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Post-Earnings Move: 🟢 +9.71%
What Happened:
Revenue ($2.73B) and EPS ($1.37) topped estimates, with GMV growing 6% and ad revenue jumping 19% YoY. Guidance for Q3 was in-line.
Why the Stock Jumped:
Strong operating performance despite macro jitters. Investors rewarded the ad revenue growth and stable GMV — while ignoring the one-time FCF miss.
My Take:
Buy-side had low expectations. eBay out-executed and proved it can drive margin and buyer growth without massive reinvestment. The narrative is quietly shifting bullish.
$625M in buybacks during Q2
$134M in dividends paid (same as Q1)
Q3 dividend of $0.29/share declared, payable Sept 12
Total liquidity: $5.4B in cash + investments
| Metric | Prior FY25 Est. | Updated Guide | Direction |
|---|---|---|---|
| FY25 Revenue | ~$10.65B | ~$10.7B est.† | ✅ Up slight |
| FY25 Adj. EPS | $5.35 | ~$5.45 est.† | ✅ Up slight |
| FY25 FCF | $1.99B | Now risked | ❌ Risk flag |
| Area | Q1 2025 | Q2 2025 | Commentary |
|---|---|---|---|
| FCF | +$644M | -$441M | 🚨 One-time outflow, not structural |
| GMV Growth | +1% YoY | +6% YoY | 📈 Accelerating momentum |
| Ad Revenue YoY | ~+12% | +19% | 🔼 Accelerating spend capture |
| Gross Margin | 70.1% | 71.6% (implied) | 🔼 Mix improvement |
| AI / Livestream Tools | Limited pilot | Expanded to US/UK (eBay Live) | 🎯 Strategic focus expanding |
Free cash flow turned negative due to a $942M outflow in working capital changes .
| KPI | Q2 2025 | Q1 2025 | YoY Growth | Trend |
|---|---|---|---|---|
| Revenue | $2.73B | $2.58B | +6% | 🔼 |
| Adj. EPS | $1.37 | $1.38 | +16% YoY | ↔ Stable |
| GAAP Net Income | $369M | $503M | +63% YoY | 🔽 Seq. |
| Free Cash Flow | ($441M) | +$644M | N/A | 🔻 Sharp |
| GMV | $19.5B | $18.75B | +6% | 🔼 |
| Active Buyers | 134M | 134M | +1% YoY | ↔ Stable |
| Ad Revenue | $482M | $468M est.† | +19% YoY | 🔼 |
eBay CEO Jamie Iannone struck an upbeat tone, noting that “eBay’s first quarter results were ahead of expectations, as we delivered our fourth consecutive quarter of positive GMV growth.” His comments underscore a bullish outlook on the company’s momentum heading into the rest of the year.
Ebay turned in a solid quarter and shares are ripping higher, already up 6.37% after earnings beat estimates.
| Metric | Actual | Estimate | Beat/Miss |
|---|---|---|---|
| Revenue | $2.73B | $2.64B | ✅ Beat |
| Adj. EPS | $1.37 | $1.30 | ✅ Beat |
| GAAP EPS | $0.79 | $0.70 est.† | ✅ Beat |
| Free Cash Flow | ($441M) | +$150M est.† | ❌ Miss |
| Gross Merchandise Volume (GMV) | $19.5B | $19.3B est.† | ✅ Beat |
| Metric | Q3 Guidance | Q3 Street Consensus | Direction |
|---|---|---|---|
| Revenue | $2.69B–$2.74B | $2.69B | ➡ In line |
| Adj. EPS | $1.29–$1.34 | $1.31 | ➡ In line |
| GMV | $19.2B–$19.6B | $19.4B | ➡ In line |
If you just went to Google and saw eBay shares were falling, there’s no need for alarm.
At around 3 p.m., Jerome Powell said there has been no decision made on cutting rates at the September meeting. Immediately after the comment, Treasury yields jumped 6 basis points and stocks fell.
Point being: This is a broader market sell-off and nothing related to eBay’s upcoming report after the bell.
Stifel analyst Mark Kelley raised the firm’s price target on eBay to $68. That’s up from a prior price target of $62. The firm maintains a ‘Hold’ raiting on the company.
Kelley believes that Q2 consensus is too conservative and that eBay should exceed expectations.
Here are the key figures to watch when eBay reports earnings today:
For the full year, Wall Street currently expects eBay to deliver:
eBay is expected to steadily grow in the coming years with 2026 EPS estimates of $5.79 and 2027 estimates of $6.24.
Live coverage has ended. The full story is below.
eBay (Nasdaq: EBAY | EBAY Price Prediction) has quietly become an under-the-radar AI winner. The company’s shares are up 26% year-to-date and 42% across the past year. We’ll see if the company can keep up the momentum when it reports second quarter earnings after the bell today.
This live earnings blog will automatically update. All you have to do is simply leave a browser tab open on this page and new updates will push. We expect a flurry of updates with news and analysis after eBay’s earnings go live a little after 4 p.m. ET today!
Let’s take a look back at what eBay reported last quarter.
On April 30th eBay reported its first quarter 2025 financial results, showing a revenue of $2.6 billion, marking a 1% increase year-over-year. The company achieved a non-GAAP earnings per share of $1.38, surpassing Wall Street’s estimated EPS figures.
Gross Merchandise Volume (GMV) also grew by 1% to $18.8 billion. eBay’s non-GAAP operating margin was 29.8%, slightly down from the previous year.
The company returned $759 million to shareholders through share repurchases and dividends. CEO Jamie Iannone highlighted the positive impact of focus categories and geo-specific investments. eBay also expanded its Authenticity Guarantee service and closed the acquisition of Caramel to enhance its automotive transaction capabilities. The company declared a second-quarter dividend of $0.29 per share.
Contact [email protected] for any questions or corrections.
Eric Bleeker has been investing for more than 20 years. He began his career working at Microsoft before joining Motley Fool, one of the largest publishers of financial research. In his 15 years at Motley Fool Eric served as the General Manager for Fool.com and led coverage in the Technology & Telecom sector. In addition, he was a featured columnist and has hosted dozens of investing seminars attended by more than a million total investors. Eric has more than 1,000 financial bylines to his name and has been featured in The Wall Street Journal, CNBC, Fox Business, and many other leading publications. He is currently focused on artificial intelligence investing and is a CFA Charterholoder.
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