eBay Revenue Climbs 14% To $3.2 Billion, But Standard Profit Per Share Slips To $1.11
Adjusted earnings per share rose 12% to $1.51, while the Depop purchase and a tax swing weighed on profit under standard accounting.
eBay's third-quarter revenue rose 14% to $3.2 billion, and merchandise volume climbed 15%, the company said Wednesday in its earnings release. Profit per share under standard accounting fell to $1.11 from $1.27 a year earlier, even as adjusted earnings per share rose 12% to $1.51.
Sales up, margins thinner
Revenue was $3,206 million, against $2,820 million a year earlier. Gross merchandise volume, the total value of items sold on eBay's platforms, reached $23.2 billion, up 16% excluding currency effects.
Profit from continuing operations fell 16% to $501 million. Adjusted net income rose 8% to $685 million. The company's income tax line swung from a $25 million benefit a year ago to a $104 million provision, and the standard effective tax rate was 17.1% against negative 4.3%.
Operating margin slipped to 19.2% from 20.3% on a standard basis, and to 26.3% from 27.0% on an adjusted basis. Operating cash flow was $875 million and free cash flow $749 million, down from $900 million and $803 million a year earlier.
Depop lifts the buyer count
eBay, which runs an online marketplace where buyers and sellers trade new and pre-owned goods, completed its purchase of Depop from Etsy on July 30. It paid $1.4 billion in cash, including a preliminary price adjustment still to be finalized.
Active buyers rose 10% to 147 million. Excluding Depop and Tise, growth was 1%. U.S. merchandise volume grew 27%, while international volume grew 4%.
CEO Jamie Iannone said more consumers are embracing recommerce. The company said eBay Live, its live shopping format, had another record quarter, generating volume at a multibillion-dollar annualized pace with growth well into triple digits. First-party advertising revenue rose 16% to $575 million.
Guidance and cash returned
For the fourth quarter, eBay guided to revenue of $3.19 billion to $3.24 billion and adjusted earnings of $1.48 to $1.53 per share. For the full year it expects revenue of $12.62 billion to $12.67 billion and adjusted earnings of $6.25 to $6.30 per share, including Depop.
The company returned $827 million to stockholders in the quarter: $689 million of buybacks, or about 6 million shares, and $138 million of dividends. About $1.3 billion of repurchase authorization remained at September 30.
The board declared a fourth-quarter dividend of $0.31 per share, payable December 18 to holders of record on December 4.
eBay reported $3.3 billion in cash and non-equity investments at September 30, and short-term debt of $1,599 million, up from $750 million at the end of 2025.
Sources
- 8-K Filing — EBAY INC (EBAY) — SEC EDGAR
- Exhibit exhibit991erebayq32026.htm — EBAY INC 8-K exhibit — SEC EDGAR
- eBay Inc. Reports Third Quarter 2026 Results — prnewswire.com
