A global online marketplace where people buy and sell everything from car parts and collectibles to luxury goods, connecting active buyers and sellers across dozens of countries. It was launched in 1995 as "AuctionWeb" by programmer Pierre Omidyar as a hobby experiment, with its first sale being a broken laser pointer that went to a collector. The name "eBay" came from Omidyar's consulting firm, Echo Bay Technology Group, shortened when the domain was taken by a mining company.
eBay Q2 2026 revenue rose 15% to $3.1B and operating margin rebounded to 21.6% as legal and restructuring costs receded.
rebounded after two quarters of heavy restructuring and legal costs. rose 15% to $3.1 billion and reached 73.5% as GMV grew 15% to $22.4 billion, driven by and consumer-to-consumer activity. The company closed the $1.4 billion acquisition in July, adding a new growth vector while an unsolicited acquisition proposal hangs in the background.
Key takeaways
expanded to 21.6% from 17.5% a year earlier, as general and administrative expenses fell 17% with lower legal and restructuring costs after two quarters of elevated charges.
rose 15% to $3.1 billion, with Marketplace revenue up 13% and Advertising revenue up 24%, as GMV grew 15% to $22.4 billion led by Collectibles, Motors Parts & Accessories, and Fashion.
improved 0.9 points to 73.5%, the second-highest quarterly level in five years, as growth of 15% outpaced the increase in cost of net revenues.
Section summaries
Management's Discussion and Analysis
eBay Q2 FY2026 net revenues rose 15% to $3.1B driven by higher GMV, advertising penetration, and U.S. demand.
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Net revenues increased 15% to $3.1B, with Marketplace revenues up 13% and Advertising revenues up 24%.
was $523 million, a swing from a $340 million use of cash in Q2 2025, aided by lower income tax payments.
Transaction losses rose 54% to $133 million due to unfavorable fraud and recovery rates and higher volume, partially offsetting the gains.
The company repaid $750 million in maturing senior notes and issued $750 million in , while closing the $1.4 billion Limited acquisition in July 2026.
What changed
The 18% GMV growth rate flagged in Q1 2026 moderated to 15% in Q2, still well above the 6% rate in Q2 2025, suggesting the acceleration is holding but decelerating sequentially.
rebounded to 21.6% after falling to 19.8% in Q1 2026 and 17.5% in Q2 2025, as the $104 million in Q1 restructuring and bonus costs did not repeat at the same scale.
The company still did not disclose its , which was last reported at 13.96% in Q2 2024; the 24% advertising growth suggests continued monetization gains but the exact level remains unknown.
of $523 million confirmed the Q2 2025 use of cash was a one-off tax-payment event, though the figure remains below the $755 million generated in Q1 2026.
The unsolicited, non-binding acquisition proposal received on May 3, 2026 and rejected by the Board on May 12 introduces a new activist risk not present in prior filings.
What to watch
Whether the 15% GMV growth rate can be sustained into Q3 2026 after decelerating from 18% in Q1, or if the Q1 peak reflected temporary attribution changes in advertising.
The trajectory of in Q3 2026 to see if the 21.6% level holds without the benefit of further G&A declines from lapping legal and restructuring costs.
The impact of the $1.4 billion acquisition on , operating expenses, and the balance sheet once consolidated in Q3 2026.
Whether the unsolicited acquisition proposal or further activist actions create management distraction, cost increases, or stock-price volatility as flagged in the new risk factor.
grew 15% to $22.4B, led by like Collectibles, Motors Parts & Accessories, and Fashion, with C2C outpacing B2C in key markets.
expanded to 21.6% from 17.6% a year ago, helped by a 17% decline in G&A expenses due to lower legal and restructuring costs.
Transaction losses rose 54% to $133M due to unfavorable fraud and recovery rates and higher volume.
Cash from continuing operations was $549M for the quarter, a significant improvement from a $340M use of cash in Q2 2025, aided by lower income tax payments.
The company repaid $750M in maturing senior notes, issued $750M in , and closed the $1.4B acquisition of in July 2026.
Quantitative and Qualitative Disclosures About Market Risk
Interest rate, equity price, and foreign currency risks are managed through investment policies, hedging programs, and sensitivity monitoring.
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A hypothetical 1% rise in interest rates would decrease the fair value of investments by $37 million as of June 30, 2026, up from $30 million at year-end 2025.
Fixed-rate securities with longer maturities face greater interest rate risk, and forced sales of securities that declined in value could cause principal losses.
Equity investments totaled $773 million (11% of total cash and investments) as of June 30, 2026, primarily in privately-held companies, with gains and losses recognized through earnings.
Foreign currency exposure is managed using forward contracts, with a 20% adverse rate move potentially reducing cash-flow hedge fair values by $115 million and non-designated hedges by $39 million.
The company states that hedging programs are highly effective, so potential derivative losses would be largely offset by changes in the value of the underlying exposures.
After considering offsetting hedges, a 20% adverse change in all currencies would have an immaterial impact on pre-tax income from continuing operations.
The information set forth under “Note 10 — Commitments and Contingencies — Litigation and Other Legal Matters” to the condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q is incorporated herein by reference.
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The information set forth under “Note 10 — Commitments and Contingencies — Litigation and Other Legal Matters” to the condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q is incorporated herein by reference.
Activist campaigns and an unsolicited May 2026 acquisition proposal pose new disruption risks beyond those in the 2025 10-K.
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An unsolicited, non-binding acquisition proposal was received on May 3, 2026; the Board deemed it not credible or attractive on May 12, 2026.
Stockholder activism or unsolicited proposals could divert management, raise costs, disrupt recruitment and partnerships, and cause stock-price volatility.
The Company has faced activist campaigns before and cannot predict whether the proposing party or others will take further actions.