eBay Inc. Reports Third Quarter 2025 Results
SAN JOSE, Calif., Oct. 29, 2025 /PRNewswire/ -- eBay Inc. (Nasdaq: EBAY), a global commerce leader that connects millions of buyers and sellers around the world, today reported financial results for its third quarter ended September 30, 2025.
"Q3 was another strong quarter for eBay, reflecting continued momentum across our marketplace and disciplined execution of our strategy," said Jamie Iannone, Chief Executive Officer of eBay. "We're transforming the eBay experience through AI built on 30 years of unique insights, while enhancing trusted programs in shipping, live commerce and circular fashion. These innovations are deepening engagement with enthusiasts and positioning eBay for continued success as we reinvent the future of ecommerce."
"Our robust Q3 performance reflects strong operational discipline as we continue on the path of sustainable growth," said Peggy Alford, Chief Financial Officer at eBay. "Looking ahead, our focus is building on this momentum, leveraging our strong financial position and talented team to accelerate our strategic initiatives, and continue creating long-term value for shareholders."
Third Quarter 2025 Business Highlights
Impact
Third Quarter 2025 Financial Highlights
Third Quarter
in millions, except per share data and percentages
2025
2024
Change
eBay Inc.
Net revenues
$ 2,820
$ 2,576
$ 244
9 %
GAAP – Continuing Operations
Net income
$ 597
$ 636
$ (39)
(6) %
Earnings per diluted share
$ 1.28
$ 1.29
$ (0.01)
(1) %
Non-GAAP – Continuing Operations
Net income
$ 636
$ 588
$ 48
8 %
Earnings per diluted share
$ 1.36
$ 1.19
$ 0.17
14 %
Other Selected Financial and Operational Results
(1) We use a non-GAAP effective tax rate for evaluating our operating results. Based on our current long-term projections, we are using a non-GAAP tax rate of 16.5%. This non-GAAP tax rate could change for various reasons including significant changes in our geographic earnings mix or fundamental tax law changes in major jurisdictions in which we operate.
Business Outlook
eBay is providing the following guidance for continuing operations for the fourth quarter and full year 2025.
In billions, except per share data and percentages
Q4 2025 Guidance
Full Year 2025 Guidance
Revenue
$2.83 - $2.89
$10.97 - $11.03
FX-Neutral Y/Y Growth
8% - 10%
6% - 6%
Gross Merchandise Volume
$20.5 - $20.9
$78.9 - $79.3
FX-Neutral Y/Y Growth
4% - 6%
5% - 5%
Diluted GAAP EPS
$0.96 - $1.01
$4.09 - $4.14
Diluted Non-GAAP EPS
$1.31 - $1.36
$5.42 - $5.47
Dividend Declaration
Quarterly Conference Call and Webcast
eBay Inc. will host a conference call to discuss third quarter 2025 results at 2:30 p.m. Pacific Time today. A live webcast of the conference call, together with a slide presentation that includes supplemental financial information and reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures, can be accessed through the company's Investor Relations website at https://investors.ebayinc.com. In addition, an archive of the webcast will be accessible for at least three months through the same link.
eBay Inc. uses its Investor Relations website at https://investors.ebayinc.com and social media channels as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor this website, in addition to following our press releases, Securities and Exchange Commission (SEC) filings, public conference calls and webcasts.
About eBay
eBay Inc. (Nasdaq: EBAY) is a global commerce leader that connects people and builds communities to create economic opportunity for all. Our technology empowers millions of buyers and sellers in more than 190 markets around the world, providing everyone the opportunity to grow and thrive. Founded in 1995 in San Jose, California, eBay is one of the world's largest and most vibrant marketplaces for discovering great value and unique selection. In 2024, eBay enabled $75 billion of gross merchandise volume. For more information about the company and its global portfolio of online brands, visit www.ebayinc.com.
