eBay Earnings Call Summary Company Overview - **Company**: eBay - **Key Executives**: Jamie Iannone (CEO), Peggy Alford (CFO) Core Industry Insights - **Focus on Non-New and Seasoned Products**: eBay has refocused on non-new and seasoned products, which now account for 90% of sales on the platform [5][6] - **Strategic Focus Areas**: eBay has identified three strategic focus areas: 1. Focus categories, which represent 35% of the experience and grew 12% in 2025 2. Consumer-to-Consumer (C2C) business, making up 25% of the business 3. Recommerce, with over 40% of products being used or refurbished, growing faster than new products [5][6][7] Financial Performance - **GMV Growth**: eBay reported an 8% FX neutral GMV growth in Q3 and Q4 of 2025, with overall GMV growth accelerating [11][12] - **Durability of Growth**: The growth is broad-based and durable, with focus categories growing at 12% and C2C at 10% [12][13] - **Collectibles Market**: The collectibles segment, including trading cards and coins, is experiencing structural growth due to innovations and partnerships [15][16][18] Acquisition and Market Expansion - **Depop Acquisition**: eBay plans to acquire Depop, a marketplace popular among Gen Z and millennials, to enhance its fashion category, which is over $10 billion and growing [8][9][10] - **eBay Live**: The new eBay Live feature is tracking a 7x year-over-year growth, expanding into new geographies like Australia, Germany, France, and Italy [19][20] Technological Innovations - **Agentic Commerce**: eBay is leveraging AI technologies to enhance the listing process and improve customer experience, including features like magical listing and agentic search capabilities [22][23][24] - **Internal AI Utilization**: AI is being used to streamline product development and customer support, increasing efficiency and reducing costs [29][30][32] Market Dynamics - **U.S. vs. International Growth**: The U.S. market has shown stronger performance compared to international markets, which are facing low consumer confidence and retail sales declines [52][53][54] - **Investment in Growth Areas**: eBay is focusing on strategic areas such as C2C, recommerce, and live commerce, while also managing operating income growth [40][41][42] Challenges and Opportunities - **Underappreciated Opportunities**: The potential of AI in enhancing customer experience and the broad-based growth across various categories are seen as underappreciated by investors [56][57][58] - **Capital Allocation Strategy**: eBay aims to allocate 90%-100% of organic free cash flow towards growth initiatives, including a $2 billion share buyback [49][50] Conclusion - eBay is positioned for strong growth through strategic focus on non-new products, technological innovations, and market expansion, while also navigating challenges in international markets and balancing profitability with growth investments. The upcoming acquisition of Depop and advancements in AI are expected to further enhance eBay's competitive edge in the e-commerce landscape.

Group 1: Company Actions - eBay is cutting 800 jobs, which represents 6% of its workforce, totaling approximately 12,300 employees as of December 31, 2025 [1] - The company recently acquired Depop, a Gen Z fashion app, for $1.2 billion in cash, aiming to enhance its reach among younger consumers [5][6] - eBay is aligning its structure with strategic priorities, which has led to the layoffs across its workforce [2] Group 2: Legal and Settlement Issues - eBay settled a civil lawsuit involving former executives who allegedly engaged in harassment against reporters, with the settlement amount undisclosed [4] - This lawsuit follows previous criminal sentences for former eBay executives in 2022 related to similar misconduct [4] Group 3: Market Position and Growth - Fashion accounts for over $10 billion in annual gross merchandise volume (GMV) for eBay, with a reported 10% year-over-year GMV growth in the U.S. for 2025 [7] - The acquisition of Depop is seen as an opportunity to advance eBay's presence in the fashion category and to target a younger demographic in the recommerce market [7]

