10-QPeriod: Q1 FY2026

EBAY INC Quarterly Report for Q1 Ended Mar 31, 2026

Filed April 29, 2026For Securities:EBAY

Summary

eBay Inc. reported solid financial results for the first quarter ended March 31, 2026. Net revenues saw a substantial 19% increase year-over-year, reaching $3.09 billion, driven by robust performance in both Marketplace and Advertising segments. The company demonstrated strong operational efficiency, with cash flow from continuing operating activities growing significantly to $970 million. While the company continues to invest in its platform, evidenced by a 15% increase in product development expenses, it also remains committed to returning value to shareholders. This is reflected in $500 million in stock repurchases and $139 million in dividend payments during the quarter. Furthermore, eBay announced a definitive agreement to acquire Depop, Inc. for approximately $1.2 billion, signaling strategic growth initiatives. The company maintains a healthy liquidity position with over $5.1 billion in cash and investments.

Financial Highlights

53 data points
Beta

Revenue

$3.09B

74.0% Gross Margin

Net Income

$512.00M

16.6% Net Margin

EPS (Diluted)

$1.12

Total Assets

$17.89B

Cash & Equivalents

$2.89B

Free Cash Flow

$898.00M

Financial Statements
Beta
Revenue$3.09B
Cost of Revenue$802.00M
Gross Profit$2.29B
R&D Expenses$450.00M
Operating Expenses$1.68B
Operating Income$611.00M
Net Income$512.00M
EPS (Basic)$1.14
EPS (Diluted)$1.12
Shares Outstanding (Basic)448.00M
Shares Outstanding (Diluted)457.00M

Key Highlights

  • 1Net revenues increased by 19% to $3.09 billion, driven by a 17% rise in Marketplace revenues and a 31% surge in Advertising revenues.
  • 2Operating margin decreased to 19.8% from 23.6% in the prior year period, primarily due to increased operating expenses, including sales and marketing, and general and administrative costs.
  • 3Cash flow from continuing operating activities significantly increased to $970 million from $755 million in the prior year period.
  • 4The company repurchased $500 million of common stock and paid $139 million in cash dividends, demonstrating a commitment to shareholder returns.
  • 5A definitive agreement was entered into to acquire Depop, Inc. for approximately $1.2 billion in cash, expected to close by the end of Q3 2026.
  • 6An additional $2.0 billion was authorized for the stock repurchase program in February 2026.
  • 7Goodwill remained stable at $4.46 billion, with minor adjustments primarily due to foreign currency translation.

Frequently Asked Questions

Net revenues increased by 19% to $3.09 billion, primarily driven by a 17% rise in Marketplace revenues and a substantial 31% increase in Advertising revenues. This growth was supported by higher Gross Merchandise Volume (GMV), increased first-party advertising penetration, and favorable outcomes from the U.S. net shipping program.

eBay Inc. is actively returning value to shareholders through a combination of stock repurchases and dividends. In the first quarter of 2026, the company repurchased $500 million of its common stock and paid $139 million in cash dividends. Furthermore, an additional $2.0 billion was authorized for the stock repurchase program in February 2026.

The planned acquisition of Depop, Inc. for approximately $1.2 billion is a significant strategic move to expand eBay's presence in the consumer-to-consumer (C2C) fashion marketplace. This acquisition, expected to close by the end of the third quarter of 2026, aims to enhance eBay's portfolio and reach within a key growth category.

Cost of net revenues increased by 15% to $802 million, largely due to higher payment processing volumes, unfavorable foreign currency movements, increased costs for promoted listings, and higher data center costs. Operating expenses also saw a significant increase of 31% driven by higher sales and marketing spend, increased general and administrative costs (including restructuring and executive bonuses), and higher transaction losses.