eBay Inc. (NASDAQ: EBAY)

eBay’s first quarter 2025 results demonstrated resilience in a dynamic demand environment, with revenue reaching $2.6 billion, up 1% year-over-year on an as-reported basis and 2% on an FX-Neutral basis. Gross Merchandise Volume (GMV) followed a similar pattern, growing 1% as-reported to $18.8 billion and 2% on an FX-Neutral basis.

The company delivered strong earnings growth with GAAP EPS increasing 25% to $1.06 and Non-GAAP EPS rising 10% to $1.38. GAAP net income from continuing operations was $505 million, a 15% increase from the prior year, while Non-GAAP net income reached $657 million, up 1% year-over-year.

Operating margins remained robust though slightly decreased from the previous year, with GAAP operating margin at 23.8% (down 0.9 percentage points) and Non-GAAP operating margin at 29.8% (down 0.5 percentage points). This reflects the company’s continued investment in strategic initiatives while maintaining disciplined cost management.

Cash flow generation remained strong with $787 million in operating cash flow and $644 million in free cash flow during the quarter. eBay continued its commitment to returning capital to shareholders, distributing $759 million through $625 million in share repurchases and $134 million in cash dividends.

eBay made significant progress on key strategic initiatives during the first quarter, with a focus on enhancing the platform experience, expanding trust and safety features, and leveraging artificial intelligence technologies:

AI-Powered Innovation

• AI Listing Technology: Rolled out a simplified, AI-powered listing flow to all C2C customers in the U.S., U.K. and Germany, leveraging “magical listing technology” to improve the ease, speed, and quality of listing creation
• OpenAI Collaboration: Announced partnership with OpenAI on its AI agent, Operator, which acts as a virtual assistant for autonomous shopping tasks, connecting users to eBay’s inventory and expanding seller reach

Trust & Safety Enhancements

• Authenticity Guarantee Expansion: Extended the Authenticity Guarantee service to watches and jewelry in Japan, reinforcing eBay’s value proposition for luxury items globally
• Enhanced Buyer Protection: Introduced enhanced customer safeguards alongside a buyer protection fee on listings from U.K. based C2C sellers, increasing trust with 24/7 customer support

Strategic Partnerships & Acquisitions

• Caramel Acquisition: Closed the acquisition of Caramel, an end-to-end online automotive transaction solution provider, improving trust and safety across the automotive platform
• PSA Partnership: Expanded strategic partnership with Collectors and its subsidiary PSA to streamline the grading process for raw trading cards, integrated with eBay’s Authenticity Guarantee
• Meta Partnership: Partnered with Meta to integrate eBay listings on Facebook Marketplace in the U.S., Germany, and France, providing sellers broader visibility to new audiences

Focus Categories & Special Initiatives

• Pokémon Day Campaign: Launched the “Evolving Shop,” a curated shopping experience for Pokémon collectibles enthusiasts, highlighting the company’s focus on collectibles as a key category
• Advertising Growth: Total advertising offerings generated $442 million in revenue (2.4% of GMV), with first-party advertising products delivering $418 million, up 13% year-over-year

eBay’s customer metrics showed positive momentum in Q1 2025, with active buyers increasing 1% year-over-year to 134 million. This growth reflects the company’s successful efforts to enhance the platform experience and attract new users through focused category investments and strategic partnerships.

Gross Merchandise Volume performance was mixed across regions. U.S. GMV grew 1% year-over-year to $9.1 billion, while International GMV remained flat at $9.7 billion on an as-reported basis. On an FX-Neutral basis, International GMV showed modest growth.

The company’s advertising business continued to demonstrate strong growth, with first-party advertising revenue increasing 13% year-over-year to $418 million. Total advertising offerings generated $442 million, representing 2.4% of GMV, highlighting the increasing importance of advertising as a revenue stream for eBay.

eBay maintained its commitment to corporate responsibility and sustainability initiatives during the first quarter:

• eBay for Charity: Buyers and sellers contributed more than $46 million globally through the eBay for Charity platform in Q1 2025
• Vogue Vintage Market: Partnered with Condé Nast to launch a curated collection of vintage pieces, successfully raising $500,000 to aid Los Angeles wildfire relief efforts
• Industry Recognition: Named to Fortune’s “Most Innovative Companies” list for 2025 for the third consecutive year, reflecting eBay’s commitment to innovation and digital transformation

These initiatives underscore eBay’s ongoing commitment to leveraging its platform and resources for positive social impact, while continuing to receive recognition for innovation and leadership in the e-commerce industry.

For the second quarter of 2025, eBay provided guidance reflecting continued modest growth amid a dynamic market environment. The company expects:

• Revenue between $2.59 billion and $2.66 billion, representing (1)% to 2% FX-Neutral year-over-year growth
• Gross Merchandise Volume between $18.6 billion and $19.1 billion, also representing (1)% to 2% FX-Neutral year-over-year growth
• Diluted GAAP EPS between $0.87 and $0.94
• Diluted Non-GAAP EPS between $1.24 and $1.31

Additionally, eBay’s Board of Directors declared a second quarter 2025 cash dividend of $0.29 per share, payable on June 13, 2025, to stockholders of record as of May 30, 2025, demonstrating the company’s ongoing commitment to returning capital to shareholders.