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eBay Q3 Earnings & Revenues Surpass Estimates, Both Increase Y/Y
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Key Takeaways
eBay's Q3 earnings of $1.36 per share rose 14.3% Y/Y, beating consensus estimates.
Revenues grew 9.5% Y/Y to $2.82B, driven by a 25% surge in first-party advertising products.
GMV climbed 10% Y/Y to $20.11B, led by 13% growth in U.S. sales and steady international momentum.
eBay Inc. (EBAY - Free Report) reported third-quarter 2025 non-GAAP earnings of $1.36 per share, which beat the Zacks Consensus Estimate by 2.26%. The bottom line increased 14.3% year over year.
Net revenues of $2.82 billion beat the Zacks Consensus Estimate by 2.9%. The figure increased 9.5% from the year-ago quarter on a reported basis and 8% on an FX-neutral basis.
eBay’s first-party advertising products generated revenues of $496 million in the reported quarter, up 25% on an as-reported basis and 23% on an FX-neutral basis.
Total advertising offerings yielded $525 million in revenues, representing 2.6% of gross merchandise volume (GMV).
EBAY’s active buyer base, which was pinned at 134 million at the end of the third quarter, increased 1% year over year, missing the consensus mark by 0.4%.
GMV Details for EBAY
EBAY’s total GMV of $20.11 billion in the reported quarter exhibited year-over-year growth of 10% on a reported basis and 8% on an FX-neutral basis. The reported GMV surpassed the Zacks Consensus Estimate of $19.42 billion.
The total GMV is categorized into two parts. U.S. GMV totaled $9.87 billion, accounting for 49.1% of the total GMV. The figure rose 13% year over year. International GMV was $10.23 billion, accounting for 50.9% of the total GMV. The figure increased 7% year over year.
EBAY’s Q3 Operating Details
Operating expenses of $1.42 billion grew 13.5% year over year. As a percentage of net revenues, the figure expanded 180 basis points (bps) from the year-ago quarter to 48.7%.
The non-GAAP operating margin was 27.1% in the third quarter, contracting 10 bps year over year.
EBAY’s Balance Sheet & Cash Flow
As of Sept. 30, 2025, cash equivalents and short-term investments were $3.38 billion, down from $3.75 billion as of June 30, 2025.
Long-term debt remained unchanged at $5 billion at the end of the third quarter of 2025, compared with the prior quarter.
Cash flow from operating activities was $934 million in the third quarter, a sharp turnaround from negative $307 million in the previous quarter.
eBay reported free cash flow from continuing operations of $803 million in the third quarter.
The company repurchased $625 million worth of shares and paid out cash dividends of $132 million in the reported quarter. eBay had approximately $1.4 billion remaining under its buyback authorization as of Sept. 30, 2025.
EBAY’s Q4 & 2025 Guidance
For the fourth quarter of 2025, eBay expects revenues in the range of $2.83 billion to $2.89 billion. On an FX-neutral basis, revenue growth is anticipated to be 8-10%.
The non-GAAP operating margin for the fourth quarter of 2025 is expected to be between 25.8% and 26.3%.
GMV for the fourth quarter is likely to be in the range of $20.5-$20.9 billion.
Non-GAAP earnings per share are anticipated to be between $1.31 and $1.36.
For 2025, the company expects revenues between $10.97 billion and $11.03 billion. On an FX-neutral basis, revenue growth is anticipated to be 6-6%.
Non-GAAP operating margin is expected to be between 27.7% and 27.8%.
GMV for the full year is likely to be in the range of $78.9-$79.3 billion.
Non-GAAP earnings per share are projected to be between $5.42 and $5.47.
Image: Bigstock
eBay Q3 Earnings & Revenues Surpass Estimates, Both Increase Y/Y
Key Takeaways
eBay Inc. (EBAY - Free Report) reported third-quarter 2025 non-GAAP earnings of $1.36 per share, which beat the Zacks Consensus Estimate by 2.26%. The bottom line increased 14.3% year over year.
Net revenues of $2.82 billion beat the Zacks Consensus Estimate by 2.9%. The figure increased 9.5% from the year-ago quarter on a reported basis and 8% on an FX-neutral basis.
eBay’s first-party advertising products generated revenues of $496 million in the reported quarter, up 25% on an as-reported basis and 23% on an FX-neutral basis.
Total advertising offerings yielded $525 million in revenues, representing 2.6% of gross merchandise volume (GMV).
eBay Inc. Price, Consensus and EPS Surprise
eBay Inc. price-consensus-eps-surprise-chart | eBay Inc. Quote
EBAY’s active buyer base, which was pinned at 134 million at the end of the third quarter, increased 1% year over year, missing the consensus mark by 0.4%.
GMV Details for EBAY
EBAY’s total GMV of $20.11 billion in the reported quarter exhibited year-over-year growth of 10% on a reported basis and 8% on an FX-neutral basis. The reported GMV surpassed the Zacks Consensus Estimate of $19.42 billion.
The total GMV is categorized into two parts. U.S. GMV totaled $9.87 billion, accounting for 49.1% of the total GMV. The figure rose 13% year over year. International GMV was $10.23 billion, accounting for 50.9% of the total GMV. The figure increased 7% year over year.
EBAY’s Q3 Operating Details
Operating expenses of $1.42 billion grew 13.5% year over year. As a percentage of net revenues, the figure expanded 180 basis points (bps) from the year-ago quarter to 48.7%.
The non-GAAP operating margin was 27.1% in the third quarter, contracting 10 bps year over year.
EBAY’s Balance Sheet & Cash Flow
As of Sept. 30, 2025, cash equivalents and short-term investments were $3.38 billion, down from $3.75 billion as of June 30, 2025.
Long-term debt remained unchanged at $5 billion at the end of the third quarter of 2025, compared with the prior quarter.
Cash flow from operating activities was $934 million in the third quarter, a sharp turnaround from negative $307 million in the previous quarter.
eBay reported free cash flow from continuing operations of $803 million in the third quarter.
The company repurchased $625 million worth of shares and paid out cash dividends of $132 million in the reported quarter. eBay had approximately $1.4 billion remaining under its buyback authorization as of Sept. 30, 2025.
EBAY’s Q4 & 2025 Guidance
For the fourth quarter of 2025, eBay expects revenues in the range of $2.83 billion to $2.89 billion. On an FX-neutral basis, revenue growth is anticipated to be 8-10%.
The non-GAAP operating margin for the fourth quarter of 2025 is expected to be between 25.8% and 26.3%.
GMV for the fourth quarter is likely to be in the range of $20.5-$20.9 billion.
Non-GAAP earnings per share are anticipated to be between $1.31 and $1.36.
For 2025, the company expects revenues between $10.97 billion and $11.03 billion. On an FX-neutral basis, revenue growth is anticipated to be 6-6%.
Non-GAAP operating margin is expected to be between 27.7% and 27.8%.
GMV for the full year is likely to be in the range of $78.9-$79.3 billion.
Non-GAAP earnings per share are projected to be between $5.42 and $5.47.
EBAY’s Zacks Rank & Stocks to Consider
Currently, EBAY carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Retail-Wholesale sector are Dutch Bros (BROS - Free Report) , Performance Food Group (PFGC - Free Report) and Canada Goose (GOOS - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dutch Bros shares have returned 10.4% year to date. BROS is set to report its third-quarter 2025 results on Nov. 5.
Shares of Performance Food Group have gained 16.4% year to date. PFGC is set to report first-quarter fiscal 2026 results on Nov. 5.
Canada Goose shares have risen 38.6% year to date. GOOS is slated to report its second-quarter fiscal 2026 results on Nov. 6.