eBay Q2 2025 slides: Revenue accelerates to 6% growth as US GMV surges

Published 30/07/2025, 21:48
eBay Q2 2025 slides: Revenue accelerates to 6% growth as US GMV surges

Introduction & Market Context

eBay Inc (NASDAQ:EBAY) released its second quarter 2025 financial results on July 30, showcasing accelerated growth across all key metrics and raising its full-year outlook. The e-commerce giant reported significant momentum in its US business, with US GMV growing 7% year-over-year, helping drive total GMV to $19.5 billion, a 6% increase on a spot basis and 4% on an FX-neutral basis.

The company’s stock closed at $78.50 on July 30, down 1.2% for the day, but has shown strong performance over the past year with the stock trading well above its 52-week low of $53.74.

Quarterly Performance Highlights

eBay significantly outperformed its guidance across all key metrics for Q2 2025. Revenue reached $2.73 billion, representing 6% growth on a spot basis and 4% on an FX-neutral basis, exceeding the guided range of $2.59-$2.66 billion.

As shown in the following snapshot of Q2 2025 performance:

Non-GAAP operating margin came in at 28.4%, above the guided range of 27.0-27.8%, while diluted non-GAAP EPS reached $1.37, a 16% year-over-year increase and above the guided range of $1.24-$1.31. The company also highlighted its 16 million "enthusiast buyers," defined as those with at least 6 purchase days and $800+ annual spend.

The comparison between actual results and guidance demonstrates eBay’s strong execution:

GMV trends show consistent improvement over the past six quarters, with particular acceleration in US GMV, which grew 7% year-over-year in Q2 2025:

Revenue has similarly shown an upward trajectory, with the take rate remaining stable at 14.0% in Q2 2025:

Advertising continues to be a bright spot for eBay, with total advertising revenue growing 16% year-over-year to $482 million in Q2 2025. First-party advertising revenue increased 17% to $455 million, representing 2.5% of GMV:

Strategic Initiatives

eBay’s growth is being driven by several strategic initiatives, particularly in focus categories and financial services. The company reported that Trading Cards accelerated for the tenth straight quarter and were the largest contributor to GMV growth, while Motors, Parts & Accessories contributed approximately 1 percentage point to total year-over-year GMV growth.

Financial services solutions are emerging as a significant growth driver for the platform. The integration with Klarna in the US has resulted in an average order value approximately three times the US marketplace average. Additionally, eBay Balance is generating incremental GMV while lowering payment costs, and the Seller Capital program has disbursed over $100 million to more than 10,000 sellers globally in 2025.

As illustrated in the following slide on financial services solutions:

The company is also expanding its live commerce capabilities, formally launching eBay Live in the UK at Comic Con London and debuting "eBay Live on Tour" across the US.

Forward-Looking Statements

For Q3 2025, eBay provided guidance that reflects continued momentum. The company expects GMV of $19.2-$19.6 billion (5-7% spot, 3-5% FX-neutral) and revenue of $2.69-$2.74 billion (4-6% spot, 3-5% FX-neutral). Non-GAAP operating margin is expected to be 26.6-27.1%, with diluted non-GAAP EPS projected at $1.29-$1.34 (8-12% growth).

The Q3 guidance and context are detailed in the following slide:

For the full year 2025, eBay raised its outlook, now expecting GMV to track toward the high end or slightly above its previous expectation of low-single-digit year-over-year FX-neutral growth. The company also raised its full-year outlook for non-GAAP EPS growth to 10-12% year-over-year, up from previous guidance.

However, eBay acknowledged potential headwinds, including the impact of impending tariffs and the potential elimination of remaining De Minimis exemptions. The company also noted one-time headwinds to non-GAAP operating margin from depreciation (~50 bps), UK Managed Shipping (~30 bps), and M&A-related expenses (~30 bps), which are partly offset by a ~30 bps tailwind from FX.

On the capital allocation front, eBay expects free cash flow of approximately $1.5 billion for FY 2025, including a headwind of $935 million from unique tax items. The company is targeting share repurchases of approximately $2.5 billion for the year and declared a quarterly dividend of $0.29 per share for Q3 2025.

Despite these challenges, eBay’s Q2 2025 results demonstrate the company’s ability to execute on its strategic initiatives and deliver strong financial performance, positioning it well for continued growth in the remainder of 2025.

Full presentation:

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