EBAY — eBay Inc.

eBay Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Gross Merchandise Volume (GMV): Increased by 14% to $22.2 billion.
• Revenue: Grew 17% year-over-year to $3.09 billion.
• Non-GAAP Operating Income: Rose 18% to $907 million.
• Non-GAAP Earnings Per Share (EPS): Increased by 21% to $1.66.
• Active Buyers: Trailing 12-month active buyers grew by 1% to nearly 136 million, with U.S. buyer growth at 6%.
• Advertising Revenue: Increased by 27% to $581 million, with first-party ads growing 28%.

2. Strategic Updates and Business Highlights

• Focus Categories: GMV from focused categories grew 24%, significantly outpacing overall GMV growth.
• C2C Business: Continued double-digit growth, driven by reduced friction for sellers and enhanced marketing initiatives.
• eBay Live: Rapid growth with an annual GMV run rate over 8x higher year-over-year; successful events drove significant engagement.
• AI Investments: Continued enhancements in AI tools, including the magical listing experience and agentic search, leading to improved seller metrics and buyer engagement.
• Shipping Solutions: Expanded international shipping capabilities and improved shipping programs, contributing positively to GMV growth.

3. Forward Guidance and Outlook

• Q2 2026 Guidance: GMV expected between $21.3 billion and $21.7 billion (8%-10% growth), with revenue forecasted between $2.97 billion and $3.03 billion.
• Full Year 2026 Outlook: Anticipating GMV growth of 7%-7.5% on an FX-neutral basis, with revenue growth expected to align with GMV. Non-GAAP operating income growth projected between 9%-11%.
• Depop Acquisition: Expected to close by Q3 2026, anticipated to contribute approximately 1 percentage point to GMV growth but may dilute EPS growth slightly.

4. Bad News, Challenges, or Points of Concern

• International Markets: Continued macroeconomic challenges in Europe impacting consumer confidence and growth.
• Transaction Losses: Increased transaction losses expected due to new shipping programs, though improvements noted toward the end of Q1.
• Competitive Pressures: Notable competition in the C2C space, particularly in fashion e-commerce, may impact market share and growth dynamics.

5. Notable Q&A Insights

• Buyer Growth vs. GMV: Management highlighted that while active buyer growth was modest, GMV growth was driven by increased order frequency and average selling prices (ASP).
• Advertising Strength: Continued growth in advertising revenue attributed to seller adoption and AI-driven optimizations.
• Live Shopping Momentum: eBay Live gaining traction, with significant engagement and sales growth, particularly in collectibles and fashion.
• Future Investments: Focus on enhancing the seller experience through trust initiatives and AI capabilities, while balancing investments with profitability.

Overall, eBay demonstrated strong financial performance in Q1 2026, driven by strategic investments in key growth areas, though challenges remain in international markets and competitive pressures. The outlook for the remainder of the year remains positive, with expectations for continued growth across various segments.