Financial Data and Key Metrics Changes - Gross merchandise volume (GMV) grew 8% to $20.1 billion, with revenue increasing over 8% to $2.82 billion, and non-GAAP earnings per share rising over 14% year-over-year to $1.36 [4][27] - Non-GAAP operating income grew 9% year-over-year to $764 million, with a non-GAAP gross margin of 71.6% and a non-GAAP operating margin of 27.1% [27][31] - Free cash flow reached $803 million, with cash and non-equity investments totaling $5.3 billion and gross debt at $6.8 billion [32] Business Line Data and Key Metrics Changes - Focus categories GMV growth accelerated to over 15%, with collectibles being the largest contributor, particularly in collectible card games and sports trading cards [4][5] - Motors Parts and Accessories (P&A) contributed significantly to GMV growth, with over 750 million live listings [7][8] - Fashion categories, including luxury and pre-loved apparel, also drove GMV growth, supported by partnerships like the one with Marks & Spencer [8][9] Market Data and Key Metrics Changes - U.S. market GMV growth accelerated to nearly 13%, while international GMV grew nearly 4% on an FX-neutral basis [28][29] - The UK C2C initiative saw notable improvements in customer satisfaction and GMV growth, with the introduction of managed shipping [12][29] - The removal of the de minimis exemption for imports under $800 created challenges for cross-border trade into the U.S. [22][23] Company Strategy and Development Direction - The company is focused on leveraging AI to enhance the selling experience and improve buyer engagement through features like Magical Listing and AI Shopping Agent [15][16] - Expansion of eBay Live into new markets is seen as a strategic growth vector, with significant momentum in the U.S. and UK [10][11] - The acquisition of TIES aims to strengthen the company's position in the circular economy and enhance its presence in the Nordics [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of growth trends, despite facing macroeconomic challenges and changes in trade policy [4][28] - The company anticipates continued growth in focus categories and is investing in strategic initiatives to drive long-term growth [25][41] - For Q4, GMV is expected to be between $20.5 and $20.9 billion, with revenue guidance between $2.83 and $2.89 billion [33][34] Other Important Information - The company returned approximately $760 million to shareholders through repurchases and cash dividends [27] - The advertising revenue grew nearly 23%, with first-party ads contributing significantly to this growth [20][30] - The company plans to repurchase approximately $2.5 billion of shares for the full year [39] Q&A Session Summary Question: Insights on AI's impact on eBay's business - Management highlighted AI's potential to unlock supply for consumers and enhance user experience through improved recommendations and search capabilities [44][45] Question: Margins and investment strategies - Management discussed balancing long-term growth with margin flow-through, noting increased product development expenses aimed at strategic initiatives [48][49] Question: Sustainability of growth in trading cards - Management expressed confidence in the long-term growth of trading cards, driven by trust and innovation, while acknowledging that growth may not be linear [64][66]

Core Insights - eBay reported quarterly earnings of $1.36 per share, exceeding the Zacks Consensus Estimate of $1.33 per share, and up from $1.19 per share a year ago, representing an earnings surprise of +2.26% [1] - The company achieved revenues of $2.82 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.90% and increasing from $2.58 billion year-over-year [2] - eBay shares have increased approximately 60.7% year-to-date, significantly outperforming the S&P 500's gain of 17.2% [3] Earnings Outlook - The future performance of eBay's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $1.37 on revenues of $2.81 billion, and for the current fiscal year, it is $5.46 on revenues of $10.87 billion [7] Industry Context - The Internet - Commerce industry, to which eBay belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact eBay's stock performance [5]

Q3 2025 Performance Highlights - eBay's Gross Merchandise Volume (GMV) reached $20.1 billion [7], exceeding guidance of $19.2 - $19.6 billion [43]. - Revenue for Q3 2025 was $2.8 billion [7], surpassing the guided range of $2.69 - $2.74 billion [43]. - Non-GAAP operating margin stood at 27.1% [7], hitting the high end of the guidance [43]. - Diluted Non-GAAP EPS was $1.36 [7], above the guidance of $1.29 - $1.34 [43]. - eBay has 16 million Enthusiast Buyers [7], defined as buyers with at least 6 purchase days and $800+ annual spend [9]. Category Growth & Strategic Initiatives - Focus Categories (Collectibles, Motors Parts & Accessories, Fashion) grew +15% year-over-year on an FX-Neutral basis [12], outpacing the rest of the marketplace by approximately 11 percentage points [12]. - eBay Live's annual GMV run-rate increased by approximately 5x year-over-year [14]. - Over $1 billion has been disbursed to sellers globally through financing partners since 2021 via Seller Capital [37]. Q4 2025 Guidance - GMV is projected to be between $20.5 - $20.9 billion [72], representing a 6%-8% spot growth [72]. - Revenue is expected to be in the range of $2.83 - $2.89 billion [72], indicating a 10%-12% spot growth [72]. - Non-GAAP operating margin is guided to be 25.8% - 26.3% [72]. - Diluted Non-GAAP EPS is projected to be $1.31 - $1.36 [72], reflecting a 5%-9% growth [72]. FY 2025 Guidance - GMV is expected to be $78.9 - $79.3 billion [73], with a 6% - 6% spot growth [73]. - Revenue is projected to be $10.97 - $11.03 billion [73], showing a 7% - 7% spot growth [73]. - Non-GAAP operating margin is guided to be 27.7% - 27.8% [73]. - Diluted Non-GAAP EPS is expected to be $5.42 - $5.47 [73], representing an 11% - 12% growth [73]. - The company anticipates approximately $1.5 billion in Free Cash Flow (FCF) in FY'25 [73].