Presentation
All growth rates represent year-over-year comparisons, except as otherwise noted. All amounts in tables are presented in U.S. dollars, rounded to the nearest million, except as otherwise noted. As a result, certain amounts may not sum or recalculate using the rounded dollar amounts provided. References to "revenue" refer to "net revenues" as reported in the company's consolidated statement of income.
Non-GAAP Financial Measures
This press release includes the following financial measures defined as "non-GAAP financial measures" by the SEC: non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating income and margin, non-GAAP effective tax rate, free cash flow and FX-Neutral basis. These non-GAAP financial measures are presented on a continuing operations basis. These measures may be different from non-GAAP financial measures used by other companies. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation of, or as a substitute for, the financial information prepared and presented in accordance with generally accepted accounting principles ("GAAP"). For a reconciliation of these non-GAAP financial measures, except for figures in this press release presented on an "FX-Neutral basis," to the nearest comparable GAAP measures, see "Non-GAAP Measures of Financial Performance," "Reconciliation of GAAP Operating Income to Non-GAAP Operating Income," "Reconciliation of GAAP Net Income to Non-GAAP Net Income and GAAP Effective Tax Rate to Non-GAAP Effective Tax Rate" and "Reconciliation of Operating Cash Flow to Free Cash Flow" included in this press release. For figures in this press release reported "on an FX-Neutral basis," we calculate the year-over-year impact of foreign currency movements using prior period foreign currency rates, excluding hedging activity, applied to current year transactional currency amounts.
Forward-Looking Statements
This press release contains forward-looking statements relating to, among other things, the future performance of eBay Inc. and its consolidated subsidiaries that are based on the company's current expectations, forecasts and assumptions and involves risks and uncertainties. These statements include, but are not limited to, statements regarding the future performance of eBay Inc. and its consolidated subsidiaries, including management's vision for the future of eBay and our ability to accomplish our vision, expected financial results for the fourth quarter and full year 2025 and expected drivers thereof, the future growth in our business, and our ability to drive sustainable long-term growth and create lasting value for our shareholders, the impact of current and contemplated strategic initiatives and offerings, partnerships with and acquisitions of other companies, and new and updated product features or programs, including the initiatives, offerings, partnerships, acquisitions, features and programs discussed in our business highlights, the effects of foreign currency volatility and our ability to respond to such effects, operating efficiency and margins, and dividends and share repurchases.
Actual results could differ materially from those expressed or implied and reported results should not be considered as an indication of future performance. Factors that could cause or contribute to such differences include, but are not limited to: fluctuations in, and our ability to predict, our results of operations and cash flows; our ability to convert visits into sales for our sellers, attract and retain sellers and buyers and execute on our business strategy; our ability to compete in the markets in which we participate; our ability to generate revenue from our foreign operations and expand in international markets; the impact of inflationary pressure, changes in tariffs and global tariff policies and regulations, the overall uncertainty surrounding international trade relations, fluctuations in foreign currency exchange rates, elevated interest rates, geopolitical events such as the ongoing war in Ukraine and uncertainty in the Middle East and terrorist activities; our ability to keep pace with rapid technological developments or continue to innovate and create new initiatives to provide new programs, products and services; our ability to operate and continuously develop our payments system and financial services offerings; the impact of new and evolving domestic and foreign government laws, regulations, rules and standards that affect us, our business and/or our industry; our reliance on third-party providers; our ability to protect or enforce our intellectual property rights; our ability to deal effectively with fraudulent activities on our Marketplace platforms; the impact of any security breaches, cyberattacks or system failures and resulting interruptions; our ability to attract, retain and develop highly skilled employees; our ability to identify, complete and integrate suitable acquisitions and other strategic transactions needed to meet our goals; our ability to accomplish or accurately track and report results related to our sustainability and similar goals; current and potential litigation and regulatory and government inquiries, investigations and disputes involving us or our industry; our ability to generate sufficient cash flow to service our indebtedness and to comply with financial covenants in our outstanding debt instruments; the impact of evolving sales and other tax regimes in various jurisdictions, including the United States, and anticipated tax liabilities; and the success of our recent and potential acquisitions, dispositions, joint ventures, strategic partnerships and strategic investments.
