Are there changes in the competitive environment in international markets, and are focus categories and AI tools benefiting European operations?

Jamie Iannone acknowledged a clear divergence between the resilient U.S. and challenged European macro environments. He confirmed that focus category initiatives, C2C, and eBay Live expansions are performing well internationally, despite the macro headwinds, indicating that successful U.S. strategies are being replicated. “I would say in contrast, Europe has been more challenged as consumer confidence remains low and retail sales trends are subdued there. But what I would tell you is the focus category stuff that we've rolled out internationally has been performing well.”

What user behavior changes are expected from agentic AI, its impact on advertising, and eBay's strategy for building it out or partnering with companies like OpenAI?

Jamie Iannone emphasized eBay's strong position in agentic commerce due to its unique inventory (90% non-new in season), proprietary AI experiences (magical listing, agentic search with 95% CSAT), and established trust features. He mentioned a unified agentic commerce platform for third-party integrations, including an early OpenAI Ads Pilot Program, while prioritizing in-house development. “We feel really well positioned to bring a differentiated experience to agentic commerce which makes us really confident we'll be a long-term beneficiary of this trend. The first thing I'd hit on is the experiences that we're building on eBay, leveraging this technology.”

How will growth cadence evolve throughout 2026 given lapping effects, and how will Depop advance eBay's fashion segment and international presence?

Peggy Alford detailed lapping effects for 2026, including deceleration in Pokemon growth, moderation of bullion/coins after Q1, and lapping of the Klarna partnership and marketing efficiency gains from Q2. Jamie Iannone highlighted Depop's role in supercharging C2C, building on eBay's strong fashion growth ($10B+ GMV, U.S. fashion up 10%), and attracting a younger demographic, leveraging eBay's assets for further growth. “We are expecting a deceleration in Pokemon growth in '26 just given the triple-digit growth that we saw in '25, although I will point out that we expect healthy overall growth in trading cards.”

EBAY

eBay (EBAY) Q4 FY25 earnings call: guidance and Q&A

Q: What has driven the sustained acceleration in U.S. GMV, and how durable is this growth beyond short-term benefits?

Jamie Iannone attributed the strong U.S. GMV acceleration to years of investment in strategic priorities like focus categories, C2C, and recommerce, which are showing broad-based strength. He noted that while some specific tailwinds (e.g., bullion) are less durable, the underlying health of the business and momentum are expected to continue into 2026. “The underlying health of the business is the strongest it's been since I've joined the company 6 years ago. And I think what you're seeing is that years of investment that we've made are paying off, and that's really evident across our strategic priorities.”

Earnings call· Dec 2025 (Q4 FY25)· Consumer Discretionary· Feb 18, 2026

Source: earnings call transcript

Executive summary

eBay Q4 FY25 — Strong GMV Growth & Depop Acquisition

eBay delivered strong Q4 FY25 results, exceeding expectations with accelerated GMV and revenue growth driven by strategic priorities and emerging vectors. The acquisition of Depop further strengthens its C2C and fashion segments, though it is expected to be dilutive in the near term. Management remains optimistic about continued growth and AI innovation in 2026, balancing strategic investments with operational discipline and shareholder returns.

Highlights

GMV grew over 8% to $21.2 billion in Q4 FY25, with full-year 2025 GMV up nearly 6% to $80 billion.
Revenue increased over 13% to $2.96 billion in Q4 FY25, outpacing GMV growth.
Non-GAAP EPS grew nearly 13% to $1.41 in Q4 FY25, marking the second consecutive year of double-digit earnings growth.
Strategic priorities (focus categories, C2C, recommerce) grew approximately 10% in FY25, comprising two-thirds of GMV.
Acquired Depop for $1.2 billion, strengthening C2C and fashion offerings, and expanding demographic reach.

Concerns

International GMV declined nearly 1% in Q4 FY25 due to a softer macro environment in Europe and U.S. trade policy changes.
Non-GAAP gross margin declined by nearly 80 basis points year-over-year in Q4 FY25 due to strategic investments.
Depop acquisition is expected to be a low single-digit headwind to 2026 non-GAAP operating income growth and EPS.
Expected deceleration in Pokemon growth and moderation of bullion/coins after Q1 2026 due to tougher comparisons.

