It has been about a month since the last earnings report for eBay (EBAY). Shares have added about 1.1% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is eBay due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for eBay Inc. before we dive into how investors and analysts have reacted as of late.
eBay Q2 Earnings Beat Estimates, Revenues Increase Y/Y
eBay Inc. 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’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 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.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
VGM Scores
Currently, eBay has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Interestingly, eBay has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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eBay Inc. (EBAY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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