Q2 2026 eBay Inc Earnings Call

August 5, 2026

Speaker #1: Good day. At this time, I would like to welcome you to the eBay Q2 2026 earnings call. All lines have been placed on mute to prevent any background noise.

Operator: Today. At this time, I would like to welcome you to the eBay Second Quarter 2026 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, and if you have joined via the webinar, please use the raise hand icon, which can be found at the bottom of your webinar application. At this time, I would like to turn the call over to John Egbert, Vice President of Investor Relations.

Speaker #1: After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, and if you have joined via the webinar, please use the raise-hand icon, which can be found at the bottom of your webinar application.

Speaker #1: At this time, I would like to turn the call over to John Egbert, Vice President of Investor Relations.

Speaker #2: Good afternoon. Thank you all for joining us for eBay's Q2 2026 earnings conference call. Joining me today on the call are Jamie Iannone, our Chief Executive Officer, and Peggy Alford, our Chief Financial Officer.

John Egbert: Good afternoon. Thank you all for joining us for eBay's Second Quarter 2026 Earnings Conference Call. Joining me today on the call are Jamie Iannone, our Chief Executive Officer, and Peggy Alford, our Chief Financial Officer. We're providing a slide presentation to accompany our commentary during the call, which is available through the investor relations section of the eBay website at investors.ebayinc.com. Before we begin, I'll remind you that during this conference call, we will discuss certain non-GAAP measures related to our performance. You can find the reconciliation of these measures to the nearest comparable GAAP measures in our accompanying slide presentation. Additionally, all growth rates noted in our prepared remarks will reflect organic, FX-neutral year-over-year comparisons, and all earnings per share amounts reflect earnings per diluted share unless indicated otherwise.

Speaker #2: We're providing a slide presentation to accompany our commentary during the call, which is available through the Investor Relations section of the eBay website at investors.ebayinc.com.

Speaker #2: Before we begin, I'll remind you that during this conference call, we will discuss certain non-GAAP measures related to our performance. You can find the reconciliation of these measures to the nearest comparable GAAP measures in our accompanying slide presentation.

John Egbert: Before we begin, I'll remind you that during this conference call, we will discuss certain non-GAAP measures related to our performance. You can find the reconciliation of these measures to the nearest comparable GAAP measures in our accompanying slide presentation. Additionally, all growth rates noted in our prepared remarks will reflect organic, FX-neutral year-over-year comparisons, and all earnings per share amounts reflect earnings per diluted share unless indicated otherwise.

Speaker #2: Additionally, all growth rates noted in our prepared remarks will reflect organic, FX-neutral year-over-year comparisons. All earnings per share amounts reflect earnings per diluted share, unless indicated otherwise.

Speaker #2: Additionally, all year-over-year growth rates versus 2025 are based on recast financials reflecting our adoption of the new 2026. During this conference call, management will make forward-looking statements, including, without limitation, statements regarding our future performance and expected financial results.

John Egbert: Additionally, all year-over-year growth rates versus 2025 are based on recast financials reflecting our adoption of the new internally developed software accounting guidance in 2026. During this conference call, management will make forward-looking statements, including, without limitation, statements regarding our future performance and expected financial results. These forward-looking statements involve known and unknown risks and uncertainties. Our actual results may differ materially from our forecasts for a variety of reasons. You can find more information about risks, uncertainties, and other factors that could affect our operating results in our most recent periodic reports on Form 10-K, Form 10-Q, and our earnings release from earlier today. You should not rely on any forward-looking statements. All information in this presentation is as of 5 August 2026. We do not intend and undertake no duty to update this information. With that, I'll turn the call over to Jamie.

Speaker #2: These forward-looking statements involve known and unknown risks and uncertainties. Our actual results may differ materially from our forecast for a variety of reasons. You can find more information about risks, uncertainties, and other factors that could affect our operating results in our most recent periodic reports on Form 10-K, Form 10-Q, and our earnings release from earlier today.

John Egbert: Our actual results may differ materially from our forecasts for a variety of reasons. You can find more information about risks, uncertainties, and other factors that could affect our operating results in our most recent periodic reports on Form 10-K, Form 10-Q, and our earnings release from earlier today. You should not rely on any forward-looking statements. All information in this presentation is as of 5 August 2026. We do not intend and undertake no duty to update this information. With that, I'll turn the call over to Jamie.