The forward-looking statements in this release do not include the potential impact of any acquisitions or divestitures that may be announced and/or completed after the date hereof.
More information about factors that could affect the company's operating results is included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, copies of which may be obtained by visiting the company's Investor Relations website at https://investors.ebayinc.com or the SEC's website at www.sec.gov. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to the company on the date hereof. The company assumes no obligation to update such statements.
eBay Inc.
Unaudited Condensed Consolidated Balance Sheet
September 30,
2025
December 31,
2024
(In millions)
ASSETS
Current assets:
Cash and cash equivalents
$ 2,423
$ 2,433
Short-term investments
955
3,457
Customer accounts and funds receivable
1,262
962
Other current assets
753
715
Total current assets
5,393
7,567
Long-term investments
2,848
2,439
Property and equipment, net
1,333
1,263
Goodwill
4,376
4,269
Operating lease right-of-use assets
367
427
Deferred tax assets
2,898
2,936
Other assets
576
464
Total assets
$ 17,791
$ 19,365
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt
$ 1,748
$ 1,673
Accounts payable
308
257
Customer accounts and funds payable
1,365
1,018
Accrued expenses and other current liabilities
2,237
2,184
Income taxes payable
173
966
Total current liabilities
5,831
6,098
Operating lease liabilities
264
320
Deferred tax liabilities
1,377
1,405
Long-term debt
5,003
5,752
Other liabilities
597
632
Total liabilities
13,072
14,207
Total stockholders' equity
4,719
5,158
Total liabilities and stockholders' equity
$ 17,791
$ 19,365
eBay Inc.
Unaudited Condensed Consolidated Statement of Income
Three Months Ended
September 30,
Nine Months Ended
September 30,
2025
2024
2025
2024
(In millions, except per share amounts)
Net revenues
$ 2,820
$ 2,576
$ 8,135
$ 7,704
Cost of net revenues (1)
821
727
2,320
2,162
Gross profit
1,999
1,849
5,815
5,542
Operating expenses:
Sales and marketing (1)
606
592
1,728
1,710
Product development (1)
423
374
1,206
1,104
General and administrative (1)
282
194
914
673
Provision for transaction losses
106
89
273
266
Amortization of acquired intangible assets
6
5
18
14
Total operating expenses
1,423
1,254
4,139
3,767
Income from operations
576
595
1,676
1,775
Interest and other:
Gain (loss) on equity investments and warrant, net
(10)
199
(16)
(120)
Interest expense
(62)
(63)
(185)
(194)
Interest income and other, net
69
66
209
200
Income from continuing operations before income taxes
573
797
1,684
1,661
Income tax benefit (provision)
24
(161)
(213)
(360)
Income from continuing operations
597
636
1,471
1,301
Income (loss) from discontinued operations, net of income taxes
35
(2)
32
(5)
Net income
$ 632
$ 634
$ 1,503
$ 1,296
Income (loss) per share – basic:
Continuing operations
$ 1.31
$ 1.31
$ 3.19
$ 2.59
Discontinued operations
0.08
—
0.07
(0.01)
Net income per share – basic
$ 1.39
$ 1.31
$ 3.26
$ 2.58
Income (loss) per share – diluted:
Continuing operations
$ 1.28
$ 1.29
$ 3.13
$ 2.57
Discontinued operations
0.07
—
0.07
(0.01)
Net income per share – diluted
$ 1.35
$ 1.29
$ 3.20
$ 2.56
Weighted average shares:
Basic
456
487
461
502
Diluted
467
494
471
507
(1) Includes stock-based compensation as follows:
Cost of net revenues
$ 15
$ 13
$ 42
$ 40
Sales and marketing
21
22
65
70
Product development
69
70
216
211
General and administrative
42
41
125
125
$ 147
$ 146
$ 448
$ 446
eBay Inc.
