eBay Inc. Q4 FY2025 earnings call

• 2025 highlights: GMV grew nearly 6% globally, U.S. GMV grew nearly 10%; revenue increased 7% to $11.1 billion; non-GAAP operating income grew 7% to nearly $3.1 billion; non-GAAP earnings per share grew 13% to $5.52; returned ~$3 billion to shareholders. • Acquired Depop for ~$1.2 billion in cash, strengthening C2C value proposition. • Q4 drivers: Collectibles category was largest contributor to GMV growth, with trading cards leveraging AI; Motors, Parts and Accessories contributed over 1 point of GMV growth; Fashion was leading contributor to growth in Q4 with C2C strength; launched eBay Live in multiple markets; rolled out next generation of magical listing experience; expanded eBay Live globally; achieved record eBay Live GMV on Black Friday; exceeded 5-year impact goals for circular economy. • Financial details: Q4 GMV grew over 8% to $21.2 billion; revenue grew over 13% to $2.96 billion; non-GAAP gross margin 72.1%; non-GAAP operating margin 26.1%; non-GAAP earnings per share $1.41.

In 2025, gross merchandise volume grew by nearly 6% to approximately $80 billion globally, with U.S. GMV growing by nearly 10%. Focus category GMV growth accelerated over 12%. C2C makes up roughly 1/4 of total GMV and saw reinvigorated growth. Recommerce made up over 40% of GMV in 2025, growing by approximately 10%. Revenue increased by nearly 7% to $11.1 billion in 2025, driven by growth in advertising (reaching approximately $2 billion), financial services, and managed shipping. Non-GAAP operating income grew by roughly 7% to nearly $3.1 billion. In Q4 2025, GMV grew over 8% to $21.2 billion, revenue grew over 13% to $2.96 billion, non-GAAP operating income grew over 11% to $775 million, and non-GAAP earnings per share grew nearly 13% to $1.41.

• Q1 2026: Expected GMV between $21.5 billion and $21.9 billion (10%-12% FX-neutral growth year-over-year); revenue between $3 billion and $3.05 billion (13%-15% FX-neutral growth year-over-year); non-GAAP operating income growth 11%-16% year-over-year; non-GAAP earnings per share between $1.53 and $1.59. • Full year 2026: Planning GMV growth similar to 2025 on FX-neutral basis; revenue growth in line to slightly ahead of GMV; non-GAAP operating income growth 8%-10% year-over-year; non-GAAP earnings growth relatively in line with operating income; targeting $2 billion of share repurchases; Board authorized incremental $2 billion under stock repurchase plan; declared quarterly cash dividend of $0.31 per share for Q1. • Depop acquisition: Expected to contribute 1-2 percentage points to total FX-neutral GMV growth in 2026; low single-digit headwind to core eBay marketplace operating income growth; expected to dilute non-GAAP earnings per share growth by low single digits, but accretive to operating income and EPS in long term.

Q: Nikhil Devnani with Bernstein Research asked about what changed to drive improvement across the board in the domestic market.

A: Jamie Iannone said years of investment are paying off, with broad brand strength, and focus categories, C2C, and recommerce each growing in high single to low double digits in 2025, driving a significant majority of GMV.

Q: Colin Sebastian with Baird asked about changes in the competitive environment in key markets and benefits from focus categories and AI tools in Europe.

A: Jamie Iannone said Europe is more challenged due to low consumer confidence, but focus category and C2C initiatives are performing well, and eBay Live has been expanded to other markets.

Q: Ross Sandler with Barclays asked about growth cadence in 2026 and how Depop combines with eBay.

A: Peggy Alford talked about lapping factors and Jamie Iannone said Depop is a great strategic fit, bringing a younger consumer base and complementing eBay's growth in C2C and fashion.

Q: Nathaniel Feather with Morgan Stanley asked about revenue synergies from Depop deal and clarification on coins and bullion.

A: Jamie Iannone talked about synergies and Peggy Alford clarified that coins and bullion accounted for a significant portion of acceleration from Q4 to Q1 but growth remains broad-based.

Q: Shweta Khajuria with Wolfe Research asked about earnings growth drivers and buybacks, and agentic commerce evolution.

A: Peggy Alford talked about EPS growth drivers and buyback plans, and Jamie Iannone talked about agentic commerce, building in-house capability and being open to partnerships.

Q: Tom Champion with Piper Sandler asked about eBay Live update and Facebook partnership.

A: Jamie Iannone talked about eBay Live's growth, expansion into markets, and progress on Facebook Marketplace partnership.

Q: Michael Morton with MoffettNathanson asked about sustainability of trading card business user base and agentic search behavior.

A: Jamie Iannone talked about secular growth in trading cards and high intent traffic from agentic search leading to high conversion.