01—Abstract
Summary
Summary of the 10-Q filed July 31, 2025. Cited figures are marked; the original filing is the authoritative source.
eBay Inc. reported its second-quarter and year-to-date results for 2025, demonstrating revenue growth and solid profitability.
For the three months ended June 30, 2025, net revenues increased by 6% year-over-year to $2.73 billiona, driven by growth in marketplace and advertising revenues. Net income for the quarter was $368 million, or $0.79 per diluted share. The company continued to return value to shareholders through stock repurchases and dividends, spending $625 million on share buybacks and $134 million on dividends in the second quarter.
Operationally, eBay saw its Gross Merchandise Volume (GMV) grow by 6%b year-over-year, indicating increased transaction activity on its platform. The company's strategy focusing on key categories and international markets appears to be paying off.
While operating margin saw a slight decrease due to higher non-recurring general and administrative expenses related to legal matters and restructuring, the core business remains robust. The company also highlighted a significant cash distribution received from its equity investment in Aurelia, further strengthening its liquidity position.
02—Key points
Key Highlights
- Net revenues increased 6% to $2.73 billion for the three months ended June 30, 2025, and 4% to $5.315 billion for the six months ended June 30, 2025, compared to the prior year periods.
- Gross Merchandise Volume (GMV) grew by 6% for the three months ended June 30, 2025, indicating increased transaction activity on the platform.
- Net income was $368 million for the three months ended June 30, 2025, translating to diluted earnings per share of $0.79.
- The company returned significant value to shareholders, repurchasing $625 million of common stock and paying $134 million in cash dividends during the second quarter of 2025.
- General and administrative expenses increased notably due to higher legal matters, senior leader transitions, and restructuring costs.
- The company received a $225 million cash distribution related to its equity investment in Aurelia during the quarter.
- eBay maintained a strong liquidity position, with $3.23 billion in cash, cash equivalents, and restricted cash as of June 30, 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, eBay Inc kept $0.13.
- Revenue$2.73B100.0%
- Cost of revenue−$776.0M28.4%
- Gross profit$1.95B71.6%
- Operating costs−$1.47B53.8%
- Operating income$484.0M17.7%
- Interest, other & tax−$116.0M4.2%
- Net income$368.0M13.5%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed July 31, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $2.73B$2.57B | +6.1% |
| Cost of Revenue | $776.00M$735.00M | +5.6% |
| Gross Profit | $1.95B$1.84B | +6.4% |
| R&D Expenses | $421.00M$379.00M | +11.1% |
| Operating Expenses | $1.47B$1.29B | +14.1% |
| Operating Income | $484.00M$549.00M | −11.8% |
| Net Income | $368.00M$224.00M | +64.3% |
| EPS (Basic) | $0.80$0.45 | +77.8% |
| EPS (Diluted) | $0.79$0.45 | +75.6% |
| Shares Outstanding (Basic) | 461.00M503.00M | −8.3% |
| Shares Outstanding (Diluted) | 470.00M507.00M | −7.3% |
05—Questions
Frequently Asked Questions
What were the primary drivers of eBay's revenue growth in the second quarter of 2025?
Revenue growth was primarily driven by an increase in Gross Merchandise Volume (GMV) and higher net revenues from advertising products, partially offset by changes to fee structures in certain markets and a UK consumer-to-consumer initiative. Growth in 'Focus Categories' and international cross-border trade also contributed positively.
What caused the increase in General and Administrative expenses?
The increase in General and Administrative expenses for the second quarter was primarily due to higher expenses related to legal matters ($57 million), senior leader transitions and restructuring costs ($55 million), and an increase in employee-related costs ($19 million).
How is eBay managing its capital and returning value to shareholders?
eBay is actively repurchasing its common stock, with $625 million spent in the second quarter and $2.0 billion remaining available under its repurchase program as of June 30, 2025. It also continues to pay quarterly cash dividends, with $134 million paid in the second quarter. The company also received a $225 million cash distribution from its Aurelia investment.
What is the outlook for eBay's business in the second half of 2025?
The company expects ongoing pressure in discretionary spending across certain markets due to geopolitical events, inflationary pressures, elevated interest rates, and trade policy uncertainties. However, eBay's strategic initiatives and focus on key growth areas are expected to continue to drive performance.
06—Continue