eBay Inc. Reports Third Quarter 2026 Results
Revenue of $3.2 billion, up 14% on an as-reported basis and up 13% on an FX- Neutral basis
Gross Merchandise Volume of $23.2 billion, up 15% on an as-reported basis and up 16% on an FX-Neutral basis
GAAP and Non-GAAP earnings per diluted share of $1.11 and $1.51, respectively, on a continuing operations basis
Returned $827 million to stockholders in Q3, including $689 million of share repurchases and $138 million paid in cash dividends
– eBay Inc. (Nasdaq: EBAY), a global commerce leader that connects millions of buyers and sellers around the world, today reported financial results for its third quarter ended September 30, 2026.
"eBay’s strong third quarter results reflect continued momentum across our business priorities and customer segments as more consumers embrace recommerce,” said Jamie Iannone, Chief Executive Officer at eBay. “Our Focus Categories, C2C marketplace, and Recommerce leadership are driving strong, sustained growth, while innovations across eBay Live, Shipping, and our portfolio are making the platform more trusted, seamless, and compelling for buyers and sellers around the world."
"Our third quarter results demonstrate that eBay’s strategy is delivering strong GMV growth and meaningful earnings expansion,” said Peggy Alford, Chief Financial Officer at eBay. “By investing with discipline in our highest strategic priorities and focusing on the areas where we have a clear competitive advantage, we are positioning eBay for durable, profitable growth and long-term shareholder value."
• eBay continued to enhance its C2C selling experience with comprehensive improvements in France and Italy, bringing together free selling, buyer protection, enhanced local discovery, eBay Balance and simplified shipping.
• The company expanded the latest generation of its AI-powered Magical Listing technology to all new and reactivated listers in the U.S., U.K., Germany, Australia, France and Italy.
• eBay Live delivered another record quarter and is generating Gross Merchandise Volume ("GMV") at a multibillion-dollar annualized run rate. GMV growth remained well into the triple digits year over year, similar to recent quarters, as sellers, buyers, content hours and viewership continued to expand across all seven markets.
• eBay continued to enhance its Live shopping experience by introducing multistreaming capabilities that allow sellers to broadcast simultaneously across eBay Live and social platforms, and strengthened trust by introducing new features for sellers, including AI-powered moderation of chat, audio and video and enhanced content screening.
• Depop further strengthened its buying and selling experience by enabling faster personal discovery on the homepage, simplifying its AI-assisted listing flow and offering more affordable shipping options in the U.S.
• eBay created standout moments at New York and London Fashion Weeks with Endless Runway activations, showcasing rare archival and pre-loved fashion, celebrating iconic designers and leveraging eBay Live to bring the collection to buyers worldwide.
• In Motors Parts & Accessories, eBay expanded Easy and Free Returns to Germany following successful U.S. and U.K. launches and introduced Certified Recycled badging in the U.S., helping buyers shop for compatible, quality parts with greater confidence.
• eBay’s Vehicle Purchase Protection now covers eligible transactions up to $500,000. The company also facilitated several vehicle transactions exceeding $1 million, including the sale of a 2005 Porsche Carrera GT for $5 million.
• eBay expanded Authenticity Guarantee to eligible collectible coins in the U.S. through a partnership with Professional Coin Grading Service, a leading authority in coin grading and authentication. The company also extended trading card authentication services to a broader range of collectors by lowering the mandatory price thresholds in the U.S. and U.K.
• eBay expanded its Authenticity Guarantee service for luxury fashion across Europe, enabling buyers in 23 European Union countries to shop for authenticated Luxury Fashion from sellers in Germany, France and Italy. In Australia, eBay introduced authentication for watches, further strengthening trust and confidence in its global luxury resale marketplace.
• TCGplayer surpassed $1 billion in GMV over the trailing 12 months and began onboarding international sellers in the U.K. and Canada.
• Goldin achieved another quarter of record GMV and hosted an auction commemorating the 250th anniversary of the United States, highlighted by the $3.65 million sale of a rare 1776 Exeter Broadside copy of the Declaration of Independence.
• eBay expanded Managed Shipping to all new and reactivated listers in the U.S. for domestic transactions and launched eBay International Shipping in the U.K. and Germany, which will enable sellers to reach buyers in more than 190 markets by shipping to a domestic eBay hub. Impact • In October, eBay released its sixth annual Recommerce Report, which found that 47% of consumers surveyed purchase secondhand goods at least monthly, up from 35% in 2025, underscoring the growing adoption of recommerce worldwide.
• eBay for Charity enabled buyers and sellers on the platform to raise $59 million worldwide in the third quarter.
• eBay Foundation’s Global Give Program granted nearly $3 million to over 30 nonprofits around the world that are supporting entrepreneurs in geographies where eBayers live and work.
• eBay was recognized with numerous awards, including Forbes’ World’s Best Employers 2026, TIME’s World’s Best Companies 2026, Newsweek’s America's Best Online Platforms 2026 and Business Insider’s America's Most Innovative Businesses 2027.
• Revenue was $3.2 billion, up 14% on an as-reported basis and up 13% on a foreign exchange ("FX") neutral basis.
• GMV was $23.2 billion, up 15% on an as-reported basis and up 16% on an FX- Neutral basis.
• GAAP net income from continuing operations was $501 million, or $1.11 per diluted share.
• Non-GAAP net income from continuing operations was $685 million, or $1.51 per diluted share.
• Generated $875 million of operating cash flow and $749 million of free cash flow from continuing operations.
• Returned $827 million to stockholders, including $689 million of share repurchases and $138 million paid in cash dividends.
• Advertising revenue – The company's total advertising offerings generated $607 million of revenue in the third quarter of 2026. First-party advertising products on the eBay platform delivered $575 million of revenue in the third quarter of 2026, up 16% on an as-reported basis and up 16% on an FX-Neutral basis.
• Operating margin – GAAP operating margin decreased to 19.2% for the third quarter of 2026, compared to 20.3% for the same period last year. Non-GAAP operating margin decreased to 26.3% for the third quarter of 2026, compared to 27.0% for the same period last year.
• Income tax rate – The GAAP effective tax rate for continuing operations for the third quarter of 2026 was 17.1%, compared to (4.3)% for the third quarter of 2025. The non-GAAP effective tax rate for continuing operations for the third quarter of 2026 was 17.5% (1) .
• Cash flow – The company generated $875 million of operating cash flow and $749 million of free cash flow during the third quarter of 2026 from continuing operations.
• Capital returns – The company repurchased $689 million of its common stock, or approximately 6 million shares, in the third quarter of 2026. The company's total repurchase authorization remaining as of September 30, 2026 was approximately $1.3 billion. The company also paid cash dividends of $138 million during the third quarter of 2026.
• Cash and cash equivalents and non-equity investments – The company's cash and cash equivalents and non-equity investments portfolio totaled $3.3 billion as of September 30, 2026.
(1) We are using a non-GAAP effective tax rate of 17.5% in 2026 for evaluating our operating results, up from 16.5% in 2025. This rate could continue to change for various reasons including significant changes in our geographic earnings mix or fundamental tax law changes in major jurisdictions in which we operate. 2
eBay is providing the following guidance for continuing operations for the fourth quarter and full year 2026. This outlook includes the expected impact from Depop.
eBay's Audit Committee declared a fourth quarter 2026 cash dividend of $0.31 per share of the company's common stock. The dividend is payable on December 18, 2026 to stockholders of record as of December 4, 2026.
