01—Abstract
Summary
Summary of the 10-Q filed April 29, 2026. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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 millionb 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.
02—Key points
Key Highlights
- Net revenues increased by 19% to $3.09 billion, driven by a 17% rise in Marketplace revenues and a 31% surge in Advertising revenues.
- Operating 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.
- Cash flow from continuing operating activities significantly increased to $970 million from $755 million in the prior year period.
- The company repurchased $500 million of common stock and paid $139 million in cash dividends, demonstrating a commitment to shareholder returns.
- A 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.
- An additional $2.0 billion was authorized for the stock repurchase program in February 2026.
- Goodwill remained stable at $4.46 billion, with minor adjustments primarily due to foreign currency translation.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, eBay Inc kept $0.17.
- Revenue$3.09B100.0%
- Cost of revenue−$802.0M26.0%
- Gross profit$2.29B74.0%
- Operating costs−$1.68B54.3%
- Operating income$611.0M19.8%
- Interest, other & tax−$99.0M3.2%
- Net income$512.0M16.6%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 29, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $3.09B$2.58B | +19.5% |
| Cost of Revenue | $802.00M$697.00M | +15.1% |
| Gross Profit | $2.29B$1.89B | +21.1% |
| R&D Expenses | $450.00M$393.00M | +14.5% |
| Operating Expenses | $1.68B$1.28B | +31.2% |
| Operating Income | $611.00M$611.00M | 0.0% |
| Net Income | $512.00M$499.00M | +2.6% |
| EPS (Basic) | $1.14$1.07 | +6.5% |
| EPS (Diluted) | $1.12$1.05 | +6.7% |
| Shares Outstanding (Basic) | 448.00M467.00M | −4.1% |
| Shares Outstanding (Diluted) | 457.00M475.00M | −3.8% |
05—Questions
Frequently Asked Questions
What drove the significant increase in net revenues?
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.
What is the company's strategy regarding shareholder returns?
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.
What are the key implications of the Depop acquisition?
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.
How has the company's cost structure changed?
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.
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