eBay Inc 2026 Q3 Earnings Call

Good afternoon. Thank you all for joining us for eBay's third 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. All growth rates noted in our prepared remarks will reflect organic FXN 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 also based on recast financials reflecting our adoption of the new internally developed software accounting guidance in 2026. All Depop comparisons will be pro forma FXN year-over-year comparisons unless noted 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 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 October 28, 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, and thank you all for joining us today. We delivered strong results in Q3 as our key financial measures exceeded consensus expectations and the high end of our respective guidance ranges. Gross merchandise volume grew by 13% to more than $23 billion. Revenue grew 11% to $3.2 billion. We also delivered 11% year-over-year growth in non-GAAP operating income and nearly 12% growth in non-GAAP earnings per share, even as we continued to invest behind our highest priority growth opportunities. Our outperformance was once again broad-based across categories, geographies, and customer segments. Our key strategic priorities, including focus categories, consumer-to-consumer, or C2C, and recommerce, grew GMV by approximately 20% in aggregate and now represent 72% of our total GMV excluding Depop.

eBay's results also benefited from the continued scaling of emerging growth vectors like eBay Live and Vehicles, which are contributing more meaningfully each quarter, as well as Depop, which accelerated materially and contributed to total FXN GMV growth of nearly 16% year-over-year in Q3. Focus category GMV grew 24% in Q3, led by collectibles, eBay Motors, fashion, and refurbished goods. Our continued momentum reflects years of strategic investment in category-specific innovation, trust, selection, community, and tailored selling and buying experiences for our customers. Starting with collectibles, trading cards maintained strong GMV growth even as we lapped increasingly difficult year-over-year comparisons. Pokémon's 30th anniversary releases supported continued growth in collectible card games, while major summer events and the fall sports calendar drove healthy demand for sports trading cards.

Excitement for eBay collectibles was on full display at the National Sports Collectors Convention in Chicago, which drove record usage of our AI-powered card scanning tool. The tool has now surpassed 130 million scans, and in Q3, we expanded card scanning to the U.K. and began adding proprietary transaction data from TCGplayer and Goldin to the tool's price guide, giving collectors a broader view of market pricing. In Q3, we expanded Authenticity Guarantee to lower-priced trading cards in the U.S. and U.K. In the U.S., the change increased the number of sold items eligible for Authenticity Guarantee by more than 20% and also made those items eligible for grading add-on and vault storage services offered through our partnership with PSA. In August, we launched Authenticity Guarantee for collectible coins in the U.S. in partnership with Professional Coin Grading Service.

This program covers eligible graded coins from around the world and raw U.S. coins priced at $500 or more at no additional cost to buyers or sellers. Authenticity Guarantee surpassed 20 million cumulative items inspected across categories in July, reinforcing our commitment to building trust and confidence across our marketplace. Our off-platform collectibles marketplaces also continued to thrive. TCGplayer surpassed $1 billion in trailing 12-month GMV for the first time, and opened seller registration in the U.K. and Canada, extending the reach of its specialized collectible card game marketplace. Our Goldin subsidiary had another record GMV quarter, and continues to attract some of the world's rarest and most valuable collectibles. In Q3, Goldin hosted an auction commemorating the United States 250th anniversary, highlighted by a rare copy of the Declaration of Independence that sold for over $3.6 million.

By bringing together the core eBay marketplace, eBay Live, TCGplayer, and Goldin, we're serving enthusiasts across all major categories, price points, and transaction formats. Turning to eBay Motors, which remained a material contributor to GMV growth across parts and accessories and vehicles. In P&A, we launched easy and free returns in Germany in Q3, following successful roll-outs in the U.S. and U.K. that drove increased conversion and incremental GMV with stable return rates. We also introduced certified recycled badging in the U.S., helping buyers identify high-quality recycled OEM parts from qualified sellers. In vehicles, we continue to simplify the end-to-end transaction experience and expand the range of customers and vehicles we can serve. In Q3, we launched Secure Purchase Express to provide a streamlined path to checkout for C2C sellers who do not require our full suite of services.

