eBay's Q2 2026 Earnings Call: GMV Composition and C2C Fee Strategy Contradict

Date of Call: Aug 5, 2026

Financials Results

• Revenue: $3.13 billion, up 14% year-over-year
• EPS: Non-GAAP EPS of $1.60, up 17% year-over-year; GAAP EPS of $1.21
• Gross Margin: Non-GAAP gross margin of 74.1%, up one point year-over-year
• Operating Margin: Non-GAAP operating income grew 16% to $893 million; operating margin not explicitly stated as a percentage

Guidance:

• Q3 consolidated GMV expected between $22 and $22.4B (~10-12% FX-neutral growth, ~7-9% organic).
• Q3 consolidated revenue expected between $3.07 and $3.12B (~8-10% FX-neutral growth, ~7-9% organic).
• Q3 non-GAAP operating income growth expected between 1% and 5% YOY (margin 25.1%-25.6%).
• Q3 non-GAAP EPS expected between $1.36 and $1.42 (~1-5% YOY growth).
• Full-year consolidated GMV growth expected between 11.5% and 12.5% FX-neutral.
• Full-year consolidated revenue growth expected between 11% and 12% YOY.
• Full-year non-GAAP operating income growth expected between 10% and 12% YOY.
• Full-year non-GAAP EPS growth expected between 10% and 12% YOY.

Business Commentary:

Strong Financial Performance:

• eBay reported Gross merchandise volume (GMV) of $22.4 billion, up 14% year-over-year, and revenue of $3.13 billion, up 14% year-over-year for Q2 2026.
• The company's non-GAAP operating income grew 16% to $893 million, and non-GAAP earnings per share increased 17% to $1.60.
• This performance was driven by sustained momentum across strategic priorities, including focus categories, C2C, and re-commerce, which together accounted for over 70% of total GMV.

Focus Categories and C2C Growth:

• Focus category GMV grew 26%, with collectibles, motors, fashion, and refurbished categories contributing significantly.
• C2C GMV increased by over 20%, outpacing overall GMV, driven by healthy double-digit growth in both sellers and supply, particularly in the U.S. and the U.K.
• Growth in focus categories and C2C was supported by investments in trust, innovation, and marketing, as well as the introduction of new features like Authenticity Guarantee and AI-powered tools.

eBay Live and AI Utilization:

• eBay Live GMV grew roughly 8x year-over-year in Q2, with significant increases in viewers, watch time, and sold items.
• AI is being utilized to enhance the marketplace experience, including AI-powered search and discovery features and the next-generation "magical listing" experience that has been expanded to major geographies.
• These initiatives have improved listing creation, increased seller supply, and enhanced buyer engagement and conversion rates.

Depop Acquisition and Strategic Fit:

• eBay acquired Depop for $1.4 billion in cash, with the purchase price of $1.2 billion and additional adjustments.
• Depop's integration is expected to strengthen eBay's position in C2C and e-commerce, particularly in fashion, by extending reach to younger consumers and leveraging eBay's scale and capabilities.
• The acquisition is anticipated to contribute to GMV and revenue growth, with Depop's momentum being incremental to eBay's existing business.

International and Market-Specific Performance:

• The U.S. business delivered a strong quarter with GMV up 24%, while international GMV growth improved to 4% year-over-year on an organic FX-neutral basis.
• Growth in the U.K., Germany, Australia, and Canada improved sequentially, supported by investments in focus categories and C2C.
• The performance reflects the effectiveness of tailored strategies in different markets, despite macroeconomic challenges in some regions.

Sentiment Analysis:

Overall Tone: Positive

• Management stated: '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.' They also noted 'broad-based momentum across our strategic priorities' and 'confidence in our strategy' for driving 'durable, profitable growth.'

Q&A:

• Question from Colin Sebastian (Baird): How does eBay Live buyer engagement resonate across the broader platform and other categories? What's the next frontier for AI on eBay?
  Response: Live buyers spend 70% more than non-live buyers, creating a halo effect. AI's next frontier includes expanding magical listing to all C2C sellers and using AI in advertising, search, and CRM.

• Question from Michael Morton (Moffett Nathanson): What is the outlook for competitive intensity in the U.S. and international C2C markets? Also, clarify eBay Motors GMV contribution.
  Response: The C2C fashion opportunity is large and underpenetrated. eBay Motors includes both parts/accessories (majority) and vehicles, with the Caramel acquisition improving the user experience.

• Question from Ken Gorelsky (Wells Fargo): Discuss the Depop opportunity, marketing intensity, and lessons learned from Europe.
  Response: Depop's U.S. market is incremental to eBay's, with a massive TAM. Investments are funded by existing eBay marketing dollars, focusing on full-funnel marketing and shipping affordability.

• Question from Ross Sandler (Barclays): Update on lapping dynamics and consumer confidence in back-half GMV growth.
  Response: Q3 will lap tougher comparisons from Klarna partnership and prior marketing efficiency gains. Beyond lapping Pokemon and bullion strength, underlying growth is durable, supporting the raised full-year outlook.