On July 30, 2026, we completed the acquisition of Depop, a leading C2C fashion marketplace, from Etsy, Inc. We paid $1.4 billion in cash, inclusive of a preliminary purchase price adjustment, which is subject to finalization. We believe the acquisition strengthens our leadership in circular fashion and recommerce.
eBay Inc. will host a conference call to discuss third quarter 2026 results at 2:30 p.m. Pacific Time today. A live webcast of the conference call, together with a slide presentation that includes supplemental financial information and reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures, can be accessed through the company's Investor Relations website at https://investors.ebayinc.com. In addition, an archive of the webcast will be accessible for at least three months through the same link.
eBay Inc. uses its Investor Relations website at https://investors.ebayinc.com and social media channels as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor this website, in addition to following our press releases, Securities and Exchange Commission ("SEC") filings, public conference calls and webcasts.
eBay Inc. (Nasdaq: EBAY) is a global commerce leader that connects people and builds communities to create economic opportunity for all. Our technology empowers millions of buyers and sellers in more than 190 markets around the world, providing everyone the opportunity to grow and thrive. Founded in 1995 in San Jose, California, eBay is one of the world's largest and most vibrant marketplaces for discovering great value and unique selection. In 2025, eBay enabled nearly $80 billion of gross merchandise volume. For more information about the company and its global portfolio of online brands, visit www.ebayinc.com.
All growth rates represent year-over-year comparisons, except as otherwise noted. All amounts in tables are presented in U.S. dollars, rounded to the nearest million, except as otherwise noted. As a result, certain amounts may not sum or recalculate using the rounded dollar amounts provided. References to "revenue" refer to "net revenues" as reported in the company’s consolidated statement of income.
In September 2025, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Accounting for and Disclosure of Software Costs. eBay adopted the standard effective January 1, 2026 using the full retrospective method, which required the restatement of each prior reporting period presented. 3
This press release includes the following financial measures defined as "non- GAAP financial measures" by the SEC: non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating income and margin, non-GAAP effective tax rate, free cash flow and FX-Neutral basis. These non-GAAP financial measures are presented on a continuing operations basis. These measures may be different from non-GAAP financial measures used by other companies. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation of, or as a substitute for, the financial information prepared and presented in accordance with generally accepted accounting principles ("GAAP"). For a reconciliation of these non-GAAP financial measures, except for figures in this press release presented on an "FX-Neutral basis," to the nearest comparable GAAP measures, see "Non-GAAP Measures of Financial Performance," "Reconciliation of GAAP Operating Income to Non-GAAP Operating Income," "Reconciliation of GAAP Net Income to Non-GAAP Net Income and GAAP Effective Tax Rate to Non-GAAP Effective Tax Rate" and "Reconciliation of Operating Cash Flow to Free Cash Flow" included in this press release. For figures in this press release reported "on an FX- Neutral basis," we calculate the year-over-year impact of foreign currency movements using prior period foreign currency rates, excluding hedging activity, applied to current year transactional currency amounts.
This press release contains forward-looking statements relating to, among other things, the future performance of eBay Inc. and its consolidated subsidiaries that are based on the company's current expectations, forecasts and assumptions and involves risks and uncertainties. These statements include, but are not limited to, management's vision for the future of eBay and our ability to accomplish our vision, expected financial results for the fourth quarter and full year 2026 and expected drivers thereof, the future growth in our business, and our ability to drive sustainable long-term growth and create lasting value for our stockholders, the impact of current and contemplated strategic initiatives and offerings, partnerships with and acquisitions of other companies, and new and updated product features or programs, including the initiatives, offerings, partnerships, acquisitions, features and programs discussed in our business highlights, the effects of foreign currency volatility and our ability to respond to such effects, operating efficiency and margins, and dividends and share repurchases.
Actual results could differ materially from those expressed or implied and reported results should not be considered as an indication of future performance. Factors that could cause or contribute to such differences include, but are not limited to: significant variation in our operating and financial results, including GMV and net revenues; our ability to compete in the markets in which we participate; our ability to generate revenue from our advertising products, including our Promoted Listings; our ability to generate consumer engagement and spending; our ability to keep pace with technological changes, including emerging AI technologies, and with changes in consumer demands and expectations; our ability to operate internationally and generate revenue from our international operations and our exposure to costs and risks in connection therewith; the impact of changes in global trade policies on our revenue, profit and ability to support cross-border trade; our ability to manage our buyer and seller trust protection programs; the risk of systems failures and business interruptions to our business; operation of and ongoing investment into our payments and financial services offerings; the risk of fraud on our platforms; the impact of any cyberattacks or data security breaches; our ability to attract, retain and develop our senior managers and other key employees; our and our customers’ dependence on third-party providers, some of which are our competitors; the impact of our current, contemplated and future acquisitions, dispositions, joint ventures, strategic partnerships and strategic investments, including our ability to realize the projected benefits from the recently completed Depop acquisition; the impact of stockholder activism or unsolicited acquisition proposals; the impact of extensive and increasing regulation and oversight that affect our business; the risk of liability for the actions of our customers, including products sold by sellers on our platforms; the impact of increasing levels of regulation in the areas of privacy, protection of user data cybersecurity, and AI; the risks associated with third-party allegations relating to intellectual property rights; current and potential litigation and regulatory and government inquiries, investigations and litigation involving us; the impact of evolving sales and other tax regimes in various jurisdictions; our ability to protect or enforce our intellectual property rights; risks and costs relating to stakeholder expectations around environmental, social and governance matters; potential exposure to claims and liabilities as a result of the distribution of PayPal; the risk of exposure to greater than anticipated tax liabilities; fluctuations in interest rates, and changes in regulatory guidance relating thereto; fluctuations in foreign currency exchange rates; our ability to generate sufficient cash flow to service our indebtedness and to comply with financial covenants in our outstanding debt instruments; and the risk that our stock repurchases may not be effected or may not achieve the desired objectives.
The forward-looking statements in this release do not include the potential impact of any acquisitions or divestitures that may be announced and/or completed after the date hereof.
More information about factors that could affect the company's operating results is included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, copies of which may be obtained by visiting the company's Investor Relations website at https://investors.ebayinc.com or the SEC's website at www.sec.gov. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to the company on the date hereof. The company assumes no obligation to update such statements. 4
Investor Relations Contact: John Egbert ir@ebay.com Media Relations Contact: Sybille St. Arromand press@ebay.com Company News: https://www.ebayinc.com/st… Investor Relations website: https://investors.ebayinc.…
September 30, December 31, 2026 2025 ────────────────────────────────────────────────────────────────────────────── -In millions ASSETS Current assets: Cash and cash equivalents $ 1,166 $ 1,867 Short-term investments 809 1,052 Customer accounts and funds 1,624 1,280 receivable Other current assets 1,187 887 Total current assets 4,786 5,086 Long-term investments 2,171 2,767 Property and equipment, net 1,303 1,165 Goodwill 5,242 4,467 Operating lease 456 428 right-of-use assets Deferred tax assets 2,929 2,959 Other assets 1,119 565 Total assets $ 18,006 $ 17,437 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Short-term debt $ 1,599 $ 750 Accounts payable 339 242 Customer accounts and funds 1,624 1,280 payable Accrued expenses and other current 2,542 2,257 liabilities Income taxes payable 22 108 Total current liabilities 6,126 4,637 Operating lease liabilities 343 315 Deferred tax liabilities 1,457 1,431 Long-term debt 5,134 5,996 Other liabilities 534 575 Total liabilities 13,594 12,954 Total stockholders' equity 4,412 4,483 Total liabilities and stockholders' $ 18,006 $ 17,437 equity
(1) Active Buyers consist of all buyers who paid for a transaction on our Marketplace platforms within the previous 12-month period. Buyers may register more than once, and as a result, may have more than one account.
