eBay Inc., a global commerce leader that connects millions of buyers and sellers around the world, today reported financial results for its third quarter…
EBAY INC (EBAY) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 eBay Inc. Reports Third Quarter 2026 Results • Revenue of $3.2 billion, up 14% on an as-reported basis and up 13% on an FX-Neutral basis • Gross Merchandise Volume of $23.2 billion, up 15% on an as-reported basis and up 16% on an FX-Neutral basis • GAAP and Non-GAAP
How this was made
The 30-second read
Why it matters
The earnings release provides fresh guidance on the company's recommerce strategy and cash generation, which can affect valuation models.
Market read
The Q3 results are a primary disclosure that can move the stock in after‑hours trading and influence sector sentiment.
What to watch
Higher operating costs and margin compression may limit upside despite revenue gains.
eBay reported third-quarter revenue of $3.2 billion, up 14%, GMV of $23.2 billion, up 15%, and GAAP and non-GAAP diluted EPS from continuing operations of $1.11 and $1.51, respectively.
Revenue, GMV, active buyers and non-GAAP earnings increased year over year, while GAAP continuing-operations income, GAAP EPS and both GAAP and non-GAAP operating margins declined from the prior-year quarter.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenues, three months ended September 30GAAP | $3.21B | – | 14% |
| Net revenues, nine months ended September 30GAAP | $9.43B | – | – |
| Gross Merchandise Volume, three months ended September 30other | $23.17B | – | 15% |
| Gross Merchandise Volume, nine months ended September 30other | – | – | |
| Active Buyers, three months ended September 30other | 147M | – | 10% |
| Active Buyers excluding Depop and Tise, three months ended September 30other | 136M | – | 1% |
| Gross profit, three months ended September 30GAAP | $2.32B | – | – |
| Gross profit, nine months ended September 30GAAP | $6.91B | – | – |
| Cost of net revenues, three months ended September 30GAAP | $887M | – | – |
| Sales and marketing expense, three months ended September 30GAAP | $747M | – | – |
| Product development expense, three months ended September 30GAAP | $517M | – | – |
| General and administrative expense, three months ended September 30GAAP | $303M | – | – |
| Transaction losses, three months ended September 30GAAP | $122M | – | – |
| Amortization of acquired intangible assets, three months ended September 30GAAP | $14M | – | – |
| Total operating expenses, three months ended September 30GAAP | $1.70B | – | – |
| Income from operations, three months ended September 30GAAP | $616M | – | – |
| Non-GAAP operating income, three months ended September 30non-GAAP | $843M | – | – |
| GAAP operating margin, three months ended September 30GAAP | 19.2% | – | – |
| Non-GAAP operating margin, three months ended September 30non-GAAP | 26.3% | – | – |
| Net income from continuing operations, three months ended September 30GAAP | $501M | – | (16)% |
| Non-GAAP net income from continuing operations, three months ended September 30non-GAAP | $685M | – | 8% |
| Diluted EPS from continuing operations, three months ended September 30GAAP | $1.11 | – | (13)% |
| Diluted EPS from continuing operations, three months ended September 30non-GAAP | $1.51 | – | 12% |
| Net income, three months ended September 30GAAP | $497M | – | – |
| Net income, nine months ended September 30GAAP | $1.56B | – | – |
| GAAP effective tax rate, continuing operations, three months ended September 30GAAP | 17.1% | – | – |
| Non-GAAP effective tax rate, continuing operations, three months ended September 30non-GAAP | 17.5% | – | – |
| Operating cash flow from continuing operations, three months ended September 30GAAP | $875M | – | – |
| Free cash flow from continuing operations, three months ended September 30non-GAAP | $749M | – | – |
| Operating cash flow from continuing operations, nine months ended September 30GAAP | $2.39B | – | – |
| Free cash flow from continuing operations, nine months ended September 30non-GAAP | $1.97B | – | – |
| Advertising revenue, three months ended September 30other | $607M | – | – |
| First-party advertising revenue, three months ended September 30other | $575M | – | 16% on an as-reported basis and 16% on an FX-Neutral basis |
| U.S. Gross Merchandise Volume, three months ended September 30other | $12.54B | – | 27% |
| International Gross Merchandise Volume, three months ended September 30other | $10.62B | – | 4% |
Q4 2026 and Full Year 2026 outlook
- RevenueQ4 2026: $3.19 - $3.24; Full Year 2026: $12.62 - $12.67
- NoteQ4 2026 FX-Neutral Y/Y Growth: 7% - 9%
- NoteFull Year 2026 FX-Neutral Y/Y Growth: 12% - 13%
- NoteQ4 2026 Gross Merchandise Volume: $23.7 - $24.1
- NoteFull Year 2026 Gross Merchandise Volume: $91.5 - $91.9
- NoteQ4 2026 GMV FX-Neutral Y/Y Growth: 12% - 14%
- NoteFull Year 2026 GMV FX-Neutral Y/Y Growth: 14% - 14%
- NoteQ4 2026 diluted GAAP EPS from continuing operations: $0.82 - $0.87
- NoteQ4 2026 diluted non-GAAP EPS from continuing operations: $1.48 - $1.53
- NoteFull Year 2026 diluted GAAP EPS from continuing operations: $4.26 - $4.31
- NoteFull Year 2026 diluted non-GAAP EPS from continuing operations: $6.25 - $6.30
Capital returns
- Returned $827 million to stockholders in the third quarter of 2026.