Speaker #2: You should not rely on any forward-looking statements. All information in this presentation is as of August 5, 2026. We do not intend, and undertake no duty, to update this information.

Speaker #2: With that, I'll turn the call over to Jamie.

Speaker #3: Thanks, John. Good afternoon, and thank you all for joining us today. eBay delivered another strong quarter in Q2, with results that exceeded consensus expectations and the high end of our guidance ranges across all key financial metrics.

Jamie Iannone: Thanks, John. Good afternoon, and thank you all for joining us today. eBay delivered another strong quarter in Q2, with results that exceeded consensus expectations and the high ends of our guidance ranges across all key financial metrics. Gross merchandise volume grew 14% year-over-year to more than $22 billion. Revenue also grew 14% to over $3 billion. Our top-line outperformance gave us the flexibility to increase investment behind several strategic priorities while still driving 16% growth in non-GAAP operating income and 17% growth in non-GAAP earnings per share. These results reflect the broad-based momentum across our marketplace, including continued outperformance in the US and improving trends across our international markets. Importantly, our growth continues to be driven by our key strategic priorities, including focused categories, our consumer-to-consumer, or C2C business, and recommerce, which we define as sales of pre-owned and refurbished items.

Speaker #3: Gross merchandise volume grew 14% year-over-year to more than $22 billion. Revenue also grew 14% to over $3 billion. Our top-line outperformance gave us the flexibility to increase investment behind several strategic priorities while still driving 16% growth in non-GAAP operating income and 17% growth in non-GAAP earnings per share.

Jamie Iannone: Our top-line outperformance gave us the flexibility to increase investment behind several strategic priorities while still driving 16% growth in non-GAAP operating income and 17% growth in non-GAAP earnings per share.

Speaker #3: These results reflect the broad-based momentum across our marketplace, including continued outperformance in the U.S. and improving trends across our international markets. Importantly, our growth continues to be driven by our key strategic priorities, including focused categories, our consumer-to-consumer, or C2C, business, and re-commerce, which we define as sales of pre-owned and refurbished items.

Jamie Iannone: These results reflect the broad-based momentum across our marketplace, including continued outperformance in the US and improving trends across our international markets. Importantly, our growth continues to be driven by our key strategic priorities, including focused categories, our consumer-to-consumer, or C2C business, and recommerce, which we define as sales of pre-owned and refurbished items.

Speaker #3: Together, these strategic priorities made up more than 70% of total GMV in Q2, with each growing more than 20%, both individually and in aggregate.

Jamie Iannone: Together, these strategic priorities made up more than 70% of total GMV in Q2, with each growing more than 20%, both individually and in aggregate. This momentum was further supported by emerging growth vectors and platform capabilities, including eBay Live, vehicles, and shipping. Focused categories remain a significant engine of growth for eBay, reflecting the cumulative impact of our investments in trust, innovation, and full-funnel marketing. Focused category GMV grew 26% in Q2 and eclipsed 40% of total GMV for the first time. The strength in focused categories was broad-based, with collectibles, Motors, fashion, and refurbished all contributing to growth. Collectibles GMV growth continued to be led by strength in trading cards, where we saw sustained momentum across all of the major sports and collectible card game genres, including notable strengths in basketball cards through the NBA finals and accelerating demand for soccer cards around the World Cup.

Speaker #3: This momentum was further supported by emerging growth factors and platform capabilities, including eBay Live, vehicles, and shipping. Focused categories remain a significant engine of growth for eBay, reflecting the cumulative impact of our investments in trust, innovation, and full-funnel marketing.

Speaker #3: Focused category GMV grew 26% in Q2, and eclipsed 40% of total GMV for the first time. This strengthening in focused categories was broad-based, with collectibles, motors, fashion, and refurbisheds all contributing to growth.

Jamie Iannone: Focused category GMV grew 26% in Q2 and eclipsed 40% of total GMV for the first time. The strength in focused categories was broad-based, with collectibles, Motors, fashion, and refurbished all contributing to growth. Collectibles GMV growth continued to be led by strength in trading cards, where we saw sustained momentum across all of the major sports and collectible card game genres, including notable strengths in basketball cards through the NBA finals and accelerating demand for soccer cards around the World Cup.

