What is the outlook for competitive intensity in C2C, and does the 2% GMV growth contribution for eBay Motors include parts and accessories?

eBay sees a massive, underpenetrated opportunity in C2C fashion, validated by market growth. eBay's strong C2C business, combined with Depop's brand and reach, positions them well. eBay Motors GMV includes both parts and accessories and vehicles, with parts and accessories being the majority. The Caramel acquisition has improved the vehicle listing experience, contributing to growth. “For eBay Motors, that includes both parts and accessories and vehicles. The majority of it is parts and accessories since that's established piece of it. Vehicles is earlier stage, but becoming a larger contribution to overall motors and to the company overall.”

What has eBay learned from European market entrants regarding marketing intensity for Depop, and are there plans to change fee structures in the U.S. similar to past changes in Europe?

eBay believes the U.S. pre-loved closet market is underpenetrated, offering a massive TAM. Depop's strong brand and appeal to younger consumers, combined with eBay's scale, will help capture this opportunity. Marketing investments for Depop are partially funded by reallocating existing eBay C2C and fashion marketing dollars. There are no current plans to change eBay's U.S. fee structure; Depop already has a buyer fee model. “As it relates to the U.S., we have no current plans to change the fees as it relates to eBay. Depop already has a buyer fee model, which is complementary to kind of that discovery-led type of experience.”

How are the lapping dynamics impacting core eBay's GMV growth, and what is the confidence in the back-half growth rate?

Q3 will lap a full quarter of the U.S. Klarna partnership benefit and prior year's marketing efficiency gains. The company expects a deceleration in Pokémon growth and will lap bullion demand in Q4. Despite these, the majority of growth is durable, driven by underlying business strength, leading to an increased full-year outlook. The 2-year stack for H2 provides a clearer view of durable strength. “When we think about the second half in total, so the whole second half of the year, beyond the lapping dynamics, we expect, and this is baked in a deceleration in Pokémon growth as we lap last year's triple-digit growth with tougher year-over-year comparisons in the second half.”

EBAY

eBay (EBAY) Q2 FY26 earnings call: guidance and Q&A

Q: How does eBay Live resonate across the broader platform and what's the next frontier for AI on eBay?

eBay Live buyers spend 70% more than non-Live buyers, and Live sellers see faster GMV growth, creating a halo effect. Magical Listings, now expanded to major geographies, has processed hundreds of millions of listings, improving seller efficiency. The next step is broader C2C seller penetration, with Australia as the first market. AI is also being applied across advertising, search, and CRM for targeted experiences. “When we look at buyers that start shopping in Live, they're spending 70% more than comparable buyers that are not shopping on Live.”

Earnings call· Jun 2026 (Q2 FY26)· Consumer Discretionary· Aug 5, 2026

Source: earnings call transcript

Executive summary

eBay Q2 FY26 — Strong Growth Across Strategic Priorities and Depop Acquisition

eBay delivered a strong second quarter, exceeding financial expectations driven by broad-based momentum in strategic priorities like focused categories, C2C, and recommerce. The acquisition of Depop further strengthens its position in pre-loved fashion and expands reach to younger consumers, despite near-term impacts on profitability. The company is balancing continued investment in high-return growth opportunities with disciplined execution, leading to an improved full-year outlook.

Highlights

Gross Merchandise Volume (GMV) grew 14% year-over-year to over $22 billion, exceeding expectations.
Revenue grew 14% to over $3 billion, also surpassing guidance.
Non-GAAP operating income grew 16% to $893 million, and non-GAAP EPS grew 17% to $1.60.
Focused category GMV grew 26% and now represents over 40% of total GMV for the first time.
C2C GMV grew over 20%, outpacing overall GMV, with strong growth in sellers and supply.

Concerns

Q3 GMV guidance implies a deceleration from Q2 due to lapping dynamics, including the U.S. Klarna partnership and marketing efficiency gains.
Depop acquisition is expected to be a 3- to 4-point headwind to non-GAAP operating income growth and a mid-single-digit headwind to non-GAAP EPS growth in Q3 FY26.
International GMV growth, while improving, remains lower at 4% year-over-year, impacted by continued weaker macroeconomic conditions.
Full-year 2026 revenue growth is expected to be roughly 0.5 point below GMV growth due to mix shifts and Depop's impact.
Non-GAAP tax rate for full year 2026 is expected to be 17.5%, 1 percentage point higher than 2025.

