EBAY US S&P 500Russell 1000 Earnings call · transcribed from the recording
eBay Inc. (EBAY) · Q2 2026 results and valuation
Share price: $122.68 · 2026-11-11
eBay Inc. is an e-commerce company that operates online marketplaces and websites where users can buy or sell items through auctions or instant sales. The company operates in 190 markets worldwide and charges commissions to sellers for transactions. Source: Wikipedia
Results Q2 2026 vs Q1 2026 · previous quarter · published 5 Aug 2026 and 29 Apr 2026
Net income up 7.4% on the previous quarter. Management sounded upbeat, in its script and in answers to analysts.
1 · Numbers
+7.4%
Net income vs Q1 2026
Outlook given
Net income 550.0M vs 512.0M
Revenue +1.5%
Why Against the same quarter last year, net income rose primarily because non-GAAP operating income grew 16% due to healthy flow-through from GMV outperformance and incremental investments in strategic priority areas like focused categories, C2C business, and recommerce.
2 · How management spoke
Upbeat
More upbeat than 86% of company calls
Answers to analysts: very upbeat, in line with the script.
Last call it was different: the answers were more upbeat than the script.
3 · What stood out
Focused category GMV grew 26% in Q2 and exceeded 40% of total GMV for the first time.
Valuation
Is eBay Inc. undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 4.3% growth a year (3-year revenue growth), the model's fair value is $32.45 a share — the stock trades 278% above it. Today's price assumes 18.3% growth a year.
Current price
$122.68
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+18.3% for 10 yrs
Fair value / share
$32.45
Buy below
$24.34
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Management expects
Revenue +11% · from the Q2 2026 report: “eBay expects consolidated full-year revenue growth to be between 11% and 12% year-over-year as growth in Advertising and Shipping is offset by business mix…”
A guidance figure for revenue, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
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Guidance
EBay expects consolidated full-year revenue growth to be between 11% and 12% year-over-year as growth in Advertising and Shipping is offset by business mix shifts and the Depop acquisition.
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Figure
GMV grew 14% to $22.4 billion, revenue grew 14% to $3.13 billion, and non-GAAP earnings per share grew 17% year-over-year to $1.60.
Source quote
“GMV grew by 14% to $22.4 billion. Revenue grew 14% to $3.13 billion. Non-GAAP operating income grew 16% year-over-year to $893 million and non-GAAP earnings per share grew 17% year-over-year to $1.60.”
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Figure
Total advertising revenue reached $596 million in Q2, representing a GMV penetration of nearly 2.7%.
Source quote
“In Q2, total advertising revenue was $596 million, representing GMV penetration of nearly 2.7%.”
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Figure
Strategic priorities made up more than 70% of total GMV in Q2, with each growing more than 20% individually and in aggregate.
Source quote
“Together, these strategic priorities made up more than 70% of total GMV in Q2, with each growing more than 20%, both individually and in aggregate.”
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Figure
Focused category GMV grew 26% in Q2 and exceeded 40% of total GMV for the first time.
Source quote
“Focused category GMV grew 26% in Q2 and eclipsed 40% of total GMV for the first time.”
3 more
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Figure
Among established sellers who stream regularly, over 90% grow their GMV on eBay, and the median GMV increase for live sellers is roughly 3x that of similar sellers who do not use Live.
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Figure
EBay delivered nearly $450 million to shareholders through repurchases and cash dividends as part of its commitment to capital returns.
Source quote
“We also continued our commitment to capital returns, delivering nearly $450 million to shareholders through repurchases and cash dividends.”
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Figure
EBay closed the acquisition of Depop for $1.4 billion in cash on July 30, which included a $1.2 billion purchase price and $200 million in net purchase price adjustments.
Source quote
“On July 30, we closed the acquisition of Depop for $1.4 billion in cash, reflecting the purchase price of $1.2 billion and approximately $200 million of net purchase price adjustments.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Collectibles GMV growth continued to be led by strength in trading cards, where we saw sustained momentum across all of the major sports and collectible card game genres, including notable...”
“This includes an expected contribution of roughly 1.5 percentage points from Depop and assumes its GMV growth will accelerate by double-digit percentage points in the second half of this year...”
“As we look at ways to support Depop's outstanding growth, our first priority is to maintain the brand, community and product experience that make Depop special while helping the team...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 3.13B | 3.09B | +1.5% | 2.73B | +14.8% |
| Gross profit | 2.30B | 2.29B | +0.7% | 1.98B | +16.3% |
| Operating income | 676.0M | 611.0M | +10.6% | 479.0M | +41.1% |
| Net income | 550.0M | 512.0M | +7.4% | 364.0M | +51.1% |
| EPS | 1.21 | 1.12 | +8.0% | 0.78 | +55.1% |
| P/E today 26.5 | 23.0 | 20.6 | +2.4 | 16.7 | +6.3 |
Topics
Most discussed now
- You can find the reconciliation of these measures to the nearest comparable GAAP measures in eBay's accompanying slide presentation.