We onboarded hundreds of independent dealers through our new Trusted Dealer program, allowing them to use Secure Purchase within their existing workflows, and we increased Vehicle Purchase Protection coverage to $500,000 to support more high-value transactions. These protections, and our differentiated buyer reach, supported several vehicle sales above $1 million in Q3, including a 2005 Porsche Carrera GT that sold for $5 million from a trusted dealer in Arkansas to a buyer located in Texas. eBay's fashion business continues to be a source of growth, led by luxury, which delivered another quarter of healthy double-digit GMV growth. In Q3, we significantly expanded Authenticity Guarantee across Europe, enabling buyers in 23 European Union countries to shop for authenticated luxury fashion inventory from sellers in Germany, France, and Italy. In Australia, we launched Authenticity Guarantee for watches, and continued broadening eligible brands across apparel, footwear, and accessories.

This trust infrastructure has helped make eBay the leading online marketplace for second-hand luxury fashion sales in the U.S. and U.K. Depop complements eBay's broader fashion business and expands our reach with younger consumers through its discovery-led experience optimized for desirable, affordable second-hand fashion. Q3 was Depop's first quarter as part of eBay, and its results reinforced the strength of the business and gave us even more conviction in the opportunity ahead. Depop's GMV growth outperformed our expectations in Q3, including U.S. GMV, monthly active users, and sold items more than doubling year-over-year on a pro forma basis. The quality of that growth is encouraging. New cohorts are buying and selling more than prior cohorts, while repurchase, relist, and resell rates all improved year-over-year. Customers who both buy and sell remain several times more valuable than one-sided users, demonstrating the strength of Depop's C2C flywheel.

Depop continued to improve its product experience in Q3 as it enabled faster personalized discovery on the homepage, simplified its AI-assisted listing flow, and deployed new AI models to prioritize the visibility of higher-quality listings. We also introduced new Depop Balance features in Q3, allowing customers to keep their sales proceeds in the app and use them for future purchases. This makes it easier for sellers to become buyers as well, encouraging the two-sided engagement we see among Depop's most valuable customers. Marketing and shipping play complementary roles in Depop's growth model. Full-funnel marketing has proven effective at raising awareness and bringing more customers into the marketplace. Our investments to lower shipping costs have made lower-priced items economical, increased purchase frequency, and improved seller velocity. Access to eBay's preferred carrier rates has lowered average parcel cost, making shipping investments more efficient.

We're also increasingly targeting those investments toward customer moments we believe are most predictive of long-term value. Beyond shipping, we continue to explore supply and demand synergies between eBay and Depop. In Q3, we tested a dedicated module of relevant Depop listings adjacent to eBay search results for select fashion queries. We are currently testing the next phase of our inventory integration by exploring how users respond to individual Depop listings directly in eBay search results for relevant queries. Over time, we believe eBay's scaled demand and shopping intent signals can connect more fashion consumers with relevant Depop listings and drive incremental GMV and velocity for Depop sellers. Overall, we are managing eBay and Depop as a portfolio, preserving each brand's distinct experience and allocating investment toward opportunities that generate the strongest long-term returns for the combined company.

Depop's growth builds upon the strong consumer selling momentum on eBay, where global C2C GMV grew by more than 20% in Q3, including healthy double-digit growth across the U.S., U.K., and Australia. Artificial intelligence has an outsized impact on our C2C business as it reduces friction that prevents consumers from listing and selling successfully. We continue to see strong results from the latest generation of our AI-powered Magical Listing experience, which is now available to all new and reactivated listers across six major markets. We've also rolled out Magical Listing to all non-professional sellers in Australia, France, and Italy, and we are in the midst of ramping to active seller groups in the U.S., U.K., and Germany. In Australia, active sellers are creating more than one-third more listings per attempter with Magical Listing.