Financial Performance - Net revenues for Q3 2025 were $2,820 million, a 9.5% increase from $2,576 million in Q3 2024[19] - Gross profit for the nine months ended September 30, 2025, was $5,815 million, compared to $5,542 million for the same period in 2024, reflecting a 4.9% increase[19] - Net income for Q3 2025 was $632 million, slightly down from $634 million in Q3 2024[19] - Basic net income per share for Q3 2025 was $1.39, compared to $1.31 in Q3 2024, marking a 6.1% increase[19] - eBay's net income for the nine months ended September 30, 2025, was $1,503 million, an increase of 16% compared to $1,296 million for the same period in 2024[25] - The total net revenues for the nine months ended September 30, 2025, reached $8,135 million, a 5.6% increase from $7,704 million in the same period of 2024[54] Expenses and Liabilities - Operating expenses for the nine months ended September 30, 2025, totaled $4,139 million, up from $3,767 million in the same period of 2024, indicating a 9.8% increase[19] - Total current assets decreased to $5,393 million as of September 30, 2025, down from $7,567 million as of December 31, 2024[17] - Total liabilities decreased to $13,072 million as of September 30, 2025, compared to $14,207 million as of December 31, 2024[17] - Operating expenses for Q3 2025 totaled $1,423 million, a 13% increase from $1,254 million in Q3 2024, with general and administrative expenses rising by 46%[202] Cash Flow and Investments - Cash provided by operating activities for the nine months ended September 30, 2025, was $1,376 million, compared to $1,737 million for the same period in 2024, reflecting a decrease of 20.8%[25] - Cash, cash equivalents, and restricted cash at the end of the period increased to $3,513 million from $2,372 million in the previous year[26] - The total cash, cash equivalents, and restricted cash amounted to $3,513 million as of September 30, 2025[100] - The company repurchased $1,888 million of common stock during the nine months ended September 30, 2025, compared to $2,268 million in the same period of 2024[25] Equity and Stockholder Information - The total stockholders' equity at the end of the period was $4,719 million, down from $5,420 million in the previous year[23] - eBay repurchased 25 million shares of common stock at an average price of $74.03 per share, totaling $1.875 billion, leaving an authorized amount of $1.423 billion as of September 30, 2025[151] - The total stock-based compensation expense for the three months ended September 30, 2025, was $147 million, slightly up from $146 million in 2024, while for the nine months, it was $448 million compared to $446 million in 2024[156] Market Performance - Marketplace revenues increased to $2,295 million for the three months ended September 30, 2025, compared to $2,168 million in the same period of 2024, representing a growth of 5.9%[54] - eBay's advertising revenues rose to $525 million for the three months ended September 30, 2025, a significant increase of 28.7% from $408 million in the same period of 2024[54] - Gross Merchandise Volume (GMV) grew to $20,105 million for the three months ended September 30, 2025, reflecting a 10% increase year-over-year[192] Debt and Financing - Long-term debt decreased to $5,003 million as of September 30, 2025, from $5,752 million as of December 31, 2024[17] - As of September 30, 2025, total debt amounted to $6.751 billion, a decrease from $7.425 billion as of December 31, 2024, representing a reduction of approximately 9.0%[124] - The estimated fair value of senior notes was $5.7 billion as of September 30, 2025, down from $6.3 billion as of December 31, 2024, reflecting a decline of about 9.5%[131] Tax and Legal Matters - The company is under examination by tax authorities for the tax years 2010 to 2023, with potential adjustments being uncertain due to the number of years and matters involved[159] - The company paid $59 million as part of a settlement agreement with the DEA in January 2024, resolving allegations of noncompliance[140] Other Financial Metrics - The company reported a comprehensive income of $649 million for Q3 2025, compared to $701 million for Q3 2024[21] - The company recognized a total loss of $17 million from foreign exchange derivative contracts for the three months ended September 30, 2025[94] - The company recorded a discrete net tax benefit in Q3 2025 related to the One Big Beautiful Bill Act, which allows for immediate expensing of domestic R&D and certain capital expenditures[161]

Core Viewpoint - eBay's stock price declined over 14% following a profit forecast that did not meet investor expectations [1] Group 1: Financial Performance - eBay's third-quarter revenue increased by 9% year over year, reaching $2.8 billion [3] - The gross merchandise volume (GMV) rose by 10% to $20.1 billion, reflecting the total value of merchandise sold on its platforms [3] - The company generated $803 million in free cash flow from continuing operations during the third quarter, allowing for $757 million to be returned to shareholders through dividends and stock buybacks [5] Group 2: Business Outlook - Management projected adjusted earnings per share for the fourth quarter to be between $1.31 and $1.36, which is below analysts' expectations of $1.39 [6] - The suspension of the de minimis exemption for imports under $800 for tariffs has begun to negatively impact transaction volumes since September [6] Group 3: Technological Integration - eBay is incorporating artificial intelligence (AI) features into its platform to enhance transactions between buyers and sellers, including a new AI-powered messaging tool [4] - The CEO emphasized the transformation of the eBay experience through AI, leveraging 30 years of insights while improving programs in shipping, live commerce, and circular fashion [4]

