Financial Data and Key Metrics Changes - Gross merchandise volume (GMV) grew nearly 6% to approximately $80 billion globally in 2025, with U.S. GMV growing nearly 10% [4] - Revenue increased by nearly 7% to $11.1 billion, outpacing GMV growth [6] - Non-GAAP operating income grew by roughly 7% to nearly $3.1 billion, and Non-GAAP earnings per share increased by 13% to $5.52 [7] Business Line Data and Key Metrics Changes - Focus Categories GMV growth accelerated to over 12%, contributing significantly to overall GMV growth [4] - Recommerce accounted for over 40% of GMV on the eBay platform in 2025, with significant investments made in this area [5] - The collectibles category was the largest contributor to GMV growth in Q4, driven by trading cards and other collectibles [8] Market Data and Key Metrics Changes - U.S. GMV grew nearly 19% in Q4, benefiting from strength in collectibles and luxury categories [29] - International GMV declined nearly 1% on an organic FX neutral basis, impacted by macroeconomic conditions in Europe [30] - Trailing twelve-month active buyers totaled roughly 135 million in Q4, with U.S. active buyers growing significantly [30] Company Strategy and Development Direction - The company plans to accelerate investments in strategic growth vectors like eBay Live and Vehicles, which are expected to drive future growth [25] - The acquisition of Depop for approximately $1.2 billion is aimed at strengthening the C2C value proposition and expanding the company's presence in the fashion market [7][45] - The focus on AI-driven innovations, such as the next generation of Magical Listing, is expected to enhance user experience and drive sales [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying health of the business, noting broad-based strength across categories [52] - The company anticipates continued growth in 2026, driven by established strategic priorities and emerging growth vectors [41] - Management acknowledged challenges in international markets but highlighted the resilience of Focus Categories [58] Other Important Information - The company exceeded its five-year impact goals, achieving a cumulative positive economic impact of close to $25 billion from recommerce [22] - The company plans to adopt new accounting standards that will affect revenue recognition and operating income reporting starting in 2026 [36] Q&A Session Summary Question: What has changed to drive the sustained acceleration in the U.S. market? - Management noted that years of investment are paying off, with broad-based strength across strategic Focus Categories, C2C, and recommerce [52] Question: How much contribution from newer emerging vectors is expected in the guidance for this year? - Management emphasized that while they are excited about new growth vectors, the strength of the core business remains the primary driver [54] Question: Are there any changes in the competitive environment in key international markets? - Management acknowledged a dynamic macro environment, with the U.S. performing well while Europe faces challenges [57] Question: What user behavior changes are expected with the rollout of agentic commerce? - Management expressed confidence in the differentiated experience being built, leveraging AI to enhance user interactions and reduce transactional friction [60] Question: How will the acquisition of Depop impact the overall fashion segment at eBay? - Management highlighted that combining eBay and Depop will enhance the fashion segment, particularly in the U.K. and Australia, leveraging Depop's strengths [68]

Financial Data and Key Metrics Changes - Gross merchandise volume (GMV) grew nearly 6% to approximately $80 billion globally in 2025, with U.S. GMV growing nearly 10% [4] - Revenue increased by nearly 7% to $11.1 billion, outpacing GMV growth by over 1 percentage point [6] - Non-GAAP operating income grew by roughly 7% to nearly $3.1 billion, and non-GAAP earnings per share increased by 13% to $5.52 [8] Business Line Data and Key Metrics Changes - Focus Categories GMV growth accelerated to over 12%, contributing significantly to overall GMV growth [4] - Recommerce accounted for over 40% of GMV on the eBay platform in 2025, with strategic investments driving this segment [5] - The collectibles category was the largest contributor to GMV growth in Q4, driven by trading cards and other collectibles [9] Market Data and Key Metrics Changes - U.S. GMV grew nearly 19% in Q4, benefiting from strength in collectibles and luxury categories [31] - International GMV declined nearly 1% on an organic FX neutral basis, impacted by macroeconomic conditions in Europe [32] - Trailing twelve-month active buyers totaled roughly 135 million in Q4, with U.S. active buyers growing at mid-single-digit rates [32] Company Strategy and Development Direction - The company plans to accelerate investments in areas like eBay Live, Vehicles, and full-funnel marketing to support key categories and geographies [8] - The acquisition of Depop for approximately $1.2 billion aims to strengthen the C2C value proposition and expand the company's presence in the fashion market [9][48] - The company is focusing on enhancing its AI capabilities to improve user experience and operational efficiency [20][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying health of the business, noting broad-based strength across strategic priorities [54] - The company anticipates continued growth in 2026, driven by established strategic priorities and emerging growth vectors [43] - Management acknowledged challenges in international markets but highlighted resilience in the U.S. market [60] Other Important Information - The company exceeded its five-year impact goals, achieving a cumulative positive economic impact of close to $25 billion from the sale of pre-loved and refurbished goods [24] - The company plans to target share repurchases and cash dividends totaling between 90%-100% of free cash flow in a normal year [46] Q&A Session Summary Question: What has changed to drive improvement in the domestic market? - Management noted that years of investment are paying off, with broad-based strength across strategic priorities driving significant GMV growth [54] Question: How much contribution from newer emerging vectors like eBay Live? - Management emphasized that while new growth vectors are exciting, the core business remains the primary driver of strength [56] Question: Changes in the competitive environment in key markets? - Management acknowledged a dynamic macro environment, with the U.S. showing resilience while Europe faces challenges [60] Question: User behavior changes expected with the rollout of agentic features? - Management expressed confidence in the differentiated experience being built, leveraging AI to enhance user interactions and reduce transactional friction [63]

