eBay(EBAY) - 2025 Q3 - Quarterly Results

Financial Performance - Revenue for Q3 2025 was $2.8 billion, representing a 9% increase on an as-reported basis and an 8% increase on an FX-Neutral basis[5] - GAAP net income from continuing operations was $597 million, or $1.28 per diluted share, a decrease of 6% year-over-year[8] - Non-GAAP net income from continuing operations was $636 million, or $1.36 per diluted share, an increase of 8% year-over-year[8] - eBay's net revenues for Q3 2025 reached $2,820 million, a 9% increase compared to $2,576 million in Q3 2024[29] - Gross profit for Q3 2025 was $1,999 million, up from $1,849 million in Q3 2024, reflecting a strong performance[29] - Operating income for Q3 2025 was $576 million, slightly down from $595 million in Q3 2024[29] - Net income for Q3 2025 was $632 million, compared to $634 million in Q3 2024, indicating stable profitability[29] - Non-GAAP operating income for the most recent quarter was $764 million, compared to $700 million in the same quarter last year[57] - Non-GAAP operating margin for the current quarter was 27.1%, slightly down from 27.2% in the prior year[57] - GAAP diluted net income per share for Q3 2025 was $1.28, slightly down from $1.29 in Q3 2024[59] - Non-GAAP diluted net income per share for Q3 2025 rose to $1.36, compared to $1.19 in Q3 2024, reflecting a 14.4% increase[59] Cash Flow and Dividends - The company returned $757 million to stockholders in Q3, including $625 million in share repurchases and $132 million in cash dividends[5] - eBay's cash and cash equivalents totaled $5.3 billion as of September 30, 2025[11] - The company announced a cash dividend of $0.29 per share for Q4 2025, payable on December 12, 2025[14] - Free cash flow for the nine months ended September 30, 2025, was $1,006 million, a decrease of 28% compared to $1,396 million for the same period in 2024[61] - Net cash provided by continuing operating activities for Q3 2025 was $934 million, an increase of 23.7% from $755 million in Q3 2024[61] Market Performance - Gross Merchandise Volume (GMV) reached $20.1 billion, up 10% on an as-reported basis and up 8% on an FX-Neutral basis[5] - eBay's advertising revenue generated $525 million in Q3 2025, accounting for 2.6% of GMV, with first-party advertising products increasing by 25% year-over-year[11] - Active Buyers for the current quarter reached 134 million, a 1% increase compared to the same quarter last year[1] - U.S. Gross Merchandise Volume (GMV) was $9.872 billion, reflecting a 13% year-over-year growth[1] - International GMV totaled $10.233 billion, showing a 7% increase from the prior year[1] - Total GMV for the quarter was $20.105 billion, a 10% increase compared to the same quarter last year[1] Guidance and Projections - The company provided Q4 2025 revenue guidance of $2.83 - $2.89 billion, with FX-Neutral year-over-year growth expected to be between 8% and 10%[12] - The company projects Q4 2025 GAAP net revenues between $2.83 billion and $2.89 billion[41] - Diluted EPS from continuing operations for Q4 2025 is expected to be between $0.96 and $1.01[41] - For the full year ending December 31, 2025, GAAP net revenues are projected to be between $10.97 billion and $11.03 billion[41] - The estimated Gross Merchandise Volume for the full year 2025 is between $78.9 billion and $79.3 billion[41] Balance Sheet and Financial Health - Total current assets decreased to $5,393 million in Q3 2025 from $7,567 million in Q4 2024[26] - Total liabilities decreased to $13,072 million in Q3 2025 from $14,207 million in Q4 2024, showing improved financial health[26] - eBay's total stockholders' equity decreased to $4,719 million in Q3 2025 from $5,158 million in Q4 2024[26] - Cash and cash equivalents at the end of Q3 2025 were $3,513 million, up from $2,372 million at the end of Q3 2024[31] Tax and Loss Provisions - The effective tax rate for GAAP continuing operations in Q3 2025 was -4.1%, compared to 20.2% in Q3 2024[59] - The company reported a non-GAAP effective tax rate of 16.5% for both Q3 2025 and Q3 2024, indicating stability in tax management[59] - The company reported a provision for transaction losses of $106 million in Q3 2025, compared to $89 million in Q3 2024[29] Acquisitions and Strategic Moves - eBay closed its acquisition of Tise, enhancing its C2C expertise and connection with Gen Z and Millennial shoppers[6] - Total purchases of property and equipment for the nine months ended September 30, 2025, were $408 million, up from $341 million in the same period of 2024[61] - Non-GAAP operating income from continuing operations for the nine months ended September 30, 2025, was $634 million, an increase of 51.3% from $419 million in 2024[59]