authorization remaining as of June 30, 2026 was approximately $2.0 billion. The company also paid cash dividends of $138 million during the second quarter of 2026. Cash and cash equivalents and non-equity investments – The company's cash and cash equivalents and non-equity investments portfolio totaled $4.9 billion as of June 30, 2026. (1) We are using a non-GAAP effective tax rate of 17.5% in 2026 for evaluating our operating results, up from 16.5% in 2025. This rate could continue to change for various reasons including significant changes in our geographic earnings mix or fundamental tax law changes in major jurisdictions in which we operate.

Business Outlook

eBay is providing the following guidance for continuing operations for the third quarter 2026. This outlook includes the expected impact from Depop.

(In billions, except per share data and percentages)

Q3 2026 Guidance

Revenue

$3.07 - $3.12

FX-Neutral Y/Y Growth

8% - 10%

Gross Merchandise Volume

$22.0 - $22.4

FX-Neutral Y/Y Growth

10% - 12%

Diluted GAAP EPS

$0.94 - $0.99

Diluted Non-GAAP EPS

$1.36 - $1.42

Dividend Declaration

eBay's Audit Committee declared a third quarter 2026 cash dividend of $0.31 per share of the company's common stock. The dividend is payable on September 11, 2026 to stockholders of record as of August 28, 2026.

Acquisition of Depop

In February 2026, eBay Inc. and Etsy, Inc. announced that they entered into a definitive agreement for eBay to acquire all of the outstanding equity interests of Depop, a leading C2C fashion marketplace, for $1.2 billion in cash, subject to certain purchase price adjustments. The transaction closed on July 30, 2026. We paid $1.4 billion in cash, inclusive of preliminary purchase price adjustments, subject to finalization.

Quarterly Conference Call and Webcast

eBay Inc. will host a conference call to discuss second 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 San Jose, California, eBay is one of the world's largest and most vibrant marketplaces for discovering great value and unique selection. In 2025, eBay enabled nearly $80 billion of gross merchandise volume. For more information about the company and its global portfolio of online brands, visit www.ebayinc.com.

Presentation

All growth rates represent year-over-year comparisons, except as otherwise noted. All amounts in tables are presented in U.S. dollars, rounded to the nearest million, except as otherwise noted. As a result, certain amounts may not sum or recalculate using the rounded dollar amounts provided. References to "revenue" refer to "net revenues" as reported in the company's consolidated statement of income.

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 third 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 our ability to realize the projected benefits from the recently completed Depop acquisition; the impact of stockholder activism or unsolicited acquisition proposals; 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 cybersecurity, and AI; 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

June 30,
2026

December 31,
2025

(In millions)

ASSETS

Current assets:

Cash and cash equivalents

$         2,310

$         1,867

Short-term investments

997

1,052

Customer accounts and funds receivable

1,589

1,280

Other current assets

1,107

887

Total current assets

6,003

5,086

Long-term investments

2,317

2,767

Property and equipment, net

1,301

1,165

Goodwill

4,471

4,467

Operating lease right-of-use assets

394

428

Deferred tax assets

2,929

2,959

Other assets

518

565

Total assets

$       17,933

$       17,437

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Short-term debt

$         1,593

$           750

Accounts payable

353

242

Customer accounts and funds payable

1,589

1,280

Accrued expenses and other current liabilities

2,334

2,257

Income taxes payable

23

108

Total current liabilities

5,892

4,637

Operating lease liabilities

278

315

Deferred tax liabilities

1,446

1,431

Long-term debt

5,142

5,996

Other liabilities

510

575

Total liabilities

13,268

12,954

Total stockholders' equity

4,665

4,483

Total liabilities and stockholders' equity

$       17,933

$       17,437

eBay Inc. 
Unaudited Condensed Consolidated Statement of Income

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

(In millions, except per share amounts)

Net revenues

$       3,134

$       2,730

$       6,223

$       5,315

Cost of net revenues (1)

832

750

1,634

1,447

Gross profit

2,302

1,980

4,589

3,868

Operating expenses:

Sales and marketing (1)

697

586

1,370

1,122

Product development (1)

484

452

934

845

General and administrative (1)

306

371

716

632

Transaction losses

133

86

271

167

Amortization of acquired intangible assets

6

6

11

12

Total operating expenses

1,626

1,501

3,302

2,778

Income from operations

676

479

1,287

1,090

Interest and other:

Gain (loss) on equity investments and warrants, net

2

(4)

4

(6)

Interest expense

(65)

(62)

(126)

(123)