Speaker #3: Collectibles GMV growth continued to be led by strengthened trading cards, where we saw sustained momentum across all of the major sports and collectible card game genres, including notable strength in basketball cards through the NBA Finals and accelerating demand for soccer cards around the World Cup.

Speaker #3: We continue to strengthen our value proposition in trading cards, combining our unmatched inventory breadth with industry-leading trust and increasingly intuitive experiences for buyers and sellers.

Jamie Iannone: We continue to strengthen our value proposition in trading cards, combining our unmatched inventory breadth with industry-leading trust and increasingly intuitive experiences for buyers and sellers. In Q2, we launched Authenticity Guarantee for trading cards in the UK, marking the first expansion of AG in this category outside of North America. In addition, our AI-powered card scanning experience exited beta and now has surpassed 80 million cumulative scans, making it easier for collectors to identify cards, understand pricing, and list or shop with confidence. We also recently enhanced trading card listings with richer market data on the view item page, including Card Ladder indexes that track values across specific players, characters, sports, and genres over time. Our collectibles momentum is also extending to a number of subcategories as we continue to see strong growth in coins, toys, and sports memorabilia.

Speaker #3: In Q2, we launched Authenticity Guarantee for trading cards in the U.K., marking the first expansion of AG in this category outside of North America.

Speaker #3: In addition, our AI-powered card scanning experience exited beta and has now surpassed 80 million cumulative scans, making it easier for collectors to identify cards, understand pricing, and list or shop with confidence.

Jamie Iannone: In addition, our AI-powered card scanning experience exited beta and now has surpassed 80 million cumulative scans, making it easier for collectors to identify cards, understand pricing, and list or shop with confidence.

Speaker #3: We also recently enhanced trading card listings with richer market data on the view item page, including Card Ladder indexes that track values across specific players, characters, sports, and genres over time.

Jamie Iannone: We also recently enhanced trading card listings with richer market data on the view item page, including Card Ladder indexes that track values across specific players, characters, sports, and genres over time. Our collectibles momentum is also extending to a number of subcategories as we continue to see strong growth in coins, toys, and sports memorabilia.

Speaker #3: Our collectibles momentum is also extending to a number of subcategories, as we continue to see strong growth in coins, toys, and sports memorabilia. In Q2, we introduced new condition grading standards for collectible coins to improve trust and discovery.

Jamie Iannone: In Q2, we introduced new condition grading standards for collectible coins to improve trust and discovery. Gold and silver bullion remained a positive contributor to GMV in Q2, although they were much more modest drivers than the prior two quarters, as expected. Our off-platform collectibles marketplaces also continued to perform well. TCGplayer saw strength across Pokémon, One Piece, and Magic: The Gathering, while its latest Roca Sifter devices are now helping thousands more hobby shops and high-volume sellers ingest and organize their customers' inventory. The Goldin Marketplace had another record quarter with several landmark sales across sports cards and memorabilia, including the most valuable solo Michael Jordan card ever sold, and an all-time public record for a hockey jersey with the sale of Wayne Gretzky's final Edmonton Oilers jersey. eBay Motors was another meaningful contributor in Q2, contributing nearly two points of GMV growth.

Speaker #3: Gold and silver bullion remained a positive contributor to GMV in Q2, although they were much more modest drivers than in the prior two quarters, as expected.

Speaker #3: Our off-platform collectibles marketplaces also continued to perform well. TCGplayer saw strength across Pokémon, One Piece, and Magic: The Gathering, while its latest ROKU sorting devices are now helping thousands more hobby shops and high-volume sellers ingest and organize their customers' inventory.

Jamie Iannone: Our off-platform collectibles marketplaces also continued to perform well. TCGplayer saw strength across Pokémon, One Piece, and Magic: The Gathering, while its latest Roca Sifter devices are now helping thousands more hobby shops and high-volume sellers ingest and organize their customers' inventory.

Speaker #3: The golden marketplace had another record quarter, with several landmark sales across sports cards and memorabilia, including the most valuable solo Michael Jordan card ever sold, and an all-time public record for a hockey jersey with the sale of Wayne Gretzky's final Edmonton Oilers jersey.