(4) Gross Merchandise Volume consists of the total value of all paid transactions between users on our Marketplace platforms during the applicable period inclusive of shipping fees and taxes, without adjustment for returns or cancellations. 9
The guidance figures provided below and elsewhere in this press release are forward-looking statements, reflect a number of estimates, assumptions and other uncertainties, and are approximate in nature because the company's future performance is difficult to predict. Such guidance is based on information available on the date of this press release, and the company assumes no obligation to update it.
The company's future performance involves risks and uncertainties, and the company's actual results could differ materially from the information below and elsewhere in this press release. Some of the factors that could affect the company's operating results are set forth under the caption "Forward-Looking Statements" above in this press release. More information about factors that could affect the company's operating results is included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, copies of which may be obtained by visiting eBay's investor relations website at https://investors.ebayinc.com or the SEC's website at www.sec.gov. eBay Inc.
Three Months Ending December 31, 2026 ────────────────────────────────────────────────────────────────────────────── (In billions, except per share GAAP Non-GAAP(a) amounts) Net revenues $3.19 - $3.24 $3.19 - $3.24 Diluted EPS from continuing $0.82 - $0.87 $1.48 - $1.53 operations Gross Merchandise Volume $23.7 - $24.1 Twelve Months Ending December 31, 2026 (In billions, except per share GAAP Non-GAAP(b) amounts) Net revenues $12.62 - $12.67 $12.62 - $12.67 Diluted EPS from continuing $4.26 - $4.31 $6.25 - $6.30 operations Gross Merchandise Volume $91.5 - $91.9 (a) Estimated non-GAAP amounts above for the three months ending December 31, 2026 reflect adjustments that exclude the estimated amortization of acquired intangible assets of approximately $30-$32 million, estimated stock-based compensation expense and associated employer payroll tax expense of approximately $163-$173 million, estimated restructuring expense of $130-$150 million, and estimated adjustment between our GAAP and non-GAAP tax expense of approximately $(41)-$(47) million. The estimated GAAP diluted EPS above does not assume any future gains or losses on our equity investments. (b) Estimated non-GAAP amounts above for the twelve months ending December 31, 2026 reflect adjustments that exclude the estimated amortization of acquired intangible assets of approximately $79-$81 million, estimated stock-based compensation expense and associated employer payroll tax expense of approximately $695-$705 million, estimated restructuring expense of $212-$232 million, and estimated adjustment between our GAAP and non-GAAP tax rate of approximately $(179)-$(184) million. The estimated GAAP diluted EPS above does not assume any future gains or losses on our equity investments.
To supplement the company's condensed consolidated financial statements presented in accordance with generally accepted accounting principles, or GAAP, the company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating income and margin, non-GAAP effective tax rate, free cash flow and figures in this press release presented on an "FX-Neutral basis." These non-GAAP financial measures are presented on a continuing operations basis.
These non-GAAP measures are not in accordance with, or an alternative to, measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the company's results of operations as determined in accordance with GAAP. These measures should only be used to evaluate the company's results of operations in conjunction with the corresponding GAAP measures.
Reconciliation to the nearest GAAP measure of all non-GAAP measures included in this press release, except for figures in this press release presented on an "FX-Neutral basis," can be found in the tables included in this press release. For figures in this press release reported on an "FX-Neutral basis," the company calculates the year-over-year impact of foreign currency movements using prior period foreign currency rates, excluding hedging activity, applied to current year transactional currency amounts.
These non-GAAP measures are provided to enhance investors' overall understanding of the company's current financial performance and its prospects for the future. Specifically, the company believes the non-GAAP measures provide useful information to both management and investors by excluding certain expenses, gains and losses, or net purchases of property and equipment, as the case may be, that may not be indicative of its core operating results and business outlook. In addition, because the company has historically reported certain non- GAAP results to investors, the company believes that the inclusion of non-GAAP measures provides consistency in the company's financial reporting.
For its internal budgeting process, and as discussed further below, the company's management uses financial measures that do not include stock-based compensation expense, employer payroll taxes on stock-based compensation, amortization or impairment of acquired intangible assets, impairment of goodwill, amortization of deferred tax assets associated with the realignment of its legal structure and related foreign exchange effects, significant gains or losses from the disposal/acquisition of a business, certain gains and losses on investments including changes in fair value, changes in foreign currency exchange rates and the impact of any related foreign exchange derivative instruments, gains or losses associated with a warrant agreement that the company entered into with Adyen, restructuring-related charges and the income taxes associated with the foregoing. In addition to the corresponding GAAP measures, the company's management also uses the foregoing non-GAAP measures in reviewing the financial results of the company.
The company excludes the following items from non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating income and margin and non-GAAP effective tax rate:
Stock-based compensation expense and related employer payroll taxes. This expense consists of expenses for stock options, restricted stock and employee stock purchases. The company excludes stock-based compensation expense from its non-GAAP measures primarily because they are non-cash expenses that management does not believe are reflective of ongoing operating results. The related employer payroll taxes are dependent on the company's stock price and the vesting of restricted stock by employees and the timing and size of stock option exercises, over which management has limited to no control, and as such management does not believe it correlates to the company's operation of the business.
Amortization or impairment of acquired intangible assets, impairment of goodwill, certain amortization of deferred tax assets and related foreign exchange effects, and certain gains or losses on investments. The company incurs amortization or impairment of acquired intangible assets and goodwill in connection with acquisitions and excludes these amounts from its non-GAAP measures. The company also excludes certain gains and losses on investments. The company excludes the non-cash amortization of deferred tax assets associated with the realignment of its legal structure, which is not reduced by the effects of the Tax Cuts and Jobs Act, and related foreign exchange effects. The company excludes these items because management does not believe they correlate to the ongoing operating results of the company's business.
Restructuring. These charges consist of expenses for employee severance and other exit and disposal costs. The company excludes significant restructuring charges primarily because management does not believe they are reflective of ongoing operating results.
Transaction related costs . The company may incur significant gains or losses and incremental costs related to the acquisition or disposal of a business, unsolicited proposals and shareholder activism matters. These costs include third party fees such as banker fees, legal and advisory fees and other professional services. The company excludes these items from its non-GAAP measures as management does not believe they correlate to the company's ongoing operating results of the business.
Other certain significant gains, losses, or charges that are not indicative of the company’s core operating results. These are significant gains, losses, or charges during a period that are the result of isolated events or transactions which have not occurred frequently in the past and are not expected to occur regularly or be repeated in the future. The company excludes these amounts from its results primarily because management does not believe they are indicative of its current or ongoing operating results. These amounts include changes in fair value and the related change in foreign currency exchange rates of equity securities with readily determinable fair values, globally.
Change in fair market value of warrants. These are gains or losses associated with warrant agreements entered into with vendors, which are attributable to changes in fair value during the period.
Income tax effects and adjustments. We are using a non-GAAP tax rate of 17.5% for evaluating our operating results, up from 16.5% in 2025. This rate could change for various reasons including significant changes in our geographic earnings mix or fundamental tax law changes in major jurisdictions in which we operate.
