eBay (EBAY) Q4 2025 Earnings Call Transcript

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Date

Wednesday, February 18, 2026 at 5:00 p.m. ET

Call participants

• Chief Executive Officer — Jamie J. Iannone
• Chief Financial Officer — Peggy M. Alford

Takeaways

• Global Gross Merchandise Volume (GMV) -- $21.2 billion in Q4, increasing over 8% organically FX-neutral, supported by broad-based growth.
• Revenue -- $2.96 billion in Q4, up over 13% organically FX-neutral, with a 160-basis-point foreign exchange tailwind to spot growth.
• Non-GAAP operating income -- $775 million in Q4, expanding over 11% year over year.
• Non-GAAP earnings per share (EPS) -- $1.41 in Q4, nearly 13% higher year over year; GAAP EPS from continuing operations $1.14.
• Shareholder returns -- $756 million returned in Q4 via $625 million share repurchases (avg. price nearly $86) and $131 million in dividends ($0.29 per share).
• Focus category GMV growth -- Over 16% in Q4, representing the fastest-growing segment, led by collectibles, Parts & Accessories (P&A), luxury, refurbished, apparel, and sneakers.
• U.S. GMV growth -- Nearly 19% increase, with sequential acceleration by around six percentage points, benefited by strength in collectibles, luxury/pre-loved apparel, and electronics.
• International GMV -- Declined nearly 1% organically FX-neutral; foreign exchange contributed a 290-basis-point tailwind to spot growth; softness referenced in Europe and cross-border trade from U.S. policy changes.
• Active buyers -- Over 134 million (excluding Tise acquisition); up almost 1% organically year over year, with U.S. enthusiast buyer count and spend per enthusiast buyer increasing to over $3,300.
• Take rate -- 14% in Q4, rising 60 basis points year over year, mainly from UK buyer protection fees and greater advertising revenue.
• Advertising revenue -- $544 million in Q4, representing nearly 2.6% GMV penetration; first-party ads grew over 17% to $517 million; off-platform ads $21 million.
• Non-GAAP gross margin -- 72.1% in Q4, down nearly 80 basis points year over year, primarily due to scaling of managed shipping and Authenticity Guarantee programs.
• Non-GAAP operating margin -- 26.1% in Q4; marketing efficiencies offset by elevated product development and transaction losses, mainly from shipping programs.
• Free cash flow -- $478 million generated in Q4; year-end cash and fixed income investments $4.8 billion, gross debt $6.7 billion, equity investments over $900 million.
• Acquisition of Depop -- Announced definitive agreement to acquire Depop for approximately $1.2 billion in cash; Depop generated $1 billion in GMV in 2025 with 60% U.S. growth and predominantly under-34 user base.
• Depop expected financial impact -- Post-close, will add 1-2 percentage points to total FX-neutral GMV growth in 2026 and represent a low single-digit headwind to non-GAAP operating income and EPS growth initially, with accretion expected by 2028.
• 2026 outlook (ex-Depop) -- Anticipates 8%-10% non-GAAP operating income growth, revenue expected in line to slightly ahead of GMV; plans for $2 billion share repurchases and $0.31 per share quarterly dividend.
• Q1 2026 guidance -- GMV expected between $21.5 billion and $21.9 billion (10%-12% FX-neutral growth), revenue $3.0 billion-$3.05 billion (13%-15% FX-neutral growth), non-GAAP operating income growth 11%-16%, and non-GAAP EPS $1.53-$1.59 (12%-16% growth).
• Accounting changes -- Starting 2026, all product development costs will be expensed, and UK managed shipping revenue will move from gross to net accounting, modestly pressuring take rate.
• Recommerce performance -- Pre-owned and refurbished goods made up over 40% of total GMV in 2025; cumulative positive economic impact from pre-loved/refurbished sales estimated at $25 billion over five years, beating targets.

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Risks

• International GMV declined nearly 1% on an organic FX-neutral basis, with management explicitly citing "challenging macroeconomic conditions in the UK and Germany and a deceleration in our cross-border volume growth due to U.S. trade policies, including the removal of de minimis exemption."
• Non-GAAP gross margin declined nearly 80 basis points year over year, mainly from scaling managed shipping, traffic acquisition costs, and Authenticity Guarantee program costs, which were stated to put pressure on gross margins as they scale.
• Initial operating losses from newly launched shipping programs significantly impacted transaction margin, with comment that "Losses with these types of programs are typically higher initially and we expect them to decline over time as we gather data and optimize."
• The pending Depop acquisition is expected to be a "low single-digit headwind" to non-GAAP operating income and EPS growth in 2026 due to integration costs, initial investment, and foregone interest income, with accretion not expected until 2028.

Summary

eBay (NASDAQ:EBAY) reported double-digit organic growth in both revenue and GMV, with significant outperformance in focus categories, advertising, and U.S. marketplace activity. Management unveiled an agreement to acquire Depop, positioning eBay to reinforce C2C leadership, access a younger demographic, and accelerate its penetration of the circular fashion segment. Increased investment in proprietary AI infrastructure yielded notable operational improvements—such as a more than 25% decrease in listing time and a greater than 50% increase in new listing creation rate—while customer satisfaction on core AI-driven features exceeded 95%. Q4 results enabled eBay to grow capital returns, with $756 million returned through buybacks and dividends, and guide for another year of balanced top and bottom-line growth despite expected margin pressures and integration costs tied to strategic initiatives.

• The take rate rose 60 basis points to 14% in Q4, primarily from expanded buyer protection fees and surging advertising revenue, as eBay completed its C2C re-monetization in the UK.
• Focus category GMV contributed the most to growth, rising over 16%, with collectibles specifically benefiting from AI-powered product innovations that drove both buyer engagement and listing velocity.
• eBay Live and Vehicles were cited as emerging growth vectors for 2026, with eBay Live achieving a sevenfold year-over-year run rate in the U.S. and breaking a single-day GMV record on Black Friday.
• International GMV underperformed the U.S. segment due to macroeconomic headwinds and policy changes, but focus category initiatives continued to deliver resilient results outside the U.S.
• Management described the recommerce segment as accounting for over 40% of GMV and surpassing environmental targets, noting a total of 8.2 million metric tons of carbon emissions avoided and over 360,000 metric tons of landfill waste diverted from 2021 to 2025.
• Upcoming accounting policy modifications will impact the comparability of 2026 results to previous periods, with all product development costs expensed and managed shipping revenue in the UK shifting to net recognition.
• Board authorization of an additional $2 billion repurchase capacity and a quarterly dividend increase to $0.31 per share underscores a continued commitment to capital returns, even alongside pending M&A activity.

Industry glossary

• GMV (Gross Merchandise Volume): Total dollar value of goods sold via marketplace platforms during a specified period, excluding returns and cancellations.
• C2C (Consumer-to-Consumer): Online marketplace transactions directly between individual consumers without retailer intermediation.
• ASP (Average Selling Price): The average sale price per item transacted on a platform in a given period.
• Focus categories: Strategic marketplace segments prioritized for investment and growth, cited by eBay as collectibles, P&A, luxury, refurbished, apparel, and sneakers.
• Recommerce: The business of selling pre-owned and refurbished goods, advancing circular economic principles within retail.
• Take rate: The marketplace's revenue as a percentage of GMV, reflecting monetization efficiency.
• Agentic commerce: Commerce supported by AI agents capable of autonomously assisting users in complex tasks, such as product discovery and listing creation.