Core Insights - eBay Inc. reported third-quarter 2025 non-GAAP earnings of $1.36 per share, exceeding the Zacks Consensus Estimate by 2.26%, with a year-over-year increase of 14.3% [1][7] - Net revenues reached $2.82 billion, surpassing the Zacks Consensus Estimate by 2.9%, and reflecting a 9.5% increase from the previous year [1][7] Revenue and Advertising Performance - First-party advertising products generated revenues of $496 million, marking a 25% increase on an as-reported basis and 23% on an FX-neutral basis [2] - Total advertising offerings yielded $525 million in revenues, accounting for 2.6% of gross merchandise volume (GMV) [2] Gross Merchandise Volume (GMV) Details - Total GMV for the quarter was $20.11 billion, showing a year-over-year growth of 10% on a reported basis and 8% on an FX-neutral basis, surpassing the Zacks Consensus Estimate of $19.42 billion [3] - U.S. GMV was $9.87 billion, representing 49.1% of total GMV, with a 13% year-over-year increase, while international GMV was $10.23 billion, accounting for 50.9% of total GMV, with a 7% year-over-year increase [3] Operating Expenses and Margins - Operating expenses totaled $1.42 billion, up 13.5% year over year, with operating expenses as a percentage of net revenues increasing by 180 basis points to 48.7% [4] - The non-GAAP operating margin was 27.1%, contracting by 10 basis points year over year [4] Balance Sheet and Cash Flow - As of September 30, 2025, cash equivalents and short-term investments were $3.38 billion, down from $3.75 billion as of June 30, 2025 [5] - Long-term debt remained stable at $5 billion, while cash flow from operating activities was $934 million, a significant recovery from negative $307 million in the previous quarter [5] Free Cash Flow and Shareholder Returns - Free cash flow from continuing operations was reported at $803 million, with $625 million used for share repurchases and $132 million for cash dividends [6] - Approximately $1.4 billion remains under the buyback authorization as of September 30, 2025 [6] Future Guidance - For Q4 2025, eBay expects revenues between $2.83 billion and $2.89 billion, with an anticipated FX-neutral revenue growth of 8-10% [8] - The non-GAAP operating margin for Q4 is projected to be between 25.8% and 26.3%, with GMV expected in the range of $20.5 billion to $20.9 billion [8] - For the full year 2025, revenues are expected to be between $10.97 billion and $11.03 billion, with an FX-neutral revenue growth of 6-6% [9]

Core Viewpoint - eBay's stock experienced a significant decline despite reporting better-than-expected third-quarter results, attributed to a mixed outlook for the holiday quarter and high expectations set by previous stock performance [1][4]. Financial Performance - eBay reported adjusted earnings of $1.36 per share for the September-ended quarter, a 14% increase from the previous year, surpassing analyst expectations of $1.33 per share [2]. - Sales rose by 9% to $2.82 billion, exceeding analyst estimates of $2.73 billion [2]. Management Commentary - CEO Jamie Iannone highlighted the company's ongoing momentum and strategic execution, emphasizing the transformation of the eBay experience through AI and enhanced shipping and commerce programs [3]. - For the upcoming quarter, eBay projected sales of $2.86 billion, slightly above the $2.8 billion forecasted by analysts, but adjusted earnings guidance of $1.31 to $1.36 per share fell short of the $1.38 expected by analysts [3]. Market Reaction - Following the earnings report, eBay's stock fell over 14% to $85.31, marking its largest single-day drop since October 2008 [4]. - Analyst Mark Mahaney attributed the sell-off to lower-than-expected Q4 earnings per share and operating margin outlook, along with a soft growth outlook for 2026 [4]. Growth Outlook - eBay's CFO indicated expectations for a third consecutive year of positive gross merchandise volume (GMV) and revenue growth, but noted challenges in comparing to a strong previous year [4]. - The company projected a 5% growth in GMV for 2025, which disappointed some investors regarding the 2026 outlook [5]. Analyst Perspectives - Analyst Stephen Ju expressed concerns about eBay's 2026 GMV growth against tougher comparisons, reiterating a neutral stance on the stock [5]. - Some analysts suggested a broader view, indicating that eBay could benefit from innovations and agentic shopping trends, with Needham analyst Bernie McTernan maintaining a buy rating and raising the price target from $95 to $115 [8][9].