In addition to the non-GAAP measures discussed above, the company also uses free cash flow. Free cash flow represents operating cash flows less purchases of property and equipment. The company considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after the purchases of property, buildings, and equipment, which can then be used to, among other things, invest in the company's business, make strategic acquisitions, repurchase stock and pay dividends. A limitation of the utility of free cash flow as a measure of financial performance is that it does not represent the total increase or decrease in the company's cash balance for the period and does not exclude certain non-discretionary expenditures, such as mandatory debt service requirements. 11
Full text with the tables
Exhibit 99.1
eBay Inc. Reports Third Quarter 2026 Results
•
Revenue of $3.2 billion, up 14% on an as-reported basis and up 13% on an FX-
Neutral basis
•
Gross Merchandise Volume of $23.2 billion, up 15% on an as-reported basis and up
16% on an FX-Neutral basis
•
GAAP and Non-GAAP earnings per diluted share of $1.11 and $1.51, respectively,
on a continuing operations basis
•
GAAP and Non-GAAP operating margins of 19.2% and 26.3%, respectively
•
Returned $827 million to stockholders in Q3, including $689 million of share
repurchases and $138 million paid in cash dividends
San Jose, California, October 28, 2026
– eBay Inc. (Nasdaq: EBAY), a global commerce leader that connects millions of
buyers and sellers around the world, today reported financial results for its
third quarter ended September 30, 2026.
"eBay’s strong third quarter results reflect continued momentum across our
business priorities and customer segments as more consumers embrace recommerce,”
said Jamie Iannone, Chief Executive Officer at eBay. “Our Focus Categories, C2C
marketplace, and Recommerce leadership are driving strong, sustained growth,
while innovations across eBay Live, Shipping, and our portfolio are making the
platform more trusted, seamless, and compelling for buyers and sellers around
the world."
"Our third quarter results demonstrate that eBay’s strategy is delivering strong
GMV growth and meaningful earnings expansion,” said Peggy Alford, Chief
Financial Officer at eBay. “By investing with discipline in our highest
strategic priorities and focusing on the areas where we have a clear competitive
advantage, we are positioning eBay for durable, profitable growth and long-term
shareholder value."
Third Quarter 2026 Business Highlights
• eBay continued to enhance its C2C selling experience with comprehensive
improvements in France and Italy, bringing together free selling, buyer
protection, enhanced local discovery, eBay Balance and simplified shipping.
• The company expanded the latest generation of its AI-powered Magical Listing
technology to all new and reactivated listers in the U.S., U.K., Germany,
Australia, France and Italy.
• eBay Live delivered another record quarter and is generating Gross Merchandise
Volume ("GMV") at a multibillion-dollar annualized run rate. GMV growth remained
well into the triple digits year over year, similar to recent quarters, as
sellers, buyers, content hours and viewership continued to expand across all
seven markets.
• eBay continued to enhance its Live shopping experience by introducing
multistreaming capabilities that allow sellers to broadcast simultaneously
across eBay Live and social platforms, and strengthened trust by introducing new
features for sellers, including AI-powered moderation of chat, audio and video
and enhanced content screening.
• Depop further strengthened its buying and selling experience by enabling
faster personal discovery on the homepage, simplifying its AI-assisted listing
flow and offering more affordable shipping options in the U.S.
• eBay created standout moments at New York and London Fashion Weeks with
Endless Runway activations, showcasing rare archival and pre-loved fashion,
celebrating iconic designers and leveraging eBay Live to bring the collection to
buyers worldwide.
• In Motors Parts & Accessories, eBay expanded Easy and Free Returns to Germany
following successful U.S. and U.K. launches and introduced Certified Recycled
badging in the U.S., helping buyers shop for compatible, quality parts with
greater confidence.
• eBay’s Vehicle Purchase Protection now covers eligible transactions up to
$500,000. The company also facilitated several vehicle transactions exceeding $1
million, including the sale of a 2005 Porsche Carrera GT for $5 million.
• eBay expanded Authenticity Guarantee to eligible collectible coins in the U.S.
through a partnership with Professional Coin Grading Service, a leading
authority in coin grading and authentication. The company also extended trading
card authentication services to a broader range of collectors by lowering the
mandatory price thresholds in the U.S. and U.K.
• eBay expanded its Authenticity Guarantee service for luxury fashion across
Europe, enabling buyers in 23 European Union countries to shop for authenticated
Luxury Fashion from sellers in Germany, France and Italy. In Australia, eBay
introduced authentication for watches, further strengthening trust and
confidence in its global luxury resale marketplace.
• TCGplayer surpassed $1 billion in GMV over the trailing 12 months and began
onboarding international sellers in the U.K. and Canada.
• Goldin achieved another quarter of record GMV and hosted an auction
commemorating the 250th anniversary of the United States, highlighted by the
$3.65 million sale of a rare 1776 Exeter Broadside copy of the Declaration of
Independence.
• eBay expanded Managed Shipping to all new and reactivated listers in the U.S.
for domestic transactions and launched eBay International Shipping in the U.K.
and Germany, which will enable sellers to reach buyers in more than 190 markets
by shipping to a domestic eBay hub.
Impact
• In October, eBay released its sixth annual Recommerce Report, which found that
47% of consumers surveyed purchase secondhand goods at least monthly, up from
35% in 2025, underscoring the growing adoption of recommerce worldwide.
• eBay for Charity enabled buyers and sellers on the platform to raise $59
million worldwide in the third quarter.
• eBay Foundation’s Global Give Program granted nearly $3 million to over 30
nonprofits around the world that are supporting entrepreneurs in geographies
where eBayers live and work.
• eBay was recognized with numerous awards, including Forbes’ World’s Best
Employers 2026, TIME’s World’s Best Companies 2026, Newsweek’s America's Best
Online Platforms 2026 and Business Insider’s America's Most Innovative
Businesses 2027.
Third Quarter 2026 Financial Highlights
• Revenue was $3.2 billion, up 14% on an as-reported basis and up 13% on a
foreign exchange ("FX") neutral basis.
• GMV was $23.2 billion, up 15% on an as-reported basis and up 16% on an FX-
Neutral basis.
• GAAP net income from continuing operations was $501 million, or $1.11 per
diluted share.
• Non-GAAP net income from continuing operations was $685 million, or $1.51 per
diluted share.
• GAAP and Non-GAAP operating margins were 19.2% and 26.3%, respectively.
• Generated $875 million of operating cash flow and $749 million of free cash
flow from continuing operations.
• Returned $827 million to stockholders, including $689 million of share
repurchases and $138 million paid in cash dividends.
(In millions,
except per
share data
and
percentages)
2026 Third Quarter
eBay Inc. 2025 Change
──────────────────────────────────────────────────────────────────────────────
Net revenues $ 3,206 $ 2,820 $ 386 14 %
GAAP –
Continuing
Operations
Net income $ 501 $ 593 $ -92 -16 %
Earnings per $ 1.11 $ 1.27 $ -0.16 -13 %
diluted share
Non-GAAP –
Continuing
Operations
Net income $ 685 $ 633 $ 52 8 %
Earnings per $ 1.51 $ 1.35 $ 0.16 12 %
diluted share
Other Selected Financial and Operational Results
• Advertising revenue – The company's total advertising offerings generated $607
million of revenue in the third quarter of 2026. First-party advertising
products on the eBay platform delivered $575 million of revenue in the third
quarter of 2026, up 16% on an as-reported basis and up 16% on an FX-Neutral
basis.
• Operating margin – GAAP operating margin decreased to 19.2% for the third
quarter of 2026, compared to 20.3% for the same period last year. Non-GAAP
operating margin decreased to 26.3% for the third quarter of 2026, compared to
27.0% for the same period last year.
• Income tax rate – The GAAP effective tax rate for continuing operations for
the third quarter of 2026 was 17.1%, compared to (4.3)% for the third quarter of
2025. The non-GAAP effective tax rate for continuing operations for the third
quarter of 2026 was 17.5% (1) .
• Cash flow – The company generated $875 million of operating cash flow and $749
million of free cash flow during the third quarter of 2026 from continuing
operations.
