eBay Inc 2026 Q2 Earnings Call

Good afternoon. Thank you all for joining us for eBay's second quarter 2026 earnings conference call. Joining me today on the call are Jamie Iannone, our Chief Executive Officer, and Peggy Alford, our Chief Financial Officer. We're providing a slide presentation to accompany our commentary during the call, which is available through the investor relations section of the eBay website at investors.ebayinc.com. Before we begin, I'll remind you that during this conference call, we will 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.

Additionally, all year-over-year growth rates versus 2025 are based on recast financials reflecting our adoption of the new internally developed software accounting guidance in 2026. 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 forecasts 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 August 5th, 2026. We do not intend and undertake no duty to update this information. With that, I'll turn the call over to Jamie.

Thanks, John. Good afternoon. Thank you all for joining us today. eBay delivered another strong quarter in Q2, with results that exceeded consensus expectations and the high ends of our guidance ranges across all key financial metrics. Gross merchandise volume grew 14% year-over-year to more than $22 billion. Revenue also grew 14% to over $3 billion. Our top-line outperformance gave us the flexibility to increase investment behind several strategic priorities while still driving 16% growth in non-GAAP operating income and 17% growth in non-GAAP earnings per share. These results reflect the broad-based momentum across our marketplace, including continued outperformance in the U.S. and improving trends across our international markets. Importantly, our growth continues to be driven by our key strategic priorities, including focused categories, our consumer-to-consumer, or C2C business, and recommerce, which we define as sales of pre-owned and refurbished items.

Together, these strategic priorities made up more than 70% of total GMV in Q2, with each growing more than 20%, both individually and in aggregate. This momentum was further supported by emerging growth vectors and platform capabilities, including eBay Live, vehicles, and shipping. Focused categories remain a significant engine of growth for eBay, reflecting the cumulative impact of our investments in trust, innovation, and full-funnel marketing. Focused category GMV grew 26% in Q2 and eclipsed 40% of total GMV for the first time. The strength in focused categories was broad-based, with collectibles, motors, fashion, and refurbished all contributing to growth. Collectibles GMV growth continued to be led by strength in trading cards, where we saw sustained momentum across all of the major sports and collectible card game genres, including notable strength in basketball cards through the NBA Finals and accelerating demand for soccer cards around the FIFA World Cup.

We continue to strengthen our value proposition in trading cards, combining our unmatched inventory breadth with industry-leading trust and increasingly intuitive experiences for buyers and sellers. In Q2, we launched Authenticity Guarantee for trading cards in the U.K., marking the first expansion of AG in this category outside of North America. In addition, our AI-powered card scanning experience exited beta and now has surpassed 80 million cumulative scans, making it easier for collectors to identify cards, understand pricing, and list or shop with confidence. We also recently enhanced trading card listings with richer market data on the view item page, including Card Ladder indexes that track values across specific players, characters, sports, and genres over time. Our collectibles momentum is also extending to a number of subcategories as we continue to see strong growth in coins, toys, and sports memorabilia.

In Q2, we introduced new condition grading standards for collectible coins to improve trust and discovery. Gold and silver bullion remained a positive contributor to GMV in Q2, although they were much more modest drivers than the prior two quarters as expected. Our off-platform collectibles marketplaces also continued to perform well. TCGplayer saw strength across Pokémon, One Piece, and Magic: The Gathering, while its latest Roca sorting devices are now helping thousands more hobby shops and high-volume sellers ingest and organize their customers' inventory. The Goldin marketplace had another record quarter with several landmark sales across sports cards and memorabilia, including the most valuable solo Michael Jordan card ever sold and an all-time public record for a hockey jersey with the sale of Wayne Gretzky's final Edmonton Oilers jersey. eBay Motors was another meaningful contributor in Q2, contributing nearly two points of GMV growth.

Our motors parts and accessories business continues to benefit from eBay's unmatched breadth and depth of inventory as we expand our selection of new, used, and recycled parts across our major markets. In Q2, we launched easy and free returns in the U.K., which strengthens buyer confidence and improves conversion as buyers shop for auto parts on eBay. In Canada, we launched eBay Guaranteed Fit, extending fitment protection to a fifth eBay market. We also brought automated fitment capabilities to Canadian sellers, which augments their listing with vehicle compatibility data so buyers can discover a broader selection of relevant parts and shop with greater confidence. Our vehicles GMV also continues to scale rapidly, with particularly strong growth among C2C sellers and smaller dealers. In Q2, we launched native vehicle listing in the eBay mobile app, driving a notable increase in C2C inventory.