Jamie Iannone: The Goldin Marketplace had another record quarter with several landmark sales across sports cards and memorabilia, including the most valuable solo Michael Jordan card ever sold, and an all-time public record for a hockey jersey with the sale of Wayne Gretzky's final Edmonton Oilers jersey. eBay Motors was another meaningful contributor in Q2, contributing nearly two points of GMV growth.

Speaker #3: eBay Motors was another meaningful contributor in Q2, contributing nearly 2 points of GMV growth. Our motors parts and accessories business continues to benefit from eBay's unmatched breadth and depth of inventory, as we expand our selection of new, used, and recycled parts across our major markets.

Jamie Iannone: Our Motors parts and accessories business continues to benefit from eBay's unmatched breadth and depth of inventory as we expand our selection of new, used, and recycled parts across our major markets. In Q2, we launched easy and free returns in the UK, which strengthens buyer confidence and improves conversion as buyers shop for auto parts on eBay. In Canada, we launched Guaranteed Fit, extending fitment protection to a fifth eBay market. We also brought automated fitment capabilities to Canadian sellers, which augments their listing with vehicle compatibility data so buyers can discover a broader selection of relevant parts and shop with greater confidence. Our vehicles GMV also continues to scale rapidly, with particularly strong growth among C2C sellers and smaller dealers. In Q2, we launched native vehicle listing in the eBay mobile app, driving a notable increase in C2C inventory.

Speaker #3: In Q2, we launched easy and free returns in the U.K., which strengthened buyer confidence and improved conversion as buyers shop for auto parts on eBay.

Speaker #3: In Canada, we launched Guaranteed Fit, extending fitment protection to a fifth eBay market. We also brought automated fitment capabilities to Canadian sellers, which augment their listings with vehicle compatibility data so buyers can discover a broader selection of relevant parts and shop with greater confidence.

Jamie Iannone: In Canada, we launched Guaranteed Fit, extending fitment protection to a fifth eBay market. We also brought automated fitment capabilities to Canadian sellers, which augments their listing with vehicle compatibility data so buyers can discover a broader selection of relevant parts and shop with greater confidence. Our vehicles GMV also continues to scale rapidly, with particularly strong growth among C2C sellers and smaller dealers. In Q2, we launched native vehicle listing in the eBay mobile app, driving a notable increase in C2C inventory.

Speaker #3: Our vehicles GMV also continues to scale rapidly, with particularly strong growth among C2C sellers and smaller dealers. In Q2, we launched native vehicle listing in the eBay mobile app, driving a notable increase in C2C inventory.

Speaker #3: We are also using AI and automation to simplify the transaction process, including verifying buying title, VIN, and odometer images against verified GMV records and sale documentation, with significantly less manual intervention.

Jamie Iannone: We are also using AI and automation to simplify the transaction process, including verifying title, VIN, and odometer images against verified DMV records and sale documentation with significantly less manual intervention. Alongside broader process improvements, this has helped reduce the average time to vehicle pickup from over 2 weeks to roughly 4 days. By making it easier to list, verify, and complete a secure transaction, we are improving the customer experience and supporting continued momentum in GMV. Fashion also contributed positively to GMV growth, led by luxury and pre-loved inventory. In Q2, we expanded Authenticity Guarantee to cover more than 100 apparel, footwear, and accessory brands across the US and UK, and began testing optional authentication across a broader range of price points to extend trust to more C2C fashion inventory. We also extended Authenticity Guarantee eligibility to jewelry sourced from Greater China.

Speaker #3: Alongside broader process improvements, this has helped reduce the average time to vehicle pickup from over two weeks to roughly four days. By making it easier to list, verify, and complete a secure transaction, we are improving the customer experience and supporting continued momentum in GMV.

Speaker #3: Fashion also contributed positively to GMV growth, led by luxury and pre-loved inventory. In Q2, we expanded Authenticity Guarantee to cover more than 100 apparel, footwear, and accessory brands across the U.S.