• Capital returns – The company repurchased $689 million of its common stock, or
approximately 6 million shares, in the third quarter of 2026. The company's
total repurchase authorization remaining as of September 30, 2026 was
approximately $1.3 billion. The company also paid cash dividends of $138 million
during the third quarter of 2026.
• Cash and cash equivalents and non-equity investments – The company's cash and
cash equivalents and non-equity investments portfolio totaled $3.3 billion as of
September 30, 2026.
(1) We are using a non-GAAP effective tax rate of 17.5% in 2026 for evaluating
our operating results, up from 16.5% in 2025. This rate could continue to change
for various reasons including significant changes in our geographic earnings mix
or fundamental tax law changes in major jurisdictions in which we operate.
2
Business Outlook
eBay is providing the following guidance for continuing operations for the
fourth quarter and full year 2026. This outlook includes the expected impact
from Depop.
(In billions, except per
share data and Q4 2026 Guidance Full Year 2026 Guidance
percentages)
Revenue $3.19 - $3.24 $12.62 - $12.67
FX-Neutral Y/Y Growth 7% - 9% 12% - 13%
Gross Merchandise Volume $23.7 - $24.1 $91.5 - $91.9
FX-Neutral Y/Y Growth 12% - 14% 14% - 14%
Diluted GAAP EPS $0.82 - $0.87 $4.26 - $4.31
Diluted Non-GAAP EPS $1.48 - $1.53 $6.25 - $6.30
Dividend Declaration
eBay's Audit Committee declared a fourth quarter 2026 cash dividend of $0.31 per
share of the company's common stock. The dividend is payable on December 18,
2026 to stockholders of record as of December 4, 2026.
Acquisition of Depop
On July 30, 2026, we completed the acquisition of Depop, a leading C2C fashion
marketplace, from Etsy, Inc. We paid $1.4 billion in cash, inclusive of a
preliminary purchase price adjustment, which is subject to finalization. We
believe the acquisition strengthens our leadership in circular fashion and
recommerce.
Quarterly Conference Call and Webcast
eBay Inc. will host a conference call to discuss third quarter 2026 results at
2:30 p.m. Pacific Time today. A live webcast of the conference call, together
with a slide presentation that includes supplemental financial information and
reconciliations of certain non-GAAP measures to their nearest comparable GAAP
measures, can be accessed through the company's Investor Relations website at
https://investors.ebayinc.com. In addition, an archive of the webcast will be
accessible for at least three months through the same link.
eBay Inc. uses its Investor Relations website at https://investors.ebayinc.com
and social media channels as a means of disclosing material non-public
information and for complying with its disclosure obligations under Regulation
FD. Accordingly, investors should monitor this website, in addition to following
our press releases, Securities and Exchange Commission ("SEC") filings, public
conference calls and webcasts.
About eBay
eBay Inc. (Nasdaq: EBAY) is a global commerce leader that connects people and
builds communities to create economic opportunity for all. Our technology
empowers millions of buyers and sellers in more than 190 markets around the
world, providing everyone the opportunity to grow and thrive. Founded in 1995 in
San Jose, California, eBay is one of the world's largest and most vibrant
marketplaces for discovering great value and unique selection. In 2025, eBay
enabled nearly $80 billion of gross merchandise volume. For more information
about the company and its global portfolio of online brands, visit
www.ebayinc.com.
Presentation
All growth rates represent year-over-year comparisons, except as otherwise
noted. All amounts in tables are presented in U.S. dollars, rounded to the
nearest million, except as otherwise noted. As a result, certain amounts may not
sum or recalculate using the rounded dollar amounts provided. References to
"revenue" refer to "net revenues" as reported in the company’s consolidated
statement of income.
New Accounting Standard
In September 2025, the Financial Accounting Standards Board issued Accounting
Standards Update ("ASU") 2025-06, Intangibles—Goodwill and Other—Internal-Use
Software (Subtopic 350-40): Accounting for and Disclosure of Software Costs.
eBay adopted the standard effective January 1, 2026 using the full retrospective
method, which required the restatement of each prior reporting period presented.
3
Non-GAAP Financial Measures
This press release includes the following financial measures defined as "non-
GAAP financial measures" by the SEC: non-GAAP net income, non-GAAP earnings per
diluted share, non-GAAP operating income and margin, non-GAAP effective tax
rate, free cash flow and FX-Neutral basis. These non-GAAP financial measures are
presented on a continuing operations basis. These measures may be different from
non-GAAP financial measures used by other companies. The presentation of this
financial information, which is not prepared under any comprehensive set of
accounting rules or principles, is not intended to be considered in isolation
of, or as a substitute for, the financial information prepared and presented in
accordance with generally accepted accounting principles ("GAAP"). For a
reconciliation of these non-GAAP financial measures, except for figures in this
press release presented on an "FX-Neutral basis," to the nearest comparable GAAP
measures, see "Non-GAAP Measures of Financial Performance," "Reconciliation of
GAAP Operating Income to Non-GAAP Operating Income," "Reconciliation of GAAP Net
Income to Non-GAAP Net Income and GAAP Effective Tax Rate to Non-GAAP Effective
Tax Rate" and "Reconciliation of Operating Cash Flow to Free Cash Flow" included
in this press release. For figures in this press release reported "on an FX-
Neutral basis," we calculate the year-over-year impact of foreign currency
movements using prior period foreign currency rates, excluding hedging activity,
applied to current year transactional currency amounts.
Forward-Looking Statements
This press release contains forward-looking statements relating to, among other
things, the future performance of eBay Inc. and its consolidated subsidiaries
that are based on the company's current expectations, forecasts and assumptions
and involves risks and uncertainties. These statements include, but are not
limited to, management's vision for the future of eBay and our ability to
accomplish our vision, expected financial results for the fourth quarter and
full year 2026 and expected drivers thereof, the future growth in our business,
and our ability to drive sustainable long-term growth and create lasting value
for our stockholders, the impact of current and contemplated strategic
initiatives and offerings, partnerships with and acquisitions of other
companies, and new and updated product features or programs, including the
initiatives, offerings, partnerships, acquisitions, features and programs
discussed in our business highlights, the effects of foreign currency volatility
and our ability to respond to such effects, operating efficiency and margins,
and dividends and share repurchases.
Actual results could differ materially from those expressed or implied and
reported results should not be considered as an indication of future
performance. Factors that could cause or contribute to such differences include,
but are not limited to: significant variation in our operating and financial
results, including GMV and net revenues; our ability to compete in the markets
in which we participate; our ability to generate revenue from our advertising
products, including our Promoted Listings; our ability to generate consumer
engagement and spending; our ability to keep pace with technological changes,
including emerging AI technologies, and with changes in consumer demands and
expectations; our ability to operate internationally and generate revenue from
our international operations and our exposure to costs and risks in connection
therewith; the impact of changes in global trade policies on our revenue, profit
and ability to support cross-border trade; our ability to manage our buyer and
seller trust protection programs; the risk of systems failures and business
interruptions to our business; operation of and ongoing investment into our
payments and financial services offerings; the risk of fraud on our platforms;
the impact of any cyberattacks or data security breaches; our ability to
attract, retain and develop our senior managers and other key employees; our and
our customers’ dependence on third-party providers, some of which are our
competitors; the impact of our current, contemplated and future acquisitions,
dispositions, joint ventures, strategic partnerships and strategic investments,
including our ability to realize the projected benefits from the recently
completed Depop acquisition; the impact of stockholder activism or unsolicited
acquisition proposals; the impact of extensive and increasing regulation and
oversight that affect our business; the risk of liability for the actions of our
customers, including products sold by sellers on our platforms; the impact of
increasing levels of regulation in the areas of privacy, protection of user data
cybersecurity, and AI; the risks associated with third-party allegations
relating to intellectual property rights; current and potential litigation and
regulatory and government inquiries, investigations and litigation involving us;
the impact of evolving sales and other tax regimes in various jurisdictions; our
ability to protect or enforce our intellectual property rights; risks and costs
relating to stakeholder expectations around environmental, social and governance
matters; potential exposure to claims and liabilities as a result of the
distribution of PayPal; the risk of exposure to greater than anticipated tax
liabilities; fluctuations in interest rates, and changes in regulatory guidance
relating thereto; fluctuations in foreign currency exchange rates; our ability
to generate sufficient cash flow to service our indebtedness and to comply with
financial covenants in our outstanding debt instruments; and the risk that our
stock repurchases may not be effected or may not achieve the desired objectives.
