Key Highlights

  • Consensus EPS of 1.41 sits within the company's third-quarter non-GAAP EPS guidance range of 1.36 to 1.42.
  • Consensus revenue of USD 3.12 billion matches the high end of USD 3.07 billion to USD 3.12 billion guidance.
  • A workforce reduction of approximately 9% carries GAAP pre-tax charges of USD 130 million to USD 150 million.
  • Second-quarter GMV was USD 22.4 billion with non-GAAP EPS of 1.60, up 17%, and revenue of USD 3.13 billion.

eBay (NASDAQ:EBAY) reports third-quarter results on Wednesday, Oct. 28, after the market closes. Consensus stands at EPS of 1.41 on revenue of USD 3.12 billion, and the company has a market capitalization of USD 52.79 billion.

eBay operates an online marketplace that connects buyers and sellers. Second-quarter GMV was USD 22.4 billion, revenue was USD 3.13 billion and non-GAAP operating income was USD 893 million, while a filing dated Oct. 22 covered a restructuring plan announced Oct. 20.

Estimates Set Against Third-Quarter Guidance

The EPS estimate of 1.41 is within the third-quarter non-GAAP EPS guidance of 1.36 to 1.42, which management said implies year-over-year growth between 1% and 5%. The estimates table does not state its EPS basis. The revenue estimate of USD 3.12 billion matches the high end of guidance of USD 3.07 billion to USD 3.12 billion, which management put at 8% to 10% FX-neutral growth.

Management guided third-quarter consolidated GMV of USD 22 billion to USD 22.4 billion, including the Depop acquisition. That range represents total FX-neutral growth between 10% and 12% and organic growth between 7% and 9%.

What Management Guided and What It Left Open

For the full year, management guided FX-neutral GMV growth of 11.5% to 12.5%, an updated outlook, and non-GAAP EPS growth of 10% to 12%. It put the Depop dilutive headwind to that EPS growth at 2.5 percentage points and called Depop a roughly 2-percentage point headwind to growth in consolidated full-year non-GAAP operating income.

Management left open the effect of a lower cash balance and higher interest expense on net interest and other after the USD 1.4 billion cash deployment for Depop. It also left open near-term pressure on GMV and buyers in Germany from a shift toward strategic categories. The Oct. 20 disclosure said the company expects third-quarter results above its August guidance ranges, without stating figures.

Workforce Reduction and Charges Disclosed Oct. 20

The company announced a restructuring plan on Oct. 20 that reduces its global workforce by approximately 9%, subject to local law and consultation requirements in certain countries. It estimates GAAP pre-tax charges of USD 130 million to USD 150 million, substantially all related to severance payments and post-employment benefits.

The majority of the charges are recognized in the fourth quarter of 2026, and the company expects the full amount to result in future cash expenditures. It expects the actions to be substantially complete by the end of the first quarter of 2027 and intends to use the expense savings for its strategic and operating initiatives.

Second-Quarter Marketplace and Advertising Detail

Second-quarter GMV of USD 22.4 billion grew 14% organically on an FX-neutral basis, and revenue of USD 3.13 billion also grew 14%. Non-GAAP operating income was USD 893 million, up 16%, and non-GAAP EPS was 1.60, up 17%. U.S. GMV grew 24%, while international GMV grew 4% organically.

Active buyers were 136 million, up 2% on a trailing 12-month basis, and the take rate was 14%, remaining flat. Total advertising revenue was USD 596 million, including first-party advertising revenue of USD 570 million, up 24%. The company repurchased USD 310 million of shares in the quarter against a full-year target of USD 2 billion, and free cash flow was USD 326 million. The estimates table lists a market capitalization of USD 52.79 billion.

Comparisons to Make in the Report

Reported EPS against 1.41 and revenue against USD 3.12 billion are the headline comparisons, set against guidance ranges the company said it expects to exceed. Other markers are the restructuring charges, the Depop contribution and the full-year outlook.