Etsy sells secondhand clothing marketplace Depop to eBay for $1.2B https://t.co/eMocY5C9Pr ...

Group 1 - Etsy is selling Depop, a secondhand clothing app, to eBay for $1.2 billion in cash to focus on its own marketplace [1] - Depop generated approximately $1 billion in gross merchandise sales in 2025, with nearly 60% year-over-year growth in the U.S. [2] - As of December 31, 2025, Depop had seven million active buyers, with nearly 90% under 34 years old, and over three million active sellers [2] Group 2 - eBay CEO Jamie Iannone expressed confidence that Depop will benefit from eBay's scale and operational capabilities, positioning it for long-term growth [3] - Etsy's year-over-year revenue growth was 2.2% in 2024, a decline from 7.1% growth in 2023 [4] - Etsy CEO Kruti Patel Goyal stated that the transaction allows the company to focus on growing the Etsy marketplace [5] Group 3 - The sale of Depop is part of a pattern where Etsy has acquired and then divested niche online marketplaces, including Elo7 and Reverb [8] - The deal is expected to close in the second quarter of this year [9]

Core Viewpoint - Etsy shares surged over 17% following the announcement of eBay's acquisition of Depop for approximately $1.2 billion in cash, marking a significant financial event for the company [1]. Group 1: Company Actions - eBay is set to acquire Depop, a secondhand clothing reseller, for about $1.2 billion in cash [1]. - This acquisition comes nearly five years after Etsy purchased Depop for around $1.62 billion, indicating a strategic shift in the marketplace [1]. Group 2: Market Impact - The announcement led to a notable increase in Etsy's stock price, with shares rising more than 17% [1]. - The acquisition is expected to enhance eBay's presence among younger consumers who are attracted to the secondhand market [1].

Exhibit 2.1 Execution Version SALE AND PURCHASE AGREEMENT BY AND BETWEEN eBay Inc. and Etsy, Inc. Dated as of February 15, 2026 ARTICLE I | DEFINITIONS; | | INTERPRETATION 27 | | --- | --- | --- | | Section | 1.1 | Definitions 27 | | Section | 1.2 | Interpretation 46 | ARTICLE II | THE | SALE AND | PURCHASE; | CLOSING; | PURCHASE PRICE AND PAYMENT 47 | | --- | --- | --- | --- | --- | | | Section | 2.1 The | | Closing 47 | | | Section | 2.2 The | Sale and | Purchase 48 | | | Section | 2.3 Purchase | | Price ...

Core Viewpoint - eBay is set to acquire Depop from Etsy for approximately $1.2 billion in cash, enhancing eBay's consumer-to-consumer (C2C) value proposition and expanding its reach among Gen Z and Millennial consumers [1] Group 1: Acquisition Details - eBay will acquire Depop, a leading C2C fashion marketplace, for about $1.2 billion, subject to purchase price adjustments [1] - The acquisition is expected to close in the second quarter of 2026, pending regulatory approvals and other closing conditions [1] - eBay plans to fund the acquisition using cash on hand, while Etsy will use the proceeds for corporate purposes, share repurchases, and investment in its core marketplace [1] Group 2: Market Position and Growth - Depop reported annual gross merchandise sales (GMS) of approximately $1 billion in 2025, with nearly 60% year-over-year growth in the U.S. [1] - As of December 31, 2025, Depop had 7 million active buyers, with nearly 90% under the age of 34, and over 3 million active sellers [1] - eBay's fashion segment represents more than $10 billion in annual gross merchandise volume (GMV), with a 10% year-over-year GMV growth in the U.S. in 2025 [1] Group 3: Strategic Implications - The acquisition will deepen eBay's reach with younger, fashion-forward consumers and expand its presence in the dynamic resale market [1] - Depop will benefit from eBay's global scale, financial services, shipping solutions, and trusted experiences like Authenticity Guarantee [1] - eBay aims to enhance the buyer and seller experience on Depop through increased visibility and cross-listing opportunities [1]