Full Conference Call Transcript

Jamie J. Iannone, Chief Executive Officer, and Peggy M. Alford, our Chief Financial Officer. We are providing a slide presentation to accompany our commentary during the call which is available through the Investor Relations section of the eBay Inc. website at investors.ebayinc.com. Before we begin, I will remind you that during this conference call, we may discuss certain non-GAAP measures related to our performance. You can find the reconciliation of these measures to the nearest comparable GAAP measures in our accompanying slide presentation. Additionally, all growth rates noted in our prepared remarks will reflect organic FX-neutral, year-over-year comparisons. And all earnings per share amounts reflect earnings per diluted share unless indicated otherwise.

During this conference call, management will make forward-looking statements, including without limitation, statements regarding our future performance and expected financial results. These forward-looking statements involve known and unknown risks and uncertainties. Our actual results may differ materially from our forecast for a variety of reasons. You can find more information about risks, uncertainties, and other factors that could affect our operating results in our most recent periodic reports on Form 10-K, Form 10-Q, and our earnings release from earlier today. You should not rely on any forward-looking statements. All information in this presentation is as of February 18, 2026. We do not intend and undertake no duty to update this information.

With that, I will turn the call over to Jamie. Thanks, John. Good afternoon, and thank you all for joining us today.

Jamie J. Iannone: We finished 2025 with incredible momentum, as we delivered Q4 results that meaningfully exceeded our expectations. Before I get into the details of the quarter, I will start with some highlights for the full year. Gross merchandise volume grew by nearly 6% to approximately $80,000,000,000 globally in 2025, while U.S. GMV grew by nearly 10%. Importantly, our growth was broad-based across all of our most established strategic priorities. First, focus category GMV growth accelerated to over 12%. In addition, multiple years of investment in our consumer-to-consumer or C2C experience have reduced transactional friction and reinvigorated growth in this segment which makes up roughly one quarter of our total GMV.

Alongside these efforts we have made significant investments in accelerating recommerce on eBay Inc., which we define as the sale of pre-owned and refurbished goods. We have invested in full funnel marketing to drive awareness and consideration of eBay Inc. for consumers shopping pre-loved. Innovations like Magical Listings have unlocked consumers’ closets, basements, and garages to increase the supply of pre-owned goods on eBay Inc. We have also introduced direct recommerce collaborations with iconic brands, and strategically expanded inventory in key areas like certified recycled auto parts. This work has fueled the circular economy. And as a result, recommerce made up over 40% of GMV on the eBay Inc. platform in 2025.

In aggregate, these strategic priorities—focus category, C2C, and recommerce—comprised approximately two thirds of our business in 2025, or more than $50,000,000,000 of unique GMV. This GMV grew by approximately 10% and accelerated throughout the course of the year, reinforcing the broad-based impact of our strategy on overall GMV growth. We saw equally compelling results on the monetization front as we continued to scale our suite of eBay Inc. services. Revenue increased by nearly 7% to $11,100,000,000, outpacing GMV by over one point primarily driven by growth in advertising, which reached approximately $2,000,000,000 in annual revenue.

We expanded our financial services footprint, driving incremental GMV through improved risk modeling and flexible payment options like Klarna, while working with partners to deploy working capital to trusted sellers. We also scaled managed shipping in the UK, and accelerated our product roadmap for cross-border solutions to help our sellers navigate new tariffs and trade policy changes. Our top-line outperformance throughout 2025 enabled us to accelerate investments in areas like eBay Live, vehicles, and full funnel marketing to support key categories and geographies. We balanced these investments in strategic growth vectors with operational discipline, which enabled us to grow non-GAAP operating income by 7% to nearly $3,100,000,000.

Lastly, we created significant shareholder value by growing non-GAAP earnings per share by 13% to $5.52 while returning approximately $3,000,000,000 of capital to shareholders through repurchases and dividends. These results meaningfully outperformed our expectations entering the year, highlighting our ability to navigate a dynamic macro environment and an increasingly complex global trade landscape. We also shared some exciting news today alongside our fourth quarter results. eBay Inc. has entered into a definitive agreement to acquire Depop for approximately $1,200,000,000 in cash. This acquisition further strengthens our C2C value proposition, augmenting our organic momentum with a leading circular fashion marketplace that brings complementary strengths and demographic reach.

I will share more on this transaction shortly, and Peggy will discuss some of the financial details and forward-looking implications. But first, I will discuss the key drivers of our strong Q4 performance. The collectibles category had another standout quarter driven by continued strength in trading cards, and was the largest contributor to GMV growth in Q4, growing contributions from our off-platform marketplaces, TCGplayer and Goldin, and a notable acceleration in other sub-categories like bullion and collectible coins amid unique demand for precious metals in recent months. Within trading cards, we continue to leverage AI to extend our industry-leading value proposition.

In Q4, we launched early access to a new AI-powered card scanning experience powered by a set of proprietary models trained on over 40,000,000 card samples. Now users can scan a single photo to instantly detect their exact card in parallel, while also surfacing historical prices, PSA population data, and other valuable insights. This eliminates time-consuming manual research and helps collectors decide when to buy, sell, or grade valuable trading cards. Since we launched this beta feature in November, feedback has been overwhelmingly positive, and trading card enthusiasts already scanned over 15,000,000 cards to instantly identify and value their assets. We also continue to drive synergies with our off-platform collectibles marketplaces to better serve enthusiasts across every price point.

In Q4, we launched a new search experience that surfaces unique inventory from Goldin directly within eBay Inc. search results. This integration addresses an inventory gap for rare, high-ASP items while giving Goldin sellers access to eBay Inc.’s scaled global demand. In December, season three of King of Collectibles: The Goldin Touch debuted on Netflix and ranked in the top 10 shows in seven countries, including the U.S., UK, Australia, and Canada. This season featured Goldin’s first on-the-ground collaboration with eBay Inc. in Japan, highlighting how our teams are working together to connect global collectors with high-value inventory.

Motors, Parts & Accessories or P&A also finished the year strong, contributing over one point of GMV growth for our overall marketplace in Q4. We are seeing a repair-over-replace trend among consumers maintaining aging vehicles, and with more than 800,000,000 live P&A listings globally, our inventory depth uniquely positions us to meet this demand. In the U.S., we scaled our automated fitment capabilities, enhancing millions of domestic listings with billions of compatibility attributes in Q4. By leveraging our proprietary data to automatically populate these details on behalf of sellers, we are reducing friction while expanding the inventory backed by our Guaranteed Fit protection.

Our easy and free returns program also continues to drive conversion lift while return rates remain stable, demonstrating that reduced friction builds confidence for auto enthusiasts. Fashion was also one of the leading contributors to growth in Q4, led by our luxury and pre-loved apparel-focused categories. Fashion overall generated well north of $10,000,000,000 in GMV globally in 2025. Similar to what we have done in collectibles, we have increasingly leveraged every aspect of our build, buy, partner strategy to improve our value proposition for fashion enthusiasts, and accelerate GMV growth. On the build side, we have completely reimagined the selling experience through multiple iterations of our Magical Listing technology.

