eBay Q1 GMV Jumps 14% to $22.2B; EPS Climbs 21%
Gross merchandise volume rose 14% to $22.2 billion and revenue increased 17% to $3.09 billion in Q1, while non-GAAP EPS climbed 21% to $1.66 and free cash flow reached $898 million. The company returned $639 million to shareholders, held $5.1 billion in cash, and plans to close the Depop acquisition by Q3.
1. Q1 Financial Highlights
eBay reported GMV growth of 14% to $22.2 billion and revenue up 17% to $3.09 billion. Non-GAAP operating income rose 18% to $907 million, EPS increased 21% to $1.66, take rate ticked up to 13.9%, advertising revenue reached $581 million, and non-GAAP gross margin improved to 74.6%.
2. Shareholder Returns and Balance Sheet
The company returned $639 million via share repurchases and dividends, generated $898 million in free cash flow, and ended the quarter with $5.1 billion in cash and investments against $6.7 billion in gross debt. This balance sheet strength supports ongoing buybacks and strategic investments.
3. Strategic and AI Initiatives
Key growth drivers include eBay Live’s annual GMV run rate expanding eightfold and AI enhancements boosting new listing creation by 50%, driving double-digit gains in sold items and GMV per lister. The business mix shifts toward focused categories and C2C commerce, which now account for roughly 70% of total GMV.
4. Risks, Outlook and Acquisition
eBay cited macroeconomic and geopolitical uncertainty impacting international GMV, along with higher transaction losses from new shipping programs. The pending Depop acquisition, expected to close by end of Q3, will dilute non-GAAP EPS by low-single digits and is accompanied by a forecasted full-year tax rate of 17.5%.