10-QPeriod: Q2 FY2025

EBAY INC Quarterly Report for Q2 Ended Jun 30, 2025

Filed July 31, 2025For Securities:EBAY

Summary

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 billion, 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% 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.

Financial Highlights

55 data points
Beta

Revenue

$2.73B

71.6% Gross Margin

Net Income

$368.00M

13.5% Net Margin

EPS (Diluted)

$0.79

Total Assets

$17.96B

Cash & Equivalents

$2.07B

Free Cash Flow

-$441.00M

Financial Statements
Beta
Revenue$2.73B
Cost of Revenue$776.00M
Gross Profit$1.95B
R&D Expenses$421.00M
Operating Expenses$1.47B
Operating Income$484.00M
Net Income$368.00M
EPS (Basic)$0.80
EPS (Diluted)$0.79
Shares Outstanding (Basic)461.00M
Shares Outstanding (Diluted)470.00M

Key Highlights

  • 1Net 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.
  • 2Gross Merchandise Volume (GMV) grew by 6% for the three months ended June 30, 2025, indicating increased transaction activity on the platform.
  • 3Net income was $368 million for the three months ended June 30, 2025, translating to diluted earnings per share of $0.79.
  • 4The 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.
  • 5General and administrative expenses increased notably due to higher legal matters, senior leader transitions, and restructuring costs.
  • 6The company received a $225 million cash distribution related to its equity investment in Aurelia during the quarter.
  • 7eBay maintained a strong liquidity position, with $3.23 billion in cash, cash equivalents, and restricted cash as of June 30, 2025.

Frequently Asked Questions

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.

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).

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.

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.