eBay's Q3 Revenue Climbs to $2.82B, Net Income Holds Steady

TL;DR

EBAY's Q3 shows solid revenue growth and strong cash generation, making it a stable bet despite rising operating costs.

AI Summary

eBay Inc. reported net revenues of $2.82 billion for the three months ended September 30, 2025, an increase from $2.58 billion in the same period of 2024. Net income for the quarter was $632 million, a slight decrease from $634 million in Q3 2024. Diluted EPS for continuing operations increased to $1.28 from $1.29 year-over-year, while diluted EPS for discontinued operations contributed $0.07, leading to a total diluted EPS of $1.35, up from $1.29. For the nine months ended September 30, 2025, net revenues grew to $8.14 billion from $7.70 billion, and net income rose to $1.50 billion from $1.30 billion. The company saw a significant increase in cash provided by investing activities, reaching $1.64 billion for the nine months ended September 30, 2025, compared to $951 million in the prior year, driven by maturities of investments totaling $8.02 billion. Operating expenses increased, with general and administrative expenses rising to $282 million in Q3 2025 from $194 million in Q3 2024. The company also changed its estimate of the useful lives for servers and networking equipment from three years to four years, effective January 1, 2024, reflecting hardware and data center improvements.

Why It Matters

eBay's consistent revenue growth, despite a slight dip in quarterly net income, signals resilience in a competitive e-commerce landscape dominated by giants like Amazon and newer specialized marketplaces. For investors, the increased diluted EPS and strong cash flow from investing activities, particularly the $8.02 billion in investment maturities, suggest efficient capital management and potential for future shareholder returns, including continued share repurchases of $1.87 billion. Employees benefit from a stable company with ongoing product development investments, while customers can expect continued platform improvements, as evidenced by the extended useful life of servers and networking equipment. The broader market sees eBay maintaining its position as a key player in global commerce, adapting to technological advancements and macroeconomic pressures.

Risk Assessment

Risk Level: medium — The company faces medium risk due to increasing operating expenses, with general and administrative costs jumping from $194 million in Q3 2024 to $282 million in Q3 2025, and sales and marketing rising to $606 million from $592 million. Additionally, the 'Gain (loss) on equity investments and warrant, net' swung from a gain of $199 million in Q3 2024 to a loss of $10 million in Q3 2025, indicating potential volatility in non-operating income.

Analyst Insight

Investors should monitor eBay's operating expense trends closely, particularly general and administrative costs, to ensure they don't erode future profitability. The strong cash flow from investing activities and ongoing share repurchases suggest a healthy balance sheet, making EBAY a potential hold for long-term investors seeking a stable e-commerce play with consistent revenue growth.

Financial Highlights

debt To Equity

2.77

revenue

$2.82B

total Assets

$17.79B

total Debt

$6.75B

net Income

$632M

eps

$1.35

cash Position

$2.42B

revenue Growth

+9.3%

Revenue Breakdown

Key Numbers

• $2.82B — Net Revenues (Increased from $2.58B in Q3 2024, showing 9.3% growth.)
• $632M — Net Income (Slight decrease from $634M in Q3 2024.)
• $1.35 — Diluted EPS (Increased from $1.29 in Q3 2024.)
• $1.64B — Net Cash from Investing Activities (Significant increase from $951M in the prior nine-month period.)
• $1.87B — Common Stock Repurchased (Reflects ongoing share buyback program for nine months ended Sept 30, 2025.)
• $282M — General and Administrative Expenses (Increased from $194M in Q3 2024, indicating rising operational costs.)
• 4 years — Useful Life of Servers/Networking Equipment (Extended from 3 years, effective Jan 1, 2024, due to hardware improvements.)
• $8.02B — Maturities of Investments (Major contributor to cash provided by investing activities for nine months ended Sept 30, 2025.)
• $10M — Loss on Equity Investments and Warrant, net (Swing from a $199M gain in Q3 2024, impacting non-operating income.)
• 452M — Shares Outstanding (As of October 24, 2025, reflecting share repurchases.)

