eBay Q3 Earnings & Revenues Surpass Estimates, Both Increase Y/Y

eBay Inc. EBAY reported third-quarter 2025 non-GAAP earnings of $1.36 per share, which beat the Zacks Consensus Estimate by 2.26%. The bottom line increased 14.3% year over year.Net revenues of $2.82 billion beat the Zacks Consensus Estimate by 2.9%. The figure increased 9.5% from the year-ago quarter on a reported basis and 8% on an FX-neutral basis.eBay’s first-party advertising products generated revenues of $496 million in the reported quarter, up 25% on an as-reported basis and 23% on an FX-neutral basis.Total advertising offerings yielded $525 million in revenues, representing 2.6% of gross merchandise volume (GMV).eBay Inc. Price, Consensus and EPS Surprise eBay Inc. price-consensus-eps-surprise-chart | eBay Inc. QuoteEBAY’s active buyer base, which was pinned at 134 million at the end of the third quarter, increased 1% year over year, missing the consensus mark by 0.4%.GMV Details for EBAYEBAY’s total GMV of $20.11 billion in the reported quarter exhibited year-over-year growth of 10% on a reported basis and 8% on an FX-neutral basis. The reported GMV surpassed the Zacks Consensus Estimate of $19.42 billion.The total GMV is categorized into two parts. U.S. GMV totaled $9.87 billion, accounting for 49.1% of the total GMV. The figure rose 13% year over year. International GMV was $10.23 billion, accounting for 50.9% of the total GMV. The figure increased 7% year over year.EBAY’s Q3 Operating DetailsOperating expenses of $1.42 billion grew 13.5% year over year. As a percentage of net revenues, the figure expanded 180 basis points (bps) from the year-ago quarter to 48.7%.The non-GAAP operating margin was 27.1% in the third quarter, contracting 10 bps year over year.EBAY’s Balance Sheet & Cash FlowAs of Sept. 30, 2025, cash equivalents and short-term investments were $3.38 billion, down from $3.75 billion as of June 30, 2025.Long-term debt remained unchanged at $5 billion at the end of the third quarter of 2025, compared with the prior quarter.Cash flow from operating activities was $934 million in the third quarter, a sharp turnaround from negative $307 million in the previous quarter.eBay reported free cash flow from continuing operations of $803 million in the third quarter.The company repurchased $625 million worth of shares and paid out cash dividends of $132 million in the reported quarter. eBay had approximately $1.4 billion remaining under its buyback authorization as of Sept. 30, 2025.EBAY’s Q4 & 2025 GuidanceFor the fourth quarter of 2025, eBay expects revenues in the range of $2.83 billion to $2.89 billion. On an FX-neutral basis, revenue growth is anticipated to be 8-10%.The non-GAAP operating margin for the fourth quarter of 2025 is expected to be between 25.8% and 26.3%.GMV for the fourth quarter is likely to be in the range of $20.5-$20.9 billion.Non-GAAP earnings per share are anticipated to be between $1.31 and $1.36.For 2025, the company expects revenues between $10.97 billion and $11.03 billion. On an FX-neutral basis, revenue growth is anticipated to be 6-6%.Non-GAAP operating margin is expected to be between 27.7% and 27.8%.GMV for the full year is likely to be in the range of $78.9-$79.3 billion.Non-GAAP earnings per share are projected to be between $5.42 and $5.47.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 Dutch Bros BROS, Performance Food Group PFGC and Canada Goose GOOS, 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.Dutch Bros shares have returned 10.4% year to date. BROS is set to report its third-quarter 2025 results on Nov. 5.Shares of Performance Food Group have gained 16.4% year to date. PFGC is set to report first-quarter fiscal 2026 results on Nov. 5.Canada Goose shares have risen 38.6% year to date. GOOS is slated to report its second-quarter fiscal 2026 results on Nov. 6.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>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 Performance Food Group Company (PFGC): Free Stock Analysis Report Canada Goose Holdings Inc. (GOOS): Free Stock Analysis Report Dutch Bros Inc. (BROS): 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