Revenue Growth Acceleration
eBay grew total revenue to $11.1B in FY2025, up 7.9% from $10.3B in the prior year, reflecting continued momentum in marketplace volume and monetization improvements across its platform.
Source: 10-K Income Statement
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
eBay delivered FY2025 revenue of $11.1B (+7.9% YoY) driven by strong top-line growth, though operating income dipped 1.8% as R&D and cost investments weighed on margins, while EPS rose 11% aided by share buybacks.
Revenue
$11.1B
+7.95% YoY
EPS (Diluted)
$4.34
+10.15% YoY
Gross Margin
71.5%
-0.5 pts YoY
Operating Income
$2.28B
-1.77% YoY
Source: SEC XBRL
Ebay (EBAY) reported FY2025 revenue of $11.1B, up 7.9% year over year. Operating margin was 20.5%, down 2.0 points from 22.5% a year earlier. Operating cash flow was $1.96B, down 18.8% year over year.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 1.60 | 1.54 | Beat +4.2% |
| Mar 2026 | 1.66 | 1.61 | Beat +3.1% |
| Dec 2025This filing | 1.41 | 1.37 | Beat +3.3% |
| Sep 2025 | 1.36 | 1.36 | Beat +0.0% |
Reported EPS of $1.41 versus the $1.37 analyst consensus — a +3.3% beat for Dec 2025.
Compiled by AI from this SEC filing
eBay grew total revenue to $11.1B in FY2025, up 7.9% from $10.3B in the prior year, reflecting continued momentum in marketplace volume and monetization improvements across its platform.
Source: 10-K Income Statement
Gross margin declined slightly to 71.5% from 72.0%, while operating margin fell more meaningfully to 20.5% from 22.5%, as cost of revenue grew 10.0% and R&D expense surged 11.0% to $1.64B, outpacing revenue growth.
Source: 10-K Income Statement
Basic EPS rose 11.0% to $4.43 and diluted EPS increased 10.2% to $4.34, meaningfully outpacing net income growth of 2.8%, reflecting the accretive impact of $2.5B in share buybacks during the year.
Source: 10-K Income Statement & Cash Flow Statement
Current assets fell 32.8% to $5.1B and cash & equivalents dropped 23.3% to $1.87B, largely reflecting capital returned to shareholders through buybacks ($2.5B) and dividends ($531M), as well as shifts in working capital.
Source: 10-K Balance Sheet
Operating cash flow decreased 18.8% to $1.96B from $2.41B in the prior year, signaling that while net income grew modestly, underlying cash generation faced headwinds from working capital changes and higher operating costs.
Source: 10-K Cash Flow Statement
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
R&D expense grew 11.0% to $1.64B in FY2025, outpacing revenue growth of 7.9% and contributing to a 200 basis point decline in operating margin. If eBay continues to invest heavily in technology without commensurate revenue returns, profitability could face further pressure.
Source: 10-K Income Statement
Operating cash flow fell 18.8% to $1.96B, a significant drop relative to net income growth of only 2.8%. Sustained deterioration in cash generation could limit eBay's ability to fund investments, buybacks, and dividends at current levels.
Source: 10-K Cash Flow Statement
eBay's debt-to-equity ratio stands at 2.82x, indicating the company carries substantial financial leverage. With stockholders' equity declining 10.5% to $4.6B and total liabilities at $13.0B, the balance sheet leaves limited cushion in a downturn.
Source: 10-K Balance Sheet
The current ratio of 1.10x is only marginally above 1.0, meaning current assets barely cover current liabilities of $4.64B. A further decline in cash or increase in short-term obligations could create near-term liquidity stress.
Source: 10-K Balance Sheet
eBay returned approximately $3.03B to shareholders via buybacks and dividends in FY2025, while operating cash flow was only $1.96B. This implies the company funded a portion of capital returns from asset sales or balance sheet cash, which is not indefinitely sustainable.
Source: 10-K Cash Flow Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 11.10 $B | 10.28 $B | +7.95% |
Cost of Revenue $B | 3.17 $B | 2.88 $B | +10.03% |
Gross Profit $B | 7.93 $B | 7.40 $B | +7.13% |
Operating Income $B | 2.28 $B | 2.32 $B | -1.77% |
Net Income $B | 2.03 $B | 1.98 $B | +2.84% |
EPS (Basic) $ | 4.43 $ | 3.99 $ | +11.03% |
EPS (Diluted) $ | 4.34 $ | 3.94 $ | +10.15% |
R&D Expense $B | 1.64 $B | 1.48 $B | +11.02% |
Answers draw on this SEC filing and the data on this page
eBay reported accelerating revenue growth and significantly higher profitability in Q2 FY2026, driven by improved margins and operating leverage.
eBay delivered strong Q1 FY2026 revenue growth of 19.5% YoY to $3.09B, driven by gross profit expansion, though operating income was flat and operating margin compressed nearly 4 percentage points.
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