10-QPeriod: Q2 FY2026

EBAY INC Quarterly Report for Q2 Ended Jun 30, 2026

Filed August 6, 2026For Securities:EBAY

Summary

eBay Inc. reported a strong second quarter for 2026, demonstrating robust revenue growth and improved profitability. Net revenues increased by 15% year-over-year to $3.1 billion, driven by a 13% rise in Marketplace revenues and a significant 24% surge in Advertising revenues. This top-line growth, coupled with effective cost management, led to a notable improvement in operating margin, which expanded to 21.6% from 17.6% in the prior year period. The company also generated substantial operating cash flow, highlighting its ability to convert sales into cash. Strategic initiatives and improved consumer demand, particularly in focus categories like Collectibles, Fashion, and Refurbished Goods, fueled a 15% increase in Gross Merchandise Volume (GMV). Management's focus on enhancing the marketplace experience and leveraging AI appears to be resonating with users. Furthermore, eBay continues to return value to shareholders through share repurchases and dividends, underscoring financial discipline and a commitment to shareholder returns. The recent acquisition of Depop Limited, closed in July 2026, is expected to further strengthen eBay's position in the C2C and recommerce markets.

Key Highlights

  • 1Net revenues grew 15% to $3.1 billion in Q2 2026, driven by strong performance in both Marketplace (up 13%) and Advertising (up 24%).
  • 2Operating margin improved significantly to 21.6%, up from 17.6% in the prior year period, indicating enhanced profitability.
  • 3Gross Merchandise Volume (GMV) increased by 15% year-over-year, reflecting healthy transaction activity on the platform, with notable strength in C2C and recommerce categories.
  • 4Cash flow from continuing operating activities was $549 million for the quarter, a substantial increase from the cash used in the prior year period, demonstrating strong cash generation.
  • 5The company repurchased $310 million of common stock and paid $138 million in cash dividends in Q2 2026, continuing its commitment to shareholder returns.
  • 6eBay completed the acquisition of Depop Limited in July 2026 for $1.4 billion (including preliminary adjustments), aiming to bolster its position in the fashion C2C marketplace.
  • 7The company's effective tax rate decreased to 17.1% from 22.6% in the prior year, benefiting from increased excess tax benefits on stock-based compensation and a non-recurring tax adjustment.

Frequently Asked Questions

Revenue growth was primarily driven by a 15% increase in net revenues, with Marketplace revenues up 13% and Advertising revenues seeing a substantial 24% increase. This growth was supported by a 15% rise in Gross Merchandise Volume (GMV) and improved first-party advertising penetration.

Profitability has improved significantly. The operating margin increased to 21.6% for the three months ended June 30, 2026, compared to 17.6% in the same period of 2025. This was achieved through revenue growth and careful management of operating expenses.

The acquisition of Depop Limited, a C2C fashion marketplace, closed in July 2026 for $1.4 billion. This strategic move is expected to strengthen eBay's leadership in the circular fashion and recommerce sectors, expanding its reach within a key growth area.

eBay generated strong operating cash flow of $549 million for the quarter. The company continued its share repurchase program, buying back $310 million of common stock, and paid $138 million in cash dividends, demonstrating a balanced approach to capital allocation and shareholder returns.