eBay's Strong Q3 2025 Performance Driven by Focus Categories
Highlights
- Gross merchandise volume: $20.1 billion (+8% YoY)
- Revenue: $2.82 billion (+8% YoY)
- Non-GAAP earnings per share: $1.36 (+14% YoY)
- First-party advertising growth: $525 million, GMV penetration of 2.6%, (+23% YoY)
- Cash returned to shareholders: $760 million through repurchases and dividends
eBay, a renowned global online marketplace, has once again showcased its robustness with its third-quarter 2025 earnings, reflecting a strategic emphasis on focus categories. The company reported a remarkable 8% year-over-year growth in both gross merchandise volume (GMV) and revenue, reaching $20.1 billion and $2.82 billion, respectively.
Impressive Growth in Focus Categories
The driving force behind this growth was eBay's dedicated focus on specific product categories, which accelerated to over 15% growth, significantly outpacing the broader marketplace. eBay's collectibles segment, particularly trading cards, played a pivotal role, bolstered by successful product activations at major events and continued enthusiasm for Pokémon and sports trading cards. Additionally, the motors parts and accessories category, alongside fashion—especially luxury and preloved apparel—fueled GMV growth.
Advancements in Technology
eBay continued to integrate artificial intelligence (AI) into its operations, enhancing both the buying and selling experience. Innovations like AI-powered listing tools and improvements in member-to-member messaging workflows streamlined processes, making interactions more efficient and further driving eBay's marketplace success.
Revenue and Shareholder Returns
The company's first-party advertising revenue rose by nearly 23%, with a penetration rate of 2.6% into GMV, contributing $525 million. This growth stemmed from the enhancement of advertising technology and broader engagement across the platform. eBay also returned approximately $760 million to shareholders through stock repurchases and cash dividends, underscoring its strong cash flow from operations.
Market Position and Strategy
Despite facing macroeconomic headwinds and complexities in international trade, eBay maintained a resilient presence in both domestic and international markets. The strategic investments in product categories and global shipping solutions have positioned eBay well to navigate the evolving economic landscape, highlighting the company's commitment to sustaining growth and innovation within the e-commerce sector.