Jamie Iannone: Fashion also contributed positively to GMV growth, led by luxury and pre-loved inventory. In Q2, we expanded Authenticity Guarantee to cover more than 100 apparel, footwear, and accessory brands across the US and UK, and began testing optional authentication across a broader range of price points to extend trust to more C2C fashion inventory. We also extended Authenticity Guarantee eligibility to jewelry sourced from Greater China.

Speaker #3: and U.K., and began testing optional authentication across a broader range of price points to extend trust to more C2C fashion inventory. We also extended Authenticity Guarantee eligibility to jewelry sourced from Greater China.

Speaker #3: Combined with eBay's breadth of inventory and AI-powered selling tools, these investments are strengthening our position in pre-loved and luxury fashion on the eBay platform.

Jamie Iannone: Combined with eBay's breadth of inventory and AI-powered selling tools, these investments are strengthening our position in pre-loved and luxury fashion on the eBay platform. Last week, we completed our acquisition of Depop. I am excited to officially welcome the Depop team and community to eBay. Depop joins us with incredible momentum and strengthens our leadership positions in C2C and recommerce while extending our reach with a younger generation of buyers and sellers. It is also highly complementary to eBay's existing fashion business. eBay offers broad global selection across pre-loved and authenticated luxury, while Depop brings a social forward and discovery-led experience with particular strength in pre-loved fashion inventory at accessible price points. These complementary strengths allow the combined company to serve a broader range of consumers and unlock more of the inventory sitting in closets around the world.

Speaker #3: Last week, we completed our acquisition of Depop. I'm excited to officially welcome the Depop team and community to eBay. Depop joins us with incredible momentum and strengthens our leadership position in C2C and re-commerce, while extending our reach with a younger generation of buyers and sellers.

Speaker #3: It is also highly complimentary to eBay's existing fashion business. eBay offers a broad, global selection across pre-loved and authenticated luxury, while Depop brings a social-forward and discovery-led experience, with particular strength in pre-loved fashion inventory at accessible price points.

Jamie Iannone: It is also highly complementary to eBay's existing fashion business. eBay offers broad global selection across pre-loved and authenticated luxury, while Depop brings a social forward and discovery-led experience with particular strength in pre-loved fashion inventory at accessible price points. These complementary strengths allow the combined company to serve a broader range of consumers and unlock more of the inventory sitting in closets around the world.

Speaker #3: These complementary strengths allow the combined company to serve a broader range of consumers and unlock more of the inventory sitting in closets around the world.

Speaker #3: As we look at ways to support Depop's outstanding growth, our first priority is to maintain the brand, community, and product experience that make Depop special, while helping the team accelerate its existing roadmap.

Jamie Iannone: As we look at ways to support Depop's outstanding growth, our first priority is to maintain the brand, community, and product experience that make Depop special while helping the team accelerate its existing roadmap. At the same time, we see clear opportunities to use eBay's scale and capabilities to support Depop's growth, including introducing Depop to relevant customers on eBay to stimulate demand, making shipping more affordable and convenient, and offering our expertise in trust and marketplace safety. We are still in the early days of bringing these complementary businesses together, but believe the strategic fit is compelling. Pairing Depop's differentiated audience and user experience with eBay's scaled global user base and marketplace capabilities allows us to build on our established strengths in fashion, broaden our reach with younger consumers, and unlock more of our total addressable market in C2C and recommerce.

Speaker #3: At the same time, we see clear opportunities to use eBay's scale and capabilities to support Depop's growth, including introducing Depop to relevant customers on eBay to stimulate demand, making shipping more affordable and convenient, and offering our expertise in trust and marketplace safety.

Speaker #3: We are still in the early days of bringing these complementary businesses together, but believe the strategic fit is compelling. Pairing Depop's differentiated audience and user experience with eBay's scaled global user base and marketplace capabilities allows us to build on our established strengths in fashion, broaden our reach with younger consumers, and unlock more of our total addressable market in C2C and re-commerce.

Jamie Iannone: We are still in the early days of bringing these complementary businesses together, but believe the strategic fit is compelling. Pairing Depop's differentiated audience and user experience with eBay's scaled global user base and marketplace capabilities allows us to build on our established strengths in fashion, broaden our reach with younger consumers, and unlock more of our total addressable market in C2C and recommerce.