Despite the earnings beat, the company's shares experienced a decline, suggesting investor concerns about slowing growth momentum for the upcoming quarter. ...

The online marketplace posted a profit of $632 million, boosted by a 10% bump in merchandise volume. ...

Group 1 - E-commerce firm eBay forecasts annual revenue above Wall Street estimates, indicating strong demand for products such as collector's items and refurbished goods [1]

Core Viewpoint - E-commerce firm eBay has forecasted lower-than-expected profits for the upcoming holiday quarter due to ongoing macroeconomic uncertainties, leading to an 8.5% drop in its shares after the announcement [1]. Group 1: Financial Performance - eBay reported third-quarter revenue of $2.82 billion and adjusted profit of $1.36 per share, both exceeding Wall Street estimates of $2.73 billion and $1.33 per share respectively [3]. - For the fourth quarter, eBay forecasts adjusted earnings between $1.31 and $1.36 per share, which is below analysts' average estimate of $1.39 per share, while revenue is expected to be between $2.83 billion and $2.89 billion, above the estimate of $2.79 billion [5]. Group 2: Macroeconomic Challenges - The company continues to face macroeconomic challenges across international markets, with increased headwinds for cross-border trade into the U.S. [2]. - The U.S. has ended de minimis tariff exemptions for parcel imports, impacting online marketplaces like eBay, particularly affecting sellers in Japan and Canada [4][5]. - Concerns over rising prices for imported goods and changes in customs requirements have negatively impacted consumer confidence [1]. Group 3: Market Trends - There has been a deceleration in year-over-year volume growth starting in September in key markets importing into the U.S. following the removal of the de minimis exemption [3]. - An increase in demand for bullion and collectible coins has been observed, attributed to rising commodity prices for precious metals, although this trend may not be sustainable [4].

