eBay Q3 2026 GMV Rises 16% FX-Neutral

eBay Inc. (NASDAQ: EBAY) reported double-digit growth in gross merchandise volume and revenue for the third quarter of 2026, supported by strong activity across collectibles, consumer-to-consumer selling, recommerce and eBay Live. Strategic priorities excluding Depop accounted for 72% of total GMV and grew about 20% year over year on an FX-neutral basis, while the company projected continued growth in the fourth quarter and outlined plans for healthy consolidated growth in 2027.

Third-quarter GMV reached $23.2 billion, rising 15% on a reported basis, 16% on an FX-neutral basis and 13% organically on an FX-neutral basis. Net revenue increased 14% to $3.21 billion, or 13% FX-neutral and 11% organic FX-neutral. Both measures were above the guidance ranges included in the presentation.

Non-GAAP operating income rose 11% to $843 million, though the corresponding margin narrowed to 26.3% from 27.0% a year earlier. Non-GAAP diluted earnings per share increased 12% to $1.51. On a GAAP basis, operating income was $616 million, with a 19.2% margin, while income from continuing operations was $501 million and diluted EPS was $1.11, down from $1.27 in the prior-year quarter.

Operating expenses represented 46.8% of revenue, an increase of 1.3 percentage points. eBay attributed changes across its cost base to Depop investments, higher sales and marketing spending, increased traffic-acquisition costs and the effects of the Depop acquisition, partly offset by operational efficiencies and better consumer-protection loss trends.

Free cash flow from continuing operations declined 7% to $749 million. The company repurchased $689 million of stock and paid $138 million in cash dividends during the quarter. As of September 30, eBay had about $1.3 billion remaining under its repurchase authorization.

Collectibles, C2C and eBay Live support volume growth

Focus Categories generated 24% year-over-year GMV growth on an FX-neutral basis, led by collectibles, eBay Motors, fashion and refurbished goods. Collectibles remained the largest contributor to eBay’s GMV growth, with sports trading cards and collectible card games maintaining strong gains despite tougher comparisons. Trading-card GMV exceeded $1 billion over the trailing 12 months for the first time, while cumulative AI-powered card scans surpassed 130 million.

eBay Motors also expanded, with vehicle GMV growing well into the triple digits. The company rolled out streamlined consumer-to-consumer vehicle checkout in Germany, increased Vehicle Purchase Protection to as much as $500,000 for eligible transactions and introduced certified recycled parts badging in the U.S. Parts-and-accessories initiatives, including easier returns in the U.S. and UK, contributed incremental GMV while return rates remained stable, according to the presentation.

Luxury fashion recorded another quarter of healthy double-digit GMV growth. eBay expanded its Authenticity Guarantee coverage in France and Italy and extended access to eligible authenticated inventory across 23 European countries. It also rolled out authentication for eligible watches in Australia.

Global C2C GMV grew more than 20% on an FX-neutral basis, including healthy double-digit growth in the U.S., UK and Australia. eBay continued expanding its AI-powered Magical Listing tool, making it available to new and reactivated sellers in six major markets and rolling it out more broadly to active sellers.

eBay Live delivered another record quarter, with GMV growth remaining well into the triple digits and reaching a multi-billion-dollar annualized run rate. The service operated across seven markets, supported by broader seller onboarding, redesigned discovery features, multistreaming and AI-powered moderation.

Depop adds secondhand-fashion growth

The recently acquired Depop business broadened eBay’s exposure to secondhand fashion. Depop’s U.S. GMV, monthly active users and sold items more than doubled year over year on a pro forma basis. Repurchase, relisting and resale rates also improved.

eBay said it was using its scale to support Depop through access to lower carrier rates and by testing relevant Depop listings within eBay search results for selected fashion queries. The company is also investing in personalized discovery, AI-assisted listing and marketing aimed at attracting first-time customers.

Fourth-quarter and full-year outlook

For the fourth quarter, eBay expects GMV of $23.7 billion to $24.1 billion, representing reported growth of 12% to 13%, FX-neutral growth of 12% to 14% and organic FX-neutral growth of 8% to 10%. Revenue is projected at $3.19 billion to $3.24 billion, up 8% to 9% as reported and 7% to 9% FX-neutral.

The company forecast non-GAAP operating income of $820 million to $850 million and a non-GAAP operating margin of 25.7% to 26.2%. Non-GAAP diluted EPS is expected to be $1.48 to $1.53. Management expects Depop to contribute about four percentage points to total FX-neutral GMV growth and about two points to FX-neutral revenue growth in the quarter.

For full-year 2026, eBay projects GMV of $91.5 billion to $91.9 billion and revenue of $12.62 billion to $12.67 billion. Non-GAAP operating income is expected to be between $3.46 billion and $3.49 billion, with non-GAAP diluted EPS of $6.25 to $6.30. The company is targeting about $2 billion of share repurchases for the year and declared a fourth-quarter dividend of $0.31 per share.

Preliminary planning for 2027 assumes healthy year-over-year growth in FX-neutral GMV and revenue, as well as non-GAAP operating income and EPS. Management expects momentum across Focus Categories, eBay Live, C2C and Depop, although trading-card growth is expected to moderate as the company compares against unusually strong 2026 levels. eBay also anticipates modest pressure on net interest income because of its lower cash balance and interest-rate assumptions.

The outlook remains subject to risks including shifts in consumer engagement and spending, competition, foreign-exchange movements, global trade policies, technology changes, regulation, fraud, cybersecurity, business interruptions and the company’s ability to realize expected benefits from Depop. eBay also identified category and average-selling-price mix as ongoing factors affecting the relationship between GMV and revenue growth.