eBay’s advertising business continued scaling during the second quarter of 2026, with first-party advertising revenue increasing 25% year-over-year to $570 million as the marketplace company also completed its acquisition of Gen Z-focused fashion marketplace Depop.
Total advertising offerings generated $596 million of Q2 revenue, equivalent to 2.7% of eBay’s gross merchandise volume. First-party advertising revenue increased 24% on an FX-neutral basis.
The advertising gains accompanied accelerating activity across the broader marketplace. Q2 revenue increased 15% to $3.13 billion and GMV increased 15% to $22.4 billion. GAAP net income from continuing operations increased 51% to $552 million, while GAAP diluted EPS increased 56% to $1.21.
eBay closed its acquisition of Depop on July 30. The transaction was originally announced at $1.2 billion in cash, subject to adjustments. eBay ultimately paid approximately $1.4 billion in cash, inclusive of preliminary purchase price adjustments.
Depop gives eBay greater exposure to consumer-to-consumer fashion and a highly engaged Gen Z and Millennial audience, strengthening its position in circular fashion and recommerce.
Other newer marketplace initiatives are also expanding rapidly. eBay Live posted another record quarter, with GMV increasing approximately eightfold year-over-year across seven markets. And the company’s AI-powered trading card scanning feature surpassed 80 million cumulative scans.
eBay generated $549 million of operating cash flow and $326 million of free cash flow during Q2. It returned $448 million to shareholders, including $310 million through share repurchases and $138 million through dividends. Approximately $2 billion remained under its share repurchase authorization at quarter-end.
For Q3, including the expected impact from Depop, eBay expects revenue of $3.07 billion to $3.12 billion and GMV of $22 billion to $22.4 billion. FX-neutral GMV growth is expected to range from 10% to 12%.
KEY QUOTES:
“This quarter once again demonstrated our ability to focus on our strategic priorities while still delivering strong growth in operating income and EPS.”
Jamie Iannone, Chief Executive Officer of eBay