Interest income and other, net

52

59

118

140

Income from continuing operations before income taxes

665

472

1,283

1,101

Income tax provision

(113)

(107)

(219)

(235)

Income from continuing operations

552

365

1,064

866

Loss from discontinued operations, net of income taxes

(2)

(1)

(2)

(3)

Net income

$         550

$         364

$       1,062

$         863

Income (loss) per share – basic:

Continuing operations

$         1.24

$         0.79

$         2.38

$         1.86

Discontinued operations

—

—

—

(0.01)

Net income per share – basic

$         1.24

$         0.79

$         2.38

$         1.85

Income (loss) per share – diluted:

Continuing operations

$         1.21

$         0.78

$         2.33

$         1.83

Discontinued operations

—

—

—

(0.01)

Net income per share – diluted

$         1.21

$         0.78

$         2.33

$         1.82

Weighted average shares:

Basic

445

461

447

465

Diluted

455

470

457

473

(1) Includes stock-based compensation as follows:

Cost of net revenues

$           13

$           10

$           24

$           19

Sales and marketing

27

24

49

44

Product development

86

86

162

155

General and administrative

56

45

103

83

$         182

$         165

$         338

$         301

eBay Inc.
Unaudited Condensed Consolidated Statement of Cash Flows

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

(In millions)

Cash flows from operating activities:

Net income

$         550

$         364

$       1,062

$         863

Loss from discontinued operations, net of income taxes

2

1

2

3

Adjustments:

Transaction losses

133

86

271

167

Depreciation and amortization

101

79

194

131

Stock-based compensation

182

165

338

301

Deferred income taxes

22

(88)

43

(58)

Gain on investments, warrants and other, net

(8)

(5)

(30)

(3)

Changes in assets and liabilities, net of acquisition effects

(433)

(942)

(361)

(989)

Net cash provided by (used in) continuing operating activities

549

(340)

1,519

415

Net cash used in discontinued operating activities

(26)

—

(27)

—

Net cash provided by (used in) operating activities

523

(340)

1,492

415

Cash flows from investing activities:

Purchases of property and equipment

(223)

(101)

(295)

(212)

Purchases of investments

(1,045)

(1,964)

(1,409)

(5,007)

Maturities of investments

712

1,943

1,064

6,530

Sales of investments

—

—

684

—

Shareholder distributions from equity investments

—

225

194

225

Acquisitions and other

(28)

(3)

(39)

(92)

Net cash provided by (used in) investing activities

(584)

100

199

1,444

Cash flows from financing activities:

Proceeds from issuance of common stock

62

93

64

93

Repurchases of common stock

(323)

(624)

(809)

(1,239)

Payments for taxes related to net share settlements of
restricted stock units and awards

(83)

(68)

(189)

(137)

Payments for dividends

(138)

(134)

(277)

(268)

Repayment of senior notes

(750)

—

(750)

(800)

Proceeds from issuance of commercial paper

739

375

739

943

Repayment of commercial paper

—

(377)

—

(818)

Net funds receivable and payable activity

45

45

213

288

Other

(16)

(26)

(16)

(26)

Net cash used in financing activities

(464)

(716)

(1,025)

(1,964)

Effect of exchange rate changes on cash, cash equivalents and
restricted cash

(11)

31

(23)

50

Net increase (decrease) in cash, cash equivalents and restricted
cash

(536)

(925)

643

(55)

Cash, cash equivalents and restricted cash at beginning of
period

4,234

4,156

3,055

3,286

Cash, cash equivalents and restricted cash at end of period

$       3,698

$       3,231

$       3,698

$       3,231

eBay Inc.
Unaudited Summary of Consolidated Net Revenues

Three Months Ended

June 30,
2026

March 31,
2026

December 31,
2025

September 30,
2025

June 30,
2025

(In millions, except percentages)

Total net revenues (1)(2)

$      3,134

$      3,089

$      2,965

$      2,820

$      2,730

Current quarter vs prior year quarter

15 %

19 %

15 %

9 %

6 %

Percent from international

44 %

44 %

46 %

48 %

49 %

(1) Hedge gain/(loss)

$            (1)

$          (13)

$          (19)

$          (24)

$            (6)

(2) Foreign currency impact

$           22

$           78

$           16

$           20

$           32

eBay Inc.
Unaudited Supplemental Operating Data

Three Months Ended

June 30,
2026

March 31,
2026

December 31,
2025

September 30,
2025

June 30,
2025

(In millions, except percentages)

Active Buyers (1)

136

136

135

134

134

Current quarter vs prior year quarter

2 %

1 %

1 %

1 %

1 %

Active Buyers excluding Tise (2)

