eBay Q3 2026 Earnings: Organic GMV Up 13%, Operating Margin Beats Guidance

eBay's third-quarter 2026 earnings, released on October 28, 2026 through an 8-K press release and an earnings call for the quarter ended September 30, beat the company's own guidance on both growth and profit [1][2]. Three questions framed the quarter: whether organic gross merchandise volume (GMV) growth could hold up against tough prior-year comparisons, whether advertising could offset the take-rate dilution from lower-fee businesses, and whether the expected margin decline came from investment in Depop or from rising costs on the core marketplace. Organic GMV grew 13% and the operating margin was 26.3%, both above the guided ranges [1][2][3]. The take rate fell 20 basis points year over year and advertising growth slowed [2]. Overall, the first-half acceleration came mainly from durable category and business growth, the extra profit was reinvested in Depop, and the cost was a lower monetization rate.

eBay is a third-party online marketplace that holds no inventory. It connects individual and business sellers with buyers worldwide and earns most of its revenue from transaction fees and the promoted-listing ads that sellers buy [4]. On July 30, 2026, the company acquired the secondhand fashion marketplace Depop for $1.4 billion in cash [1].

Organic GMV grew 13% despite tough comparisons

Organic growth slowed only slightly from 14% in the second quarter, far better than eBay expected in August. At that time, the company guided that tough prior-year comparisons from bullion demand and Klarna installment payments would bring organic growth down to 7%-9% [3]. GMV, the total value of all paid transactions on the platform, was $23.2 billion; organic growth on an FX-neutral basis was 13%, and Depop added nearly three more percentage points [1][2].

Growth came from many categories and businesses. U.S. GMV grew 22% organically, and the four focus categories (collectibles, motors, fashion and refurbished goods) grew 24% combined [2]. Management said U.S. collectibles growth decelerated moderately, electronics contributed more, and both the eBay Live shopping business and Vehicles kept growing at triple-digit rates [1][2].

Revenue beat guidance along with GMV, but growth relied mainly on existing buyers spending more. Net revenue was $3.206 billion, up 14% year over year and above the guided range of $3.07-$3.12 billion [1][3]. Excluding acquisitions, trailing-12-month active buyers grew only by over 1%, and international organic GMV rose only about 4% [2]. For the fourth quarter, management guided organic GMV growth of approximately 8%-10% and pointed to a high prior-year base in trading cards and bullion [2].

Operating margin beat guidance as transaction losses fell

The third-quarter non-GAAP operating margin was 26.3%, above the company's guided range of 25.1%-25.6%, and non-GAAP operating income grew 11% against guidance of 1%-5% [1][3]. The margin was 0.7 percentage points below the recast 27.0% in the same quarter last year [1].

The cost improvement came from transaction losses, while marketing spending rose. Transaction losses, the platform's costs from buyer protection and chargebacks, were $122 million in the third quarter, about 3.8% of revenue, down from about 4.2% in the second quarter [1][2]. Sales and marketing expense rose to $747 million, about 23.3% of revenue, compared with about 21.5% a year earlier [1]. Management said the revenue upside created room to invest, and marketing resources saved on the core marketplace were redeployed to Depop [2].

The margin pressure therefore came mainly from deliberate investment, and core marketplace costs did not get out of control. Depop's contribution to GMV and revenue growth was larger than the August plan, but its standalone profit or loss was not disclosed [2][3]. For the fourth quarter, management guided non-GAAP operating income growth of 6%-10% and a margin of 25.7%-26.2%, and the company has announced a workforce reduction of approximately 9% without disclosing the expected savings [2].

Take rate kept falling and ad growth slowed

The take rate, net revenue as a share of GMV, was about 13.84% in the third quarter, down 20 basis points year over year [1][2]. Management attributed the decline to faster growth in lower-fee businesses such as eBay Live, C2C and Vehicles, category and average-selling-price mix shifts, and the inclusion of Depop [2]. First-party advertising revenue was $575 million, and its growth slowed from 24% in the second quarter to 16%, partly because eBay began lapping last year's ad attribution changes [1][2]. Management said it judges investments by the dollars of GMV and operating income they add rather than by take rate, and its fourth-quarter guidance implies revenue growth well below GMV growth [2].

Conclusion

The quarter strengthens the case that eBay's growth is durable. Focus categories, C2C, Live and Vehicles together supported double-digit organic growth against a high base, transaction losses fell, and most of the extra revenue went into Depop. On cash, third-quarter free cash flow was $749 million, down from $803 million a year earlier, and the Depop acquisition used $1.321 billion of cash [1]. The main uncertainties are flat buyer counts, undisclosed Depop profitability and the continued decline in take rate. The view would be strengthened if fourth-quarter organic growth holds at or above the midpoint of guidance and the margin stays around 26%; it would be weakened if the take-rate decline goes beyond what Depop and the accounting change can explain.

Sources

1. [1] EBAY 8-K filed 2026-10-28 Exhibit 99.1 (Q3 2026 press release), 8-K, 2026-10-28, https://www.sec.gov/Archives/edgar/data/1065088/000106508826000209/exhibit991erebayq32026.htm
2. [2] EBAY Q3 2026 earnings call 2026-10-28, earnings call, 2026-10-28, https://gateway.drillr.ai/mcp/private
3. [3] EBAY Q2 2026 earnings call 2026-08-05 · Q3 and full-year guidance, earnings call, 2026-08-05, https://gateway.drillr.ai/mcp/private
4. [4] EBAY 10-K filed 2026-02-19 · business model and revenue sources, 10-K, 2026-02-19, https://www.sec.gov/Archives/edgar/data/1065088/000106508826000027/