We are also using AI and automation to simplify the transaction process, including verifying title, VIN, and odometer images against verified DMV records and sale documentation with significantly less manual intervention. Alongside broader process improvements, this has helped reduce the average time to vehicle pickup from over two weeks to roughly four days. By making it easier to list, verify, and complete a secure transaction, we are improving the customer experience and supporting continued momentum in GMV. Fashion also contributed positively to GMV growth, led by luxury and pre-loved inventory. In Q2, we expanded Authenticity Guarantee to cover more than 100 apparel, footwear, and accessory brands across the U.S. and U.K. and began testing optional authentication across a broader range of price points to extend trust to more C2C fashion inventory. We also extended Authenticity Guarantee eligibility to jewelry sourced from greater China.

Combined with eBay's breadth of inventory and AI-powered selling tools, these investments are strengthening our position in pre-loved and luxury fashion on the eBay platform. Last week, we completed our acquisition of Depop. I'm excited to officially welcome the Depop team and community to eBay. Depop joins us with incredible momentum and strengthens our leadership positions in C2C and recommerce while extending our reach with a younger generation of buyers and sellers. It is also highly complementary to eBay's existing fashion business. eBay offers broad global selection across pre-loved and authenticated luxury, while Depop brings a social-forward and discovery-led experience with particular strength in pre-loved fashion inventory at accessible price points. These complementary strengths allow the combined company to serve a broader range of consumers and unlock more of the inventory sitting in closets around the world.

As we look at ways to support Depop's outstanding growth, our first priority is to maintain the brand, community, and product experience that make Depop special while helping the team accelerate its existing roadmap. At the same time, we see clear opportunities to use eBay's scale and capabilities to support Depop's growth, including introducing Depop to relevant customers on eBay to stimulate demand, making shipping more affordable and convenient, and offering our expertise in trust and marketplace safety. We are still in the early days of bringing these complementary businesses together but believe the strategic fit is compelling. Pairing Depop's differentiated audience and user experience with eBay's scaled global user base and marketplace capabilities allows us to build on our established strengths in fashion, broaden our reach with younger consumers, and unlock more of our total addressable market in C2C and recommerce.

Our acquisition of Depop builds on the strong consumer selling momentum across eBay's core marketplace as C2C GMV grew by over 20% in Q2, outpacing overall GMV. C2C GMV continued to grow in mix in the U.S., our largest market for consumer selling, driven by healthy double-digit growth in both sellers and supply. Collectibles, electronics, and fashion were the largest contributors to this continued momentum, while the latest generation of magical listing is further accelerating consumer supply by making it dramatically easier to list and sell on eBay. In the U.K., C2C GMV trends were particularly strong, supported by broad-based supply growth and continued outperformance in focus categories. Active sellers reached their highest level since 2023, while U.K. C2C GMV saw its strongest growth in many years outside the pandemic period.

In Germany, we're seeing healthy growth in C2C GMV as we intentionally shift investment toward the categories and experiences where eBay has the strongest right to win. That transition may create some near-term pressure on overall GMV and buyers in Germany as we continue to navigate a challenging macro backdrop. We are seeing encouraging early results from this pivot that suggest it will increase penetration of strategic GMV and strengthen the long-term health of this market. In Australia, we saw an acceleration in C2C GMV growth to double digits, which helped the region overall post its strongest growth in several years during Q2. New and reactivated listers, listing creation rates, and other leading KPIs have notably increased since we launched our Australian C2C initiative in May, providing encouraging early evidence that our enhanced value proposition is resonating with consumers.

Taken together, these initiatives are bringing differentiated supply onto eBay by unlocking inventory in consumers' homes and strengthening the sell-to-buy flywheel on eBay. Importantly, our analysis suggests that Depop's success in C2C has been incremental to our own, further validating the significant untapped opportunity in recommerce globally. Let's turn to eBay Live, which posted another record quarter as GMV grew by roughly 8x year-over-year in Q2, alongside rapid growth in viewers, watch time, and sold items. Based on our growth and available market benchmarks, we believe eBay Live is gaining share across all seven markets where it operates.