eBay Q2 Earnings Beat Estimates, Revenues Increase Y/Y, Stock Gains

eBay Inc. EBAY reported second-quarter 2025 non-GAAP earnings of $1.37 per share, which beat the Zacks Consensus Estimate by 5.38%. The bottom line increased 16.1% year over year.

Net revenues of $2.73 billion beat the Zacks Consensus Estimate by 2.79%. The figure increased 6.1% from the year-ago quarter on a reported basis and 4% on an FX-neutral basis.

eBay’s first-party advertising products generated revenues of $455 million, up 19% on an as-reported basis and 17% on an FX-neutral basis.

Total advertising offerings yielded $482 million in revenues, representing 2.5% of the gross merchandise volume (GMV).

eBay Inc. Price, Consensus and EPS Surprise

 

eBay Inc. price-consensus-eps-surprise-chart | eBay Inc. Quote

EBAY’s shares have appreciated 37.5% on a year-to-date basis compared with the Internet-Commerce industry’s return of 11%.

EBAY’s active buyer base, which was pinned at 134 million at the end of the second quarter, increased 1% year over year, missing the consensus mark by 0.23%.

GMV Details for EBAY

EBAY’s total GMV of $19.5 billion in the reported quarter exhibited year-over-year growth of 6% on a reported basis and 4% on an FX-neutral basis. The reported GMV surpassed the Zacks Consensus Estimate of $19 billion.

The total GMV is categorized into two parts. U.S. GMV totaled $9.43 billion, accounting for 48.3% of the total GMV. The figure rose 7.2% year over year. International GMV was $10.09 billion, accounting for 51.7% of the total GMV. The figure increased 4.8% year over year.

EBAY’s Operating Details

Operating expenses of $1.47 billion grew 14.1% year over year. As a percentage of net revenues, the figure expanded 380 basis points (bps) from the year-ago quarter to 53.8%.

The non-GAAP operating margin was 28.4% in the second quarter, expanding 40 bps year over year.

EBAY’s Balance Sheet & Cash Flow

As of June 30, 2025, cash equivalents and short-term investments were $3.75 billion, down from $4.79 billion as of March 31, 2025.

Long-term debt improved to $5 billion at the end of the second quarter of 2025, down from $5.75 billion in the prior quarter.

Operating cash flow turned negative for eBay in the second quarter, with a loss of $307 million, down sharply from $787 million in positive cash flow in the previous quarter.

The company generated a negative free cash flow of $441 million during the second quarter of 2025.

eBay repurchased $625 million worth of shares and paid out dividends of $134 million in the reported quarter. The company had approximately $2 billion remaining under its buyback authorization as of June 30, 2025.

EBAY’s Q3 Guidance

For the third quarter of 2025, eBay expects revenues in the range of $2.69 billion to $2.74 billion. On an FX-neutral basis, revenue growth is anticipated to be 3-5%. The Zacks Consensus Estimate for revenues is pegged at $2.67 billion.

The non-GAAP operating margin for the third quarter of 2025 is expected between 26.6% and 27.1%.

GMV for the third quarter is likely to be $19.2-$19.6 billion.

Non-GAAP earnings per share are anticipated between $1.29 and $1.34. The Zacks Consensus Estimate for the same is pegged at $1.32.

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 Wayfair W, Performance Food Group PFGC and Maplebear Inc. CART, 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.

Wayfair shares have jumped 47.9% year to date. W is set to report second-quarter 2025 results on Aug. 4.

Shares of Performance Food Group have gained 20.8% year-to-date. PFGC is set to report fourth-quarter fiscal 2025 results on Aug. 13.

Maplebear shares have gained 13.1% year to date. CART is slated to report second-quarter 2025 results on Aug. 7.

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This article originally published on Zacks Investment Research (zacks.com).

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