- Repurchased $689 million of common stock, or approximately 6 million shares, in the third quarter of 2026.
- Paid cash dividends of $138 million during the third quarter of 2026.
- Total repurchase authorization remaining as of September 30, 2026 was approximately $1.3 billion.
- The Audit Committee declared a fourth quarter 2026 cash dividend of $0.31 per share, payable on December 18, 2026 to stockholders of record as of December 4, 2026.
What drove it
- Revenue increased 14% on an as-reported basis and 13% on an FX-Neutral basis.
- GMV increased 15% on an as-reported basis and 16% on an FX-Neutral basis.
- U.S. GMV increased 27%, while international GMV increased 4%.
- First-party advertising products generated $575 million of revenue, up 16% on both an as-reported and FX-Neutral basis.
- eBay Live delivered another record quarter and generated GMV at a multibillion-dollar annualized run rate.
- The acquisition of Depop was completed on July 30, 2026 for $1.4 billion in cash, inclusive of a preliminary purchase price adjustment.
Concerns
- GAAP net income from continuing operations declined 16% to $501 million and GAAP diluted EPS from continuing operations declined 13% to $1.11.
- GAAP operating margin decreased to 19.2% from 20.3%, and non-GAAP operating margin decreased to 26.3% from 27.0%.
- Operating cash flow from continuing operations was $875 million, compared with $900 million, and free cash flow was $749 million, compared with $803 million.
- International GMV growth was 4%, below U.S. GMV growth of 27%.
- The GAAP effective tax rate was 17.1%, compared with (4.3)% in the prior-year quarter.
What to watch
- Q4 2026 revenue guidance of $3.19 - $3.24 and FX-Neutral revenue growth guidance of 7% - 9%.
- Q4 2026 GMV guidance of $23.7 - $24.1 and FX-Neutral GMV growth guidance of 12% - 14%.
- Q4 2026 diluted GAAP EPS guidance of $0.82 - $0.87 and diluted non-GAAP EPS guidance of $1.48 - $1.53.
- The contribution from Depop, which is included in the outlook.
- The expected realization of benefits from investments in Focus Categories, C2C marketplace, recommerce, eBay Live, shipping and advertising products.
- Remaining repurchase authorization of approximately $1.3 billion.
Balance sheet and cash flow
- Cash and cash equivalents were $1,166 million as of September 30, 2026, compared with $1,867 million as of December 31, 2025.
- Short-term investments were $809 million as of September 30, 2026, compared with $1,052 million as of December 31, 2025.
- Long-term investments were $2,171 million as of September 30, 2026, compared with $2,767 million as of December 31, 2025.
- Cash and cash equivalents and non-equity investments portfolio totaled $3.3 billion as of September 30, 2026.
- Short-term debt was $1,599 million and long-term debt was $5,134 million as of September 30, 2026.
- Total assets were $18,006 million, total liabilities were $13,594 million, and total stockholders' equity was $4,412 million as of September 30, 2026.
- Net cash provided by operating activities was $875 million during the third quarter of 2026.