The forward-looking statements in this release do not include the potential
impact of any acquisitions or divestitures that may be announced and/or
completed after the date hereof.
More information about factors that could affect the company's operating results
is included under the captions "Risk Factors" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations" in the company's most
recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q,
copies of which may be obtained by visiting the company's Investor Relations
website at https://investors.ebayinc.com or the SEC's website at www.sec.gov.
Undue reliance should not be placed on the forward-looking statements in this
press release, which are based on information available to the company on the
date hereof. The company assumes no obligation to update such statements.
4
Investor Relations Contact: John Egbert ir@ebay.com
Media Relations Contact: Sybille St. Arromand press@ebay.com
Company News: https://www.ebayinc.com/st…
Investor Relations website: https://investors.ebayinc.…
5
eBay Inc.
Unaudited Condensed Consolidated Balance Sheet
September 30, December 31,
2026 2025
──────────────────────────────────────────────────────────────────────────────
-In millions
ASSETS
Current assets:
Cash and cash equivalents $ 1,166 $ 1,867
Short-term investments 809 1,052
Customer accounts and funds 1,624 1,280
receivable
Other current assets 1,187 887
Total current assets 4,786 5,086
Long-term investments 2,171 2,767
Property and equipment, net 1,303 1,165
Goodwill 5,242 4,467
Operating lease 456 428
right-of-use assets
Deferred tax assets 2,929 2,959
Other assets 1,119 565
Total assets $ 18,006 $ 17,437
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt $ 1,599 $ 750
Accounts payable 339 242
Customer accounts and funds 1,624 1,280
payable
Accrued expenses and other
current 2,542 2,257
liabilities
Income taxes payable 22 108
Total current liabilities 6,126 4,637
Operating lease liabilities 343 315
Deferred tax liabilities 1,457 1,431
Long-term debt 5,134 5,996
Other liabilities 534 575
Total liabilities 13,594 12,954
Total stockholders' equity 4,412 4,483
Total liabilities and
stockholders' $ 18,006 $ 17,437
equity
6
eBay Inc.
Unaudited Condensed Consolidated Statement of Income
Three
Months
Ended
September
30,
2026 Nine
(In Months
millions, Ended
except Septemb…
per share 30,
amounts) 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 3,206 $ 2,820 $ 9,429 $ 8,135
revenu…
Cost of
net 887 794 2,521 2,241
revenu…
Gross 2,319 2,026 6,908 5,894
profit
Operat…
expens…
Sales
and 747 606 2,117 1,728
market…
Product 517 455 1,451 1,300
develo…
General
and 303 282 1,019 914
admini…
Transa… 122 106 393 273
losses
Amorti…
of
acquir… 14 6 25 18
intang…
assets
Total
operat… 1,703 1,455 5,005 4,233
expens…
Income
from 616 571 1,903 1,661
operat…
Intere…
and
other:
Gain
(loss)
on
equity 6 -10 10 -16
invest…
and
warran…
net
Intere… -64 -62 -190 -185
expense
Intere…
income
and 47 69 165 209
other,
net
Income
from
contin…
operat… 605 568 1,888 1,669
before
income
taxes
Income
tax -104 25 -323 -210
benefit
(provi…
Income
from 501 593 1,565 1,459
contin…
operat…
Income
(loss)
from
discon… -4 35 -6 32
operat…
net of
income
taxes
Net $ 497 $ 628 $ 1,559 $ 1,491
income
Income
(loss)
per
share –
basic:
Contin… $ 1.13 $ 1.30 $ 3.51 $ 3.16
operat…
Discon… -0.01 0.08 -0.01 0.07
operat…
Net
income
per $ 1.12 $ 1.38 $ 3.50 $ 3.23
share –
basic
Income
(loss)
per
share –
dilute…
Contin… $ 1.11 $ 1.27 $ 3.44 $ 3.10
operat…
Discon… -0.01 0.07 -0.01 0.07
operat…
Net
income
per $ 1.10 $ 1.34 $ 3.43 $ 3.17
share –
diluted
Weight…
average
shares:
Basic 444 456 445 461
Diluted 453 467 455 471
(1)
Includ…
stock-…
compen…
as
follow…
Cost of
net $ 12 $ 11 $ 36 $ 30
revenu…
Sales
and 25 21 74 65
market…
Product 86 73 248 228
develo…
General
and 50 42 153 125
admini…
$ 173 $ 147 $ 511 $ 448
7
eBay Inc.
Unaudited Condensed Consolidated Statement of Cash Flows
Three
Months
Ended Nine
Cash Septem… Months
flows 30, Ended
from 2026 Septem…
opera… (In 30,
activ… millio… 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 497 $ 628 $ 1,559 $ 1,491
income
Loss
(inco…
from
disco… 4 -35 6 -32
opera…
net of
income
taxes
Adjus…
Trans… 122 106 393 273
losses
Depre…
and 116 77 310 208
amort…
Stock… 173 147 511 448
compe…
Defer…
income 32 69 75 11
taxes
Loss
(gain)
on
inves… -10 9 -40 6
warra…
and
other,
net
Chang…
in
assets
and
liabi… -59 -101 -420 -1,090
net
of
acqui…
effec…
Net
cash
provi…
by 875 900 2,394 1,315
conti…
opera…
activ…
Net
cash
used
in — -38 -27 -38
disco…
opera…
activ…
Net
cash
provi… 875 862 2,367 1,277
by
opera…
activ…
Cash
flows
from
inves…
activ…
Purch…
of
prope… -126 -97 -421 -309
and
equip…
Purch…
of -37 -1,093 -1,446 -6,100
inves…
Matur…
of 312 1,449 1,376 7,979
inves…
Sales
of 61 42 745 42
inves…
Share…
distr…
from — 2 194 227
equity
inves…
Acqui…
of
Depop, -1,321 — -1,321 —
net of
cash
acqui…
Other -16 -4 -55 -96
Net
cash
provi…
by -1,127 299 -928 1,743
(used
in)
inves…
activ…
Cash
flows
from
finan…
activ…
Proce…
from
issua… — 8 64 101
of
common
stock
Repur…
of -664 -626 -1,473 -1,865
common
stock
Payme…
for
taxes
relat…
to net
share
settl… -77 -71 -266 -208
of
restr…
stock
units
and
awards
Payme…
for -138 -132 -415 -400
divid…
Repay…
of — — -750 -800
senior
notes
Proce…
from
issua… 493 632 1,232 1,575
of
comme…
paper
Repay…
of -493 -628 -493 -1,446
comme…
paper
Net
funds
recei… 35 -57 248 231
and
payab…
activ…
Other 4 — -12 -26
Net
cash
used -840 -874 -1,865 -2,838
in
finan…
activ…
Effect
of
excha…
rate
chang…
on 6 -5 -17 45
cash,
cash
equiv…
and
restr…
cash
Net
incre…
(decr…
in
cash, -1,086 282 -443 227
cash
equiv…
and
restr…
cash
Cash,
cash
equiv…
and
restr… 3,698 3,231 3,055 3,286
cash
at
begin…
of
period
Cash,
cash
equiv…
and
restr… $ 2,612 $ 3,513 $ 2,612 $ 3,513
cash
at end
of
period
8
eBay Inc.
