eBay Exceeds Expectations with Strong Q2 Results, Leveraging AI for Growth

EBay sees quarterly revenue above estimates on steady demand for refurbished items

July 30 (Reuters) - E-commerce firm eBay (EBAY.O), opens new tab forecast third-quarter revenue above Wall Street estimates on Wednesday, signaling robust demand for products like collector's items and refurbished goods, sending its shares up 7% in extended trading. EBay is likely to compete comparatively well in an environment of higher product prices due to tariffs and a macroeconomic downturn, analysts have said. The company is expanding its focus categories to include U.S. pre-owned apparel, which could help accelerate volume in one of the larger e-commerce verticals. It has also leveraged AI, including its magical listing tool and a shopping agent introduced in May, which delivers real-time, hyper-personalized product picks and expert guidance based on users' shopping preferences. The company expects revenue in the range of $2.69 billion to $2.74 billion for the third quarter, compared to analysts' average estimate of $2.66 billion, according to data compiled by LSEG. For the quarter ended June 30, eBay posted revenue of $2.73 billion, beating estimates of $2.64 billion. Gross merchandise volume, a key industry metric that denotes the total value of goods and services sold on the marketplace, rose 6% to $19.5 billion. Reporting by Juby Babu in Mexico City; Editing by Alan Barona Our Standards: The Thomson Reuters Trust Principles., opens new tab

EBay sees quarterly revenue above estimates, shares jump

July 30 (Reuters) - E-commerce firm eBay (EBAY.O), opens new tab forecast third-quarter revenue above Wall Street expectations and beat estimates for quarterly revenue on Wednesday, signaling robust demand for products like collector's items and refurbished goods and sending its shares up nearly 10% in extended trading. EBay is likely to compete comparatively well in an environment of higher product prices due to tariffs and a macroeconomic downturn, analysts have said. The company is expanding its focus categories to include U.S. pre-owned apparel, which could help accelerate volume in one of the larger e-commerce verticals. EBay expects revenue in the range of $2.69 billion to $2.74 billion for the third quarter, compared to analysts' average estimate of $2.66 billion, according to data compiled by LSEG. It has also leveraged AI, including its magical listing tool and a shopping agent introduced in May, which delivers real-time, hyper-personalized product picks and expert guidance based on users' shopping preferences. "EBay delivered another strong quarter, with results exceeding expectations across the board," said CEO Jamie Iannone, adding that the momentum reflects the platform's resilience. For the quarter ended June 30, eBay posted revenue of $2.73 billion, beating estimates of $2.64 billion. Gross merchandise volume, a key industry metric that denotes the total value of goods and services sold on the marketplace, rose 6% to $19.5 billion. Adjusted earnings per share of $1.37 came in above the consensus estimate of $1.30 for the quarter. Reporting by Juby Babu in Mexico City; Editing by Alan Barona Our Standards: The Thomson Reuters Trust Principles., opens new tab

