eBay’s first quarter of 2025 showed stable growth, with revenue and non-GAAP earnings surpassing Wall Street’s expectations. Management attributed these results to strong momentum in focus categories such as collectibles and pre-owned fashion, as well as continued innovation in listing tools and shipping solutions. CEO Jamie Iannone highlighted that trading cards posted their ninth consecutive quarter of accelerating growth, supported by new integrations with grading partner PSA and streamlined seller experiences. While macroeconomic uncertainty and shifting trade policies influenced the environment, management emphasized eBay’s ability to adapt through a broad inventory mix and an agile seller base.
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eBay (EBAY) Q1 CY2025 Highlights:
- Revenue: $2.59 billion vs analyst estimates of $2.55 billion (1.1% year-on-year growth, 1.6% beat)
- Adjusted EPS: $1.38 vs analyst estimates of $1.34 (3.2% beat)
- Adjusted EBITDA: $850 million vs analyst estimates of $822.1 million (32.9% margin, 3.4% beat)
- Revenue Guidance for Q2 CY2025 is $2.63 billion at the midpoint, above analyst estimates of $2.6 billion
- Adjusted EPS guidance for Q2 CY2025 is $1.28 at the midpoint, below analyst estimates of $1.28
- Operating Margin: 23.8%, in line with the same quarter last year
- Active Buyers: 134 million, up 2 million year on year
- Market Capitalization: $34.26 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions eBay’s Q1 Earnings Call
- Eric Sheridan (Goldman Sachs): Asked about demand elasticity in a rising price environment. CEO Jamie Iannone explained eBay’s resilience comes from its mix of used and refurbished goods, noting, "eBay tends to be more resilient because of what we have on the marketplace."
- Nathan Feather (Morgan Stanley): Queried the impact of China tariffs on cross-border trade. Iannone detailed that the China-to-U.S. corridor is about 5% of GMV, with SpeedPAK and forward-deployed inventory reducing exposure to tariff changes.
- Nikhil Devnani (Bernstein Research): Asked if advertising revenue is affected by tariffs. Iannone responded that advertising demand remains strong and distributed, with no material impact observed to date.
- Ross Sandler (Barclays): Inquired about sourcing risk from China among U.S. and European sellers and eBay’s recession resilience. CFO Steve Priest said sourcing risk is considered in planning, while Iannone highlighted a shift toward more resilient categories and value-focused inventory.
- Shweta Khajuria (Wolfe Research): Asked about consumer health across geographies and potential demand pull-forward. Priest said U.S. demand is more resilient, while U.K. and Germany face weaker consumer confidence and macro pressures.
Catalysts in Upcoming Quarters
Going forward, the StockStory team will be tracking (1) the impact of new tariffs and trade policies on cross-border transaction volumes and seller behavior, (2) adoption rates and monetization improvements from managed shipping and AI-powered seller tools in key international markets, and (3) continued momentum in focus categories such as trading cards and pre-owned fashion. Execution on leadership transitions and the effectiveness of the new organizational structure will also be important to monitor.
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