Guidance & targets

Category	Target	Timeline	Confidence
Consolidated GMV	$22 billion - $22.4 billion high materiality	Q3 · FY26	High
Consolidated Revenue	$3.07 billion - $3.12 billion high materiality	Q3 · FY26	High
Consolidated Non-GAAP Operating Income Growth	1% - 5% year-over-year high materiality	Q3 · FY26	High
Consolidated Non-GAAP EPS	$1.36 - $1.42 high materiality	Q3 · FY26	High
Full-Year 2026 Consolidated GMV Growth (FX-neutral)	11.5% - 12.5% high materiality	FY26	High
Full-Year 2026 Consolidated Revenue Growth (FX-neutral)	11% - 12% high materiality	FY26	High
Full-Year 2026 Consolidated Non-GAAP Operating Income Growth	10% - 12% high materiality	FY26	High
Full-Year 2026 Consolidated Non-GAAP EPS Growth	10% - 12% high materiality	FY26	High
Full-Year 2026 Capital Expenditures	4% - 5% of revenue medium materiality	FY26	High
Full-Year 2026 Share Repurchases	roughly $2 billion high materiality	FY26	High
Full-Year 2026 Non-GAAP Tax Rate	17.5% medium materiality	FY26	High
Depop Accretion to Non-GAAP Operating Income	accretive medium materiality	FY28	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
U.S. GMV grew 24% in Q2, driven by investments in focused categories, C2C, Live, and Shipping. Collectibles growth was strong beyond trading cards, with coins, comics, and sports memorabilia all growing double-digits. eBay Motors GMV and U.S. fashion business also posted double-digit GMV growth.	—	24%	—	—
International GMV growth improved to 4% year-over-year on an organic FX-neutral basis. Investments in focused categories and C2C in international markets are working, offsetting weaker macroeconomic conditions. FX provided a 160 basis point tailwind to spot growth.	—	4%	—	—
Australia Saw an acceleration in C2C GMV growth to double digits, helping the region post its strongest growth in several years during Q2. New and reactivated listers and listing creation rates increased since the C2C initiative launched in May. GMV growth improved sequentially.	—	double digits	—	—

EBAY operating KPIs by quarter

EBAY operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Dec 2024 Q4 FY24	Mar 2025 Q1 FY25	Sep 2025 Q3 FY25	Dec 2025 Q4 FY25	Mar 2026 Q1 FY26	This call Jun 2026 Q2 FY26	Change vs prior quarter
Active buyers	<134M Active buyers grew over 1% to nearly 134 million in Q4. Source: earnings call transcript	134M Our trailing 12-month active buyers grew over 1% to $134 million in the first quarter. Source: earnings call transcript	134M+ Our trailing 12-month active buyers were over 134 million in Q3, up 1% year-over-year. Source: earnings call transcript	—	—	136M Active buyers grew nearly 2% to 136 million on a trailing 12-month basis, including buyers from recently acquired, Tise. Source: earnings call transcript	—
Enthusiast buyers	~16M Enthusiast buyers remained stable at roughly 16 million and spend per enthusiast buyer grew slightly year-over-year to more than $3,100. Source: earnings call transcript	—	~16M Enthusiast buyers remained stable at roughly $16 million, while spend per enthusiast buyer grew year-over-year to over $3,200 on a trailing 12-month basis. Source: earnings call transcript	~16M Enthusiast buyers were stable at roughly 16 million while spend per enthusiast buyer grew year-over-year to over $3,300 on a trailing 12-month basis. Source: earnings call transcript	—	16M Enthusiast buyers totaled 16 million and grew by nearly 3% year-over-year and spend per enthusiast buyer increased to approximately $3,600 on a trailing 12-month basis. Source: earnings call transcript	—
Spend per enthusiast buyer	$3,100+ Enthusiast buyers remained stable at roughly 16 million and spend per enthusiast buyer grew slightly year-over-year to more than $3,100. Source: earnings call transcript	$3,100+ Enthusiast buyers grew roughly 16 million and spend per enthusiast buyer grew slightly year-over-year and remained at over $3,100. Source: earnings call transcript	$3,200+ Enthusiast buyers remained stable at roughly $16 million, while spend per enthusiast buyer grew year-over-year to over $3,200 on a trailing 12-month basis. Source: earnings call transcript	$3,300+ Enthusiast buyers were stable at roughly 16 million while spend per enthusiast buyer grew year-over-year to over $3,300 on a trailing 12-month basis. Source: earnings call transcript	$3,400+ Enthusiast buyers remained at roughly $16 million, but grew by nearly 2% year-over-year and spend exceeded $3,400 on a trailing 12-month basis. Source: earnings call transcript	~$3,600 Enthusiast buyers totaled 16 million and grew by nearly 3% year-over-year and spend per enthusiast buyer increased to approximately $3,600 on a trailing 12-month basis. Source: earnings call transcript	—
Sellers adopting advertising products	~3.4M Approximately 3.4 million sellers adopted a single ad product during the quarter, and we ended Q4 with more than 1.1 billion live Promoted Listings out of nearly $2.3 billion total listings on eBay. Source: earnings call transcript	3.7M+ Over 3.7 million sellers adopted a single Promoted Listing product during Q1. Source: earnings call transcript	4.4M+ Active Promoted Listings comprised nearly 1.2 billion of more than 2.4 billion total listings on eBay, while over 4.4 million sellers adopted at least a single Promoted Listings product during the quarter. Source: earnings call transcript	4.8M Promoted listings comprised nearly 1.2 billion of the roughly 2.5 billion total listings on eBay while 4.8 million sellers adopted at least 1 promoted listing product during the quarter. Source: earnings call transcript	5.2M Promoted Listings comprised over $1.2 billion of the over $2.5 billion total listings on eBay and 5.2 million sellers adopted at least 1 promoted listing product during the quarter. Source: earnings call transcript	5.7M Promoted Listings comprised nearly $1.3 billion of the $2.6 billion total listings on eBay and 5.7 million sellers adopted at least 1 promoted listing product during the quarter. Source: earnings call transcript	+9.6%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