Unaudited Condensed Consolidated Statement of Cash Flows
Three Months Ended
September 30,
Nine Months Ended
September 30,
2025
2024
2025
2024
(In millions)
Cash flows from operating activities:
Net income
$ 632
$ 634
$ 1,503
$ 1,296
Loss (income) from discontinued operations, net of income
taxes
(35)
2
(32)
5
Adjustments:
Provision for transaction losses
106
89
273
266
Depreciation and amortization
106
92
292
245
Stock-based compensation
147
146
448
446
Deferred income taxes
70
(11)
14
(534)
Change in fair value of warrants
(2)
(145)
(2)
(120)
Change in fair value of equity investment in Adevinta
—
—
—
156
Loss (gain) on investments and other, net
11
(54)
8
84
Changes in assets and liabilities, net of acquisition effects
(101)
2
(1,090)
(107)
Net cash provided by continuing operating activities
934
755
1,414
1,737
Net cash used in discontinued operating activities
(38)
—
(38)
—
Net cash provided by operating activities
896
755
1,376
1,737
Cash flows from investing activities:
Purchases of property and equipment
(131)
(109)
(408)
(341)
Purchases of investments
(1,093)
(3,559)
(6,100)
(11,472)
Maturities of investments
1,491
3,722
8,021
10,421
Proceeds from sale of shares in Adevinta, net
—
(7)
—
2,410
Shareholder distributions from equity investments
2
—
227
—
Acquisitions and other
(4)
2
(96)
(67)
Net cash provided by investing activities
265
49
1,644
951
Cash flows from financing activities:
Proceeds from issuance of common stock
8
3
101
58
Repurchases of common stock
(626)
(755)
(1,865)
(2,238)
Payments for taxes related to net share settlements of
restricted stock units and awards
(71)
(40)
(208)
(136)
Payments for dividends
(132)
(131)
(400)
(405)
Repayment of senior notes
—
(750)
(800)
(750)
Proceeds from issuance of commercial paper
632
441
1,575
441
Repayment of commercial paper
(628)
—
(1,446)
—
Net funds receivable and payable activity
(57)
223
231
230
Other
—
—
(26)
(14)
Net cash used in financing activities
(874)
(1,009)
(2,838)
(2,814)
Effect of exchange rate changes on cash, cash equivalents and
restricted cash
(5)
22
45
5
Net increase (decrease) in cash, cash equivalents and restricted
cash
282
(183)
227
(121)
Cash, cash equivalents and restricted cash at beginning of
period
3,231
2,555
3,286
2,493
Cash, cash equivalents and restricted cash at end of period
$ 3,513
$ 2,372
$ 3,513
$ 2,372
eBay Inc.
Unaudited Summary of Consolidated Net Revenues
Three Months Ended
September 30,
2025
June 30,
2025
March 31,
2025
December 31,
2024
September 30,
2024
(In millions, except percentages)
Total net revenues (1)(2)
$ 2,820
$ 2,730
$ 2,585
$ 2,579
$ 2,576
Current quarter vs prior year quarter
9 %
6 %
1 %
1 %
3 %
Percent from international
48 %
49 %
48 %
48 %
49 %
(1) Hedge gain/(loss)
$ (24)
$ (6)
$ 8
$ (23)
$ (11)
(2) Foreign currency impact
$ 20
$ 32
$ (21)
$ 5
$ (6)
eBay Inc.
Unaudited Supplemental Operating Data
Three Months Ended
September 30,
2025
June 30,
2025
March 31,
2025
December 31,
2024
September 30,
2024
(In millions, except percentages)
Active Buyers (1)
134
134
134
134
133
Current quarter vs prior year quarter
1 %
1 %
1 %
1 %
1 %
Gross Merchandise Volume (2)
U.S.