• Question from Deepak Mathavanan (Cantor Fitzgerald): Provide incremental color on eBay Live penetration and seller/buyer participation. Also, details on marketing reallocation to Depop.
  Response: eBay Live is transitioning to a self-service model, expanding seller participation. Marketing investment for Depop is funded by deploying existing eBay C2C/fashion marketing dollars, aiming for efficiency and capturing a growing TAM.

• Question from Ton Champion (Piper): Frame the long-term GMV growth opportunity and discuss active buyer growth prospects.
  Response: Growth is broad-based and durable, with strategic priorities driving over 20% growth. Active buyers grew 2% globally and 6% in the U.S., with Depop's buyer base being additive.

• Question from Michael McGovern (Bank of America): Discuss advertising penetration approaching 3% and if that's a ceiling.
  Response: The 3% penetration is a midterm goal; advertising growth is expected to continue outpacing GMV growth via seller adoption, listings penetration, and AI-driven optimizations.

• Question from Nikhil Devnani (Bernstein): Deconstruct GMV growth between order volume and ASP. Have investments been accelerated against the strong top line?
  Response: GMV growth is balanced across buyers, frequency, sold items, and ASP (driven by mix). The company has reinvested in high-return opportunities, including Depop, while maintaining healthy financial flow-through.

Contradiction Point 1

eBay Motors GMV Contribution Composition

Contradiction on whether the 2% GMV growth figure includes parts/accessories or is solely for vehicles.

Michael Morton (Moffett Nathanson) - Michael Morton (Moffett Nathanson)

2026Q2: The 2% GMV contribution includes both parts/accessories (majority) and vehicles. - [Peggy Alford](CFO)

What is the outlook for competitive intensity in the C2C market (U.S./international), and for eBay Motors, does the reported 2% GMV contribution include parts/accessories, and what's the organic growth driver (volume vs. Carmel integration)? - Michael Morton (Moffett Nathanson)

2026Q2: The 2% GMV growth contribution from eBay Motors includes both parts & accessories and vehicles. - [Peggy Alford](CFO)

Contradiction Point 2

Competitive Outlook for C2C Market and Fee Strategy

Contradiction on plans to change seller fees in the U.S. C2C market.

Ken Gorelsky (Wells Fargo) - Ken Gorelsky (Wells Fargo)

2026Q2: eBay has no current plans to change fees for its core business. - [Jamie Iannone](CEO)

What are Depop's U.S. marketing intensity plans in response to new entrants, and how do lessons from Europe's fee changes in the UK/Germany inform confidence in the effectiveness of new tactics? - Michael Morton (Moffett Nathanson)

2026Q2: eBay sees a \"huge underpenetrated opportunity\" in U.S. C2C fashion. - [Jamie Iannone](CEO)

Contradiction Point 3

Growth Drivers and Category Breadth

Shift from broad-based growth to focus on specific strategic priorities.

What were Piper's earnings results under Ton Champion? - Ton Champion (Piper)

2026Q2: Strategic priorities (focus categories, C2C, Live) now driving over 70% of GMV and growing at +20%. - [Jamie Iannone](CEO), [Peggy Alford](CFO)

What are the long-term growth opportunities for GMV and active buyer growth beyond the recent 2%? - Bernard McTernan (Needham)

20260430-2026 Q1: Strength is broad-based across all major categories, with the strongest growth in focus categories (collectibles, motors, fashion). Strategic priorities now represent ~70% of total GMV, with each component (focused categories, C2C, e-commerce) growing double-digits. - [Jamie Iannone](CEO)

Contradiction Point 4

Marketing Investment Strategy

Shift from full-funnel marketing for broad categories to more focused, synergistic investment between eBay and Depop.

Deepak Mathavanan (Cantor Fitzgerald) - Deepak Mathavanan (Cantor Fitzgerald)

2026Q2: Synergies between eBay and Depop allow focused investment in capturing the growing C2C fashion TAM efficiently. - [Jamie Iannone](CEO), [Peggy Alford](CFO)

Which core eBay marketing discretionary areas are candidates for reallocation to Depop? - Zachary Morrissey (Wells Fargo)

20260430-2026 Q1: Full-funnel marketing investments in Q1 supported strategic priorities like C2C and Live. This approach remains important for driving awareness and consideration... - [Jamie Iannone](CEO), [Peggy Alford](CFO)

Contradiction Point 5

eBay Live's Contribution and Growth Trajectory

Contradiction on whether Live is a major GMV driver or a newer, growing feature.

Colin Sebastian (Baird): Can you comment on the company's earnings performance this quarter? - Colin Sebastian (Baird)

2026Q2: Live creates a **'halo effect'** across the marketplace." "Live has grown **7-8x year-over-year**. - [Jamie Iannone](CEO)

How does increased engagement from eBay Live buyers impact the broader platform and other categories, and what is the next frontier for AI on eBay beyond current seller tools and search? - Nikhil Devnani (Bernstein Research)

20260219-2025 Q4: eBay Live shows a strong 7x year-over-year run rate, but **it is not the main contributor to the GMV outlook.** - [Jamie Iannone](CEO)