Product	Type	Timeline
Authenticity Guarantee for Trading Cards	expansion	Q2 FY26
AI-powered Card Scanning Experience	milestone	Q2 FY26
Trading Card Listings with Richer Market Data	update	recently
Condition Grading Standards for Collectible Coins	update	Q2 FY26
Easy and Free Returns	launch	Q2 FY26
Guaranteed Fit	expansion	Q2 FY26
Native Vehicle Listing in eBay Mobile App	launch	Q2 FY26
Authenticity Guarantee for Apparel, Footwear, and Accessories	expansion	Q2 FY26
Authenticity Guarantee for Jewelry	expansion	Q2 FY26
Magical Listing Latest Generation	expansion	Q2 FY26
Enhanced Pricing Guidance in Magical Listing	update	Q2 FY26
Agentic Search Pilot	milestone	Q2 FY26
eBay International Shipping	launch	later this month (August 2026)
Pay by Bank	expansion	Q2 FY26
eBay Balance	expansion	Q2 FY26

Deals & partnerships

Depop Acquisition of a fashion resale marketplace to strengthen C2C and recommerce leadership and extend reach to younger generations. $1.4 billion in cash

Acquisition completed on July 30, 2026. Purchase price of $1.2 billion plus approximately $200 million of net purchase price adjustments. Depop brings a social-forward, discovery-led experience with strength in pre-loved fashion at accessible price points, complementing eBay's existing fashion business.

Risks & headwinds

Lapping dynamics from prior year benefits Q3 FY26

Implied Q3 GMV deceleration from Q2

Mitigation:Focus on durable underlying strength of the marketplace and strategic priorities.

Weaker macroeconomic conditions in international markets Q2 FY26 (ongoing)

International GMV growth at 4% year-over-year

Mitigation:Investments in focused categories and C2C in international markets are working to offset these conditions.

Depop acquisition impact on profitability Q3 FY26 and Full-Year FY26

3-4 point headwind to non-GAAP operating income growth in Q3; mid-single-digit headwind to non-GAAP EPS growth in Q3; roughly 2-percentage point headwind to full-year non-GAAP operating income growth; roughly 2.5 percentage points of dilution to full-year non-GAAP EPS.

Mitigation:Portion of investment funded by reallocating existing marketing spend; expected to become accretive to non-GAAP operating income by 2028.

Mix shifts impacting revenue growth relative to GMV Full-Year FY26

Full-year revenue growth expected to be roughly 0.5 point below GMV growth

Mitigation:Healthy growth in Advertising and Shipping revenue expected to partially offset mix shifts.