$ 9,872
$ 9,428
$ 9,066
$ 9,043
$ 8,740
Current quarter vs prior year quarter
13 %
7 %
1 %
2 %
1 %
International
$ 10,233
$ 10,086
$ 9,687
$ 10,277
$ 9,566
Current quarter vs prior year quarter
7 %
5 %
0 %
6 %
2 %
Total Gross Merchandise Volume
$ 20,105
$ 19,514
$ 18,753
$ 19,320
$ 18,306
Current quarter vs prior year quarter
10 %
6 %
1 %
4 %
2 %
(1)
Active Buyers consist of all buyers who paid for a transaction on our Marketplace platforms within the previous 12-month period. Buyers may register more than once, and as a result, may have more than one account. Our acquisitions completed during the periods shown have not materially impacted Active Buyers.
(2)
Gross Merchandise Volume consists of the total value of all paid transactions between users on our Marketplace platforms during the applicable period inclusive of shipping fees and taxes, without adjustment for returns or cancellations.
eBay Inc.
Business Outlook
The guidance figures provided below and elsewhere in this press release are forward-looking statements, reflect a number of estimates, assumptions and other uncertainties, and are approximate in nature because the company's future performance is difficult to predict. Such guidance is based on information available on the date of this press release, and the company assumes no obligation to update it.
The company's future performance involves risks and uncertainties, and the company's actual results could differ materially from the information below and elsewhere in this press release. Some of the factors that could affect the company's operating results are set forth under the caption "Forward-Looking Statements" above in this press release. More information about factors that could affect the company's operating results is included under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, copies of which may be obtained by visiting eBay's investor relations website at https://investors.ebayinc.com or the SEC's website at www.sec.gov.
eBay Inc.
Three Months Ending
December 31, 2025
(In billions, except per share amounts)
GAAP
Non-GAAP (a)
Net revenues
$2.83 - $2.89
$2.83 - $2.89
Diluted EPS from continuing operations
$0.96 - $1.01
$1.31 - $1.36
Gross Merchandise Volume
$20.5 - $20.9
Twelve Months Ending
December 31, 2025
(In billions, except per share amounts)
GAAP
Non-GAAP (b)
Net revenues
$10.97 - $11.03
$10.97 - $11.03
Diluted EPS from continuing operations
$4.09 - $4.14
$5.42 - $5.47
Gross Merchandise Volume
$78.9 - $79.3
(a)
Estimated non-GAAP amounts above for the three months ending December 31, 2025 reflect adjustments that exclude the estimated amortization of acquired intangible assets of approximately $11-$14 million, estimated stock-based compensation expense and associated employer payroll tax expense of approximately $155-$165 million and estimated adjustment between our GAAP and non-GAAP tax rate of approximately $20-$30 million. The estimated GAAP diluted EPS above does not assume any gains or losses on our remaining equity investments.
(b)
Estimated non-GAAP amounts above for the twelve months ending December 31, 2025 reflect adjustments that exclude the estimated amortization of acquired intangible assets of approximately $48-$51 million, estimated stock-based compensation expense and associated employer payroll tax expense of approximately $621-$631 million and estimated adjustment between our GAAP and non-GAAP tax rate of approximately $54-$64 million. The estimated GAAP diluted EPS above does not assume any gains or losses on our remaining equity investments.
eBay Inc.
Non-GAAP Measures of Financial Performance
To supplement the company's condensed consolidated financial statements presented in accordance with generally accepted accounting principles, or GAAP, the company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating income and margin, non-GAAP effective tax rate, free cash flow and figures in this press release presented on an "FX-Neutral basis." These non-GAAP financial measures are presented on a continuing operations basis.
These non-GAAP measures are not in accordance with, or an alternative to, measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the company's results of operations as determined in accordance with GAAP. These measures should only be used to evaluate the company's results of operations in conjunction with the corresponding GAAP measures.