Guidance & targets

Category	Target	Timeline	Confidence
Q1 2026 GMV	$21.5 billion and $21.9 billion high materiality	Q1 · FY26	High
Q1 2026 Revenue	$3 billion and $3.05 billion high materiality	Q1 · FY26	High
Q1 2026 Non-GAAP Operating Income Growth	11% and 16% year-over-year medium materiality	Q1 · FY26	High
Q1 2026 Non-GAAP Operating Margin	28.3% and 29.2% medium materiality	Q1 · FY26	High
Q1 2026 Non-GAAP EPS	$1.53 and $1.59 high materiality	Q1 · FY26	High
FY 2026 GMV Growth	similar to 2025 on an FX-neutral basis high materiality	FY 2026 · FY26	Medium
FY 2026 Revenue Growth	in line to slightly ahead of GMV for the full year on an FX-neutral basis high materiality	FY 2026 · FY26	Medium
FY 2026 Non-GAAP Operating Income Growth	8% and 10% year-over-year high materiality	FY 2026 · FY26	Medium
FY 2026 Non-GAAP EPS Growth	relatively in line with non-GAAP operating income high materiality	FY 2026 · FY26	Medium
FY 2026 Capital Expenditures	between 4% and 5% of revenue medium materiality	FY 2026 · FY26	High
FY 2026 Share Repurchases	roughly $2 billion high materiality	FY 2026 · FY26	High
FY 2026 Non-GAAP Tax Rate	17.5% medium materiality	FY 2026 · FY26	High
Depop Acquisition Impact on FY26 FX-neutral GMV Growth	1 to 2 percentage points medium materiality	FY 2026 · FY26	Medium
Depop Acquisition Impact on FY26 Non-GAAP Operating Income Growth	low single-digit headwind medium materiality	FY 2026 · FY26	Medium
Depop Acquisition Impact on FY26 Non-GAAP EPS Growth	dilute our non-GAAP earnings per share growth by low single digits medium materiality	FY 2026 · FY26	Medium
Depop Acquisition Accretion to Non-GAAP Operating Income	accretive to non-GAAP operating income in 2028 high materiality	FY 2028 · FY28	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
U.S. U.S. volume saw a disproportionate benefit from the strength in collectibles due to its higher mix in this category. Also benefited from strong growth in luxury and pre-loved apparel, an uptick in demand in certain electronics categories, growing contributions from emerging growth vectors (live and vehicles), a favorable lower funnel marketing environment, and continued strength from the Klarna partnership.	—	nearly 19%	accelerating by nearly 6 points sequentially	—
International International performance was impacted by challenging macroeconomic conditions in the U.K. and Germany and a deceleration in cross-border volume growth due to U.S. trade policies, including the removal of de minimis exemption for all countries at the end of August. Focus categories continued to perform well internationally. FX tailwind to spot GMV growth: 290 basis points	—	declined nearly 1%	—	—

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	This call Dec 2025 Q4 FY25	Mar 2026 Q1 FY26	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
AI-powered card scanning experience	launch	Q4
Goldin search integration	launch	Q4
Magical Listing (AI-native architecture)	launch	Q4
Agentic Search	launch	December
eBay International Shipping (EIS) in Canada	expansion	October
SpeedPAK in Germany	expansion	Q4
eBay Live Expansion	expansion	Q4 (Germany and Australia), Q1 (France, Italy, Canada)

Deals & partnerships

Depop (from Etsy) acquisition approximately $1.2 billion in cash

Acquisition to further strengthen eBay's C2C value proposition and fashion segment, augmenting organic momentum with a leading circular fashion marketplace. Depop has approximately 7 million active buyers and 3 million active sellers, with most under age 34, and facilitated approximately $1 billion in gross merchandise sales in 2025.

Tise acquisition

Recently acquired Tise, a leading C2C marketplace in Nordics, which further extends eBay's value proposition globally.

OpenAI partnership

eBay signed on to be an early participant in the OpenAI Ads Pilot Program to test out integrations.

Risks & headwinds

International Macro Environment Q4 FY25, continuing into 2026

International GMV declined nearly 1% on an organic FX-neutral basis in Q4 FY25.

Mitigation:Focus categories continue to perform well internationally; expanding eBay Live to new international markets.

