Q2 2026 eBay Inc Earnings Call Transcript
Key Points
- eBay Inc (EBAY) delivered strong Q2 2026 results, with GMV and revenue both growing 14% year-over-year, exceeding consensus expectations and the high end of guidance across all key financial metrics.
- Strategic priorities (focused categories, C2C, and recommerce) now represent over 70% of total GMV, with each growing more than 20% in Q2, demonstrating broad-based momentum.
- Focused category GMV grew 26% in Q2, eclipsing 40% of total GMV for the first time, with strength across collectibles, motors, fashion, and refurbished items.
- eBay Live posted another record quarter with GMV growing roughly 8x year-over-year, and the company is expanding self-service onboarding to more sellers, which is expected to drive further growth.
- The acquisition of Depop closed, adding a fast-growing C2C fashion platform with strong momentum (buyers grew from 7 million to 9 million in Q2) and expanding eBay's reach with younger consumers.
- AI-powered tools like Magic Listing are driving measurable improvements in seller onboarding and C2C supply, with expansion to all C2C sellers in Australia and continued rollout in other markets.
- Advertising revenue grew 23% FX-neutral, with first-party ads up 24%, and the company sees a long runway for growth driven by AI and product innovation.
- The company raised its full-year outlook, expecting consolidated GMV growth of 11.5%-12.5% and non-GAAP EPS growth of 10%-12%, reflecting confidence in durable growth.
- US active buyers grew 6% and enthusiast buyers grew 9% year-over-year, indicating strong engagement and cohort quality.
- eBay continues to return capital to shareholders, with $450 million returned in Q2 and a plan to increase repurchase pace in the second half.
- International GMV growth remains modest at 4% year-over-year, with continued weaker macroeconomic conditions in regions like Germany, which may pressure near-term performance.
- The company expects a deceleration in GMV growth in Q3 due to lapping dynamics, including the full-quarter benefit of the Klarna partnership and prior marketing efficiency gains.
- Depop acquisition will be a headwind to non-GAAP operating income growth (3-4 points) and EPS growth (mid-single-digit) in Q3, with dilution expected to continue through 2026.
- The company is making significant investments in shipping affordability and marketing for Depop, which will be recognized as contra revenue, pressuring revenue growth relative to GMV.
- Active buyer growth remains low at 2% globally, with the company relying on Depop to boost buyer counts starting in Q3, indicating slower organic buyer acquisition.
- The take rate was flat year-over-year at 14%, with tailwinds from advertising and shipping offset by category mix shifts and faster growth in earlier-stage businesses like eBay Live.
- The company expects a deceleration in Pokemon and Bullion growth in the second half, which could impact overall GMV growth.
- Full-year non-GAAP tax rate is expected to be 1 percentage point higher than 2025, and net interest expense will pressure earnings due to lower cash balances from the Depop acquisition.
- The company is facing increased competitive intensity in C2C, particularly in the US, with new entrants and aggressive investments, which may require continued marketing spend.
- The transition in Germany to focus on strategic categories may create near-term pressure on overall GMV and buyer growth in that market.
Good day, everyone. My name is Kate, and I will be your conference operator today. At this time, I would like to welcome you to the eBay second quarter 2026 earnings call. All lines have been placed on mute to prevent any background noise. (Operator Instructions) At this time, I would like to turn the call over to John Egbert, Vice President of Investor Relations.
Good afternoon. Thank you all for joining us for eBay's second quarter 2026 earnings conference call. Joining me today on the call are Jamie Iannone, our Chief Executive Officer; and Peggy Alford, our Chief Financial Officer.
We're providing a slide presentation to accompany our commentary during the call, which is available through the Investor Relations section of the ewebsite at investors.ebayinc.com. Before we begin, I'll remind you that during this conference call, we will discuss certain non-GAAP measures related to our performance.
You can find a reconciliation of these measures to the nearest comparable GAAP
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