Reconciliation to the nearest GAAP measure of all non-GAAP measures included in this press release, except for figures in this press release presented on an "FX-Neutral basis," can be found in the tables included in this press release. For figures in this press release reported on an "FX-Neutral basis," the company calculates the year-over-year impact of foreign currency movements using prior period foreign currency rates, excluding hedging activity, applied to current year transactional currency amounts.
These non-GAAP measures are provided to enhance investors' overall understanding of the company's current financial performance and its prospects for the future. Specifically, the company believes the non-GAAP measures provide useful information to both management and investors by excluding certain expenses, gains and losses, or net purchases of property and equipment, as the case may be, that may not be indicative of its core operating results and business outlook. In addition, because the company has historically reported certain non-GAAP results to investors, the company believes that the inclusion of non-GAAP measures provides consistency in the company's financial reporting.
For its internal budgeting process, and as discussed further below, the company's management uses financial measures that do not include stock-based compensation expense, employer payroll taxes on stock-based compensation, amortization or impairment of acquired intangible assets, impairment of goodwill, amortization of deferred tax assets associated with the realignment of its legal structure and related foreign exchange effects, significant gains or losses from the disposal/acquisition of a business, certain gains and losses on investments including changes in fair value, changes in foreign currency exchange rates and the impact of any related foreign exchange derivative instruments, gains or losses associated with a warrant agreement that the company entered into with Adyen, restructuring-related charges and the income taxes associated with the foregoing. In addition to the corresponding GAAP measures, the company's management also uses the foregoing non-GAAP measures in reviewing the financial results of the company.
The company excludes the following items from non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating income and margin and non-GAAP effective tax rate:
Stock-based compensation expense and related employer payroll taxes. This expense consists of expenses for stock options, restricted stock and employee stock purchases. The company excludes stock-based compensation expense from its non-GAAP measures primarily because they are non-cash expenses that management does not believe are reflective of ongoing operating results. The related employer payroll taxes are dependent on the company's stock price and the vesting of restricted stock by employees and the timing and size of stock option exercises, over which management has limited to no control, and as such management does not believe it correlates to the company's operation of the business.
Amortization or impairment of acquired intangible assets, impairment of goodwill, certain amortization of deferred tax assets and related foreign exchange effects, significant gains or losses and transaction expenses from the acquisition or disposal of a business and certain gains or losses on investments. The company incurs amortization or impairment of acquired intangible assets and goodwill in connection with acquisitions and may incur significant gains or losses from the acquisition or disposal of a business and therefore excludes these amounts from its non-GAAP measures. The company also excludes certain gains and losses on investments. The company excludes the non-cash amortization of deferred tax assets associated with the realignment of its legal structure, which is not reduced by the effects of the Tax Cuts and Jobs Act, and related foreign exchange effects. The company excludes these items because management does not believe they correlate to the ongoing operating results of the company's business.
Restructuring. These charges consist of expenses for employee severance and other exit and disposal costs. The company excludes significant restructuring charges primarily because management does not believe they are reflective of ongoing operating results.
Other certain significant gains, losses, or charges that are not indicative of the company's core operating results. These are significant gains, losses, or charges during a period that are the result of isolated events or transactions which have not occurred frequently in the past and are not expected to occur regularly or be repeated in the future. The company excludes these amounts from its results primarily because management does not believe they are indicative of its current or ongoing operating results. These amounts include changes in fair value and the related change in foreign currency exchange rates of equity securities with readily determinable fair values, globally.
Change in fair market value of warrants. These are gains or losses associated with warrant agreements entered into with vendors, which are attributable to changes in fair value during the period.
Income tax effects and adjustments. We use a non-GAAP tax rate for evaluating our operating results. Based on our current long-term projections, we are using a non-GAAP tax rate of 16.5%. This non-GAAP tax rate could change for various reasons including significant changes in our geographic earnings mix or fundamental tax law changes in major jurisdictions in which we operate.
