eBay Inc. EBAY reported fourth-quarter 2025 non-GAAP earnings of $1.41 per share, which beat the Zacks Consensus Estimate by 3.68%. The bottom line increased 12.8% year over year.
Net revenues of $2.97 billion beat the Zacks Consensus Estimate by 2.98%. The figure increased 15% year over year on a reported basis and 13% on an FX-neutral basis.
eBay’s first-party advertising products generated revenues of $517 million in the reported quarter, up 19% on an as-reported basis and 17% on an FX-neutral basis.
Total advertising offerings yielded $544 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 135 million at the end of the fourth quarter, increased 1% year over year and surpassed the consensus mark by 0.23%.
GMV Details for EBAY
EBAY’s total GMV of $21.24 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 $20.79 billion.
The total GMV is categorized into two parts. U.S. GMV totalled $10.72 billion, accounting for 50.5% of the total GMV. The figure rose 18.6% year over year. International GMV was $10.52 billion, accounting for 49.5% of the total GMV. The figure increased 2.3% year over year.
EBAY’s Q4 Operating Details
Operating expenses of $1.52 billion grew 14.9% year over year. As a percentage of net revenues, the figure remains flat at 51.1% on a year-over-year basis.
The non-GAAP operating margin was 26.1% in the fourth quarter, contracting 90 basis points (bps) year over year.
EBAY’s Balance Sheet & Cash Flow
As of Dec. 31, 2025, cash equivalents and short-term investments were $2.92 billion, down from $3.38 billion as of Sept. 30, 2025.
Long-term debt increased sequentially to $6 billion at the end of fourth-quarter 2025, compared with $5 billion in the prior quarter, indicating higher leverage on a quarter-over-quarter basis.
Cash flow from operating activities was $595 million in the fourth quarter, down from $934 million in the previous quarter, reflecting a sequential slowdown in cash generation.
Free cash flow decreased sequentially to $478 million in the fourth quarter compared with $803 million in the previous quarter.
The company repurchased $625 million worth of shares and paid out cash dividends of $131 million in the reported quarter. eBay had approximately $798 million remaining under its buyback authorization as of Dec. 31, 2025.
EBAY’s Q1 & 2026 Guidance
For the first quarter of 2026, eBay expects revenues in the range of $3.00 billion to $3.05 billion. On an FX-neutral basis, revenue growth is anticipated to be 13%-15%.
The non-GAAP operating margin for the first quarter of 2026 is expected to be between 28.3% and 29.2%.
GMV for the first quarter is likely to be in the range of $21.5-$21.9 billion. On an FX-neutral basis, GMV growth is anticipated to be 10%-12%.
Non-GAAP earnings per share are anticipated to be between $1.53 and $1.59.
EBAY has also provided its financial commentary for 2026. Revenue growth is expected to be in line with or slightly ahead of GMV growth on a year-over-year, FX-neutral basis. GMV growth is projected to be similar to 2025 levels on a year-over-year, FX-neutral basis.
Non-GAAP operating income is projected to increase 8%-10% year over year, while the company plans to return capital through roughly $2 billion in share repurchases in 2026.
Non-GAAP earnings per share growth is expected to be relatively in line with year-over-year non-GAAP operating income growth.
EBAY’s Zacks Rank & Stocks to Consider
Currently, EBAY carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader Retail-Wholesale sector are American Eagle AEO, Dollar General DG and Ross Stores ROST. While American Eagle currently sports a Zacks Rank #1 (Strong Buy), Dollar General and Ross Stores carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
American Eagle shares have surged 74.2% over the past year. AEO is scheduled to report its fourth-quarter fiscal 2025 results on March 4.
Shares of Dollar General have jumped 99.7% over the past year. DG is set to report fourth-quarter fiscal 2025 results on March 12.
Ross Stores' shares have risen 44.1% over the past year. ROST is slated to report its fourth-quarter fiscal 2025 results on March 3.
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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.