Core Insights - eBay Inc. reported strong Q4 2025 earnings, with shares rising approximately 3.8% following the announcement, indicating resilience in consumer spending despite mixed macroeconomic signals [1] - The company exceeded revenue expectations, reporting $2.97 billion against an anticipated $2.87 billion, with gross merchandise volume (GMV) reaching $21.2 billion, reflecting nearly 6% global growth and close to 10% growth in the U.S. [2] - eBay announced the acquisition of Depop for $1.2 billion, aiming to enhance its appeal to Gen Z and Millennial consumers [2] Revenue and Growth Drivers - eBay's advertising revenue is approaching $2 billion annually, with Q4 total advertising revenue at $544 million, representing a GMV penetration of nearly 2.6% [3][4] - First-party ads grew over 17% to $517 million, with approximately 4.8 million sellers utilizing promoted listing products, indicating that advertising is becoming a standard practice on the platform [4] - The recommerce segment, which includes pre-owned and refurbished goods, accounted for over 40% of GMV in 2025 and experienced about 10% growth during the year, distinguishing eBay from competitors like Amazon [4] Strategic Positioning - The Q4 performance and GMV growth support a narrative of recovery for eBay, despite ongoing pressures from broader market sentiments related to artificial intelligence [5] - The integration of Depop is expected to provide a targeted approach to attract younger demographics, while advertising and recommerce are identified as sustainable growth engines [5]

Core Insights - eBay reported strong fourth-quarter results with GMV growth of over 8% to $21.2 billion and revenue growth of over 13% to $2.96 billion on an organic, FX-neutral basis [2][4][7] - The company ended 2025 with global GMV of approximately $80 billion, reflecting nearly 6% year-over-year growth, with U.S. GMV up nearly 10% [3][7] - eBay's acquisition of Depop for approximately $1.2 billion is expected to enhance its C2C value proposition and contribute to future GMV growth [6][13] Financial Performance - Non-GAAP operating income rose over 11% to $775 million, and non-GAAP earnings per share increased nearly 13% to $1.41 [2] - The take rate increased to 14%, up 60 basis points year-over-year, driven by shipping, buyer protection, and advertising [5][10] - Total advertising revenue in Q4 was $544 million, representing GMV penetration of nearly 2.6% [11] Strategic Initiatives - eBay's Focus Categories, consumer-to-consumer (C2C), and recommerce together comprised roughly two-thirds of the business, growing about 10% [3][7] - Collectibles were highlighted as the largest contributor to Q4 GMV growth, with notable strength in trading cards and precious metals [8] - Fashion generated well over $10 billion in GMV globally in 2025, with significant contributions from luxury and pre-loved apparel [9] Future Outlook - For Q1 2026, eBay guided to GMV of $21.5 billion to $21.9 billion, indicating 10%–12% FX-neutral growth [15] - The company expects the Depop acquisition to contribute 1–2 percentage points to total FX-neutral GMV growth in 2026, but may create a low single-digit headwind to near-term non-GAAP operating income growth [14] - eBay is targeting approximately $2 billion in share repurchases in 2026 and has raised the quarterly dividend to $0.31 per share [17]

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 [7][24] 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, driven by investments in pre-owned and refurbished goods [5] - Collectibles category was the largest contributor to GMV growth in Q4, with notable strength in trading cards and other collectibles [8][10] 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 at mid-single-digit rates [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][26] - 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][47] - The focus on AI-driven solutions, such as the next generation of Magical Listing and Agentic Search, is expected to enhance user experience and drive sales [18][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying health of the business, citing broad-based strength across strategic priorities [52] - The company anticipates continued strength from focus categories, C2C, and recommerce in 2026, despite potential headwinds from trade policies [41] - Management highlighted the importance of operational discipline and strategic investments to navigate a dynamic macro environment [7][49] 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 goods [22] - The company plans to target share repurchases and dividends totaling between 90%-100% of free cash flow in a normal year [44] - The company is adopting new accounting standards that will impact revenue recognition and operating income reporting starting in 2026 [36] Q&A Session Questions and Answers Question: What has changed to drive the improvement in domestic market performance? - Management noted that years of investment are paying off, with broad-based strength across strategic priorities driving significant GMV growth [52] Question: How much contribution from newer emerging vectors like eBay Live is expected in the guidance for this year? - Management emphasized that while they are excited about new growth vectors, the core business's strength remains the primary driver of growth [54] Question: Are there any changes in the competitive environment in key international markets? - Management acknowledged a divergence between the U.S. and international markets, with Europe facing more challenges due to low consumer confidence [57] Question: What user behavior changes are expected with the rollout of agentic commerce? - Management expressed confidence that the differentiated experiences being built will position the company well in the agentic AI world, enhancing user engagement and reducing transactional friction [62]

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]

Q4'25 & FY'25 Business & Financial Highlights February 18, 2026 © 2026 eBay | Business & Financial Highlights Q4'25 & FY'25 Disclosures This presentation contains non -GAAP measures relating to our performance. You can find the reconciliation of these measures, exc ept for FX -Neutral basis, to the nearest comparable GAAP measures in the appendix at the end of this presentation. All growth rates represent year -over - year comparisons, except as other wise noted. For numbers in this presentation provided on ...

