eBay Inc. EBAY reported third-quarter 2025 non-GAAP earnings of $1.36 per share, which beat the Zacks Consensus Estimate by 2.26%. The bottom line increased 14.3% year over year.
Net revenues of $2.82 billion beat the Zacks Consensus Estimate by 2.9%. The figure increased 9.5% from the year-ago quarter on a reported basis and 8% on an FX-neutral basis.
eBay’s first-party advertising products generated revenues of $496 million in the reported quarter, up 25% on an as-reported basis and 23% on an FX-neutral basis.
Total advertising offerings yielded $525 million in revenues, representing 2.6% of gross merchandise volume (GMV).
eBay Inc. Price, Consensus and EPS Surprise
eBay Inc. price-consensus-eps-surprise-chart | eBay Inc. Quote
EBAY’s active buyer base, which was pinned at 134 million at the end of the third quarter, increased 1% year over year, missing the consensus mark by 0.4%.
GMV Details for EBAY
EBAY’s total GMV of $20.11 billion in the reported quarter exhibited year-over-year growth of 10% on a reported basis and 8% on an FX-neutral basis. The reported GMV surpassed the Zacks Consensus Estimate of $19.42 billion.
The total GMV is categorized into two parts. U.S. GMV totaled $9.87 billion, accounting for 49.1% of the total GMV. The figure rose 13% year over year. International GMV was $10.23 billion, accounting for 50.9% of the total GMV. The figure increased 7% year over year.
EBAY’s Q3 Operating Details
Operating expenses of $1.42 billion grew 13.5% year over year. As a percentage of net revenues, the figure expanded 180 basis points (bps) from the year-ago quarter to 48.7%.
The non-GAAP operating margin was 27.1% in the third quarter, contracting 10 bps year over year.
EBAY’s Balance Sheet & Cash Flow
As of Sept. 30, 2025, cash equivalents and short-term investments were $3.38 billion, down from $3.75 billion as of June 30, 2025.
Long-term debt remained unchanged at $5 billion at the end of the third quarter of 2025, compared with the prior quarter.
Cash flow from operating activities was $934 million in the third quarter, a sharp turnaround from negative $307 million in the previous quarter.
eBay reported free cash flow from continuing operations of $803 million in the third quarter.
The company repurchased $625 million worth of shares and paid out cash dividends of $132 million in the reported quarter. eBay had approximately $1.4 billion remaining under its buyback authorization as of Sept. 30, 2025.
EBAY’s Q4 & 2025 Guidance
For the fourth quarter of 2025, eBay expects revenues in the range of $2.83 billion to $2.89 billion. On an FX-neutral basis, revenue growth is anticipated to be 8-10%.
The non-GAAP operating margin for the fourth quarter of 2025 is expected to be between 25.8% and 26.3%.
GMV for the fourth quarter is likely to be in the range of $20.5-$20.9 billion.
Non-GAAP earnings per share are anticipated to be between $1.31 and $1.36.
For 2025, the company expects revenues between $10.97 billion and $11.03 billion. On an FX-neutral basis, revenue growth is anticipated to be 6-6%.
Non-GAAP operating margin is expected to be between 27.7% and 27.8%.
GMV for the full year is likely to be in the range of $78.9-$79.3 billion.
Non-GAAP earnings per share are projected to be between $5.42 and $5.47.
EBAY’s Zacks Rank & Stocks to Consider
Currently, EBAY carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Retail-Wholesale sector are Dutch Bros BROS, Performance Food Group PFGC and Canada Goose GOOS, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dutch Bros shares have returned 10.4% year to date. BROS is set to report its third-quarter 2025 results on Nov. 5.
Shares of Performance Food Group have gained 16.4% year to date. PFGC is set to report first-quarter fiscal 2026 results on Nov. 5.
Canada Goose shares have risen 38.6% year to date. GOOS is slated to report its second-quarter fiscal 2026 results on Nov. 6.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
