eBay delivered a steady and resilient performance in the first quarter of 2025, demonstrating its ability to navigate a challenging macroeconomic landscape. Net revenues reached $2.585 billion, marking a 1% year-over-year (YoY) increase, while Gross Merchandise Volume (GMV) grew nearly 2% YoY to $18.75 billion. The company’s take rate edged up to 13.78%, reflecting a slightly improved monetization environment.

Profitability was a standout, with net income climbing to $503 million from $438 million a year earlier, and GAAP diluted EPS surging 25% YoY to $1.06. On a non-GAAP basis, EPS rose 10% YoY to $1.38, even as operating margin dipped modestly by 0.5 percentage points to 29.8%. eBay generated $644 million in free cash flow and ended the quarter with $6.2 billion in cash and investments.

While Marketplace revenues declined slightly to $2.143 billion, advertising revenue continued to be a bright spot, up 15% YoY to $442 million, now comprising 2.4% of GMV. U.S. operations remained the revenue engine, growing 3% YoY to $1.346 billion, while international revenue saw a 1% decline, impacted by softness in Germany and the U.K. However, international GMV rose nearly 3% FX-neutral, outpacing the 0.5% growth in the U.S.

Operationally, eBay’s strategic focus is yielding results. Focus categories such as trading cards, refurbished goods, and luxury items saw over 6% GMV growth, now making up more than one-third of total volume. Trading cards continued their momentum with double-digit growth for the ninth straight quarter. The platform’s active buyer base grew to 134 million, up 1%, while spend per enthusiast buyer remained above $3,100.

Key innovations included AI-powered listing tools and expanded bulk listing capabilities that have significantly improved seller efficiency. Additionally, eBay broadened payment options with Klarna and Checkout.com, and grew adoption of its advertising solutions—over 3.7 million sellers used at least one promoted listing product.

Despite headwinds from tariffs and global trade policy shifts—particularly on the China-U.S. corridor, which represents 5% of GMV—eBay’s reliance on used and refurbished inventory (over 40% of GMV) provided a buffer against broader consumer and policy disruptions.

Capital returns remained strong, with $625 million spent on share repurchases and $134 million paid in dividends. The company also repaid $800 million in senior notes and expects at least $2 billion in buybacks for the year. Notably, CFO Steve Priest will step down, with Peggy Alford set to take over on May 12, as eBay looks to scale innovation and operational execution.

Looking ahead, eBay guided Q2 GMV between $18.6 billion and $19.1 billion, and non-GAAP EPS between $1.24 and $1.31, representing up to 11% YoY growth. For the full year, the company expects low single-digit GMV growth, modestly higher revenue growth, and high single-digit EPS growth, underscoring confidence in its evolving strategy and diversified platform.