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 (Basic)
$4.43
++11.03% YoY
Gross Margin
71.5%
-0.54% YoY
Operating Income
$2.28B
-1.77% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K 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: 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: 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: Source: 10-K Income Statement & Cash Flow Statement
2 more insights available
Upgrade to unlockR&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: Source: 10-K Income Statement
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.41 versus the $1.37 analyst consensus — a +3.3% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $11.1B | $10.28B | +7.95% |
Cost of Revenue | $3.17B | $2.88B | +10.03% |
Gross Profit | $7.93B | $7.4B | +7.13% |
Operating Income | $2.28B | $2.32B | -1.77% |
Net Income | $2.03B | $1.98B | +2.84% |
EPS (Basic) | $4.43 | $3.99 | +11.03% |
EPS (Diluted) | $4.34 | $3.94 | +10.15% |
R&D Expense | $1.64B | $1.48B | +11.02% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $17.61B | $19.36B | -9.06% |
Current Assets | $5.09B | $7.57B | -32.79% |
Total Liabilities | $12.99B | $14.21B | -8.53% |
Current Liabilities | $4.64B | $6.1B | -23.96% |
Stockholders' Equity | $4.62B | $5.16B | -10.53% |
Cash & Equivalents | $1.87B | $2.43B | -23.26% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.96B | $2.41B | -18.85% |
Investing Cash Flow | $1.42B | $2.21B | -35.83% |
Financing Cash Flow | $-3.66B | $-3.81B | +3.81% |
Dividends Paid | $531M | $533M | -0.38% |
Share Buybacks | $2.5B | $3.15B | -20.61% |
D&A | $421M | $370M | +13.78% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 71.5% | 72.0% | -0.54% |
Operating Margin | 20.5% | 22.5% | -2.03% |
Net Margin | 18.3% | — | — |
ROE | 44.0% | — | — |
ROA | 11.5% | — | — |
Current Ratio | $1.097 | — | — |
Debt to Equity | $2.816 | — | — |
Other companies in Broadline Retail
eBay's revenue grew 7.9% year-over-year to $11.1B in FY2025, up from $10.3B in the prior year. This growth was driven by continued expansion of marketplace transaction volumes and monetization improvements across the platform.
eBay's FY2025 results showed solid top-line growth of 7.9% to $11.1B and EPS improvement of 10.2% to $4.34 diluted, but operating margin compressed by ~200 basis points to 20.5% due to rising R&D costs. Operating cash flow also declined 18.8% to $1.96B, a notable concern for cash generation quality.
Yes, eBay's diluted EPS grew 10.2% to $4.34 in FY2025, compared to $3.94 in the prior year. This growth was boosted by $2.5B in share buybacks that reduced the share count, amplifying per-share earnings beyond the 2.8% growth in net income.
Based on the financial data, key risks include declining operating cash flow (down 18.8% to $1.96B), high financial leverage with a debt-to-equity ratio of 2.82x, and margin pressure from R&D spending that grew 11.0% to $1.64B. The current ratio of just 1.10x also signals limited near-term liquidity headroom.
eBay's financial health is mixed: it maintains strong profitability with a 71.5% gross margin and 18.3% net margin, but faces headwinds from declining cash balances (down 23.3% to $1.87B), high leverage (debt-to-equity of 2.82x), and operating cash flow that fell 18.8% to $1.96B. The company continues to return capital to shareholders but is doing so at a pace that exceeds its operating cash generation.