Core Viewpoint - EBay Inc has forecasted first-quarter revenue above Wall Street estimates and announced the acquisition of fashion marketplace Depop for nearly $1.2 billion, resulting in a significant increase in its share price [1][2]. Financial Performance - EBay expects first-quarter revenue to be between $3 billion and $3.05 billion, surpassing analysts' average estimate of $2.80 billion [2]. - The company reported fourth-quarter revenue of $2.97 billion, exceeding the estimate of $2.88 billion, with a gross merchandise volume (GMV) growth of 10% to $21.24 billion [4]. Acquisition Details - The acquisition of Depop is aimed at enhancing EBay's presence in the pre-loved fashion category, which is experiencing strong momentum [2][3]. - The deal is expected to close in EBay's second quarter and is projected to contribute one to two percentage points to total GMV growth year-over-year by 2026 [3]. Market Strategy - EBay is focusing on "recommerce" and its role in the circular economy by emphasizing pre-owned, refurbished, and authenticated goods, which aligns with the younger generation's interest in sustainability and recycling [1][3].

Core Insights - eBay Inc. reported strong financial results for Q4 and full year 2025, highlighting a 15% increase in revenue to $3.0 billion and a 10% increase in Gross Merchandise Volume (GMV) to $21.2 billion [1][2] - The company declared a cash dividend of $0.31 per share for Q1 2026, marking a 7% increase from the previous quarter [1] - eBay's strategic initiatives, including AI integration and partnerships, have reinforced its leadership in the recommerce sector [1][2] Financial Highlights Fourth Quarter 2025 - Revenue reached $2.965 billion, up 15% year-over-year [2] - GAAP net income from continuing operations was $525 million, or $1.14 per diluted share, a decrease of 23% compared to the previous year [2] - Non-GAAP net income was $648 million, or $1.41 per diluted share, an increase of 7% year-over-year [2] - Operating cash flow was $595 million, with free cash flow at $478 million [2] Full Year 2025 - Total revenue was $11.1 billion, an 8% increase from 2024 [2] - GAAP net income from continuing operations was $2.0 billion, or $4.26 per diluted share, a 1% increase year-over-year [2] - Non-GAAP net income was $2.6 billion, or $5.52 per diluted share, a 6% increase from the previous year [2] - The company returned over $3.0 billion to stockholders, including $2.5 billion in share repurchases [2] Business Developments - eBay launched AI Activate in the U.K. to support small businesses with AI tools [1] - The company entered a multi-year partnership with Condé Nast, enhancing its presence in pre-loved fashion [1] - eBay expanded its Authenticity Guarantee in Germany and the U.K., increasing trust in pre-loved categories [1] - The company introduced a new AI-powered card scanning experience to assist collectors [1] Market Position and Recognition - eBay was recognized in various awards, including TIME's World's Best Companies and Fortune's Most Innovative Companies [1] - The eBay Foundation granted over $17 million to nonprofits focused on inclusive entrepreneurship in 2025 [1] - eBay's fifth annual Recommerce Report indicated sustained growth in pre-loved shopping, with nearly 90% of consumers expecting to maintain or increase spending [1] Future Outlook - For Q1 2026, eBay expects revenue between $3.00 billion and $3.05 billion, with GMV projected between $21.5 billion and $21.9 billion [2] - The company anticipates FX-Neutral year-over-year growth of 13% to 15% for revenue and 10% to 12% for GMV [2] - eBay announced a definitive agreement to acquire Depop, a leading C2C fashion marketplace, for approximately $1.2 billion [2]

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]