U.S. Trade Policy Changes Q4 FY25, continuing into 2026

Contributed to international GMV decline and pressure on take rate, including removal of de minimis exemption for all countries at the end of August.

Mitigation:Implementing cross-border solutions like eBay International Shipping (EIS) and SpeedPAK to simplify compliance and manage tariffs.

Depop Acquisition Dilution FY 2026

Expected to be a low single-digit headwind to 2026 non-GAAP operating income growth and EPS.

Mitigation:Expected to be meaningfully accretive to operating income and EPS growth long-term, becoming accretive to non-GAAP operating income in 2028.

Lapping Considerations for 2026 Growth Throughout 2026, particularly from Q2 onwards

Expected deceleration in Pokemon growth (after triple-digit growth in 2025), moderation of bullion/coins after Q1, and lapping of Klarna partnership and marketing efficiency gains from Q2.

Mitigation:The majority of growth is considered durable, driven by continued momentum from strategic priorities and emerging growth vectors.

Q&A highlights

What has driven the sustained acceleration in U.S. GMV, and how durable is this growth beyond short-term benefits?

Jamie Iannone attributed the strong U.S. GMV acceleration to years of investment in strategic priorities like focus categories, C2C, and recommerce, which are showing broad-based strength. He noted that while some specific tailwinds (e.g., bullion) are less durable, the underlying health of the business and momentum are expected to continue into 2026.

“The underlying health of the business is the strongest it's been since I've joined the company 6 years ago. And I think what you're seeing is that years of investment that we've made are paying off, and that's really evident across our strategic priorities.”

asked by Nikhil Devnani · answered by Jamie Iannone

2 min read 5 chapters

Detailed narrative

Full Year 2025 Performance Highlights

eBay concluded 2025 with strong financial results, as Gross Merchandise Volume (GMV) grew nearly 6% globally to approximately $80 billion, with U.S. GMV increasing by nearly 10%. Revenue rose by nearly 7% to $11.1 billion, outpacing GMV growth by over one point.

The company also achieved a 7% increase in non-GAAP operating income, reaching nearly $3.1 billion, and a 13% growth in non-GAAP earnings per share to $5.52, exceeding initial expectations.

Strategic Priorities Driving Accelerated Growth

The company's established strategic priorities—focus categories, consumer-to-consumer (C2C), and recommerce (pre-owned and refurbished goods)—collectively accounted for approximately two-thirds of eBay's business in 2025, representing over $50 billion in unique GMV. This segment demonstrated robust growth of approximately 10% and accelerated throughout the year, reinforcing the broad-based impact of eBay's strategy. Recommerce alone constituted over 40% of the platform's GMV in 2025, highlighting its increasing importance.

AI-Powered Innovation and Enhanced User Experience

eBay is leveraging its proprietary AI infrastructure to transition from generative AI pilots to scalable agentic experiences for both sellers and buyers. A new AI-powered card scanning feature for trading cards, launched in Q4, has already processed over 15 million scans.

The next-generation magical listing experience, an AI-native architecture, has significantly reduced average listing time by over 25% and boosted new listing creation by more than 50%, achieving over 95% customer satisfaction. Additionally, agentic search is being rolled out to buyers, enabling natural language shopping.

Expansion of Global Shipping Solutions

In Q4, eBay expanded its global shipping capabilities with the launch of eBay International Shipping (EIS) in Canada, its third-largest corridor for U.S. imports. This initiative provides Canadian sellers with benefits such as delivery duties paid functionality and automated country of origin data.

Concurrently, SpeedPAK, an end-to-end cross-border shipping solution, was made available to business sellers in Germany, automating customs documentation and tariff calculations. These advancements ensure comprehensive cross-border solutions for eBay's largest trade corridors.

Exceeding Environmental and Economic Impact Goals

eBay successfully surpassed its ambitious five-year impact goals set for 2021-2025. The company generated nearly $25 billion in positive economic impact from the sale of pre-loved and refurbished goods, exceeding its $22 billion target. Furthermore, eBay helped prevent approximately 8.2 million metric tons of carbon emissions, surpassing the 8 million target, and diverted over 360,000 metric tons of waste from landfills, exceeding the 350,000 target.

These achievements underscore eBay's commitment to promoting the circular economy and delivering tangible environmental and economic benefits.

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