136

135

134

Gross Merchandise Volume (3)

U.S

$     11,688

$     11,503

$     10,721

$      9,872

$      9,428

Current quarter vs prior year quarter

24 %

27 %

19 %

13 %

7 %

International

10,710

10,694

10,516

10,233

10,086

Current quarter vs prior year quarter

6 %

10 %

2 %

7 %

5 %

Total Gross Merchandise Volume

$     22,398

$     22,197

$     21,237

$     20,105

$     19,514

Current quarter vs prior year quarter

15 %

18 %

10 %

10 %

6 %

(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

September 30, 2026

(In billions, except per share amounts)

GAAP

Non-GAAP (a)

Net revenues

$3.07 - $3.12

$3.07 - $3.12

Diluted EPS from continuing operations

$0.94 - $0.99

$1.36 - $1.42

Gross Merchandise Volume

$22.0 - $22.4

(a) Estimated non-GAAP amounts above for the three months ending September 30, 2026 reflect adjustments that exclude the estimated amortization of acquired intangible assets of approximately $24-$28 million, estimated stock-based compensation expense and associated employer payroll tax expense of approximately $168-$178 million, transaction-related costs of approximately $14-$16 million, and estimated adjustment between our GAAP and non-GAAP tax expense of approximately $(18)-$(19) million. The estimated GAAP diluted EPS above does not assume any gains or losses on our remaining equity investments.

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, and certain gains or losses on investments. The company incurs amortization or impairment of acquired intangible assets and goodwill in connection with acquisitions and 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.

Transaction related costs. The company may incur significant gains or losses and incremental costs related to the acquisition or disposal of a business, unsolicited proposals and shareholder activism matters. These costs include third party fees such as banker fees, legal and advisory fees and other professional services. The company excludes these items from its non-GAAP measures as management does not believe they correlate to the company's ongoing operating results of the business.

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 17.5% for evaluating our operating results, up from 16.5% in 2025. This rate could change for various reasons including significant changes in our geographic earnings mix or fundamental tax law changes in major jurisdictions in which we operate.

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
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

(In millions, except percentages)

GAAP operating income

$       676

$       479

$     1,287

$     1,090

Stock-based compensation expense and related employer
payroll taxes

188

172

355

316

Amortization of acquired intangible assets within cost of net
revenues and operating expenses

13

13

25

25

Restructuring and executive bonuses

1

55

105

55

Legal matters

(10)

52

(10)

52

Transaction related costs

25

—

38

—

Total non-GAAP operating income adjustments

217

292

513

448

Non-GAAP operating income

$       893

$       771

$     1,800

$     1,538

GAAP operating margin

21.6 %

17.6 %

20.7 %

20.5 %

Non-GAAP operating margin

28.5 %

28.3 %

28.9 %

28.9 %

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
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

(In millions, except per share amounts and percentages)

GAAP income from continuing operations before income taxes

$       665

$       472

$     1,283

$     1,101

GAAP provision for income taxes

(113)

(107)

(219)

(235)

GAAP net income from continuing operations

552

365

1,064

866

Non-GAAP adjustments to net income from continuing
operations:

Non-GAAP operating income from continuing operations
adjustments (see table above)

217

292

513

448

Change in fair value of equity investments and warrants

(2)

3

6

—

Income tax effects and adjustments

(40)

(20)

(96)

(20)

Non-GAAP net income from continuing operations

$       727

$       640

$     1,487

$     1,294

Diluted net income from continuing operations per share:

GAAP

$      1.21

$      0.78

$      2.33

$      1.83

Non-GAAP

$      1.60

$      1.36

$      3.26

$      2.74

Shares used in GAAP diluted net income per share calculation

455

470

457

473

Shares used in non-GAAP diluted net income per share
calculation

455

470

457

473

GAAP effective tax rate – Continuing operations

17.1 %

22.6 %

17.1 %

21.4 %

Income tax effects and adjustments to net income from
continuing operations

0.4 %

(6.1) %

0.4 %

(4.9) %

Non-GAAP effective tax rate – Continuing operations

17.5 %

16.5 %

17.5 %

16.5 %

Presented on a continuing operations basis

Reconciliation of Operating Cash Flow to Free Cash Flow

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

(In millions)

Net cash provided by (used in) continuing operating activities

$         549

$        (340)

$       1,519

$         415

Less: Purchases of property and equipment

(223)

(101)

(295)

(212)

Free cash flow

$         326

$        (441)

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Presented on a continuing operations basis

SOURCE eBay Inc.