In addition to the non-GAAP measures discussed above, the company also uses free cash flow. Free cash flow represents operating cash flows less purchases of property and equipment. The company considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after the purchases of property, buildings, and equipment, which can then be used to, among other things, invest in the company's business, make strategic acquisitions, repurchase stock and pay dividends. A limitation of the utility of free cash flow as a measure of financial performance is that it does not represent the total increase or decrease in the company's cash balance for the period and does not exclude certain non-discretionary expenditures, such as mandatory debt service requirements.
eBay Inc.
Reconciliation of GAAP Operating Income to Non-GAAP Operating Income
Three Months Ended
September 30,
Nine Months Ended
September 30,
2025
2024
2025
2024
(In millions, except percentages)
GAAP operating income
$ 576
$ 595
$ 1,676
$ 1,775
Stock-based compensation expense and related employer
payroll taxes
152
149
466
457
Amortization of acquired intangible assets within cost of net
revenues and operating expenses
12
10
37
27
Executive bonuses and restructuring
24
(4)
79
(10)
Legal matters
—
(50)
52
(56)
Other general and administrative expenses
—
—
—
1
Total non-GAAP operating income adjustments
188
105
634
419
Non-GAAP operating income
$ 764
$ 700
$ 2,310
$ 2,194
GAAP operating margin
20.4 %
23.1 %
20.6 %
23.0 %
Non-GAAP operating margin
27.1 %
27.2 %
28.4 %
28.5 %
Presented on a continuing operations basis
Reconciliation of GAAP Net Income to Non-GAAP Net Income and
GAAP Effective Tax Rate to Non-GAAP Effective Tax Rate
Three Months Ended
September 30,
Nine Months Ended
September 30,
2025
2024
2025
2024
(In millions, except per share amounts and percentages)
GAAP income from continuing operations before income taxes
$ 573
$ 797
$ 1,684
$ 1,661
GAAP provision for income taxes
24
(161)
(213)
(360)
GAAP net income from continuing operations
$ 597
$ 636
$ 1,471
$ 1,301
Non-GAAP adjustments to net income from continuing
operations:
Non-GAAP operating income from continuing operations
adjustments (see table above)
$ 188
$ 105
$ 634
$ 419
Change in fair value of equity investment in Adevinta
—
—
—
234
Realized change in fair value of shares sold in Adevinta
—
—
—
(78)
Change in fair value of other equity investments
2
(18)
2
11
Change in fair value of warrants
(2)
(145)
(2)
(120)
Change in fair value of Aurelia option
—
(35)
—
74
Income tax effects and adjustments
(149)
45
(169)
(3)
Non-GAAP net income from continuing operations
$ 636
$ 588
$ 1,936
$ 1,838
Diluted net income from continuing operations per share:
GAAP
$ 1.28
$ 1.29
$ 3.13
$ 2.57
Non-GAAP
$ 1.36
$ 1.19
$ 4.11
$ 3.63
Shares used in GAAP diluted net income per share calculation
467
494
471
507
Shares used in non-GAAP diluted net income per share
calculation
467
494
471
507
GAAP effective tax rate – Continuing operations
(4.1) %
20.2 %
12.7 %
21.7 %
Income tax effects and adjustments to net income from
continuing operations
20.6 %
(3.7) %
3.8 %
(5.2) %
Non-GAAP effective tax rate – Continuing operations
16.5 %
16.5 %
16.5 %
16.5 %
Presented on a continuing operations basis
Reconciliation of Operating Cash Flow to Free Cash Flow
Three Months Ended
September 30,
Nine Months Ended
September 30,
2025
2024
2025
2024
(In millions)
Net cash provided by continuing operating activities
$ 934
$ 755
$ 1,414
$ 1,737
Less: Purchases of property and equipment
(131)
(109)
(408)
(341)
Free cash flow
$ 803
$ 646
$ 1,006
$ 1,396
Presented on a continuing operations basis
SOURCE eBay Inc.