- Purchases of property and equipment were $126 million during the third quarter of 2026.
- Acquisition of Depop, net of cash acquired, was $1,321 million during the third quarter of 2026.
Analysis
eBay reported broad third-quarter top-line and marketplace-volume growth. Net revenues were $3,206 million, up 14%, while GMV was $23,166 million, up 15%. Active Buyers reached 147 million, up 10%, with Active Buyers excluding Depop and Tise at 136 million, up 1%. The U.S. was the stronger GMV geography, rising 27% to $12,545 million, compared with 4% growth to $10,621 million internationally.
Advertising remained a reported revenue contributor, with total advertising offerings generating $607 million and first-party advertising products producing $575 million, up 16% on both an as-reported and FX-Neutral basis. Management also cited record eBay Live GMV, growth in Focus Categories and C2C marketplace initiatives, and product enhancements in shipping, authentication and AI-powered listing tools. Depop was acquired on July 30, 2026 for $1.4 billion in cash, inclusive of a preliminary purchase price adjustment.
Profitability showed a split between growth in operating income dollars and lower margins. GAAP income from operations increased to $616 million from $571 million, while non-GAAP operating income increased to $843 million from $760 million. However, GAAP operating margin declined to 19.2% from 20.3%, and non-GAAP operating margin declined to 26.3% from 27.0%. GAAP net income from continuing operations fell to $501 million from $593 million, while non-GAAP net income from continuing operations increased to $685 million from $633 million.
Cash generation remained substantial but was below the prior-year quarter. Operating cash flow from continuing operations was $875 million versus $900 million, and free cash flow was $749 million versus $803 million. eBay returned $827 million to stockholders through $689 million of repurchases and $138 million of dividends, while holding approximately $1.3 billion of repurchase authorization. The balance sheet listed $1,166 million of cash and cash equivalents, $809 million of short-term investments, $2,171 million of long-term investments, $1,599 million of short-term debt and $5,134 million of long-term debt as of September 30, 2026.
The Q4 outlook calls for revenue of $3.19 - $3.24, GMV of $23.7 - $24.1, diluted GAAP EPS from continuing operations of $0.82 - $0.87, and diluted non-GAAP EPS from continuing operations of $1.48 - $1.53. Full-year guidance calls for revenue of $12.62 - $12.67, GMV of $91.5 - $91.9, diluted GAAP EPS from continuing operations of $4.26 - $4.31, and diluted non-GAAP EPS from continuing operations of $6.25 - $6.30. The outlook includes the expected impact from Depop.
Management, verbatim
eBay’s strong third quarter results reflect continued momentum across our business priorities and customer segments as more consumers embrace recommerce.
Jamie Iannone, Chief Executive Officer
Our third quarter results demonstrate that eBay’s strategy is delivering strong GMV growth and meaningful earnings expansion.
Peggy Alford, Chief Financial Officer
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so no comparison of reported results with prior guidance is available.
- Gross margin was not reported.
- Quarterly revenue by operating segment was not reported.
- Prior-quarter comparisons were not reported for most income statement, margin, cash flow and capital-return line items.
- Year-over-year percentage changes were not printed for most individual income statement and cash flow line items.
- Nine-month Gross Merchandise Volume was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
eBay filed a Form 8‑K reporting its third‑quarter 2026 results, highlighting revenue growth, GMV expansion, and cash returns.
Ticker impact
EBAY reported Q3 2026 revenue of $3.2 billion, up 14% YoY, and GAAP EPS of $1.11 per diluted share.
likely modest upside as the market prices in revenue growth and the $689 million share repurchase program
New earnings numbers are material and better than prior expectations; the sizable buyback and dividend signal confidence, which can drive the stock higher in after‑hours trading.
Market effects
Strong recommerce growth may boost other online marketplace peers.
Positive earnings could lift US consumer discretionary sentiment.
eBay's AI‑driven listing tools may influence global e‑commerce trends.
Counterpoint
If EPS decline outweighs revenue growth, the stock could face short‑term pressure.
Key entities
- ExecutiveJamie Iannone
CEO of eBay, quoted on growth momentum.
- ExecutivePeggy Alford
CFO of eBay, discussed earnings and cash returns.