Unaudited Summary of Consolidated Net Revenues
Thr… Sep… June Mar… Dec… Sep…
Mon… 30, 30, 31, 31, 30,
End… 2026 2026 2026 2025 2025
──────────────────────────────────────────────────────────────────────────────
-In
mil…
exc…
per…
To…
net $ 3,2… $ 3,1… $ 3,0… $ 2,9… $ 2,8…
re…
Cu…
qu…
vs 14 % 15 % 19 % 15 % 9 %
pr…
ye…
qu…
Pe…
fr… 43 % 44 % 44 % 46 % 48 %
in…
(1)
He… $ -2 $ -1 $ -13 $ -19 $ -24
ga…
(2)
Fo… $ -7 $ 22 $ 78 $ 16 $ 20
cu…
im…
eBay Inc.
Unaudited Supplemental Operating Data
Thr… Sep… June Mar… Dec… Sep…
Mon… 30, 30, 31, 31, 30,
End… 2026 2026 2026 2025 2025
──────────────────────────────────────────────────────────────────────────────
-In
mil…
exc…
per…
Ac… 147 136 136 135 134
Bu…
Cu…
qu…
vs 10 % 2 % 1 % 1 % 1 %
pr…
ye…
qu…
Ac…
Bu…
ex… 136 136 135 134
De…
and
Ti…
Cu…
qu…
vs 1 % 1 % 1 % 1 %
pr…
ye…
qu…
Gr…
Me…
Vo…
U.… $ 12,… $ 11,… $ 11,… $ 10,… $ 9,8…
Cu…
qu…
vs 27 % 24 % 27 % 19 % 13 %
pr…
ye…
qu…
In… 10,… 10,… 10,… 10,… 10,…
Cu…
qu…
vs 4 % 6 % 10 % 2 % 7 %
pr…
ye…
qu…
To…
Gr… $ 23,… $ 22,… $ 22,… $ 21,… $ 20,…
Me…
Vo…
Cu…
qu…
vs 15 % 15 % 18 % 10 % 10 %
pr…
ye…
qu…
(1) Active Buyers consist of all buyers who paid for a transaction on our
Marketplace platforms within the previous 12-month period. Buyers may register
more than once, and as a result, may have more than one account.
(2) On October 1, 2025, we completed the acquisition of Tise AS (Tise).
(3) On July 30, 2026, we completed the acquisition of Depop Limited (Depop).
(4) Gross Merchandise Volume consists of the total value of all paid
transactions between users on our Marketplace platforms during the applicable
period inclusive of shipping fees and taxes, without adjustment for returns or
cancellations.
9
eBay Inc.
Business Outlook
The guidance figures provided below and elsewhere in this press release are
forward-looking statements, reflect a number of estimates, assumptions and other
uncertainties, and are approximate in nature because the company's future
performance is difficult to predict. Such guidance is based on information
available on the date of this press release, and the company assumes no
obligation to update it.
The company's future performance involves risks and uncertainties, and the
company's actual results could differ materially from the information below and
elsewhere in this press release. Some of the factors that could affect the
company's operating results are set forth under the caption "Forward-Looking
Statements" above in this press release. More information about factors that
could affect the company's operating results is included under the captions
"Risk Factors" and "Management's Discussion and Analysis of Financial Condition
and Results of Operations" in the company's most recent Annual Report on Form
10-K and subsequent Quarterly Reports on Form 10-Q, copies of which may be
obtained by visiting eBay's investor relations website at
https://investors.ebayinc.com or the SEC's website at www.sec.gov.
eBay Inc.
Three Months Ending
December 31, 2026
──────────────────────────────────────────────────────────────────────────────
(In billions, except per share GAAP Non-GAAP(a)
amounts)
Net revenues $3.19 - $3.24 $3.19 - $3.24
Diluted EPS from continuing $0.82 - $0.87 $1.48 - $1.53
operations
Gross Merchandise Volume $23.7 - $24.1
Twelve Months Ending
December 31, 2026
(In billions, except per share GAAP Non-GAAP(b)
amounts)
Net revenues $12.62 - $12.67 $12.62 - $12.67
Diluted EPS from continuing $4.26 - $4.31 $6.25 - $6.30
operations
Gross Merchandise Volume $91.5 - $91.9
(a) Estimated non-GAAP amounts
above for the three months ending
December 31, 2026 reflect
adjustments that exclude the
estimated amortization of
acquired intangible assets of
approximately $30-$32 million,
estimated stock-based
compensation expense and
associated employer payroll tax
expense of approximately
$163-$173 million, estimated
restructuring expense of
$130-$150 million, and estimated
adjustment between our GAAP and
non-GAAP tax expense of
approximately $(41)-$(47)
million. The estimated GAAP
diluted EPS above does not assume
any future gains or losses on our
equity investments.
(b) Estimated non-GAAP amounts
above for the twelve months
ending December 31, 2026 reflect
adjustments that exclude the
estimated amortization of
acquired intangible assets of
approximately $79-$81 million,
estimated stock-based
compensation expense and
associated employer payroll tax
expense of approximately
$695-$705 million, estimated
restructuring expense of
$212-$232 million, and estimated
adjustment between our GAAP and
non-GAAP tax rate of
approximately $(179)-$(184)
million. The estimated GAAP
diluted EPS above does not assume
any future gains or losses on our
equity investments.
10
eBay Inc.
Non-GAAP Measures of Financial Performance
To supplement the company's condensed consolidated financial statements
presented in accordance with generally accepted accounting principles, or GAAP,
the company uses non-GAAP measures of certain components of financial
performance. These non-GAAP measures include non-GAAP net income, non-GAAP
earnings per diluted share, non-GAAP operating income and margin, non-GAAP
effective tax rate, free cash flow and figures in this press release presented
on an "FX-Neutral basis." These non-GAAP financial measures are presented on a
continuing operations basis.
These non-GAAP measures are not in accordance with, or an alternative to,
measures prepared in accordance with GAAP and may be different from non-GAAP
measures used by other companies. In addition, these non-GAAP measures are not
based on any comprehensive set of accounting rules or principles. Non-GAAP
measures have limitations in that they do not reflect all of the amounts
associated with the company's results of operations as determined in accordance
with GAAP. These measures should only be used to evaluate the company's results
of operations in conjunction with the corresponding GAAP measures.
Reconciliation to the nearest GAAP measure of all non-GAAP measures included in
this press release, except for figures in this press release presented on an
"FX-Neutral basis," can be found in the tables included in this press release.
For figures in this press release reported on an "FX-Neutral basis," the company
calculates the year-over-year impact of foreign currency movements using prior
period foreign currency rates, excluding hedging activity, applied to current
year transactional currency amounts.
These non-GAAP measures are provided to enhance investors' overall understanding
of the company's current financial performance and its prospects for the future.
Specifically, the company believes the non-GAAP measures provide useful
information to both management and investors by excluding certain expenses,
gains and losses, or net purchases of property and equipment, as the case may
be, that may not be indicative of its core operating results and business
outlook. In addition, because the company has historically reported certain non-
GAAP results to investors, the company believes that the inclusion of non-GAAP
measures provides consistency in the company's financial reporting.
