eBay Beats Q4 Estimates, Guides Higher and to Acquire Depop for $1.2B
eBay’s Q4 revenue rose 15% year-over-year to $3 billion with adjusted EPS of $1.41 and GMV of $21.2 billion, all topping analyst projections. The company will acquire Depop for $1.2 billion and projects Q1 revenue of $3–3.05 billion and EPS of $1.53–1.59, above consensus.
1. Fourth Quarter Performance
eBay reported Q4 revenue of $3.0 billion, a 15% increase year-over-year, and adjusted EPS of $1.41, beating street estimates of $2.87 billion and $1.35. GMV rose 10% to $21.2 billion, supported by a 2.6% GMV contribution from $544 million in advertising revenue.
2. First Quarter Outlook
For Q1 2026, eBay forecasts revenue between $3.00 billion and $3.05 billion, above the $2.97 billion consensus, and adjusted EPS of $1.53–1.59 versus the $1.48 estimate, reflecting confidence in marketplace momentum.
3. Depop Acquisition
eBay will acquire Depop for $1.2 billion in cash; Depop generated approximately $1.0 billion in GMV during 2025 and serves 7 million active buyers, 90% of whom are under 34, bolstering eBay’s presence in youth-focused fashion commerce.
4. Capital Returns and Dividends
During Q4, eBay returned $756 million to shareholders through $625 million in share repurchases and $131 million in cash dividends. The board declared a $0.31 quarterly dividend (up 7%) and authorized an additional $2 billion for its share buyback program.