eBay’s Q2 results were met with a strongly positive market reaction, reflecting both revenue and profit performance that exceeded Wall Street expectations. Management attributed this outcome to robust growth in focus categories such as collectibles and parts and accessories, as well as the successful expansion of partnerships like Klarna’s buy-now-pay-later service in the U.S. CEO Jamie Iannone highlighted the company’s ability to navigate recent tariff pressures, noting, “Our marketplace has proven resilient to recent uncertainty brought on by tariffs and trade policy changes.” The company also leveraged generative AI to enhance marketing efficiency and improve customer engagement.
Is now the time to buy EBAY? Find out in our full research report (it’s free).
eBay (EBAY) Q2 CY2025 Highlights:
- Revenue: $2.73 billion vs analyst estimates of $2.65 billion (6.1% year-on-year growth, 3.1% beat)
- Adjusted EPS: $1.37 vs analyst estimates of $1.30 (5.6% beat)
- Adjusted EBITDA: $882 million vs analyst estimates of $800.9 million (32.3% margin, 10.1% beat)
- Revenue Guidance for Q3 CY2025 is $2.72 billion at the midpoint, above analyst estimates of $2.66 billion
- Adjusted EPS guidance for Q3 CY2025 is $1.32 at the midpoint, above analyst estimates of $1.30
- Operating Margin: 17.7%, down from 21.3% in the same quarter last year
- Active Buyers: 134 million, up 2 million year on year
- Market Capitalization: $44.36 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From eBay’s Q2 Earnings Call
- Eric Sheridan (Goldman Sachs) asked about marketing efficiency and the impact of AI on traffic generation. CEO Jamie Iannone highlighted organic traffic strength and outlined a multi-pronged AI strategy to enhance personalization and relevance.
- Michael Morton (MoffettNathanson) inquired about category growth expectations and the behavior of buyers coming from AI search. Iannone emphasized ongoing strength across all focus categories and noted high shopping intent from AI-driven traffic.
- Nathan Feather (Morgan Stanley) questioned the durability of U.S. outperformance and the specific strategic investments planned. Iannone pointed to resilient U.S. consumer demand, ongoing investments in fashion and C2C initiatives, and the scaling of eBay Live.
- Ross Sandler (Barclays) asked whether higher average selling prices were due to competitive dynamics or category strength. Iannone cited broad-based growth across categories, with Klarna’s introduction boosting high-ticket sales, and called out fashion as a significant future opportunity.
- Nikhil Devnani (Bernstein Research) pressed on the sustainability of trading card growth and margin trends. Iannone described trading card growth as non-linear but supported by ongoing category improvements, while CFO Peggy Alford emphasized the importance of balancing top-line growth with operating margin discipline.
Catalysts in Upcoming Quarters
Looking forward, the StockStory team will monitor (1) the pace of adoption and monetization of eBay Live and its influence on engagement, (2) the durability of focus category growth, particularly as product release cycles shift, and (3) the impact of expanded AI-driven personalization on buyer retention and conversion. We will also track the effects of evolving trade policies and further development of the U.K. C2C initiative as indicators of eBay’s execution against strategy.
eBay currently trades at $97, up from $77.42 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).
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