Higher non-GAAP tax rate Full-Year FY26

17.5% for full year, 1 percentage point higher than 2025

Mitigation:Not explicitly stated, but included in financial outlook.

Deceleration in Pokémon growth H2 FY26

Expected deceleration

Mitigation:Not explicitly stated, but acknowledged as a lapping dynamic.

Lapping strength in bullion demand beginning Q4 FY26

Expected impact

Mitigation:Not explicitly stated, but acknowledged as a lapping dynamic.

What to watch in Q3 FY26

Depop GMV growth acceleration

H2 FY26

Current Accelerated in Q2 on pro forma basis

Target Accelerate by double-digit percentage points

Why it matters

Depop's growth is key to its strategic value and eventual accretion to operating income, and its contribution is factored into full-year guidance.

This includes an expected contribution of roughly 1.5 percentage points from Depop and assumes its GMV growth will accelerate by double-digit percentage points in the second half of this year versus Q2 on a pro forma basis, reflecting Depop's strong momentum.

Find out whether EBAY delivers this. Inve re-checks your case every morning.

Q&A highlights

How does eBay Live resonate across the broader platform and what's the next frontier for AI on eBay?

eBay Live buyers spend 70% more than non-Live buyers, and Live sellers see faster GMV growth, creating a halo effect. Magical Listings, now expanded to major geographies, has processed hundreds of millions of listings, improving seller efficiency. The next step is broader C2C seller penetration, with Australia as the first market. AI is also being applied across advertising, search, and CRM for targeted experiences.

“When we look at buyers that start shopping in Live, they're spending 70% more than comparable buyers that are not shopping on Live.”

asked by Colin Sebastian · answered by Jamie Iannone

2 min read 6 chapters

Detailed narrative

Strategic Priorities Driving Growth

eBay's strategic priorities, including focused categories, C2C business, and recommerce (pre-owned/refurbished items), collectively accounted for over 70% of total GMV in Q2, with each growing more than 20% individually and in aggregate. This broad-based momentum reinforces confidence in the strategy, which is not dependent on any single category. The company continues to invest in these areas, leveraging outperformance to drive further growth.

Focused Categories Outperformance

Focused category GMV grew 26% in Q2, surpassing 40% of total GMV for the first time. This growth was broad-based across collectibles (trading cards, coins, toys, sports memorabilia), motors (parts & accessories, vehicles), fashion (luxury, pre-loved), and refurbished items. Investments in authenticity guarantees, AI-powered tools like card scanning, and enhanced market data are strengthening these categories.

Depop Acquisition and C2C Expansion

eBay completed the acquisition of Depop for $1.4 billion in cash, strengthening its leadership in C2C and recommerce, particularly with younger demographics. Depop's GMV grew from 7 million buyers at acquisition announcement to 9 million in Q2, demonstrating incremental momentum.

The combined entity aims to unlock more consumer supply and capture the significant untapped market opportunity in C2C fashion, leveraging eBay's scale and capabilities while maintaining Depop's distinct brand and user experience.

eBay Live and Emerging Growth Vectors

eBay Live posted another record quarter, with GMV growing approximately 8x year-over-year in Q2, alongside rapid growth in viewers, watch time, and sold items. The platform is expanding beyond an invite-only model to self-service onboarding for eligible U.S. sellers across 300+ categories. eBay Live is deepening engagement, with first-time Live buyers spending 70% more than comparable non-Live buyers, and regular Live sellers seeing faster GMV growth.

AI-Powered Innovation and Shipping Services

AI is being leveraged to enhance both buying and selling experiences. The latest generation of Magical Listing, now fully ramped in the U.K., Germany, and Australia, is making selling dramatically easier, leading to faster listing times and more sold items.

For buyers, agentic search pilots are improving discovery. Shipping services are expanding, with eBay International Shipping launching in the U.K. to provide simpler, lower-cost international delivery to over 190 countries, building on successful launches in the U.S. and Canada.

Financial Services and Advertising Momentum

Financial Services continue to expand buyer choice and improve economics, with Pay by Bank in the U.K. showing encouraging adoption and lower payment costs. eBay Balance is gaining traction, allowing sellers to use proceeds for purchases. Advertising revenue grew 23% FX-neutral to $596 million, representing 2.7% GMV penetration.

First-party ads grew 24% to $570 million, driven by increased relevance, seller adoption, and new products, with a long runway for continued growth beyond the 3% midterm target.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.