We modernized the fashion shopping journey by expanding our AI-powered discovery platform from the UK into the U.S., Germany, Australia, Italy, and France. We invested in technology and talent to broaden the guarantee program to cover more categories, brands, and price points, including optional authentication to enhance trust for lower ASP goods. And eBay Live has been particularly impactful for fashion, as the ability to storytell and showcase inventory in real time enables sellers to build immediate trust with their community and ultimately drive greater sales velocity for their stores. Our work with key partners also contributed to a notable improvement in consideration of eBay Inc. in fashion throughout the course of 2025.

Partnerships with Love Island, Condé Nast, and Vogue Vintage Market helped elevate the perception of eBay Inc. as a trusted place to shop. Passionate eBay Inc. advocates like Charli D’Amelio and Emma Chamberlain have raised awareness of eBay Inc.’s fashion offering during some of the biggest cultural moments for enthusiasts like the Met Gala. Our collaboration with Marks & Spencer, one of the UK’s most iconic retailers, enables consumers to drop off apparel at hundreds of store locations to be resold on eBay Inc. And our Certified by Brand and pre-loved partner programs have enabled many more of the world’s leading brands and trusted resellers to increase the breadth and depth of fashion inventory on our marketplace.

Our momentum in fashion has meaningfully benefited organic growth in our marketplace, with fashion serving as the second largest contributor to our U.S. GMV growth in Q4, with particular strength in C2C. We complemented this organic momentum with the recent acquisition of Tise, a leading C2C marketplace in the Nordics, which further extends our value proposition globally. And now, we are excited to further expand our total addressable market in C2C with the acquisition of Depop, which is a natural strategic and cultural fit with our company, offering clear opportunities for synergies between our respective marketplaces.

Depop has established itself as a leading C2C fashion marketplace that currently serves a base of approximately 7,000,000 active buyers and 3,000,000 active sellers, with most of its audience under the age of 34. Depop facilitated approximately $1,000,000,000 in gross merchandise sales in 2025, with nearly 60% year-over-year growth in the U.S. market. This acquisition is compelling on a number of fronts. Recommerce is one of the fastest growing segments in global retail, led by Gen Z and millennial consumers who prioritize sustainability, individuality, and value. These consumers are accelerating the shift towards circular fashion through social-driven shopping behaviors. Depop’s mobile-first, social-forward experience has cultivated an extremely engaged user base that complements eBay Inc.’s global scale.

For instance, over one third of Depop buyers listed one or more products on the marketplace in 2025. And this engagement fuels a sell-to-buy flywheel that drives sales velocity across a broad array of brands and price points. I am confident this acquisition will drive meaningful benefits for users across both eBay Inc. and Depop. Depop seller and buyer communities will gain access to eBay Inc.’s suite of value-added services, including financial services, shipping and cross-border trade solutions, as well as trusted experiences like Authenticity Guarantee. Depop strengthens eBay Inc.’s leadership in C2C, broadens our demographic reach, and expands our presence in fashion and adjacent lifestyle categories.

Similar to how we have demonstrated the power of cross-listing inventory with Goldin in collectibles, we see a clear opportunity to replicate that success with Depop, given its complementary range of brands and price points. Integrating Depop into eBay Inc.’s portfolio should further reinforce our customer proposition in a rapidly evolving e-commerce environment and ultimately drive long-term value for shareholders. Another emerging growth vector we are excited about in 2026 is the momentum we are seeing in eBay Live. eBay Live is rapidly evolving into a multi-category shopping destination as we diversify our inventory and programming beyond collectibles. Fashion is becoming a more significant growth driver, particularly in luxury watches.

During the holiday season, we achieved a single-day record for eBay Live GMV on Black Friday, including approximately $2,000,000 of sales during a single event. In recent weeks, eBay Live GMV is tracking at an annualized run rate roughly seven times higher year over year, led by rapid growth in the U.S. market. In Q4, we expanded our global footprint by launching eBay Live in Germany and Australia, followed by recent additional launches in France, Italy, and Canada, in Q1. 2025 was also a watershed year for horizontal innovation as our proprietary AI infrastructure enabled us to transition from generative AI pilots to scalable, agentic experiences that actively do more of the hard work for our sellers and buyers.

In Q4, we began rolling out the next generation of our Magical Listing experience, a true breakthrough that moves beyond AI-assisted tools to a fully AI-native architecture. Unlike prior iterations, where we integrated generative AI technology into legacy workflows, this new experience leverages AI agents from the start to autonomously build listings from images alone. Now, any smartphone camera can act as an AI agent that guides you on which photos to take for your specific product to increase the likelihood of a sale. In the background, AI agents create the title, category, and item specifics by leveraging advanced models and our product knowledge graph.

AI also provides intelligent pricing recommendations based on real-time transaction data, helping sellers balance velocity and price realization to optimize their cash flow. The early results have been powerful. After making this the default listing experience for all new and reactivated listers on iOS and Android in the U.S., we have seen a more than one quarter decrease in average listing time and greater than 50% increase in new listing creation rate, double-digit percentage increases in sold items and GMV per lister, and customer satisfaction exceeding 95%.

We are continuing to fine tune the experience and are excited to bring this game-changing capability to more countries and seller cohorts over the coming months, further unlocking our total addressable market in recommerce. For buyers, we are redefining discovery through agentic search, which we started rolling out to a subset of our U.S. mobile traffic in December. This technology allows buyers to shop using natural language in a back-and-forth dialogue, just like they would with a knowledgeable sales associate that understands their style, preferences, and shopping history.

As a result, new buyers are able to seamlessly filter results and more easily discover the amazing breadth and depth of inventory on eBay Inc. just like enthusiasts have been able to do for many years. As this technology is built into the core search experience, rather than off to the side, it is important that it is scalable. We have powered this experience using a set of lightweight proprietary models that leverage a query agent to classify intent, which enables us to effectively balance the trade-offs between latency, compute costs, and query optimization quality. We plan to scale agentic search to more users throughout 2026, laying the groundwork for an even more personalized shopping journey for our customers.

John Egbert: In October, we launched eBay International Shipping or EIS in Canada, our third largest corridor for U.S. imports.

Jamie J. Iannone: This rollout brings the benefits of our U.S. program to Canadian sellers, including delivery duties paid functionality and the automated application of country of origin data. Our Canadian seller ramp has progressed ahead of schedule, and we will continue to expand seller and listing eligibility in 2026 as we refine our offering. In Q4, we also enabled business sellers in Germany to access SpeedPAK, our end-to-end cross-border shipping solution enabled through a joint venture, which was already offered in Greater China and Japan. SpeedPAK automates customs documentation and tariff calculations, simplifying compliance for small businesses that lack the resources to manage these changes independently.

In Japan, where SpeedPAK has seen strong adoption, SpeedPAK is now utilized for the majority of direct shipments to the U.S., ensuring a reliable, transparent experience for buyers. Importantly, between EIS and SpeedPAK, we now have cross-border solutions in place for our largest corridors importing goods to the U.S., and we will continue to ramp shipping solutions to additional corridors throughout 2026. I am also pleased to share that we closed out 2025 by exceeding our ambitious five-year impact goals. From 2021 to 2025, we set out to drive $22,000,000,000 in positive economic impact from the sale of pre-loved and refurbished goods on our platform.