Company Overview - Etsy, Inc. operates two-sided online marketplaces connecting millions of buyers and sellers globally, with a mission to "Keep Commerce Human" [4][5] - The primary marketplace, Etsy.com, is known for unique and creative goods, catering to both buyers seeking inspiration and sellers needing business tools [4] Financial Results Announcement - Etsy plans to release its fourth quarter and full year 2025 financial results before the market opens on February 19, 2026 [1] - A video webcast conference call will be held at 8:30 a.m. Eastern Time on the same day to discuss the results, allowing publishing research analysts to ask questions [2] Additional Information - A replay of the video webcast will be available starting at 12:00 p.m. Eastern Time on the same day, accessible for at least three months [3] - The company utilizes its Investor Relations website and Etsy News Blog for disclosing material non-public information and compliance with disclosure obligations [6]

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgent need for energy to support its growth [1][2][3] Investment Opportunity - A specific company is highlighted as a potential investment opportunity, possessing critical energy infrastructure assets that are essential for meeting the increasing energy demands of AI data centers [3][7] - This company is not a chipmaker or cloud platform but is positioned to benefit significantly from the anticipated surge in electricity demand driven by AI technologies [3][6] Energy Demand and Infrastructure - AI technologies, particularly large language models like ChatGPT, are extremely energy-intensive, with data centers consuming as much energy as small cities [2] - The company in focus is involved in nuclear energy infrastructure, which is crucial for America's future power strategy, and is capable of executing large-scale engineering, procurement, and construction projects across various energy sectors [7][8] Financial Position - The company is noted for being completely debt-free and holding a substantial cash reserve, amounting to nearly one-third of its market capitalization, which positions it favorably compared to other energy firms burdened with debt [8][10] - It is trading at a low valuation of less than 7 times earnings, making it an attractive option for investors seeking exposure to both AI and energy sectors [10] Market Trends - The company is poised to benefit from the onshoring trend driven by tariffs, as well as the surge in U.S. LNG exports under the current administration's energy policies [5][14] - There is a growing recognition on Wall Street of this company's potential, as it quietly capitalizes on multiple favorable market trends without the inflated valuations seen in other sectors [8][9] Future Outlook - The influx of talent into the AI sector is expected to drive continuous innovation and advancements, reinforcing the importance of investing in AI-related opportunities [12] - The overall narrative suggests that investing in AI and the associated energy infrastructure is not just about financial returns but also about participating in a transformative technological revolution [15][19]

Core Viewpoint - The rise of online shopping is a significant secular trend, prompting investor interest in the e-commerce sector, particularly in companies like Etsy, which is currently undervalued compared to its historical performance [1][2]. Industry Overview - Advancements in internet speeds and smartphone adoption have facilitated the growth of e-commerce, which is expected to continue as physical retail still dominates consumer spending in the U.S. [2]. - The e-commerce sector is characterized by a durable trend, making it an attractive area for investment [1]. Company Analysis: Etsy - Etsy is currently trading at a price-to-sales ratio of 2.3, marking a historically attractive valuation point for the company [3]. - The company has carved out a niche in the market for unique, handcrafted, and vintage goods, differentiating itself from larger competitors like Amazon [4]. - A 2023 survey indicated that 83% of Etsy buyers believe the marketplace offers items that cannot be found elsewhere, highlighting its unique value proposition [4]. Business Model - Etsy operates an asset-light business model, connecting 86.6 million active buyers with 5.5 million active sellers without holding inventory or managing logistics [5]. - This model creates a network effect, enhancing the platform's value as more users join, benefiting both buyers and sellers [5]. Financial Performance - Etsy's marketplace processed $2.4 billion in gross merchandise sales in Q3 2025, reflecting an 11% decline compared to the same period in 2021, attributed to reduced consumer spending on discretionary items [7]. - The company has faced increased expenses in product development and marketing, which may pose challenges for future growth [7]. - Despite its low stock price, there is a recommendation for investors to wait for clear signs of fundamental improvements before making purchases [7].