Core Insights - The earnings reports from Microsoft, Alphabet, and Meta reinforce the bullish investment thesis in AI, with significant capital expenditures expected to drive future growth [2][10][18] - Chipotle's recent earnings report was disappointing, highlighting challenges with younger consumers who are reducing spending, leading to a significant drop in its stock price [7][41][46] Company Earnings Analysis - Microsoft, Google, and Meta collectively spent $78 billion on capital expenditures in Q3, marking an 89% increase year-over-year, indicating a strong commitment to AI investments [10][12][18] - Alphabet's earnings report was particularly strong, exceeding expectations across various metrics, including cloud revenue and daily active users [18][22] - Meta's stock fell nearly 12% following its earnings report, as the company emphasized prioritizing AI infrastructure over short-term returns, which raised concerns among investors [6][28][30] Market Reactions - The overall market showed a negative trend, with major indices declining as investors reacted to the earnings reports and comments from the Federal Reserve regarding interest rates [3][4] - Chipotle's stock dropped over 19% after the company reported that younger consumers are pulling back on spending, which is a significant portion of its customer base [7][46] - Analysts expressed mixed feelings about Microsoft’s performance, suggesting it may present a buying opportunity despite some concerns about Azure growth [20][22] Economic Context - The unemployment rate for young people has risen to 9.2%, up from 7.9% a year ago, contributing to reduced spending among this demographic [46] - Inflation and rising costs are impacting consumer behavior, with companies like Chipotle unable to raise prices significantly without losing customers [54][55] Future Outlook - OpenAI is preparing for an IPO that could value the company at $1 trillion, but concerns about profitability and capital needs remain [56][60] - Microsoft is viewed as a safer investment compared to OpenAI, given its established market position and ongoing growth in cloud services [68]

About this content About Sean Mason Sean Mason is a Senior Journalist at Proactive, having researched and written about Canadian and US equities for 20 years. Sean graduated from the University of Toronto with a BA in history and economics and has also passed the Canadian Securities Course. He previously worked at Investors Digest of Canada, Stockhouse, and SmallCapPower.com. Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and action ...

Core Viewpoint - eBay's stock experienced a significant decline of nearly 14%, marking its largest drop in over twenty years, following a Q4 earnings guidance that fell short of market expectations [1] Financial Performance - In Q3, eBay reported a year-over-year sales increase of 9%, reaching $2.82 billion, which surpassed market expectations of $2.73 billion [1] - Adjusted earnings per share for the quarter were $1.36, slightly above the anticipated $1.33 [1] - The total merchandise volume for the period was $20.1 billion, reflecting a 10% year-over-year growth [1] Q4 Guidance - For Q4, eBay's sales guidance midpoint is projected at $2.86 billion, marginally exceeding the market expectation of $2.8 billion [1] - The earnings per share guidance for Q4 is estimated to be between $1.31 and $1.36, which is below the market expectation of $1.38 [1]

Core Viewpoint - eBay experienced a significant decline of nearly 14%, marking its largest drop in over twenty years, closing at $86.76 despite reporting better-than-expected third-quarter results [1] Financial Performance - The company reported a 9% year-over-year increase in sales, reaching $2.82 billion, surpassing market expectations of $2.73 billion [1] - Adjusted earnings per share were $1.36, slightly above the market forecast of $1.33 [1] - Total merchandise volume for the period was $201 billion, reflecting a 10% year-over-year growth [1] Future Guidance - For the fourth quarter, eBay's sales guidance median is set at $2.86 billion, which is slightly above the market expectation of $2.8 billion [1] - The projected earnings per share range is between $1.31 and $1.36, which is below the anticipated $1.38 [1]

eBay一度暴跌14.5%，创下二十多年来最大跌幅。此前公司第四财季盈利指引不及预期，管理层预测假日季度利润低于预期。 https://t.co/LCz5yFmObV ...

Core Viewpoint - eBay's stock experienced a significant drop of over 15% in early trading, reaching a three-month low of $83.925 despite reporting better-than-expected third-quarter sales and earnings [1] Financial Performance - eBay reported a 9% year-over-year increase in sales, totaling $2.82 billion, surpassing market expectations of $2.73 billion [1] - Adjusted earnings per share (EPS) were $1.36, slightly above the market forecast of $1.33 [1] - The total gross merchandise volume (GMV) for the period was $20.1 billion, reflecting a 10% year-over-year growth [1] Future Guidance - For the fourth quarter, eBay's sales guidance midpoint is projected at $2.86 billion, which is slightly above the market expectation of $2.8 billion [1] - The company anticipates earnings per share in the range of $1.31 to $1.36, which is below the expected $1.38 [1]