Based on our outperformance in recommerce, we estimate we achieved a cumulative positive impact of close to $25,000,000,000. We also helped prevent nearly 8,200,000 metric tons of carbon emissions from entering the atmosphere, above our target of 8,000,000. Lastly, we estimate over 360,000 metric tons of waste were diverted from landfills from recommerce on eBay Inc., exceeding our target of 350,000. These results demonstrate how promoting the circular economy delivers tangible environmental benefits while creating meaningful economic value for our global community. In closing, 2025 was a milestone year for eBay Inc. We accelerated GMV growth to nearly 6%, with 8% growth in the second half of the year.

Roughly two thirds of our GMV was driven by our most established strategic priorities—focus categories, C2C, and recommerce. This GMV grew 10% in 2025 and exited the year growing even faster. I am incredibly proud to see years of investment and execution reflected in the strength and momentum in our business. At the same time, I am even more excited about the roadmap for 2026. In addition to scaling our established strategic priorities this year, we plan to accelerate emerging growth vectors, like our secure, fully digital transaction solution for vehicles, which serves as a powerful multiplier for our broader eBay Motors offering.

Each enthusiast vehicle sold on eBay Inc. unlocks further customer lifetime value, driving recurring demand for our P&A business as buyers return to maintain, modify, or restore their newly purchased vehicle. We also have ambitious plans for eBay Live, which has evolved from a fast-growing U.S. pilot at the start of 2025 to a rapidly scaling commerce engine that is available in seven countries today. By integrating live shopping directly into our core experience, we are building a new flywheel that allows enthusiasts to discover, interact, and transact in real time across many of our strongest categories.

Lastly, I have never been more optimistic about our AI roadmap as we start 2026, as we build upon the robust technical infrastructure and the foundry of proprietary models that we have developed over the past year. This foundation enables us to further raise the bar for innovation, unlock our decades of proprietary data, and deliver hyper-personalized agentic experiences that anticipate our customers’ needs and drive tangible value for our business. I want to thank our employees for their incredible execution this year, and our community of sellers and buyers for their continued partnership. With that, I will turn the call over to Peggy to provide more details on our financial performance. Peggy, over to you.

Operator: Thank you, Jamie. I will start with our financial highlights for the fourth quarter.

Peggy M. Alford: GMV grew over 8% to $21,200,000,000. Revenue grew over 13% to $2,960,000,000. Our non-GAAP operating income grew over 11% year over year to $775,000,000. Non-GAAP earnings per share grew nearly 13% year over year to $1.41, and we returned $756,000,000 to shareholders through repurchases and cash dividends, demonstrating our continued commitment to capital returns. Now let us go deeper into the key drivers behind our strong Q4 performance. GMV grew over 8% to $21,200,000,000 on an organic FX-neutral basis. Foreign exchange provided a tailwind of 150 basis points to spot GMV growth. Focus category GMV grew over 16% in Q4, outpacing the remainder of our marketplace by roughly 12 percentage points.

Consistent with recent quarters, strength was broad-based across our business and was most pronounced in the areas where we have been actively investing. All focus categories contributed positively to GMV growth in the quarter, led by collectibles, P&A, luxury, refurbished, apparel, and sneakers. Within trading cards, while Pokémon decelerated as expected due to tougher year-over-year comparisons, GMV from the rest of collectible card games still posted strong growth and sports trading cards growth accelerated. Outside of focus categories, we also saw strong GMV growth in other collectibles like bullion, coins, action figures, comics, and other toys. Looking at our business by geography, our U.S.

GMV growth was particularly strong, while our international performance was pressured by the relatively softer environment in Europe and continued pressure on U.S. imports driven by recent trade policy changes. U.S. GMV grew nearly 19%, accelerating by nearly six points sequentially due to several factors. Our U.S. volume saw a disproportionate benefit from the strength in collectibles because of its higher mix in this category. Our U.S. business also benefited from strong growth in luxury and pre-loved apparel and an uptick in demand in certain electronics categories. Growing contributions from our emerging growth vectors, notably Live and Vehicles, also benefited our U.S. growth, as well as a favorable lower funnel marketing environment and continued strength from our Klarna partnership.

International GMV declined nearly 1% on an organic FX-neutral basis with foreign exchange providing a tailwind of 290 basis points to spot GMV growth. International performance was impacted by challenging macroeconomic conditions in the UK and Germany and a deceleration in our cross-border volume growth due to U.S. trade policies, including the removal of de minimis exemption for all countries at the August. However, our focus categories continued to perform well internationally in Q4, reinforcing the resilience of our marketplace. Moving on to our buyer metrics. Our trailing twelve-month active buyers totaled roughly 135,000,000 in Q4. Excluding buyers from recently acquired Tise, active buyers were over 134,000,000, up nearly 1% year over year organically.

Enthusiast buyers were stable at roughly 16,000,000, while spend per enthusiast buyer grew year over year to over $3,300 on a trailing twelve-month basis. Our buyer metrics also reflected the divergence in our geographical performance. In the U.S., both active and enthusiast buyer growth accelerated in 2025, exiting the year at mid-single-digit growth. However, our enthusiast buyer count in international markets has been pressured by persistent macro headwinds as some buyers fell below the volume or frequency thresholds. Next let us take a closer look at our income statement. We generated revenue of $2,960,000,000 in the fourth quarter, up over 13% on an organic FX-neutral basis with foreign exchange providing a tailwind of 160 basis points to spot growth.

Our take rate was 14%, up 60 basis points year over year, primarily due to the shipping UK buyer protection fee and advertising revenue growth. As a reminder, we eliminated final value fees for UK C2C sellers as a part of our C2C initiative in October 2024, then progressively scaled our re-monetization throughout 2025. By Q4, we had effectively completed our C2C re-monetization efforts through our buyer protection fee and managed shipping mandate on eligible items. Trade policy changes and mix shifts in our business continue to apply some pressure on our take rate year over year. Last quarter, we noted returned and canceled orders had emerged as a headwind to our take rate in recent months.

Encouragingly, we did see return and cancellation rates stabilize sequentially in Q4 as sellers and buyers adjusted to U.S. trade policies. Total advertising revenue was $544,000,000 representing GMV penetration of nearly 2.6%. Within the eBay Inc. platform, first-party ads grew over 17% to $517,000,000. Promoted listings comprised nearly 1,200,000,000 of the roughly 2,500,000,000 total listings on eBay Inc., while 4,800,000 sellers adopted at least one promoted listing product during the quarter. We continue to deprecate legacy third-party display ads, which declined by 41% to $7,000,000. Off-platform advertising revenue was $21,000,000.

Non-GAAP gross margin was 72.1% in Q4, declining by nearly 80 basis points year over year as tax-related tailwinds and cost of payment efficiencies were offset by managed shipping, traffic acquisition costs related to promoted off-site ads, and Authenticity Guarantee program costs. While these programs pressure gross margins as they scale, they provide meaningful strategic benefits to our marketplace by reducing transactional friction, driving sales velocity, and enhancing trust. Our non-GAAP operating margin was 26.1% as marketing efficiencies were more than offset by product development expenses and transaction losses. The losses were primarily attributable to our recently launched shipping programs, which significantly improved the seller and buyer experience.