, /PRNewswire/ -- eBay Inc. (Nasdaq: EBAY), a global commerce leader that connects millions of buyers and sellers around the world, today announced that it has completed its acquisition of Depop, a leading consumer-to-consumer (C2C) fashion marketplace with a highly-engaged Gen Z and Millennial customer base.

The acquisition builds on eBay's continued momentum in fashion, a more than $10 billion annual GMV category for the company. With millions of users buying and selling fashion items, Depop has built one of the most vibrant and fastest-growing communities in fashion resale and cultivated a distinct, community-driven platform rooted in discovery, creativity, and peer-to-peer connection. Its highly engaged customer base and accessibly priced fashion inventory make Depop a natural complement to eBay's leading proposition in C2C commerce. eBay intends to support Depop's continued growth while preserving the elements that make the marketplace unique to accelerate the future of circular fashion.

"As a global leader in C2C and recommerce, eBay's acquisition of Depop further strengthens our C2C value proposition. This combines two distinct customer experiences and expands our reach with the next generation of buyers and sellers," said Jamie Iannone, Chief Executive Officer of eBay. "Our goal is to preserve Depop's strong brand, community, and product experience, while helping the team accelerate the roadmap that is already underway and explore synergies with eBay in areas that can supercharge our combined growth potential." 

"Joining eBay, a company with a longstanding record of driving innovation in recommerce globally, is an exciting new chapter for Depop and our community," said Peter Semple, Chief Executive Officer of Depop. "We've built a marketplace centered on creativity, self-expression, and connection, and we're just getting started. Depop is a natural fit with eBay and together we can accelerate our growth while continuing to deliver the unique experience our users value."

As part of eBay, Depop will operate as a complementary business, retaining its distinct brand, platform, customer experience, and culture. By combining Depop's category leadership with eBay's global scale and capabilities — including shipping, personalization, compliance, and trusted services — we will enhance the buyer and seller experience and accelerate growth. 

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 San Jose, California, eBay is one of the world's largest and most vibrant marketplaces for discovering great value and unique selection. In 2025, eBay enabled nearly $80 billion of gross merchandise volume. For more information about the company and its global portfolio of online brands, visit www.ebayinc.com.

About Depop
Depop is the community-powered circular fashion marketplace where people can buy, sell and discover desirable, affordable secondhand fashion. Together with its global community of millions of users, Depop is on a mission to make fashion circular - encouraging more people to choose secondhand and extend the lives of their clothes, redefining fashion consumption. Founded in 2011, Depop's diverse community has helped move resale into the mainstream, where buying secondhand is no longer an alternative, but how people of different ages now engage with fashion. For more information, visit www.depop.com 

Forward-Looking Statements

This press release contains "forward-looking" statements within the meaning of the federal securities laws, including the potential benefits of the transaction. In some cases, forward-looking statements can be identified by terms such as "aim," "anticipate," "believe," "can," "commit," "continue," "could," "design," "develop," "enable," "estimate," "expect," "forecast," "future," "goal," "impact," "intend," "likely," "maintain," "may," "ongoing," "opportunity," "optimistic," "outlook," "plan," "possible," "potential," "predict," "probable," "pursue," "remain," "seek," "should," "strategy," "strive," "target," "value," "will," "would," or similar expressions, variations and derivative forms and/or the negatives of those words. The following factors, among others, could cause actual results to differ materially from those described in forward-looking statements: the possibility that eBay may not fully realize the anticipated benefits of the transaction; business disruption following the transaction; diversion of management time on transaction and integration related issues; the reaction of customers and other persons to the transaction; and other events that could adversely impact the anticipated benefits of the transaction, including industry, regulatory or economic conditions outside of the parties' control. Forward-looking statements involve substantial risks and uncertainties that may cause actual results to differ materially from those that eBay expects. These and other risks and uncertainties include market risks, trends and conditions. These and other risks and uncertainties are more fully described in eBay's filings with the Securities and Exchange Commission, including in the risk factors included in eBay's Annual Report on Form 10-K for the year ended December 31, 2025, as amended, and those included in subsequent reports that eBay files with the Securities and Exchange Commission. In light of such risks, readers are cautioned not to place undue reliance on such forward-looking statements. Forward-looking statements represent beliefs and assumptions of eBay only as of the date of this press release. eBay does not intend to update, and disclaims any obligation to update, any of these forward-looking statements for any reason after the date of this press release or to conform these statements to actual results or revised expectations, except as required by law. 

eBay Contacts: 
Investor Relations 
John Egbert 
[email protected] 

Media Relations 
Sybille St. Arromand 
[email protected] 

SOURCE ebay Inc.