- You can find more information about risks, uncertainties and other factors that could affect eBay's operating results in its most...
- All year-over-year growth rates versus 2025 are based on recast financials, reflecting eBay's adoption of the new internally developed...
- EBay's growth continues to be driven by its key strategic priorities, including focused categories, its consumer-to-consumer or C2C…
- EBay is seeing the same type of thing on the seller side, where its sellers that are doing Live are seeing...
Faded since Q1 2026
- Fading EBay feels really good about the momentum that it is seeing overall.
- Fading Rollout of this experience has been one of the most impactful launches eBay has had in years as it has driven...
- Fading EBay's focus categories continue to build momentum in Q1, with GMV growth accelerating to 24% and reflecting the benefits of...
- Fading What eBay has seen is they've also grown year-over-year every quarter since the beginning of 2024 consistently outpacing its total active...
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
- Results of operations; Restructuring costs · SEC 8-K
The company announced a 9% global workforce reduction with estimated pre-tax charges between $130 million and $150 million related to severance and benefits.
- Results of operations · SEC 8-K
eBay Inc. reported its financial results for the quarter ended June 30, 2026, in a press release dated August 5, 2026.
- Shareholder vote results · SEC 8-K · routine
- Regulation FD disclosure; Other events · SEC 8-K
eBay Inc. disclosed a letter from TD Securities expressing confidence in raising up to $20.0 billion in debt financing to support a non-binding acquisition proposal from GameStop Corp.
- Regulation FD disclosure · SEC 8-K
eBay Inc. confirmed receipt of an unsolicited, non-binding acquisition proposal from GameStop on May 4, 2026, following a 2025 gross merchandise volume of nearly $80 billion.
- Results of operations · SEC 8-K
eBay Inc. reported its financial results for the quarter ended March 31, 2026, in its April 29, 2026, filing.
- Director or officer change; Regulation FD disclosure · SEC 8-K
eBay Inc. increased its Board size to 12 members and appointed Brian H. Sharples as a non-employee director effective March 20, 2026.
Balance sheet & ownership
From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-27.
Cash & runway
Cash & equivalents
$2.31B
2026-06-30
Short-term investments
$26.0M
Long-term investments
$933.0M
total liquidity $3.27B
Implied runway
—
operating cash flow positive over the TTM window
Dilution
weighted-average basic shares, per quarter. Change: -3.5% YoY, -0.7% QoQ.
| Quarter | Shares |
|---|---|
| Q3 2024 | 487.0M |
| Q1 2025 | 467.0M |
| Q2 2025 | 461.0M |
| Q3 2025 | 456.0M |
| Q1 2026 | 448.0M |
| Q2 2026 | 445.0M |
Shares outstanding: 445.0M (2026-07-31)
Insider transactions
Form 4 open-market trades (codes S/P), trailing 12 months. Coverage: newest 50 of 106 filings; 50 filings parsed.
Sold by insiders
276.3K shares
$30.2M · 62 transactions
Bought by insiders
0 shares
0 transactions
Net direction
net selling
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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second half of the year
further progress in the optimization of newer shipping programs and customer experience
Source quote
“Alongside other operational efficiencies, we also saw a moderation in transaction losses sequentially as a result of our team's work to optimize our newer shipping programs and customer experience with further progress expected in the second half of the year.”
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Q3
consolidated GMV between $22 billion and $22.4 billion
Source quote
“We expect consolidated GMV between $22 billion and $22.4 billion in Q3, including the impact of recently acquired Depop, which represents total FX-neutral growth between 10% and 12% year-over-year or organic growth between 7% and 9%.”
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third quarter
consolidated revenue to be between $3.07 billion and $3.12 billion
Source quote
“We forecast consolidated revenue to be between $3.07 billion and $3.12 billion in the third quarter, which represents total FX-neutral growth between 8% and 10% year-over-year or organic growth between approximately 7% and 9%.”
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Q3
consolidated non-GAAP operating income growth to be between 1% and 5% year-over-year
Source quote
“We expect consolidated non-GAAP operating income growth to be between 1% and 5% year-over-year in Q3, which implies non-GAAP operating margin between 25.1% and 25.6%, this includes an expected 3- to 4-point headwind to non-GAAP operating income growth from Depop.”
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Q3
consolidated non-GAAP earnings per share between $1.36 and $1.42
Source quote
“We forecast consolidated non-GAAP earnings per share between $1.36 and $1.42 in Q3, which implies year-over-year growth between 1% and 5%.”