eBay Inc.

What they do

eBay operates online marketplaces, including www.ebay.com and localized counterparts, off-platform marketplaces and mobile apps, with one reportable segment. It earns revenue primarily through fees on paid transactions, first-party advertising and shipping. The company reports 136 million buyers worldwide as of the latest 10-Q, up from 135 million in the 2025 10-K.

Revenue drivers

• Marketplace transaction fees — The largest revenue source: fees collected on paid transactions across eBay's marketplaces, tied to GMV, which was $22.4 billion in Q2 2026, up 15% as reported.
• First-party advertising, including Promoted Listings — Advertising is a named revenue source, and the 10-K risk factors cite dependence on Promoted Listings and the risk of losing advertising revenue if these products are not competitive.
• Shipping — Shipping is listed alongside transaction fees and advertising as a primary revenue source; no separate revenue figure is disclosed.
• Focus categories — The 10-K identifies focus categories including motor vehicles parts and accessories, collectibles, refurbished items, apparel, luxury goods and sneakers, which steer merchandising and engagement efforts.

Recent performance

Q2 2026 revenue was $3.1 billion, up 15% as reported and 14% FX-Neutral, with GMV of $22.4 billion, up 15% as reported. GAAP and non-GAAP operating margins were 21.6% and 28.5%, respectively, and GAAP and non-GAAP diluted EPS from continuing operations were $1.21 and $1.60. Operating margin rose to 21.6% from 17.6% a year earlier, and cash flow from continuing operating activities was $549 million versus $340 million used in the prior-year period. eBay returned $448 million to stockholders in Q2 via $310 million of repurchases and $138 million of dividends. Full-year 2025 revenue was $11.10 billion with net income of $2.03 billion and operating cash flow of $1.96 billion.

Strategy

eBay's strategy centers on reinventing ecommerce for enthusiasts around three pillars: Relevant Experiences, Scalable Solutions and Magical Innovations. It is applying generative AI to listings and discovery, expanding first-party advertising and shipping and payments offerings, and deepening focus categories such as collectibles, luxury and motors parts and accessories. The company acquired Depop Limited, a C2C fashion marketplace, closing July 30, 2026 for $1.4 billion in cash inclusive of preliminary purchase price adjustments. It also invests in eBay Live, Authenticity Guarantee and grading and fitment programs to build trust and supply.

Risks

• Competition — eBay faces intense competition that could materially harm its business and its ability to attract buyers and sellers.
• Advertising dependence — If advertising products such as Promoted Listings are not competitive, eBay says it will lose advertising revenues and its business will be harmed.
• Cross-border trade and trade policy — Cross-border trade is an important source of revenue and profit, and changes in global trade policies can significantly affect customers and materially harm the business.
• Payments, financial services and fraud — Payments and financial services offerings require ongoing investment and carry legal, operational and third-party risks, and eBay is subject to significant fraud risk on its platforms.

Outlook

Management said Q2 2026 delivered broad-based momentum and that it is increasing its full-year top- and bottom-line outlook, without providing specific figures in the excerpt. Stated priorities include continued GMV growth, innovation against the strategic roadmap and operating income and EPS growth. The Depop acquisition, which closed July 30, 2026, is positioned to strengthen eBay's circular fashion and recommerce leadership.