Losses with these types of programs are typically higher initially and we expect them to decline over time as we gather data and optimize these programs. Overall, while we continue to reinvest a portion of our top-line upside in strategic initiatives, we flowed through more incremental revenue to operating income in Q4 compared to the prior year—11% year over year operating income growth ahead of our guidance. Non-GAAP earnings per share was $1.41, up nearly 13%, and GAAP earnings per share from continuing operations was $1.14. Moving on to our balance sheet and capital allocation.

We generated free cash flow of $478,000,000 in Q4, and ended the year with cash and fixed income investments of $4,800,000,000 and gross debt of $6,700,000,000 on our balance sheet. Our equity investments were valued at over $900,000,000. We repurchased $625,000,000 of eBay Inc. shares in Q4 at an average price of nearly $86 and paid a quarterly cash dividend of $131,000,000 in December, $0.29 per share. Before I discuss our outlook, I would like to point out two accounting policy changes we are making starting on 01/01/2026. First, we are adopting a new accounting standard for internal-use software, and as a result, we will expense all product development costs starting this year, reducing the amount of capitalization.

We are providing a recast of the 2024 and 2025 income statements in the appendix of our earnings presentation which offers a comparable baseline to the financials we will report starting with Q1. My upcoming comments on Q1 and 2026 growth rates are based on the recast financials. Second, since we first launched our UK managed shipping program over a year ago, we have expanded our partnerships with carriers and provided sellers with more choice and control over which shipping services buyers can select. Given the increased flexibility for sellers, we are switching our accounting treatment for this program from gross to net revenue recognition, which will modestly pressure our take rate in 2026.

Now I will share some thoughts on 2026 starting with our outlook for the first quarter. We expect GMV between $21,500,000,000 and $21,900,000,000 for Q1, representing total FX-neutral growth between 10%–12% year over year. Based on current exchange rates, we estimate FX would represent a roughly 450 basis point tailwind to spot GMV growth in Q1. Our guidance assumes continued strength from our strategic priorities driven by focus categories, C2C, and recommerce. Our year-over-year GMV growth is also expected to benefit from continued efficiency in lower funnel marketing and our Klarna partnership which each emerged as more noticeable growth drivers in Q2 of last year.

In addition, we do expect increased growth contributions from what we perceive as less durable growth drivers including bullion and collectible coins. We forecast revenue to be between $3,000,000,000 and $3,050,000,000, implying total FX-neutral growth of 13% to 15% year over year. Based on current exchange rates, we estimate FX would represent roughly 310 basis points of tailwind to spot revenue growth. Our guidance implies a roughly three-point delta between FX-neutral revenue and GMV growth year over year in Q1. Continued healthy growth in advertising is expected to be a contributor to this delta.

A portion of this delta is also related to the lapping of our phased re-monetization of UK C2C volume last year, but this component will no longer be a tailwind in Q2 as managed shipping revenue faces lapping pressure from the aforementioned accounting change. We expect non-GAAP operating income growth between 11%–16% year over year in Q1, implying non-GAAP operating margin between 28.3%–29.2%. Our strong operating income growth reflects disciplined reinvestments in strategic priorities and healthy flow-through to the bottom line. We forecast non-GAAP earnings per share between $1.53 and $1.59 in Q1, representing year-over-year growth between 12%–16%. Our EPS guidance implies the net interest and other line item is roughly neutral in Q1 due to one-time items.

Next I will share our preliminary views on the full year excluding the potential impact of the pending Depop acquisition, which I will outline separately. For 2026, we are planning our business around the assumption that year-over-year GMV growth is similar to 2025 on an FX-neutral basis, reflecting the continued momentum we are seeing from our established strategic priorities and increased contributions from emerging growth vectors this year. We expect this strong GMV growth to persist despite the incremental impact of tariffs and other lapping considerations we identified last quarter. These impacts are not expected to be linear from quarter to quarter, influencing year-over-year growth rates in 2026.

However, on a two-year stack basis, our commentary suggests GMV growth is relatively consistent between Q2 and Q4, implying strong underlying growth trends. We are planning for revenue growth to be in line to slightly ahead of GMV for the full year on an FX-neutral basis as healthy growth in advertising revenue is expected to be partially offset by mix shifts in our business including higher growth contributions from Live and Vehicles. We believe these emerging growth vectors will contribute long-term top and bottom line growth and improve the health of our marketplace.

We expect non-GAAP operating income growth between 8%–10% year over year in 2026 as we balance reinvestments in our strategic priorities and emerging growth vectors with strong flow-through to the bottom line. Importantly, we will continue to be disciplined in our investments and drive operational efficiencies in our business whenever possible. We expect non-GAAP earnings growth to be relatively in line with non-GAAP operating income in 2026 due to below-the-line items that are expected to roughly offset the EPS accretion from our share repurchases. We anticipate our lower cash balance and higher interest expense would pressure the net interest and other line item year over year in Q1.

Additionally, as we alluded to last quarter, we are increasing our non-GAAP tax rate assumption in 2026 to 17.5% to reflect the impact of global tax policies and our geographical business mix. Next, let me share a few thoughts on capital allocation. We forecast capital expenditures to be between 4%–5% of revenue for the full year. As we outlined last quarter, we plan to target repurchases and cash dividends totaling between 90% to 100% of free cash flow in a normal year. For 2026 we are targeting roughly $2,000,000,000 of share repurchases, which is squarely within that range despite our planned acquisition of Depop, underscoring our ability to balance inorganic investments with strong capital returns to shareholders.

In February, our Board authorized an incremental $2,000,000,000 under our stock repurchase plan in addition to our remaining authorization of roughly $800,000,000 at the end of 2025. Our Board also declared a quarterly cash dividend of $0.31 per share for the first quarter to be paid in March, which is an increase of $0.02 from the quarterly dividends paid out in 2025. Now I would like to take a few minutes to walk through the financial implications of our pending acquisition of Depop. We have entered into a definitive agreement to acquire Depop from Etsy for approximately $1,200,000,000 in cash, subject to certain purchase price adjustments.

We currently expect this acquisition to close in 2026 subject to the satisfaction of customary closing conditions and regulatory approvals. As Jamie noted, Depop is a great strategic fit and builds upon the significant organic momentum in our business driven by years of investment in C2C and our growing value proposition in fashion. Overall, fashion is one of our largest categories, generating more than $10,000,000,000 in GMV for eBay Inc. annually. And in 2025, our U.S. market alone added over $500,000,000 of incremental fashion GMV year over year, the majority of which came from C2C sellers.

Our acquisition of Depop would add a business generating $1,000,000,000 of annual gross merchandise sales primarily in the U.S. market, where it grew by nearly 60% year over year in 2025. Upon completion of this transaction, we expect Depop would contribute one to two percentage points to total FX-neutral GMV growth year over year in 2026, assuming the deal closes as expected in Q2. Given the immense potential we see for this marketplace within eBay Inc.’s portfolio, we plan to invest in Depop to support future growth and synergies between our respective marketplaces.