Financial Performance - Revenue for Q3 2025 was $2.8 billion, representing a 9% increase on an as-reported basis and an 8% increase on an FX-Neutral basis[5] - GAAP net income from continuing operations was $597 million, or $1.28 per diluted share, a decrease of 6% year-over-year[8] - Non-GAAP net income from continuing operations was $636 million, or $1.36 per diluted share, an increase of 8% year-over-year[8] - eBay's net revenues for Q3 2025 reached $2,820 million, a 9% increase compared to $2,576 million in Q3 2024[29] - Gross profit for Q3 2025 was $1,999 million, up from $1,849 million in Q3 2024, reflecting a strong performance[29] - Operating income for Q3 2025 was $576 million, slightly down from $595 million in Q3 2024[29] - Net income for Q3 2025 was $632 million, compared to $634 million in Q3 2024, indicating stable profitability[29] - Non-GAAP operating income for the most recent quarter was $764 million, compared to $700 million in the same quarter last year[57] - Non-GAAP operating margin for the current quarter was 27.1%, slightly down from 27.2% in the prior year[57] - GAAP diluted net income per share for Q3 2025 was $1.28, slightly down from $1.29 in Q3 2024[59] - Non-GAAP diluted net income per share for Q3 2025 rose to $1.36, compared to $1.19 in Q3 2024, reflecting a 14.4% increase[59] Cash Flow and Dividends - The company returned $757 million to stockholders in Q3, including $625 million in share repurchases and $132 million in cash dividends[5] - eBay's cash and cash equivalents totaled $5.3 billion as of September 30, 2025[11] - The company announced a cash dividend of $0.29 per share for Q4 2025, payable on December 12, 2025[14] - Free cash flow for the nine months ended September 30, 2025, was $1,006 million, a decrease of 28% compared to $1,396 million for the same period in 2024[61] - Net cash provided by continuing operating activities for Q3 2025 was $934 million, an increase of 23.7% from $755 million in Q3 2024[61] Market Performance - Gross Merchandise Volume (GMV) reached $20.1 billion, up 10% on an as-reported basis and up 8% on an FX-Neutral basis[5] - eBay's advertising revenue generated $525 million in Q3 2025, accounting for 2.6% of GMV, with first-party advertising products increasing by 25% year-over-year[11] - Active Buyers for the current quarter reached 134 million, a 1% increase compared to the same quarter last year[1] - U.S. Gross Merchandise Volume (GMV) was $9.872 billion, reflecting a 13% year-over-year growth[1] - International GMV totaled $10.233 billion, showing a 7% increase from the prior year[1] - Total GMV for the quarter was $20.105 billion, a 10% increase compared to the same quarter last year[1] Guidance and Projections - The company provided Q4 2025 revenue guidance of $2.83 - $2.89 billion, with FX-Neutral year-over-year growth expected to be between 8% and 10%[12] - The company projects Q4 2025 GAAP net revenues between $2.83 billion and $2.89 billion[41] - Diluted EPS from continuing operations for Q4 2025 is expected to be between $0.96 and $1.01[41] - For the full year ending December 31, 2025, GAAP net revenues are projected to be between $10.97 billion and $11.03 billion[41] - The estimated Gross Merchandise Volume for the full year 2025 is between $78.9 billion and $79.3 billion[41] Balance Sheet and Financial Health - Total current assets decreased to $5,393 million in Q3 2025 from $7,567 million in Q4 2024[26] - Total liabilities decreased to $13,072 million in Q3 2025 from $14,207 million in Q4 2024, showing improved financial health[26] - eBay's total stockholders' equity decreased to $4,719 million in Q3 2025 from $5,158 million in Q4 2024[26] - Cash and cash equivalents at the end of Q3 2025 were $3,513 million, up from $2,372 million at the end of Q3 2024[31] Tax and Loss Provisions - The effective tax rate for GAAP continuing operations in Q3 2025 was -4.1%, compared to 20.2% in Q3 2024[59] - The company reported a non-GAAP effective tax rate of 16.5% for both Q3 2025 and Q3 2024, indicating stability in tax management[59] - The company reported a provision for transaction losses of $106 million in Q3 2025, compared to $89 million in Q3 2024[29] Acquisitions and Strategic Moves - eBay closed its acquisition of Tise, enhancing its C2C expertise and connection with Gen Z and Millennial shoppers[6] - Total purchases of property and equipment for the nine months ended September 30, 2025, were $408 million, up from $341 million in the same period of 2024[61] - Non-GAAP operating income from continuing operations for the nine months ended September 30, 2025, was $634 million, an increase of 51.3% from $419 million in 2024[59]

Core Insights - eBay reported strong financial results for Q3 2025, with net revenues of $2.82 billion, reflecting a 9% increase year-over-year [4][5] - The company is focusing on transforming the eBay experience through AI and enhancing engagement with users, positioning itself for sustainable growth [2][6] Financial Highlights - Net revenues for Q3 2025 were $2,820 million, up from $2,576 million in Q3 2024, marking a 9% increase [4] - GAAP net income was $597 million, down 6% from $636 million in the previous year, with earnings per diluted share at $1.28 [4][5] - Non-GAAP net income increased by 8% to $636 million, with earnings per diluted share rising 14% to $1.36 [4][5] Operational Performance - Gross Merchandise Volume (GMV) reached $20.1 billion, a 10% increase year-over-year [5][6] - The company generated $934 million in operating cash flow and $803 million in free cash flow during the quarter [7][19] Shareholder Returns - eBay returned $757 million to shareholders in Q3 2025, including $625 million in share repurchases and $132 million in cash dividends [5][19] - The company declared a cash dividend of $0.29 per share for Q4 2025, payable on December 12, 2025 [11] Business Outlook - For Q4 2025, eBay expects revenue between $2.83 billion and $2.89 billion, with FX-Neutral year-over-year growth projected at 8% to 10% [10][29] - Full-year 2025 guidance includes revenue of $10.97 billion to $11.03 billion and diluted GAAP EPS of $4.09 to $4.14 [10][29] Strategic Initiatives - eBay launched new features to enhance the selling experience, including AI-powered messaging support and expanded seller protections [6] - The company closed its acquisition of Tise, a C2C social marketplace, to strengthen its connection with Gen Z and Millennial shoppers [6]

Group 1 - E-commerce is divided into large-scale platforms like eBay and niche marketplaces like Etsy, with differing growth and valuations indicating potential investment opportunities [2] - ETSY has a lower valuation (P/OpInc) compared to eBay, yet demonstrates higher growth in revenue and operating income, suggesting that ETSY stock may be a more attractive investment than EBAY stock [3] - The analysis emphasizes the importance of a multi-faceted approach to investment, highlighting that a High Quality portfolio has outperformed the S&P with over 105% returns since inception [4]