Speaker #3: Our acquisition of Depop builds on the strong consumer selling momentum across eBay's core marketplace, as C2C GMV grew by over 20% in Q2, outpacing overall GMV.

Jamie Iannone: Our acquisition of Depop builds on the strong consumer selling momentum across eBay's core marketplace as C2C GMV grew by over 20% in Q2, outpacing overall GMV. C2C GMV continued to grow in mix in the US, our largest market for consumer selling, driven by healthy double-digit growth in both sellers and supply. Collectibles, electronics, and fashion were the largest contributors to this continued momentum, while the latest generation of Magical Listing is further accelerating consumer supply by making it dramatically easier to list and sell on eBay. In the UK, C2C GMV trends were particularly strong, supported by broad-based supply growth and continued outperformance in focus categories. Active sellers reached their highest level since 2023, while UK C2C GMV saw its strongest growth in many years outside the pandemic period.

Speaker #3: C2C GMV continued to grow in mix in the U.S., our largest market for consumer selling, driven by healthy double-digit growth in both sellers and supply.

Speaker #3: Collectibles, electronics, and fashion were the largest contributors to this continued momentum, while the latest generation of Magical Listing is further accelerating consumer supply by making it dramatically easier to list and sell on eBay.

Jamie Iannone: Collectibles, electronics, and fashion were the largest contributors to this continued momentum, while the latest generation of Magical Listing is further accelerating consumer supply by making it dramatically easier to list and sell on eBay. In the UK, C2C GMV trends were particularly strong, supported by broad-based supply growth and continued outperformance in focus categories. Active sellers reached their highest level since 2023, while UK C2C GMV saw its strongest growth in many years outside the pandemic period.

Speaker #3: In the U.K., C2C GMV trends were particularly strong, supported by broad-based supply growth and continued outperformance in focus categories. Active sellers reached their highest level since 2023, while U.K.

Speaker #3: C2C GMV saw its strongest growth in many years outside the pandemic period. In Germany, we're seeing healthy growth in C2C GMV as we intentionally shift investment toward the categories and experiences where eBay has the strongest right to win.

Jamie Iannone: In Germany, we're seeing healthy growth in C2C GMV as we intentionally shift investment toward the categories and experiences where eBay has the strongest right to win. That transition may create some near-term pressure on overall GMV and buyers in Germany as we continue to navigate a challenging macro backdrop. We are seeing encouraging early results from this pivot that suggest it will increase penetration of strategic GMV and strengthen the long-term health of this market. In Australia, we saw an acceleration in C2C GMV growth to double digits, which helped the region overall post its strongest growth in several years during Q2. New and reactivated listers, listing creation rates, and other leading KPIs have notably increased since we launched our Australian C2C initiative in May, providing encouraging early evidence that our enhanced value proposition is resonating with consumers.

Speaker #3: That transition may create some near-term pressure on overall GMV and buyers in Germany, as we continue to navigate a challenging macro backdrop. However, we are seeing encouraging early results from this pivot that suggest it will increase penetration of strategic GMV and strengthen the long-term health of this market.

Speaker #3: In Australia, we saw an acceleration in C2C GMV growth to double digits, which helped the region overall post its strongest growth in several years during Q2.

Jamie Iannone: In Australia, we saw an acceleration in C2C GMV growth to double digits, which helped the region overall post its strongest growth in several years during Q2. New and reactivated listers, listing creation rates, and other leading KPIs have notably increased since we launched our Australian C2C initiative in May, providing encouraging early evidence that our enhanced value proposition is resonating with consumers.

Speaker #3: New and reactivated listers, listing creation rates, and other leading KPIs have notably increased since we launched our Australian C2C initiative in May, providing encouraging early evidence that our enhanced value proposition is resonating with consumers.

Speaker #3: Taken together, these initiatives are bringing differentiated supply onto eBay by unlocking inventory in consumers' homes and strengthening the sell-to-buy flywheel on eBay. Importantly, our analysis suggests that Depop's success in C2C has been incremental to our own, further validating the significant untapped opportunity in re-commerce globally.

