Payeunit - EBay’s latest quarterly earnings performance and forward-looking outlook

magna / 31st July, 2025

EBay’s latest quarterly earnings performance and forward-looking outlook.

July 30 (Reuters) - E-commerce firm eBay (EBAY.O), opens new tab forecast third-quarter revenue above Wall Street expectations and beat revenue estimates on Wednesday, helped by robust demand for collectibles and renewed interest in Pokemon cards, sending its shares up over 10% in extended trading.

EBay is likely to compete well in an environment of higher product prices due to tariffs and a macroeconomic downturn, analysts have said.

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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\'s annual and quarterly forecast contemplates a range of scenarios regarding tariff policies, including the \"de minimis\" exception, Chief Financial Officer Peggy Alford said on a post-earnings call.

President Donald Trump on Wednesday signed an executive order suspending a de minimis exemption that allowed packages valued at or under $800 to be shipped to the U.S. without facing tariffs.

EBay expects revenue of $2.69 billion to $2.74 billion for the third quarter, compared to analysts\' estimates 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 guidance.

\"The macro environment in the U.S. in the second quarter was more favorable than expected. Despite tariff announcements and the elimination of the de minimis for imported goods, consumer demand held up,\" CEO Jamie Iannone said on the call.

EBay did not see a \"meaningful improvement in the European macro environment\" in the quarter, Iannone said, adding that the company\'s investments across initiatives helped offset some of the trends.

For the quarter ended June 30, eBay posted revenue of $2.73 billion, beating estimates of $2.64 billion.

Gross merchandise volume, a key metric that denotes the total value of goods and services sold on the marketplace, rose 6% to $19.5 billion.

Donald Trump unveiled a U.S. blueprint for the new tech.

Quarterly adjusted per-share earnings of $1.37 came in above the consensus estimate of $1.30.

Reporting by Juby Babu in Mexico City; Editing by Alan Barona

Further More

Here’s a detailed overview of eBay’s latest quarterly earnings performance and forward-looking outlook:

? Q2 FY?2025 Results – Quarter Ending June 30, 2025

Top?line & Earnings Performance

Revenue came in at $2.73?billion, beating analysts’ consensus of $2.64?billion ($2.73?b vs. $2.64?b expected) (Reuters).

Adjusted EPS reached $1.37, vs. $1.30 expected, representing 16% year-over-year growth (Investors.com).

Gross Merchandise Volume (GMV)

GMV rose 6% y/y to $19.5?billion, beating forecasted $18.9?billion (MarketWatch).

Stock Reaction

Shares surged 8–11% in after-hours trading, with intraday gains of nearly 2% earlier in the day (Investors.com, Reuters, MarketWatch).

? Q3 FY?2025 Outlook

Revenue Guidance

eBay projects $2.69?billion to $2.74?billion in revenue for Q3, versus the consensus estimate of $2.66?billion (Reuters).

GMV Forecast

GMV for next quarter is expected between $19.2?billion and $19.6?billion, topping estimates (~$18.8?billion) (CNBC).

Key Strategic Drivers

Strength in collector items and refurbished goods, along with expansion into U.S. used apparel, is supporting resilience amid tariffs and macroeconomic pressure (Reuters).

Continued investment in AI and automation, including a personalized shopping agent and listing tools, is enhancing b-to-c transactions and user experience (Reuters).

? Strategic Commentary & Competitive Edge

eBay’s core differentiators:

A niche-focused marketplace with strong traction in enthusiast categories such as collectibles, used electronics, auto parts, and refurbished goods.

Resilience against broader retail pressures due to consumer demand for value, especially in pre-owned goods and priced-sensitive segments (Reuters).

Unlike Amazon and Walmart, eBay is positioning itself to benefit in uncertain macroeconomic environments, including tariffs and rising retail prices (Reuters, Reuters).

CEO Jamie Iannone emphasized that momentum reflects the strength of eBay’s strategic execution and marketplace innovation (Investors.com).

? Historical Context: Q1 & Q4 FY?2025

Q1 FY?2025 (Ended Mar 31, 2025)

Revenue: ~$2.585?b vs. ~$2.556?b year before (+1.1%), slightly above the $2.59?b consensus (Nasdaq).

Adjusted EPS: $1.38 vs consensus $1.34 (~3% beat) (Nasdaq).

First-party advertising revenue was $418–442?million, representing ~~2.4% of GMV (~~$18.8?b) (Nasdaq).

Operating margin ~29.8%; cash flow and share buybacks strong (Nasdaq, Nasdaq).

Q4 FY?2024 (Ended Dec 2024)

Revenue: ~$2.579?b (+0.7% y/y), slightly above consensus ~$2.57?b (Nasdaq, Nasdaq, Nasdaq).

Adjusted EPS: $1.25/share vs. $1.20 estimate (~4% beat) (Nasdaq).

GMV grew ~4% to $19.3?b; advertising revenue and operating margin improvements noted (Nasdaq, Nasdaq).

However, Q1 guidance was weak, causing ~8% stock drop later, though that\'s prior to present earnings momentum (Reddit).

? Summary Table

Quarter (ending)	Revenue	Revenue vs Estimate	Adjusted EPS	EPS vs Estimate	GMV Growth	Stock Reaction
Q4 FY?2024 (Dec)	~$2.579?b	Beat (~$2.57?b)	$1.25 (?4%)	Beat consensus	~~4% (~~$19.3?b)	Mixed; guidance disappointed
Q1 FY?2025 (Mar)	~$2.585?b (+1%)	Slight beat	$1.38 (?3%)	Beat consensus	~~1% (~~$18.8?b)	Stock modest
Q2 FY?2025 (Jun)	$2.73?b	Beat ($2.73?b vs $2.64?b)	$1.37 (?16%)	Beat ($1.37 vs $1.30)	+6% to $19.5?b	+8–11% after-hours

? Final Analysis

eBay’s Q2 FY?2025 report was a standout: revenue and EPS both beat estimates with notable acceleration in GMV growth versus prior quarters. The share price reaction—jumping nearly 10% after hours—reflects confidence in the company’s strategy. Management is building momentum through strong categories like refurbished goods and collectibles and leaning into AI-driven tools and expansion into used apparel. With revenue guidance for Q3 set above Wall Street expectations, eBay appears to be performing better than peers in a challenging retail climate.

While growth remains modest—single-digit revenue expansion year-over-year—the combination of accelerating GMV, improved margins, and strategic focus suggests that investors are rewarding eBay for execution consistency in niche verticals.

If you’d like a deeper dive into advertising trends, AI initiatives, or segment-level performance, just let me know!

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