Key Players & Entities

• eBay Inc. (company) — global commerce leader
• Nasdaq Global Select Market (regulator) — exchange where common stock is registered
• Adevinta (company) — equity investment
• SEC (regulator) — Securities and Exchange Commission
• Financial Accounting Standards Board (regulator) — sets accounting standards
• $2.82 billion (dollar_amount) — net revenues for Q3 2025
• $632 million (dollar_amount) — net income for Q3 2025
• $1.35 (dollar_amount) — diluted EPS for Q3 2025
• $1.64 billion (dollar_amount) — net cash provided by investing activities for nine months ended Sept 30, 2025
• $1.87 billion (dollar_amount) — common stock repurchased for nine months ended Sept 30, 2025

FAQ

Risk Factors

• Changes in Depreciation Estimates [medium — operational]: The company changed its estimate of the useful lives for servers and networking equipment from three years to four years, effective January 1, 2024. This change, driven by hardware and data center improvements, will reduce depreciation expense and positively impact net income.
• Increasing Operating Expenses [medium — operational]: General and administrative expenses rose to $282 million in Q3 2025 from $194 million in Q3 2024, indicating rising operational costs that could pressure margins if not managed effectively.
• Investment Portfolio Performance [low — market]: A significant swing from a $199 million gain on equity investments and warrants in Q3 2024 to a $10 million loss in Q3 2025 impacted non-operating income, highlighting the volatility of investment returns.

Industry Context

eBay operates in the highly competitive e-commerce and online marketplace sector, facing pressure from global giants like Amazon and Alibaba, as well as niche platforms. Trends include the increasing importance of mobile commerce, the growth of recommerce, and evolving consumer expectations for faster delivery and personalized experiences.

Regulatory Implications

As a global online marketplace, eBay is subject to various regulations concerning data privacy (e.g., GDPR, CCPA), consumer protection, and anti-trust laws. Changes in these regulations or increased enforcement could impact operations, compliance costs, and business practices.

What Investors Should Do

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Key Dates

• 2025-09-30: End of Q3 2025 — Reporting period for the 10-Q, showing net revenues of $2.82 billion and net income of $632 million.
• 2024-01-01: Effective date of change in useful life for servers/networking equipment — This accounting change impacts depreciation expense and is a key operational adjustment noted in the filing.

Glossary

Diluted EPS

Earnings per share calculated by dividing net income by the weighted-average number of outstanding common shares, including the dilutive effect of stock options and convertible securities. (Indicates the profitability on a per-share basis, reflecting the impact of all potential shares.)

Treasury Stock

Stock that a company has repurchased from the open market. It is recorded at cost and reduces total stockholders' equity. (The significant negative balance for treasury stock ($53.178 billion) reflects substantial share buyback activity.)

Accumulated Other Comprehensive Income (AOCI)

A component of stockholders' equity that includes unrealized gains and losses on certain investments, foreign currency translation adjustments, and pension plan adjustments. (Shows the accumulation of gains and losses not yet recognized in net income, currently standing at $212 million.)

Operating lease right-of-use assets

Assets recognized under accounting standards for leases, representing the right to use an underlying asset for the lease term. (These assets, totaling $367 million, are part of the company's long-term asset base related to leased facilities.)

Year-Over-Year Comparison

eBay Inc. reported a 9.3% increase in net revenues for Q3 2025 to $2.82 billion, up from $2.58 billion in Q3 2024, indicating continued top-line growth. However, net income saw a slight decrease to $632 million from $634 million, and General and Administrative expenses rose significantly by 45% YoY to $282 million, suggesting increased operational costs. The company also experienced a notable swing in investment gains/losses, impacting non-operating income.

Key Financial Figures

• $0.001 — hares of the registrant's common stock, $0.001 par value, outstanding, which is the on

Filing Documents

• ebay-20250930.htm (10-Q) — 1798KB
• ebay093025ex3101.htm (EX-31.01) — 11KB
• ebay093025ex3102.htm (EX-31.02) — 11KB
• ebay093025ex3201.htm (EX-32.01) — 5KB
• ebay093025ex3202.htm (EX-32.02) — 5KB
• ebay-20250930_g1.jpg (GRAPHIC) — 25KB
• 0001065088-25-000127.txt ( ) — 10397KB
• ebay-20250930.xsd (EX-101.SCH) — 64KB
• ebay-20250930_cal.xml (EX-101.CAL) — 107KB
• ebay-20250930_def.xml (EX-101.DEF) — 298KB
• ebay-20250930_lab.xml (EX-101.LAB) — 771KB
• ebay-20250930_pre.xml (EX-101.PRE) — 569KB
• ebay-20250930_htm.xml (XML) — 1897KB