Our current assumption is that the acquisition would represent a low single-digit headwind to the 8% to 10% operating income growth we forecast for the core eBay Inc. marketplace. This estimate reflects not only the current operating profile of Depop, but also integration costs and planned investments. We would also expect the acquisition to dilute our non-GAAP earnings per share growth by low single digits with the EPS impact modestly higher than operating income dilution due to foregone interest income from the cash used for this transaction. Over the long term, we are highly confident this acquisition will be meaningfully accretive to operating income and EPS growth and drive significant value for shareholders.

On a consolidated basis, including synergies, we expect the acquisition of Depop to become accretive to non-GAAP operating income in 2028. In closing, our Q4 results capped off a tremendous year for eBay Inc. In 2025, we accelerated GMV growth to nearly 6%, increased non-GAAP operating income by roughly 7% year over year, and grew non-GAAP earnings per share by nearly 13% year over year, marking our second consecutive year of double-digit earnings growth. We demonstrated our ability to accelerate growth, invest in our strategic priorities, and the eBay Inc. experience through AI, all while delivering strong bottom-line results and healthy capital returns to shareholders.

Despite a full year of impact from trade policy changes, and the lapping considerations we have laid out, our outlook for 2026 implies another strong year of balanced top and bottom line growth with our investments supporting an exciting innovation roadmap for our customers. With that, Jamie and I will now take your questions.

Operator: We will now begin Q&A. For today’s session, we will be utilizing the raise hand feature. If you would like to ask a question, simply click on the raise hand button at the bottom of your screen. If you have dialed in, please press star 9 to raise your hand and star 6 to unmute. Once you have been called upon, please unmute yourself and begin your question. Please limit to one question and one follow-up before jumping back in the queue. Thank you. We will now pause a moment for the queue to assemble.

Jamie J. Iannone: Our first question will come from Nikhil Vijay Devnani with Bernstein Research.

Operator: Please unmute and ask your question.

Nikhil Vijay Devnani: Hi. Thank you for taking the question. Jamie, it is pretty staggering to see numbers like 10% to 12% consolidated growth given where things were only a few quarters ago. I know you have acknowledged already some of the shorter-term benefits in a few categories, but you look beyond that, it seems like there has been some sustained acceleration just generally for you in the U.S. So core question here is, I guess, what has changed? Have you seen step-ups in conversion rates? Have you seen influx of new customers? Some of those other core categories? Like, what has driven this improvement across the board in the domestic market?

Jamie J. Iannone: Yeah. Look. Thanks for the question, Nikhil. What I feel great about regarding Q4 is the broad-based strength we are seeing. The underlying health of the business is the strongest it has been since I rejoined the company six years ago, and I think what you are seeing is that years of investment that we have made are paying off. That is really evident across our strategic priorities, focus categories, C2C, and recommerce. Each of these areas grew in the high single to low double digits in 2025, and collectively, they drive a significant majority of our GMV.

So we have been transparent, and Peggy has talked about some of the unique tailwinds in recent periods, and we have been prudent about our go-forward assumption in those areas. But overall, I would say we are really pleased with our performance in Q4, the broad-based nature of our growth, and how that momentum is translating into early 2026. You know, we had some specific commentary about bullion and collectible coins specific to Q1. Other than calling that out as potentially less durable, overall, we see the broad-based nature of growth and that momentum really carrying through to 2026.

Nikhil Vijay Devnani: Thanks, Jamie. And maybe a follow-on sticking with GMV. Just for the guide for this year, how much contribution are you embedding from some of the newer emerging vectors like vehicles and eBay Live?

Jamie J. Iannone: Yeah. Look. We are excited by the new growth factors in the business, but I would say the majority of what we are excited by is just the strength of the core business. When you look at our focus categories and the growth that we saw, those continue to perform really well in Q4 and what we are seeing in Q1. I am excited by some of our newest areas that we have with both eBay Live and with vehicles. You know, we are seeing a nice run rate in eBay Live, a seven times run rate year over year.

But I would say, in general, our priorities around focus categories, C2C, and recommerce are going to be consistent and strong drivers for us in 2026.

Nikhil Vijay Devnani: Thanks, Jamie.

Operator: Our next question will come from Colin Alan Sebastian with Baird. Your line is open. Please ask your question.

Colin Alan Sebastian: Great. Thanks, everybody, and congratulations on the quarter and the year. I guess, first, on the international segment, I know the macro factors continue to weigh on growth, but also curious if you are seeing, Jamie, any changes in the competitive environment in key markets, and then, likewise, are you seeing benefits from focus categories and AI tools or other platform initiatives as they do roll out in Europe.

Jamie J. Iannone: Yeah. Thanks for the question. Clearly, it is a dynamic macro environment and a clear divergence between the U.S. and our international markets in Q4. In the U.S., while we faced uncertainty relative to trade policy, consumer demand has remained resilient, and we saw broad-based strength across categories in Q4. I would say, in contrast, Europe has been more challenged as consumer confidence remains low and retail sales trends are subdued there. But what I would tell you is the focus category initiatives that we have rolled out internationally continue to perform well. The C2C initiatives that we have been driving continue to perform well in that market.

We recently expanded eBay Live to a number of our other markets across Germany, France, Italy, and Canada. And so overall, we feel like we are well positioned, and the things that are working in the U.S. are working as well internationally. It is just a very different macro environment from what we are seeing in the U.S.

Colin Alan Sebastian: Got it. Okay. And then maybe my follow-up is on the agentic side. I know it is really early. But at a higher level, what sort of user behavior changes are you expecting as this rolls out on the buyer side? Does this impact your advertising business? And also maybe the architecture for how you are building this out to connect with partners like OpenAI. Thank you.

Jamie J. Iannone: Yeah. Look. We feel really well positioned to bring a differentiated experience to agentic commerce, which makes us really confident we will be a long-term beneficiary of this trend. The first thing I would hit on is the experiences that we are building on eBay Inc. leveraging this technology. Our next generation of Magical Listing is really a game changer. It is an AI-native solution that leverages our product knowledge graph, that leverages thirty years of data, and builds this amazing experience where we essentially do everything for you in the background.

I have been doing this for a long time, and having a new product rollout with 95% customer satisfaction shows you the strength of what we are building using these tools. I would say the same thing with agentic search and what we are seeing as people pilot that, and the ability to use natural language against our inventory. But the other thing I would tell you is that the other reason we feel well positioned is our inventory is really different from most marketplaces. Roughly 90% of our GMV is non-new and seasoned, and two thirds of that intersects with focus categories, recommerce, or with C2C. So these are highly considered purchases of unique items.

Think used, refurbished, collectible, or luxury items where condition, scarcity, and human judgment matter. The last thing I would say is that the work that we have done in our experiences with trust plays a huge differentiator for us and a real structural advantage. You think about seller feedback, Authenticity Guarantee, and the post-transaction protections that we provide, that is hard to replicate. Along with financial services and global shipping solutions that really do reduce the transactional friction for buyers and sellers.

So all of these factors, I think, put us in an incredibly strong position to thrive in an agentic AI world, and I am really excited by the investments that we are making and the customer responses to how we are using that technology on the eBay Inc. experience. Your next question will come from

Operator: from Ross Adam Sandler with Barclays. Your line is open. Please ask your question.

