eBay Inc.

Q2 results: GMV grew 14% to $22.4 billion; revenue grew 14% to $3.13 billion; non-GAAP operating income grew 16% to $893 million; non-GAAP EPS grew 17% to $1.60; non-GAAP gross margin was 74.1%, up 1 point year over year. Free cash flow was $326 million, cash and fixed income investments were $4.9 billion, gross debt was $6.7 billion, and eBay returned nearly $450 million to shareholders via repurchases and dividends. Q3 guidance calls for consolidated GMV of $22 billion to $22.4 billion, revenue of $3.07 billion to $3.12 billion, non-GAAP operating income growth of 1% to 5% with margin of 25.1% to 25.6%, and non-GAAP EPS of $1.36 to $1.42. Full-year guidance was raised to FX-neutral GMV growth of 11.5% to 12.5%, revenue growth of 11% to 12%, non-GAAP operating income growth of 10% to 12%, and non-GAAP EPS growth of 10% to 12%.

Jamie Iannone framed the quarter as evidence that eBay’s strategy is working across multiple growth engines at once: focused categories, C2C, recommerce, Live, Vehicles, Shipping and AI. He emphasized that the company is seeing broad-based momentum in the U.S. and improving international trends, with strategic categories driving a larger share of GMV. His tone was confident and expansionary, especially around Depop, eBay Live and AI-powered selling and discovery.

Peggy Alford emphasized that Q2 outperformance created room to reinvest while still producing strong earnings flow-through. She highlighted 14% GMV and revenue growth, 74.1% non-GAAP gross margin, $326 million of free cash flow, and nearly $450 million returned to shareholders; she also noted $310 million of buybacks at an average price of about $104 and a $138 million dividend. On guidance, she pointed to Depop as a near-term drag on operating income and EPS, but said the company still expects full-year capital expenditures of 4% to 5% of revenue, roughly $2 billion of repurchases, and a 17.5% non-GAAP tax rate.

Analysts pressed on how eBay Live can extend beyond its current use cases, and management said it is already creating a halo effect, with live shoppers spending about 70% more than comparable non-live buyers and sellers seeing faster GMV growth. Questions also focused on AI’s next frontier; management said the biggest opportunity remains deeper penetration of Magical Listing, plus using AI more broadly in ads, search, CRM and selling tools. On Depop and competitive intensity in C2C, management said the U.S. opportunity is underpenetrated, Depop’s growth appears incremental so far, and there are no current plans to change eBay’s own fee structure in the U.S. Analysts also asked about lapping dynamics and Motors; management said Q3 will face tougher comparisons, including Klarna and prior marketing efficiency gains, and confirmed eBay Motors includes both parts and accessories and vehicles.