For its internal budgeting process, and as discussed further below, the
company's management uses financial measures that do not include stock-based
compensation expense, employer payroll taxes on stock-based compensation,
amortization or impairment of acquired intangible assets, impairment of
goodwill, amortization of deferred tax assets associated with the realignment of
its legal structure and related foreign exchange effects, significant gains or
losses from the disposal/acquisition of a business, certain gains and losses on
investments including changes in fair value, changes in foreign currency
exchange rates and the impact of any related foreign exchange derivative
instruments, gains or losses associated with a warrant agreement that the
company entered into with Adyen, restructuring-related charges and the income
taxes associated with the foregoing. In addition to the corresponding GAAP
measures, the company's management also uses the foregoing non-GAAP measures in
reviewing the financial results of the company.
The company excludes the following items from non-GAAP net income, non-GAAP
earnings per diluted share, non-GAAP operating income and margin and non-GAAP
effective tax rate:
Stock-based compensation expense and related employer payroll taxes. This
expense consists of expenses for stock options, restricted stock and employee
stock purchases. The company excludes stock-based compensation expense from its
non-GAAP measures primarily because they are non-cash expenses that management
does not believe are reflective of ongoing operating results. The related
employer payroll taxes are dependent on the company's stock price and the
vesting of restricted stock by employees and the timing and size of stock option
exercises, over which management has limited to no control, and as such
management does not believe it correlates to the company's operation of the
business.
Amortization or impairment of acquired intangible assets, impairment of
goodwill, certain amortization of deferred tax assets and related foreign
exchange effects, and certain gains or losses on investments. The company incurs
amortization or impairment of acquired intangible assets and goodwill in
connection with acquisitions and excludes these amounts from its non-GAAP
measures. The company also excludes certain gains and losses on investments. The
company excludes the non-cash amortization of deferred tax assets associated
with the realignment of its legal structure, which is not reduced by the effects
of the Tax Cuts and Jobs Act, and related foreign exchange effects. The company
excludes these items because management does not believe they correlate to the
ongoing operating results of the company's business.
Restructuring. These charges consist of expenses for employee severance and
other exit and disposal costs. The company excludes significant restructuring
charges primarily because management does not believe they are reflective of
ongoing operating results.
Transaction related costs . The company may incur significant gains or losses
and incremental costs related to the acquisition or disposal of a business,
unsolicited proposals and shareholder activism matters. These costs include
third party fees such as banker fees, legal and advisory fees and other
professional services. The company excludes these items from its non-GAAP
measures as management does not believe they correlate to the company's ongoing
operating results of the business.
Other certain significant gains, losses, or charges that are not indicative of
the company’s core operating results. These are significant gains, losses, or
charges during a period that are the result of isolated events or transactions
which have not occurred frequently in the past and are not expected to occur
regularly or be repeated in the future. The company excludes these amounts from
its results primarily because management does not believe they are indicative of
its current or ongoing operating results. These amounts include changes in fair
value and the related change in foreign currency exchange rates of equity
securities with readily determinable fair values, globally.
Change in fair market value of warrants. These are gains or losses associated
with warrant agreements entered into with vendors, which are attributable to
changes in fair value during the period.
Income tax effects and adjustments. We are using a non-GAAP tax rate of 17.5%
for evaluating our operating results, up from 16.5% in 2025. This rate could
change for various reasons including significant changes in our geographic
earnings mix or fundamental tax law changes in major jurisdictions in which we
operate.
In addition to the non-GAAP measures discussed above, the company also uses free
cash flow. Free cash flow represents operating cash flows less purchases of
property and equipment. The company considers free cash flow to be a liquidity
measure that provides useful information to management and investors about the
amount of cash generated by the business after the purchases of property,
buildings, and equipment, which can then be used to, among other things, invest
in the company's business, make strategic acquisitions, repurchase stock and pay
dividends. A limitation of the utility of free cash flow as a measure of
financial performance is that it does not represent the total increase or
decrease in the company's cash balance for the period and does not exclude
certain non-discretionary expenditures, such as mandatory debt service
requirements.
11
eBay Inc.
Reconciliation of GAAP Operating Income to Non-GAAP Operating Income
Three
Mont…
Ended
Sept…
30, Nine
2026 Mont…
(In Ended
mill… Sept…
exce… 30,
perc… 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
GAAP
ope… $ 616 $ 571 $ 1,903 $ 1,661
inc…
Sto…
com…
exp…
and 177 153 532 469
rel…
emp…
pay…
tax…
Amo…
of
acq…
int…
ass…
wit…
cost 25 12 50 37
of
net
rev…
and
ope…
exp…
Res…
and -3 24 102 79
exe…
bon…
Leg… — — -10 52
mat…
Tra…
rel… 28 — 66 —
cos…
Tot…
non…
ope… 227 189 740 637
inc…
adj…
Non…
ope… $ 843 $ 760 $ 2,643 $ 2,298
inc…
GAAP
ope… 19.2 % 20.3 % 20.2 % 20.4 %
mar…
Non…
ope… 26.3 % 27.0 % 28.0 % 28.3 %
mar…
Presented on a continuing operations basis
Reconciliation of GAAP Net Income to Non-GAAP Net Income and
GAAP Effective Tax Rate to Non-GAAP Effective Tax Rate
Three
Mont…
Ended
Sept…
30,
2026
(In
mill…
exce… Nine
per Mont…
share Ended
amou… Sept…
and 30,
perc… 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
GAAP
inc…
from
con… $ 605 $ 568 $ 1,888 $ 1,669
ope…
bef…
inc…
tax…
GAAP
pro…
for -104 25 -323 -210
inc…
tax…
GAAP
net
inc… 501 593 1,565 1,459
from
con…
ope…
Non…
adj…
to
net
inc…
from
con…
ope…
Non…
ope…
inc…
from
con… 227 189 740 637
ope…
adj…
(see
tab…
abo…
Cha…
in
fair
val…
of -1 — 5 —
equ…
inv…
and
war…
Inc…
tax
eff… -42 -149 -138 -169
and
adj…
Non…
net
inc… $ 685 $ 633 $ 2,172 $ 1,927
from
con…
ope…
Dil…
net
inc…
from
con…
ope…
per
sha…
GAAP $ 1.11 $ 1.27 $ 3.44 $ 3.10
Non… $ 1.51 $ 1.35 $ 4.77 $ 4.09
Sha…
used
in
GAAP
dil… 453 467 455 471
net
inc…
per
sha…
cal…
Sha…
used
in
non…
dil… 453 467 455 471
net
inc…
per
sha…
cal…
GAAP
eff…
tax
rate 17.1 % -4.3 % 17.1 % 12.6 %
–
Con…
ope…
Inc…
tax
eff…
and
adj…
to 0.4 % 20.8 % 0.4 % 3.9 %
net
inc…
from
con…
ope…
Non…
eff…
tax
rate 17.5 % 16.5 % 17.5 % 16.5 %
–
Con…
ope…
Presented on a continuing operations basis
12
Reconciliation of Operating Cash Flow to Free Cash Flow
Three
Months
Ended Nine
September Months
30, Ended
2026 September
(In 30,
millions) 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net cash
provided
by $ 875 $ 900 $ 2,394 $ 1,315
continu…
operati…
activit…
Less:
Purchas…
of -126 -97 -421 -309
property
and
equipme…
Free
cash $ 749 $ 803 $ 1,973 $ 1,006
flow
Presented on a continuing operations basis
13