Jamie J. Iannone: Great. Hey, guys. Hopefully, you can hear me. We can hear you, Ross.

Ross Adam Sandler: Excellent.

Jamie J. Iannone: Okay. So just two questions. One on the full year 2026 guide. You guys have talked about how you are going to lap some of these non-durable things in the second half of 2026. Could you just talk about how you are thinking about the growth cadence throughout the year and some of the durable versus non-durable as we get into the second half? And then on Depop, those guys have done a great job in their U.S. side of the business, and I think the international has trailed the U.S. performance.

So how is combining eBay Inc. and Depop potentially going to advance the cause on the UK and Australia and frankly, just the overall fashion segment at eBay Inc. in general. Just curious to hear your comments on that. Thank you.

Jamie J. Iannone: Peggy, I will take the first one, and I will take the second.

Peggy M. Alford: Sure. Thanks for your question, Ross. So, we feel really good about the broad-based strength that we are seeing. As Jamie mentioned, we are really focused on our strategic priority areas: focus categories, C2C, recommerce. Our commentary reflects the continuation of this strength as well as we are really excited about the contribution that we are expecting from our emerging growth vectors like Live and Vehicles. Specifically in terms of lapping, a couple things to keep in mind. We are expecting a deceleration in Pokémon growth in 2026, just given the triple-digit growth that we saw in 2025. Although, I will point out that we expect healthy overall growth in trading cards.

We started seeing a little bit of this deceleration in 2025, and the comps get a bit tougher as we move throughout the year. Jamie mentioned bullion. We are expecting a significant amount of the acceleration that we saw from Q4 to Q1 was related to the bullion and collectible uptick, and so we are planning for that to moderate during the year after Q1. We are lapping our U.S. partner partnership starting in 2026. And then we talked last year, in 2025, about our marketing efficiency gains in paid search. We will be lapping those from a favorable competitive dynamic starting in 2026.

So overall, I would say we believe that the majority of the growth is durable, and we remain very confident in the strength of our business. Just want to point out a few of those factors.

Jamie J. Iannone: Yeah. And then regarding your questions on Depop, look. I am really excited by the acquisition. I think it is really going to supercharge our C2C strategy in several ways, and it is building on strong growth that we are seeing today, particularly in the U.S. Our U.S. C2C business grew in the mid-teens year over year in 2025, growth accelerating in 2024. And our learnings across the globe have really helped drive that. We are also doing this acquisition from a real position of strength. We are seeing really strong growth in fashion. It is an over $10,000,000,000 GMV category for us on eBay Inc., and we have been increasing our investments there.

I have been talking about that over recent quarters. In 2025, U.S. fashion grew 10%.

Operator: So, you know, if you look at it, we added over $500,000,000 of GMV in the U.S. in fashion alone. Depop has really prioritized the U.S. market in a world with limited investments. They have been really leaning in, and they have seen really great growth. They have seen 60% growth in the U.S. market, which is obviously great with the strength that we are seeing in the overall business. The last thing I would say is that Depop brings a younger consumer base, and they are amongst the fastest growing demographic, especially in this sustainability, recommerce, and fashion piece. And so we see it as a great strategic fit for eBay Inc.

It builds on the strong growth we are already seeing in C2C and fashion, and I am excited about the strong growth potential for both marketplaces going forward.

John Egbert: Your next question will come from Nathaniel Feather with Morgan Stanley. Your line is open. Please ask your question.

Operator: Congrats on the quarter and thanks for taking the question. I guess first just to follow up on Depop a little bit. Interested to hear how you are thinking about the revenue synergy that are available to the Depop deal, and what is that opportunity to drive

Jamie J. Iannone: across the listing from both Depop to eBay Inc. and eBay Inc. to Depop? And then just a clarification, Peggy. You said that coins and bullion was the majority of the acceleration from Q4 to Q1. So just to clarify, that means GMV is still accelerating excluding the coins and bullion impact. Thank you.

Operator: Yeah. So let me talk first on what excites me about Depop from that side and the integration. So first is, we will keep Depop as a standalone brand, experience, etc. It is resonating great with consumers. It is growing well as I talked about. But we do see the opportunity to help support that growth and drive it even further by bringing assets from eBay Inc. that we have developed over the last couple of years. So think about the Authenticity Guarantee work that we have done, the shipping and cross-border trade, payments and financial services.

In recent years, we have turned more of our back-end resources into services to really help grow not only core eBay Inc. marketplace, but other standalone platforms. And I would probably draw a parallel here, for you, Nathaniel, to what we have done in collectibles. Years ago, we bought TCGplayer and Goldin Auctions, and you see us now integrating Goldin with a single sign-on experience. We have integrated Goldin listings onto the platform. And I am really glad we did those acquisitions because they are really helping accelerate the strategy of what we are doing in collectibles.

And I am similarly excited for that opportunity with what Depop has done with fashion—the ability to take the marketplace to the next level and drive synergies across a number of those areas. Yeah. Peggy, do you want to take the second piece?

John Egbert: Sure. Just a quick clarification. So as I mentioned, due to the precious metals, we did see an acceleration in the demand for bullion and coins in Q4, and that continued into Q1. What I meant to say was that the bullion accounts for a significant portion of the sequential acceleration, not all of it. We continue to see broad-based strength going into Q1, and looking beyond some of the near-term unique dynamics that we called out, we feel very good about the broad-based and durable nature of the GMV growth that we are seeing.

Jamie J. Iannone: Very helpful. Thank you both.

John Egbert: Your next question will come from Shweta R. Khajuria with Wolfe Research. Your line is open. Please ask your question.

Shweta R. Khajuria: Thank you for taking my questions. Let me try two please. First is on earnings growth. So when we think about EPS growth, can you please talk about the puts and takes? So what would drive the potential upside and how you are thinking about buybacks? And then the second is a follow-up to a prior question on agentic commerce. I guess, how do you think when we think about long term in terms of your position in agentic commerce, how do you see it evolve? And perhaps, what is your view on eBay Inc.’s position in agentic commerce as it relates to shoppers perhaps potentially moving to these AI platforms? Is that a positive for you or negative?

And are you compelled to partner with them? Thank you.

Operator: Yeah. Look. What you have seen from us with partnerships is we have always been open to making our unique inventory available on scaled third-party channels. We have done that with Google Shopping. We have done that with Facebook Marketplace, which are two great examples. We are also thoughtful about where and how we do so. And we are taking the same approach here with agentic commerce. My first priority has been to build the agentic in-house capabilities. That is why I talked about agentic search, the newest version of Magical Listing, and we have got an exciting roadmap coming up.

But regarding partnering with other platforms, we have built a unified agent e-commerce platform that enables us to plug into third-party agents and test different types of experiences to see what works best for our marketplace. For instance, we recently signed on to be an early participant in the OpenAI Ads pilot program to test that out. When I take a step back, yes, we believe we are in a strong position to be a beneficiary of agentic commerce, and it is a lot because of what I talked about earlier. Our inventory is fundamentally different from most marketplaces. It is 90% non-new and seasoned, and we have built a lot of trust and other things around it.

