eBay Stock: Solid Q3 Results Reinforce Growth Momentum

• 29 October 2025
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• 22:23

eBay delivered solid third-quarter 2025 results, showcasing both financial strength and continued progress in its strategic shift toward AI-driven commerce.

The San Jose-based company revenue of $2.8 billion, marking a 9% year-over-year increase, while Gross Merchandise Volume (GMV) climbed to $20.1 billion, up 10% as reported.

CEO Jamie Iannone said the quarter underscored eBay’s evolving marketplace strategy, highlighting the company’s use of artificial intelligence to modernize search, improve seller tools, and enhance buyer engagement. “We’re transforming the eBay experience through AI built on 30 years of unique insights,” Iannone noted, emphasizing innovations in live commerce, shipping, and sustainable fashion as core growth drivers.

Strong Financial and Operational Performance

GAAP earnings per diluted share came in at $1.28, while non-GAAP EPS reached $1.36. Operating margins stood at 20.4% and 27.1% on a GAAP and non-GAAP basis, respectively. eBay’s operating cash flow totaled $934 million, with free cash flow at $803 million. The company returned $757 million to shareholders through $625 million in buybacks and $132 million in dividends.

Advertising revenue remained a key growth engine, reaching $525 million in Q3 — up 25% year-over-year on an as-reported basis — and now accounting for 2.6% of GMV. First-party ad products led this surge, driven by increased adoption among sellers leveraging promoted listings.

Strategic Highlights: AI, Fashion, and Live Commerce

In celebration of its 30th anniversary, eBay expanded its presence across major retail and cultural events while unveiling new marketplace features. These include embedded offer-making tools, AI-powered messaging support, and enhanced seller protections. The company also strengthened its “Authenticity Guarantee” in the U.K., now covering 70 luxury brands and becoming the first market to offer full “head-to-toe” authentication.

eBay’s growing emphasis on sustainability and circular fashion was further reflected in its “Endless Runway” initiative, which brought pre-loved designer pieces to live audiences in New York, London, Milan, and Paris. Viewers could shop the looks in real-time via eBay Live, highlighting the company’s expanding push into interactive commerce.

The acquisition of Tise, a Gen Z–focused social marketplace, marked another step in strengthening eBay’s consumer-to-consumer ecosystem. Meanwhile, integrations with Apple’s Visual Intelligence and Secure Purchase solutions for vehicle transactions continue to enhance the platform’s convenience and trust.

Empowering Sellers and Communities

Since the launch of eBay Seller Capital in 2021, over $1 billion in working capital has been distributed to sellers through financing partners. In parallel, eBay for Charity raised $49 million globally in Q3, and the eBay Foundation awarded $3 million in Global Give grants supporting inclusive entrepreneurship.

The company also earned multiple accolades this year, including recognition on TIME’s World’s Best Companies 2025 and Forbes’ America’s Best Employers for Women and Tech Workers lists, underscoring its cultural and operational leadership.

Outlook and Dividend Update

For the fourth quarter of 2025, eBay expects revenue between $2.83 billion and $2.89 billion, reflecting FX-neutral growth of 8%–10%. Non-GAAP earnings per share are projected between $1.31 and $1.36, with GMV anticipated to range from $20.5 billion to $20.9 billion.

The company also declared a quarterly cash dividend of $0.29 per share, payable on December 12, 2025, to shareholders of record as of November 28.

Stock Price

Following the company’s earnings release, eBay stock (NASDAQ: EBAY) dropped sharply in after-hours trading, sliding 8.82% to around $92.75 after closing the regular session near $99.60. The pullback reflects investor caution despite solid third-quarter results, as traders likely reacted to guidance that signaled moderate revenue growth ahead. The decline brings the stock back near a key support level around $92–93, which could determine whether the recent uptrend continues or gives way to a deeper short-term correction.

On the 4-hour chart, the Relative Strength Index (RSI) is hovering near 68, suggesting the stock is approaching overbought territory but still maintaining bullish momentum. The MACD also remains in positive territory, indicating continued upward pressure as long as the price holds above the $96 support level. A breakout above $100 could open the door toward the $104 resistance range, while a rejection might trigger short-term consolidation.

Market Confidence Builds Ahead of 2026

With accelerating AI adoption, expansion in luxury resale, and steady GMV growth, eBay continues to position itself as a leader in global ecommerce innovation. The combination of solid cash flow, disciplined capital returns, and strategic product evolution suggests a favorable setup heading into 2026, as investors look for consistent growth in both engagement and profitability.