eBay (EBAY) Q2 Revenue Rises 6% | The Motley Fool

eBay (EBAY -1.32%), the global online marketplace, released its second quarter 2025 results on July 30, 2025. The company exceeded Wall Street expectations, reporting GAAP revenue of $2.73 billion compared to the $2.64 billion analyst consensus and non-GAAP earnings per share of $1.37 versus the $1.30 estimate. While both revenue and profits were above forecasts, the period saw a sharp reversal in free cash flow, which turned negative. The quarter highlighted the impact of recent technology investments and advertising growth, but also brought attention to challenges in cash generation and rising operational costs. Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report. eBay operates a global online marketplace that connects millions of buyers and sellers. It facilitates transactions in categories such as collectibles, fashion, electronics, and more. The company generates most of its revenue from transaction fees, advertising services, and payments-related activities. Recently, eBay has focused on advancing its technology, especially through artificial intelligence (AI) features that improve the buying and selling experience. Key priorities include growing advertising revenue, maintaining a healthy marketplace ecosystem, and building trust through authentication and compliance with global regulations. The company is also investing in expanding targeted categories like pre-owned fashion, collectibles, and luxury goods, which are important for its ongoing success. During the quarter, eBay reported GAAP revenue of $2.73 billion, a 6% increase from the prior year and above analyst expectations by more than $50 million. Non-GAAP earnings per share were $1.37, beating consensus by $0.07 and representing a 16% year-over-year increase. Gross Merchandise Volume (GMV), which measures the total value of goods sold on the platform, reached $19.5 billion, up 6% from the previous year. U.S. GMV grew 7% year-over-year, while international GMV increased 5% over the same period. The number of active buyers rose modestly to 134 million, a 1% increase from a year earlier. Advertising revenue was a key contributor, with total ad sales reaching $482 million, or 2.5% of GMV. First-party advertising products, such as Promoted Listings, generated $455 million, up 19% from the prior year. Adoption of these advertising tools remained strong, with more than 3.7 million users and over 1.1 billion listings promoted as of the first quarter of 2025. eBay continued to roll out new technology, including the launch of "eBay Live" shopping in the UK and the expansion of the "eBay Live on Tour" initiative in the U.S. The company introduced an AI shopping agent for personalized experiences and a generative AI video tool that helps U.S. sellers turn listing images into short-form videos for social media. The Authenticity Guarantee program expanded, authenticating over 1 million items in a single quarter for the first time, with new luxury categories in the UK and additional brands in the U.S. The Goldin business, which focuses on high-value collectibles, also entered the Hollywood memorabilia market. On the sustainability front, eBay was recognized on TIME's World's Most Sustainable Companies 2025 list and Newsweek's America's Greenest Companies 2025 list. The platform helped raise $47 million for charity through partnerships. In regulatory matters, eBay contributed to the formation of the bipartisan Recommerce Caucus in the U.S. Congress and continued to adapt to new digital service regulations in Europe and the UK. Financially, the company faced some pressures. The GAAP operating margin declined to 17.7% from 21.3% in the prior-year period, mainly due to higher legal expenses, restructuring costs, and increased bonus accruals. While the non-GAAP operating margin improved slightly, cash flow was a notable concern: operating cash flow was negative $307 million, and free cash flow dropped to ($441 million) from $278 million a year earlier. eBay returned $759 million to shareholders through share repurchases and dividends, but its cash and investments portfolio fell to $5.4 billion as of June 30, 2025, down from $7.6 billion at the end of fiscal 2024. The board declared a quarterly dividend of $0.29 per share, payable in September. For the third quarter of 2025, eBay's management expects revenue between $2.69 billion and $2.74 billion, which would represent 3% to 5% year-over-year growth on a currency-neutral basis. The non-GAAP earnings per share outlook is $1.29 to $1.34, and GMV is projected to be between $19.2 billion and $19.6 billion. Management maintained a cautious outlook, noting uneven demand internationally, especially in the UK and Germany, where consumer confidence remains low. The guidance points to steady but moderate growth, with no major changes to broader targets. Investors should monitor the normalization of cash flow, the sustainability of advertising revenue growth, and any further changes in legal or regulatory costs that could affect margins. The impact of ongoing investments in AI and marketplace enhancements on eBay's operational performance and competitive position will also be important in the coming quarters. The quarterly dividend was maintained at $0.29 per share.

EBay sees quarterly revenue above estimates, shares jump

(Reuters) -E-commerce firm eBay forecast third-quarter revenue above Wall Street expectations and beat estimates for quarterly revenue on Wednesday, signaling robust demand for products like collector's items and refurbished goods and sending its shares up nearly 10% in extended trading. EBay is likely to compete comparatively well in an environment of higher product prices due to tariffs and a macroeconomic downturn, analysts have said. The company is expanding its focus categories to include U.S. pre-owned apparel, which could help accelerate volume in one of the larger e-commerce verticals. EBay expects revenue in the range of $2.69 billion to $2.74 billion for the third quarter, compared to analysts' average estimate of $2.66 billion, according to data compiled by LSEG. It has also leveraged AI, including its magical listing tool and a shopping agent introduced in May, which delivers real-time, hyper-personalized product picks and expert guidance based on users' shopping preferences. "EBay delivered another strong quarter, with results exceeding expectations across the board," said CEO Jamie Iannone, adding that the momentum reflects the platform's resilience. For the quarter ended June 30, eBay posted revenue of $2.73 billion, beating estimates of $2.64 billion. Gross merchandise volume, a key industry metric that denotes the total value of goods and services sold on the marketplace, rose 6% to $19.5 billion. Adjusted earnings per share of $1.37 came in above the consensus estimate of $1.30 for the quarter. (Reporting by Juby Babu in Mexico City; Editing by Alan Barona)

EBay: attractive forecasts send shares soaring

eBay has announced a higher-than-expected earnings forecast for the current quarter, after reporting much better-than-expected results for the past quarter. The San Jose, California-based company said it expects EPS of between $1.29 and $1.34, compared with the current consensus estimate of $1.30. Its revenue forecast for the third quarter is between $2.69bn and $2.74bn, compared with the market's previous estimate of $2.66bn. In Q2, eBay's profit rose 7% to $643m, or $1.37 per share, compared with $1.30 expected by the market. Revenue rose 6% to $2.73bn, compared with a consensus of $2.65bn. eBay, founded in 1995, is seeking to shake off its image as an Internet dinosaur, which recently led it to launch an AI shopping assistant that offers real-time personalized recommendations and advice to help shoppers make choices, as well as a generative video tool that turns photos into short videos so sellers can promote their listings on social media. The group also announced that it had redistributed $759m to its shareholders in Q2, including $625m in share buybacks and $134m in dividend payments. eBay shares, up about 45% since the beginning of the year, closed up over 18% yesterday on Wall Street following these announcements.