eBay Q2 Earnings Beat Estimates, Revenues Increase Y/Y, Stock Gains

eBay Inc. EBAY reported second-quarter 2025 non-GAAP earnings of $1.37 per share, which beat the Zacks Consensus Estimate by 5.38%. The bottom line increased 16.1% year over year.Net revenues of $2.73 billion beat the Zacks Consensus Estimate by 2.79%. The figure increased 6.1% from the year-ago quarter on a reported basis and 4% on an FX-neutral basis.eBay’s first-party advertising products generated revenues of $455 million, up 19% on an as-reported basis and 17% on an FX-neutral basis.Total advertising offerings yielded $482 million in revenues, representing 2.5% of the gross merchandise volume (GMV).eBay Inc. Price, Consensus and EPS Surprise  eBay Inc. price-consensus-eps-surprise-chart | eBay Inc. QuoteEBAY’s shares have appreciated 37.5% on a year-to-date basis compared with the Internet-Commerce industry’s return of 11%.EBAY’s active buyer base, which was pinned at 134 million at the end of the second quarter, increased 1% year over year, missing the consensus mark by 0.23%.GMV Details for EBAYEBAY’s total GMV of $19.5 billion in the reported quarter exhibited year-over-year growth of 6% on a reported basis and 4% on an FX-neutral basis. The reported GMV surpassed the Zacks Consensus Estimate of $19 billion.The total GMV is categorized into two parts. U.S. GMV totaled $9.43 billion, accounting for 48.3% of the total GMV. The figure rose 7.2% year over year. International GMV was $10.09 billion, accounting for 51.7% of the total GMV. The figure increased 4.8% year over year.EBAY’s Operating DetailsOperating expenses of $1.47 billion grew 14.1% year over year. As a percentage of net revenues, the figure expanded 380 basis points (bps) from the year-ago quarter to 53.8%.The non-GAAP operating margin was 28.4% in the second quarter, expanding 40 bps year over year.EBAY’s Balance Sheet & Cash FlowAs of June 30, 2025, cash equivalents and short-term investments were $3.75 billion, down from $4.79 billion as of March 31, 2025.Long-term debt improved to $5 billion at the end of the second quarter of 2025, down from $5.75 billion in the prior quarter.Operating cash flow turned negative for eBay in the second quarter, with a loss of $307 million, down sharply from $787 million in positive cash flow in the previous quarter.The company generated a negative free cash flow of $441 million during the second quarter of 2025.eBay repurchased $625 million worth of shares and paid out dividends of $134 million in the reported quarter. The company had approximately $2 billion remaining under its buyback authorization as of June 30, 2025.EBAY’s Q3 GuidanceFor the third quarter of 2025, eBay expects revenues in the range of $2.69 billion to $2.74 billion. On an FX-neutral basis, revenue growth is anticipated to be 3-5%. The Zacks Consensus Estimate for revenues is pegged at $2.67 billion.The non-GAAP operating margin for the third quarter of 2025 is expected between 26.6% and 27.1%.GMV for the third quarter is likely to be $19.2-$19.6 billion.Non-GAAP earnings per share are anticipated between $1.29 and $1.34. The Zacks Consensus Estimate for the same is pegged at $1.32.EBAY’s Zacks Rank & Stocks to ConsiderCurrently, EBAY carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader Retail-Wholesale sector are Wayfair W, Performance Food Group PFGC and Maplebear Inc. CART, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Wayfair shares have jumped 47.9% year to date. W is set to report second-quarter 2025 results on Aug. 4.Shares of Performance Food Group have gained 20.8% year-to-date. PFGC is set to report fourth-quarter fiscal 2025 results on Aug. 13.Maplebear shares have gained 13.1% year to date. CART is slated to report second-quarter 2025 results on Aug. 7.One Big Gain, Every Trading DayTo help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report eBay Inc. (EBAY): Free Stock Analysis Report Wayfair Inc. (W): Free Stock Analysis Report Performance Food Group Company (PFGC): Free Stock Analysis Report Maplebear Inc. (CART): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks