eBay to Buy Depop for $1.2 B as Q4 Revenue Tops $2.97 B
eBay reported Q4 revenue of $2.97 billion versus $2.87 billion expected, with gross merchandise volume reaching $21.2 billion—up 6% globally and 10% in the U.S.—as advertising revenue climbed to $544 million. The company will acquire Depop for $1.2 billion in cash to tap 7 million mostly under-34 buyers, despite a low single-digit near-term operating-income headwind.
1. Q4 2025 Earnings Beat
eBay delivered Q4 revenue of $2.97 billion, surpassing expectations of $2.87 billion, and reported gross merchandise volume of $21.2 billion—up nearly 6% globally and 10% in the U.S.—driven by robust consumer spending and discount retail demand.
2. Depop Acquisition Details
eBay agreed to acquire Depop from Etsy for $1.2 billion in an all-cash transaction aimed at securing 7 million active buyers under age 34 and strengthening its position in private-label fashion, with accretion to EPS not expected until 2028.
3. Growth Drivers: Ads and Recommerce
Advertising revenue reached $544 million in Q4, representing 2.6% of GMV, with first-party ads up 17% to $517 million and 4.8 million sellers using promoted listings. Recommerce accounted for over 40% of 2025 GMV and grew about 10%, distinguishing eBay from other marketplaces.
4. Risks and Outlook
Headwinds include low single-digit dilution to non-GAAP operating income from the Depop integration, cyclical tailwinds in collectibles and bullion, and an 80-basis-point year-over-year gross margin slip. Analysts have raised price targets as high as $122, while dividend yield sits at 1.35% with a sustainable 25% payout ratio.