eBay Q4 Earnings & Revenues Surpass Estimates, Both Increase Y/Y

Core Insights - eBay Inc. reported fourth-quarter 2025 non-GAAP earnings of $1.41 per share, exceeding the Zacks Consensus Estimate by 3.68%, with a year-over-year increase of 12.8% [1] - Net revenues reached $2.97 billion, surpassing the Zacks Consensus Estimate by 2.98%, and increased by 15% year over year [1] Revenue and Advertising Performance - First-party advertising products generated revenues of $517 million, up 19% year over year, while total advertising offerings yielded $544 million, representing 2.6% of gross merchandise volume (GMV) [2] - eBay's active buyer base was 135 million at the end of Q4, reflecting a 1% year-over-year increase and surpassing the consensus mark by 0.23% [2] GMV Analysis - Total GMV for the quarter was $21.24 billion, showing a year-over-year growth of 10% and exceeding the Zacks Consensus Estimate of $20.79 billion [3] - U.S. GMV totaled $10.72 billion, accounting for 50.5% of total GMV, with an 18.6% year-over-year increase, while international GMV was $10.52 billion, accounting for 49.5% of total GMV, with a 2.3% year-over-year increase [4] Operating Expenses and Margins - Operating expenses were $1.52 billion, growing 14.9% year over year, maintaining a flat percentage of net revenues at 51.1% [5] - The non-GAAP operating margin was 26.1%, contracting by 90 basis points year over year [5] Balance Sheet and Cash Flow - As of December 31, 2025, cash equivalents and short-term investments were $2.92 billion, down from $3.38 billion as of September 30, 2025 [6] - Long-term debt increased to $6 billion from $5 billion in the prior quarter, indicating higher leverage [6] - Cash flow from operating activities was $595 million, down from $934 million in the previous quarter, while free cash flow decreased to $478 million from $803 million [7] Future Guidance - For Q1 2026, eBay expects revenues between $3.00 billion and $3.05 billion, with FX-neutral revenue growth anticipated at 13%-15% [9] - Non-GAAP operating margin for Q1 2026 is projected to be between 28.3% and 29.2%, with GMV expected to be in the range of $21.5 billion to $21.9 billion, anticipating 10%-12% FX-neutral GMV growth [9] - Non-GAAP earnings per share are expected to be between $1.53 and $1.59, with revenue growth projected to align with GMV growth on a year-over-year, FX-neutral basis [10]