When you think about our 16,000,000 enthusiast buyers that we have on the platform that buy 70% of the GMV, they are really driving sales in this used, refurbished, collectible, luxury or more considered purchases. So we are going to be very thoughtful about how we do it, and I am really proud of the technology that we have built to enable us to do so. And we will continue to develop our platform to create more opportunities that promote discovery of our sellers’ unique inventory while we continue to invest internally in building the leading AI experiences for our enthusiast customers.

Shweta R. Khajuria: Okay. Thanks, Jamie. And

John Egbert: in terms of your question on EPS and operating income growth, we are expecting strong non-GAAP operating income growth in Q1 and the full year, and we are expecting that to be the majority of what is driving the EPS growth. In terms of our buyback policy and our capital allocation plan, it remains the same. Our first priority is organic investment in the business, because we believe that is ultimately what is going to drive EPS growth. When it comes to excess capital, we have a strong track record of returning cash to shareholders. In a normal year, we plan to target repurchases and dividends totaling between 90%–100% of free cash flow.

For 2026 specifically, we are targeting roughly $2,000,000,000 of share repurchase which is within the range for a normal year. And that is despite our planned acquisition of Depop. This is reflecting our business performance. We have a healthy balance sheet and strong cash flow generation. And so we feel really good about the balance we have been able to achieve between investing in future growth and returning shareholder cash.

Shweta R. Khajuria: Okay. Thank you very much. That was helpful. Your next question will come from Thomas Steven Champion with Piper Sandler.

Colin Alan Sebastian: Your line is unmuted. Please ask your question.

Operator: Jamie, could you talk a little bit about eBay Live, maybe give us the update there and your plans this year. And curious what the long-term benefit is going to be there. Is that dollar volume of transactions? Is it a new customer demographic or is it engagement on the platform? Just curious. Any additional comments there? And maybe just relatedly, any update to the Facebook partnership? Thank you.

Operator: Yeah. Tom, thanks for the question. And what is exciting about this opportunity is it is really all of the above on the things you mentioned. We see it as a really exciting opportunity, and I am really encouraged by the traction we are seeing as we expanded into new markets and categories. It is really a natural extension of our marketplace. It is already contributing to the double-digit growth that we are seeing in focus categories. And what we have been doing is investing and making Live more discoverable across the site, integrating into streams at relevant points in the buyer journey. In Q4, we actually expanded Live into Australia and Germany.

And we have since expanded it into France, Italy, and Canada. We have been hosting high-profile activations at the world’s biggest football game. We had Christian McCaffrey, Rob Gronkowski, Jerry Rice, raising awareness of what we are doing there. And to your question, we are seeing that it helps sellers because it builds this great new capability. You put it out there and you watch what sellers do with it, it is pretty exciting. But it is also helping them grow their core business because they are building trust back in their core business with what they are doing with Live on the platform.

It is helping us attract new buyers and drive more engagement out of our buyers because of the live streams and what we are seeing there, and that is why we have been scaling it up more geographically over time. I was excited to see that we did over $2,000,000 of sales in a single Live event—that shows you the scale of what is possible for our sellers to really drive GMV. And our scale, our global buyer base, and our high bar for trust really differentiate eBay Inc. in live commerce.

And while it is still early in our growth phase, we believe eBay Live can be a meaningful growth vector over time and an increasingly important part of how enthusiasts shop on our platform.

Peggy M. Alford: To your question on the Facebook Marketplace, we continue to make progress on our partnership there. In Q1, we expanded our eBay Inc. inventory into search, which is a new platform for us in the partnership—or a new surface, if you will. That reflects higher intent user engagement earlier in the shopping journey. We are also expanding the volume and the categories of inventory shared on Facebook Marketplace, which benefits our existing presence in the Marketplace feed. So we believe this partnership is great for the eBay Inc. seller community as we expose their listings to Facebook’s scaled audience. And it is great for Facebook Marketplace users as they discover our breadth and depth of unique, trusted inventory.

So I think both teams are encouraged by the continued progress and the learnings to date, including the new learnings that we are seeing with the new surface in search.

Jamie J. Iannone: Operator, we will do one more question, please.

Colin Alan Sebastian: Your final question will come from Michael Paul Morton with MoffettNathanson. Your line is open. Please ask your question.

Jamie J. Iannone: Hi, everybody. Thanks for the questions. My first one, I love the commentary on the trading card business. You have done some incredible things there. An investor question we frequently get is on the sustainability of that business. I know that there are some tough comps but big picture, could you maybe talk about or quantify how you have grown the user base of people who sell trading cards on the website to help people appreciate that it is not just price appreciation. That would be my first question. And my second question, Jamie, I wanted to follow up on Colin’s question and a bit of Shweta’s question.

But on agentic and just trying to be really explicit on what we are looking for here, are you seeing any change in behavior from users who are sent from AI search platforms to eBay Inc.’s website? You do have exactly what you said is high consideration goods. Are you seeing higher conversion rates when they come from these platforms because they are coming in with more intent, and does it change the amount of products they click on? Thank you.

Operator: Yeah. So what I would say first, on the trading cards, is we continue to see a long runway for secular growth in trading cards. And we attribute much of the recent growth to the innovation that we are driving, which has fueled renewed excitement amongst buyers. If you look at the Q4 strength, Mike, it was really broad-based across sports trading cards and collectible card games. Pokémon trends remained extremely strong, despite GMV decelerating year over year due to tougher comps. But sports trading cards accelerated with strong growth across the three major U.S. sports. And while emerging collectible card games, like this new one called One Piece, are starting to gain traction.

To your question specifically, though, encouragingly, we are seeing GMV growth driven by a balance of new buyers, sold items, and ASP. And much of the ASP has been driven from a mix shift towards higher-priced items. So, stepping back, if you look at the innovation—whether it is Live, the new AI card scanning that I talked about up front, which we are seeing great momentum from consumers—we are really excited to see the renewed energy based on the years of investment that we have had. And we believe most of the growth is broad-based and secular in nature.

Our scale and our value proposition have really positioned us as a leader in this space, and I remain very optimistic about the multiyear growth opportunity ahead in collectibles. To your question on AI, I will tell you right now that the traffic is very small. And it is not just for us. In general, there is not a lot of traffic being driven. The traffic that is being driven is high intent, and so we are seeing high conversion on that in terms of the traffic that is there.

The other thing I would tell you is that what we are seeing in our own experiences on our platform with the agentic commerce—or the agentic search that we are running—is that our enthusiast buyers especially that are part of the pilot are really loving the ability to have this back-and-forth conversation, the ability to refine and filter their items using an agentic search and get to the things that they want, and it is really resonating on the platform. And then I would say the same thing about Magical Listing. I talked about the customer satisfaction of that being at 95%.

I think even more important, when you look at the stats of new listings that are coming onto the platform, it is achieving the goal that we have been working on for years now. Which is the whole idea is having people say, if it is that easy to list it on eBay Inc., let me start selling this, this, and this. The average household has $4,000 of stuff that could be sold on the platform, and less than 20% of that is online. So we are really excited to bring that new capability and unlock all that inventory and really drive the significant TAM in recommerce.

And we also think Depop is going to help us do that in a big way too. So thanks for the questions.

Michael Paul Morton: Awesome. Thank you.

Colin Alan Sebastian: Thank you for joining. This concludes today’s call. You may now disconnect.

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