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.
• Shareholder Returns: $639 million returned through share repurchases and dividends.
• Active Buyers: Trailing 12-month active buyers grew 1% to nearly 136 million, with U.S. buyers up 6%.

2. Strategic Updates and Business Highlights

• Focus Categories: GMV from focused categories grew 24%, contributing significantly to overall growth.
• Collectibles: Strong performance driven by events like the 30th anniversary of Pokémon, with notable sales including a $16 million trading card.
• C2C Business: Continued double-digit GMV growth, with marketing initiatives enhancing seller engagement.
• eBay Live: Rapid growth in live shopping events, with a significant increase in GMV contribution.
• Acquisitions: Ongoing integration of Aladin Systems and plans for the acquisition of Depop, expected to close by Q3 2026.
• AI Investments: Continued enhancements in AI capabilities, including magical listings and agentic search, improving seller and buyer experiences.

3. Forward Guidance and Outlook

• Q2 2026 Guidance: GMV expected between $21.3 billion and $21.7 billion (8-10% FX-neutral growth). Revenue forecasted between $2.97 billion and $3.03 billion.
• Full Year 2026 Outlook: GMV growth projected at 7-7.5% (FX-neutral). Revenue growth expected to align with or slightly exceed GMV growth. Non-GAAP operating income growth anticipated at 9-11%.

4. Bad News, Challenges, or Points of Concern

• Macroeconomic Environment: Ongoing geopolitical and economic uncertainties affecting international markets, particularly in Europe.
• Competitive Pressures: Increased competition in the C2C space, particularly from new entrants in fashion e-commerce.
• Transaction Losses: Expected increase in transaction losses due to new shipping programs and customer experience enhancements, though improvements were noted towards the end of Q1.
• Mixed International Performance: While U.S. GMV growth was strong, international markets faced challenges, impacting overall growth rates.

5. Notable Q&A Insights

• Buyer Engagement: Management highlighted the importance of buyer engagement metrics, noting that while active buyer growth was modest, underlying trends showed stronger engagement and spending.
• Advertising Revenue: Strong growth in advertising revenue was noted, with expectations for continued growth driven by seller adoption and AI optimizations.
• C2C Dynamics: Management emphasized the strength of the C2C business and its resilience, attributing growth to reduced friction and enhanced marketing strategies.
• Live Shopping Momentum: The success of eBay Live was discussed, with management expressing confidence in its potential as a significant growth driver moving forward.

Overall, eBay reported a robust start to 2026, with strong financial performance and strategic initiatives driving growth, despite facing challenges in the macroeconomic landscape and competitive pressures.