eBay: Soaring GMV At A Reasonable Price – Image for illustrative purposes only (Image credits: Unsplash)
San Jose, California — eBay Inc. delivered standout first-quarter results that showcased accelerating growth in its core marketplace. Gross merchandise volume reached $22.2 billion, marking an 18 percent increase on an as-reported basis and 14 percent on a foreign exchange-neutral basis.[1][2] The company also boosted its full-year guidance, signaling confidence in sustained momentum amid a challenging economic landscape.
Strong Financial Performance Exceeds Expectations
eBay reported revenue of $3.1 billion for the quarter ended March 31, reflecting a 19 percent rise year-over-year on an as-reported basis and 17 percent on an FX-neutral basis.[1] This figure surpassed analyst forecasts, which had anticipated around $3.04 billion. Non-GAAP earnings per share came in at $1.66, topping consensus estimates of $1.58.[3]
Net income from continuing operations stood at $512 million in some accounts, underscoring improved profitability. The results built on solid full-year 2025 performance, where GMV grew about 7 percent to roughly $79.6 billion.[4] Advertising revenue hit $581 million, representing 2.6 percent of GMV, as the company capitalized on enhanced seller tools.
Focus Categories and Recommerce Fuel Acceleration
Key to the quarter’s success were eBay’s focus categories, including collectibles, parts and accessories, and fashion, which together drove 24 percent growth. These areas now account for a significant majority of total GMV, nearing 70 percent when combined with consumer-to-consumer and recommerce initiatives.[5] U.S. GMV jumped 27 percent, supported by an 8 percent rise in enthusiast buyers.
Recommerce emerged as a standout trend, comprising over 40 percent of GMV in recent periods. eBay’s emphasis on secondhand and circular economy sales resonated with cost-conscious consumers. Meanwhile, international markets showed improvement through cross-border shipping enhancements. This broad-based strength contrasted with broader e-commerce softness reported by some peers.
Live shopping via eBay Live shattered records, with GMV on a run rate more than seven times higher year-over-year, particularly in the U.S.[6] AI-powered features, such as Magical Listing and Authentic Search, boosted engagement and conversion rates significantly.
Forward Guidance Points to Steady Expansion
For the second quarter, eBay projected GMV between $21.3 billion and $21.7 billion, implying 8 to 10 percent FX-neutral growth. Revenue guidance ranged from $2.97 billion to $3.03 billion, with non-GAAP EPS expected at $1.46 to $1.51.[2] The company raised its full-year 2026 GMV outlook to 7 to 7.5 percent growth on an FX-neutral basis, up from prior estimates.
Strategic priorities like these underpin the optimism. The pending acquisition of Depop from Etsy, set to close by Q3, will add about one percentage point to annual GMV. eBay also repurchased $500 million in shares during the quarter at an average price near $90 and declared a $0.31 per share dividend.[7]
Valuation Stands Out in Competitive Landscape
Despite the robust results, eBay shares experienced a mixed reaction, dipping initially before stabilizing. The stock trades at a forward price-to-earnings multiple of about 17, below historical averages and peers in the e-commerce space.[8] This positions the company as potentially undervalued given its growth trajectory and shareholder returns.
Analysts highlighted the deceleration risks in Q2 guidance relative to Q1, tied to lapping prior efficiencies and normalizing demand in areas like bullion. Yet, management emphasized durable trends in core strategies. eBay’s platform connects 135 million buyers and 20 million sellers across nearly 190 markets, with international GMV at just over 50 percent.[8]
Investors weigh these factors against macroeconomic headwinds, but eBay’s niche in high-value, enthusiast-driven sales offers resilience. As the marketplace refines its AI and live commerce tools, it appears poised to capture more share in a fragmented online resale sector.
In an era of value-seeking shoppers, eBay’s resurgence underscores the enduring appeal of its auction and fixed-price model. Whether this momentum sustains will depend on execution amid evolving consumer habits, but the Q1 numbers provide a firm foundation for optimism.