eBay Reports 1% Revenue Increase to $2.585 Billion in Q1 2025

eBay Inc. reported a slight increase in net revenues for the first quarter of 2025, reaching $2.585 billion, up 1% from $2.556 billion in the same period last year. The company's gross profit also saw a marginal rise, totaling $1.862 billion compared to $1.856 billion in the prior year. However, operating margin decreased to 23.8% from 24.7% year-over-year. The increase in revenues was attributed to higher gross merchandise volume (GMV) and the expansion of promoted listings products, although this growth was partially offset by pressures in discretionary spending due to geopolitical events and inflationary concerns.

In terms of operational metrics, eBay's GMV for the quarter was $18.753 billion, reflecting a 1% increase from $18.623 billion in the previous year. The take rate, which measures net revenue as a percentage of GMV, was reported at 13.78%, slightly up from 13.72% in the prior year. The company noted that its international revenues accounted for 48% of total net revenues, with the U.S. market contributing 52%. The impact of foreign currency fluctuations was significant, with an unfavorable effect of $21 million on revenues compared to a favorable impact of $14 million in the previous year.

eBay's strategic developments included the acquisition of Caramel, an online automotive transaction solution provider, which contributed to an increase in goodwill from $4.269 billion to $4.357 billion. The company also repurchased $625 million of its common stock during the quarter and declared a cash dividend of $0.29 per share, reflecting its commitment to returning value to shareholders. The total stockholders' equity decreased to $4.950 billion from $5.158 billion, primarily due to stock repurchases.

The company reported cash flow from continuing operating activities of $787 million, an increase from $615 million in the same period last year. Cash provided by investing activities was notably high at $1.312 billion, driven by $4.6 billion in investment maturities, while cash used in financing activities totaled $1.248 billion, largely due to debt repayments and stock repurchases. eBay's total debt as of March 31, 2025, was $6.745 billion, down from $7.425 billion at the end of 2024.

Looking ahead, eBay anticipates continued challenges from macroeconomic factors, including inflation and geopolitical events, which may impact consumer spending and overall market conditions. The company remains focused on executing its strategic initiatives to enhance user engagement and expand its marketplace offerings, while also managing its financial position to ensure liquidity and operational flexibility.