: FINANCIAL INFORMATION

PART I: FINANCIAL INFORMATION Item 1

Financial Statements (unaudited)

Financial Statements (unaudited) 5 Item 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 42 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 55 Item 4

Controls and Procedures

Controls and Procedures 57

: OTHER INFORMATION

PART II: OTHER INFORMATION Item 1

Legal Proceedings

Legal Proceedings 58 Item 1A

Risk Factors

Risk Factors 58 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 58 Item 3 Defaults Upon Senior Securities 58 Item 4 Mine Safety Disclosures 58 Item 5 Other Information 59 Item 6 Exhibits 60

Signatures

Signatures 61 2

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements that involve expectations, plans or intentions including, but not limited to, expectations, plans and intentions regarding our business strategies, focus categories, country-specific investments, horizontal initiatives, macroeconomic conditions, seasonal trends, new and updated products and initiatives, technology priorities, consumer confidence, demand and spending, geopolitical events, tariffs, cross-border trade, global trade policy, foreign exchange rate fluctuations and volatility, income taxes, elevated interest rates, the impact of new and changing regulations, and inflationary pressure on our business and operations, as well as any trends relating to any of the foregoing. You can generally identify these forward-looking statements by words such as "ability," "aim," "anticipate," "believe," "commit," "continue," "could," "design," "develop," "estimate," "expect," "forecast," "future," "goal," "impact," "intend," "likely," "maintain," "may," "ongoing," "opportunity," "outlook," "plan," "possible," "potential," "predict," "probable," "pursue," "remain," "seek," "should," "strategy," "strive," "target," "value," "will," "would" and other similar expressions or variations. Our forward-looking statements involve risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in our forward-looking statements. Such risks and uncertainties include, among others: fluctuations in, and our ability to predict, our results of operations and cash flows; our ability to convert visits into sales for our sellers, attract and retain sellers and buyers, and execute on our business strategy; our ability to compete in the markets in which we participate; our ability to generate revenue fro

: FINANCIAL INFORMATION

PART I: FINANCIAL INFORMATION

: Financial Statements (unaudited)

Item 1: Financial Statements (unaudited) Index Page Condensed Consolidated Balance Sheet as of September 30, 2025 and December 31, 2024 6 Condensed Consolidated Statement of Income for the three and nine months ended September 30, 2025 and 2024 7 Condensed Consolidated Statement of Comprehensive Income for the three and nine months ended September 30, 2025 and 2024 8 Condensed Consolidated Statement of Stockholders' Equity for the three and nine months ended September 30, 2025 and 2024 9 Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2025 and 2024 10 Notes to Condensed Consolidated Financial Statements 12 Note 1 — The Company and Summary of Significant Accounting Policies 12 Note 2 — Net Income Per Share 15 Note 3 — Goodwill and Intangible Assets 16 Note 4 — Segments 17 Note 5 — Investments 18 Note 6 — Derivative Instruments 22 Note 7 — Fair Value Measurement of Assets and Liabilities 26 Note 8 — Supplemental Consolidated Financial Information 29 Note 9 — Debt 31 Note 10 — Commitments and Contingencies 34 Note 11 — Stockholders' Equity 36 Note 12 — Employee Benefit Plans 37 Note 13 — Income Taxes 38 Note 14 — Accumulated Other Comprehensive Income 39 Note 15 — Restructuring 41 5 Table of Contents eBay Inc. CONDENSED CONSOLIDATED BALANCE SHEET September 30, 2025 December 31, 2024 (In millions, except par value) (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 2,423 $ 2,433 Short-term investments 955 3,457 Customer accounts and funds receivable 1,262 962 Other current assets 753 715 Total current assets 5,393 7,567 Long-term investments 2,848 2,439 Property and equipment, net 1,333 1,263 Goodwill 4,376 4,269 Operating lease right-of-use assets 367 427 Deferred tax assets 2,898 2,936 Other assets 576 464 Total assets $ 17,791 $ 19,365 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Short-term debt $ 1,748 $ 1,67