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    EBAY
    Earnings call· Jun 2026(Q2 FY26)

    EBAY Q2 FY26 earnings call EBAY

    Aug 5, 2026 Source

    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

    5

    • 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

    5

    • 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

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

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    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——

    Operational metrics

    27
    Gross Merchandise Volume (GMV)
    $22.4 billion14% year-over-year (organic FX-neutral)
    Q2 FY26

    Exceeded consensus expectations and high end of guidance.

    Non-GAAP Operating Income
    $893 million16% year-over-year
    Q2 FY26

    Reflecting healthy flow-through from GMV outperformance alongside incremental investments.

    Non-GAAP Earnings Per Share (EPS)
    $1.6017% year-over-year
    Q2 FY26

    Exceeded consensus expectations and high end of guidance.

    Focused Category GMV
    over 40%26% growth
    Q2 FY26

    Strength was broad-based across collectibles, motors, fashion, and refurbished.

    C2C GMV
    over 20%outpacing overall GMV
    Q2 FY26

    Continued to grow in mix in the U.S., driven by healthy double-digit growth in both sellers and supply.

    eBay Live GMV
    roughly 8xyear-over-year
    Q2 FY26

    Alongside rapid growth in viewers, watch time, and sold items. Gaining share across all 7 markets.

    Active Buyers
    136 millionnearly 2% growth
    TTM Q2 FY26

    Strong growth in the U.S. where active buyers increased 6%.

    Enthusiast Buyers
    16 millionnearly 3% year-over-year
    Q2 FY26

    U.S. enthusiast buyer growth accelerated to 9% year-over-year in Q2.

    Non-GAAP Gross Margin
    74.1%up 1 point year-over-year
    Q2 FY26

    Reflecting healthy flow-through from GMV outperformance.

    Cash and Fixed Income Investments
    $4.9 billion
    Q2 FY26 end

    Balance sheet position.

    Gross Debt
    $6.7 billion
    Q2 FY26 end

    Balance sheet position.

    Equity Investments and Warrants
    $780 million
    Q2 FY26 end

    Valuation at period end.

    Share Repurchases Executed
    $310 million
    Q2 FY26

    Pace influenced by share price volatility.

    Cash Dividend Paid
    $138 million
    Q2 FY26

    Paid in June.

    Advertising Revenue
    $596 million23% FX-neutral growth
    Q2 FY26

    Strong growth across all 1P ad products.

    First-Party Ads Revenue
    $570 million24% growth
    Q2 FY26

    Includes CPA, CPC, and offsite ads.

    Promoted Listings Penetration
    $1.3 billion
    Q2 FY26

    Promoted Listings comprised nearly $1.3 billion of the $2.6 billion total listings on eBay.

    Off-Platform Ads Growth
    21%
    Q2 FY26

    Primarily driven by strong growth in Qoo10 business in Japan.

    Revenue from eBay Shipping Programs
    double digits
    Q2 FY26

    Continued expansion of domestic and international shipping programs.

    Sales and Marketing Expense
    —increased
    Q2 FY26

    Increased as the company saw opportunities to invest across the funnel with attractive ROI, focused on strategic areas like C2C and eBay Live.

    Transaction Losses
    —moderation sequentially
    Q2 FY26

    As a result of optimizing newer shipping programs and customer experience, with further progress expected in H2.

    GAAP Earnings Per Share (EPS)
    $1.21
    Q2 FY26

    Reported GAAP EPS.

    eBay Live Self-Service Onboarding
    300+
    July 2026

    Moved beyond invite-only model, with additional markets expected to follow.

    Magical Listing Cumulative Scans
    80 million
    cumulative

    AI-powered card scanning experience exited beta and surpassed 80 million cumulative scans.

    U.K. C2C Managed Shipping Network
    50,000
    current

    Majority of U.K. C2C transactions go through this program.

    eBay International Shipping Countries
    190+
    later this month (August 2026)

    Following successful launches in the U.S. and Canada, offering lower costs and simpler end-to-end experience.

    Charity Funds Raised
    $58 million
    Q2 FY26

    Through eBay for Charity, including a $9M+ auction for Warren Buffett/Curry lunch.

    Industry KPIs

    3
    MetricValueDetails
    Regional market performance24%% GMV growth
    Advertising revenue take rate$596 millionUSD
    Operating income EBIT and adjusted EBITDA$893 millionUSD

    Product announcements

    15
    ProductTypeDetails
    Authenticity Guarantee for Trading Cardsexpansion
    AI-powered Card Scanning Experiencemilestone
    Trading Card Listings with Richer Market Dataupdate
    Condition Grading Standards for Collectible Coinsupdate
    Easy and Free Returnslaunch
    Guaranteed Fitexpansion
    Native Vehicle Listing in eBay Mobile Applaunch
    Authenticity Guarantee for Apparel, Footwear, and Accessoriesexpansion
    Authenticity Guarantee for Jewelryexpansion
    Magical Listing Latest Generationexpansion
    Enhanced Pricing Guidance in Magical Listingupdate
    Agentic Search Pilotmilestone
    eBay International Shippinglaunch
    Pay by Bankexpansion
    eBay Balanceexpansion

    Deals & partnerships

    1
    DepopAcquisition 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

    7
    Lapping dynamics from prior year benefitsQ3 FY26

    Implied Q3 GMV deceleration from Q2

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

    Weaker macroeconomic conditions in international marketsQ2 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 profitabilityQ3 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 GMVFull-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 rateFull-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 growthH2 FY26

    Expected deceleration

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

    Lapping strength in bullion demandbeginning Q4 FY26

    Expected impact

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

    What to watch in Q3 FY26

    5

    Depop GMV growth acceleration

    H2 FY26
    CurrentAccelerated in Q2 on pro forma basis
    TargetAccelerate 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.

    Q&A highlights

    6

    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 read6 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.