eBay Q4 Earnings & Revenues Surpass Estimates, Both Increase Y/Y

eBay Inc. EBAY reported fourth-quarter 2025 non-GAAP earnings of $1.41 per share, which beat the Zacks Consensus Estimate by 3.68%. The bottom line increased 12.8% year over year.

Net revenues of $2.97 billion beat the Zacks Consensus Estimate by 2.98%. The figure increased 15% year over year on a reported basis and 13% on an FX-neutral basis.

eBay’s first-party advertising products generated revenues of $517 million in the reported quarter, up 19% on an as-reported basis and 17% on an FX-neutral basis.

Total advertising offerings yielded $544 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 135 million at the end of the fourth quarter, increased 1% year over year and surpassed the consensus mark by 0.23%.

GMV Details for EBAY

EBAY’s total GMV of $21.24 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 $20.79 billion.

The total GMV is categorized into two parts. U.S. GMV totalled $10.72 billion, accounting for 50.5% of the total GMV. The figure rose 18.6% year over year. International GMV was $10.52 billion, accounting for 49.5% of the total GMV. The figure increased 2.3% year over year.

EBAY’s Q4 Operating Details

Operating expenses of $1.52 billion grew 14.9% year over year. As a percentage of net revenues, the figure remains flat at 51.1% on a year-over-year basis.

The non-GAAP operating margin was 26.1% in the fourth quarter, contracting 90 basis points (bps) year over year.

EBAY’s Balance Sheet & Cash Flow

As of Dec. 31, 2025, cash equivalents and short-term investments were $2.92 billion, down from $3.38 billion as of Sept. 30, 2025.

Long-term debt increased sequentially to $6 billion at the end of fourth-quarter 2025, compared with $5 billion in the prior quarter, indicating higher leverage on a quarter-over-quarter basis.

Cash flow from operating activities was $595 million in the fourth quarter, down from $934 million in the previous quarter, reflecting a sequential slowdown in cash generation.

Free cash flow decreased sequentially to $478 million in the fourth quarter compared with $803 million in the previous quarter.

The company repurchased $625 million worth of shares and paid out cash dividends of $131 million in the reported quarter. eBay had approximately $798 million remaining under its buyback authorization as of Dec. 31, 2025.

EBAY’s Q1 & 2026 Guidance

For the first quarter of 2026, eBay expects revenues in the range of $3.00 billion to $3.05 billion. On an FX-neutral basis, revenue growth is anticipated to be 13%-15%.

The non-GAAP operating margin for the first quarter of 2026 is expected to be between 28.3% and 29.2%.

GMV for the first quarter is likely to be in the range of $21.5-$21.9 billion. On an FX-neutral basis, GMV growth is anticipated to be 10%-12%.

Non-GAAP earnings per share are anticipated to be between $1.53 and $1.59.

EBAY has also provided its financial commentary for 2026. Revenue growth is expected to be in line with or slightly ahead of GMV growth on a year-over-year, FX-neutral basis. GMV growth is projected to be similar to 2025 levels on a year-over-year, FX-neutral basis.

Non-GAAP operating income is projected to increase 8%-10% year over year, while the company plans to return capital through roughly $2 billion in share repurchases in 2026.

Non-GAAP earnings per share growth is expected to be relatively in line with year-over-year non-GAAP operating income growth.

EBAY’s Zacks Rank & Stocks to Consider

Currently, EBAY carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader Retail-Wholesale sector are American Eagle AEO, Dollar General DG and Ross Stores ROST. While American Eagle currently sports a Zacks Rank #1 (Strong Buy), Dollar General and Ross Stores carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

American Eagle shares have surged 74.2% over the past year. AEO is scheduled to report its fourth-quarter fiscal 2025 results on March 4.

Shares of Dollar General have jumped 99.7% over the past year. DG is set to report fourth-quarter fiscal 2025 results on March 12.

Ross Stores' shares have risen 44.1% over the past year. ROST is slated to report its fourth-quarter fiscal 2025 results on March 3.

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

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