Financial Data and Key Metrics Changes - For Q3 2025, the company reported GMV of $1.51 billion, up 33% year-over-year, and revenue of $221 million, up 25.5% year-over-year [9][25] - Adjusted gross profit for Q3 was $102 million, up 24% from last year, with quarterly adjusted EBITDA at $41.3 million, up 33% compared to the same quarter of last year, resulting in an 18.7% margin [9][30] - GAAP net profit for the quarter was $13.2 million, with free cash flow of $73.6 million, an increase of almost 250% compared to last year [9][31] Business Line Data and Key Metrics Changes - Service fee revenue for Q3 was $103.5 million, while fulfillment services revenue was $117.3 million [26] - Non-GAAP gross profit was $102.1 million, representing a gross margin of 46.3% compared to 46.7% in the same period last year [26][30] - The company continues to invest in R&D and sales and marketing, with R&D expenses at $26.1 million or 11.8% of revenue, and sales and marketing expenses at $26.4 million or 12% of revenue [27][29] Market Data and Key Metrics Changes - The company has seen strong market traction with its largest merchants across different destination markets, indicating resilience in trading volumes despite tariff changes [17][25] - New merchant launches included brands like Everlane and Ashford in the U.S., and Chloé in France, showcasing expansion across various geographies [18][19] Company Strategy and Development Direction - The company is raising its full-year 2025 guidance for GMV to approximately $6.46 billion, representing over a 33% annual growth rate, and revenue to $952.1 million, representing 26.5% growth [8][32] - A $200 million share repurchase program was authorized by the board, reflecting the company's strong cash generation and balance sheet [12][31] - The company is strategically focusing on AI and agentic e-commerce, aiming to capitalize on emerging market opportunities [14][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current trading patterns and the strong performance expected to continue into Q4 and beyond, with a robust pipeline of new merchant launches [17][23] - The company anticipates 2025 to be its first GAAP profitable year as a public company, reinforcing its path to meet medium-term targets [33][34] Other Important Information - The company is experiencing increased interest in its duty drawback offering due to rising global duty burdens, which is expected to be a critical component for merchants [10][39] - The BorderFree.com offering is seeing growth in shopper signups and sales conversion rates, indicating its value as a demand generation channel [11][66] Q&A Session Summary Question: Commentary on the duty drawback product and value-added services - Management highlighted the increasing importance of duty drawback services as global duty burdens rise, with potential for reclaiming duties on returned goods [39] Question: Pipeline and merchant growth heading into next year - Management remains optimistic about high demand for new services and the growth of the pipeline, driven by complexities in global e-commerce [41][42] Question: Service fee take rates and competitive dynamics - Management noted that service fee take rates have been slightly volatile due to a mix shift towards larger enterprise merchants, but no significant changes are expected [45][46] Question: Impact of tariffs on same-store sales and new merchant pipeline - Management acknowledged some weakness in specific corridors but remains optimistic about overall trading resilience and pipeline growth [53][62] Question: Contribution of ReturnGo acquisition to revenue - The ReturnGo acquisition is expected to contribute up to $1 million in revenue for Q4, with optimistic long-term potential [56][57] Question: Duty drawback explanation and rollout in new countries - Management provided a simplified explanation of how duty drawback works and the necessary steps for rollout in new jurisdictions [72][74] Question: Agentic Commerce and data flow integration - Management discussed the potential of Agentic Commerce to affect the entire e-commerce value chain and the company's positioning to enable AI-powered transactions [78][81]

Core Viewpoint - eBay Inc reported strong second-quarter earnings, leading to a rally in its shares, as the company continues to navigate post-pandemic economic recovery and changing consumer behaviors [1][2]. Financial Performance - eBay's gross merchandise value (GMV) for the second quarter was $19.5 billion, reflecting a year-on-year growth of 6.0%, surpassing Street expectations of 2.5% [9]. - The company reported revenue of $2.7 billion, which also exceeded analyst estimates [9]. - GMV growth was driven by strength in focus categories, particularly cards and collectibles, with a reported 4% increase over Street estimates [3]. Analyst Ratings and Price Targets - Cantor Fitzgerald's analyst maintained a Neutral rating and raised the price target from $69 to $85, citing GMV growth and positive management guidance for future quarters [3][4]. - Goldman Sachs reiterated a Sell rating but increased the price target from $53 to $72, highlighting significant outperformance in quarterly metrics and confidence in AI's role in enhancing the shopping experience [5]. - Needham's analyst reaffirmed a Hold rating while raising the price target from $78 to $95, noting accelerated growth across all focus categories [7]. - Wedbush maintained a Neutral rating with a price target of $72, emphasizing the company's strong performance against expectations [9]. Future Guidance - Management guided for third-quarter GMV growth of 3%-5% year-on-year, indicating a positive outlook for the remainder of the fiscal year [4]. - The company announced plans for $2.5 billion in share buybacks in 2025 and increased its quarterly dividend, suggesting a commitment to returning value to shareholders [6]. - Analysts noted potential margin pressures due to strategic reinvestments, despite encouraging third-quarter earnings guidance [8].