Jamie Iannone: Taken together, these initiatives are bringing differentiated supply onto eBay by unlocking inventory in consumers' homes and strengthening the sell-to-buy flywheel on eBay. Importantly, our analysis suggests that Depop's success in C2C has been incremental to our own, further validating the significant untapped opportunity in recommerce globally. Now let's turn to eBay Live, which posted another record quarter as GMV grew by roughly 8x year-over-year in Q2, alongside rapid growth in viewers, watch time, and sold items. Based on our growth and available market benchmarks, we believe eBay Live is gaining share across all seven markets where it operates. In July, we took a major step toward unlocking the next phase of growth for eBay Live as we moved beyond our invite-only model and launched self-service onboarding for eligible US sellers across more than 300 categories, with additional markets expected to follow in the coming weeks and months.

Speaker #3: Now, let's turn to eBay Live, which posted another record quarter as GMV grew by roughly 8x year over year in Q2, alongside rapid growth in viewers, watch time, and sold items.

Speaker #3: Based on our growth and available market benchmarks, we believe eBay Live is gaining share across all seven markets where it operates. In July, we took a major step toward unlocking the next phase of growth for eBay Live as we move beyond our invite-only model and launch self-service onboarding for eligible U.S. sellers.

Jamie Iannone: Based on our growth and available market benchmarks, we believe eBay Live is gaining share across all seven markets where it operates. In July, we took a major step toward unlocking the next phase of growth for eBay Live as we moved beyond our invite-only model and launched self-service onboarding for eligible US sellers across more than 300 categories, with additional markets expected to follow in the coming weeks and months.

Speaker #3: sellers across more than 300 categories, with additional markets expected to follow in the coming weeks and months. This creates a direct, scalable on-ramp for live sellers and inventory, while maintaining the trust standards that differentiate eBay.

Jamie Iannone: This creates a direct, scalable on-ramp for live sellers and inventory while maintaining the trust standards that differentiate eBay. From a product perspective, we continue to improve eBay Live for both buyers and sellers. New discovery surfaces across the eBay homepage and mobile app make relevant events easier for buyers to find, while simpler event setup, inventory preparation, and live item management reduce the workload for sellers. We have also improved bidding responsiveness, making events faster and more seamless for participants. Importantly, we're seeing eBay Live's benefits extend beyond each event. Among established sellers who stream regularly, over 90% grow their GMV on eBay, and the median GMV increase for live sellers is roughly three times that of similar sellers who do not use Live. We're seeing similar results on the buyer side.

Speaker #3: From a product perspective, we continue to improve eBay Live for both buyers and sellers. New discovery surfaces across the eBay homepage and mobile app make relevant events easier for buyers to find, while simpler event setup, inventory preparation, and live item management reduce the workload for sellers.

Speaker #3: We have also improved bidding responsiveness, making events faster and more seamless for participants. Importantly, we're seeing eBay Live's benefits extend beyond each event. Among established sellers who stream regularly, over 90% grow their GMV on eBay, and the median GMV increase for live sellers is roughly three times that of similar sellers who do not use Live.

Jamie Iannone: We have also improved bidding responsiveness, making events faster and more seamless for participants. Importantly, we're seeing eBay Live's benefits extend beyond each event. Among established sellers who stream regularly, over 90% grow their GMV on eBay, and the median GMV increase for live sellers is roughly three times that of similar sellers who do not use Live. We're seeing similar results on the buyer side.

Speaker #3: And we're seeing similar results on the buyer side. For instance, first-time live buyers shopping in collectibles are spending approximately 70% more than comparable non-live buyers, with roughly half of the incremental spend occurring outside of live events.

Jamie Iannone: For instance, first-time live buyers shopping in collectibles are spending approximately 70% more than comparable non-live buyers, with roughly half of the incremental spend occurring outside of live events. These results reinforce our confidence that Live can deepen engagement, broaden discovery, and increase velocity across the broader eBay marketplace. Next, I'll discuss how we're leveraging AI to reimagine the buying and selling experiences on an ongoing basis. For sellers, the next generation of our magical listing experience is making selling on eBay dramatically easier by leveraging AI and our product knowledge graph to do most of the hard work on their behalf. We have now fully ramped the latest generation of magical listing to all new and reactivated listers in the UK, Germany, and Australia, and are seeing compelling uplift on key KPIs directionally similar to what we observed in the US.

Speaker #3: These results reinforce our confidence that Live can deepen engagement, broaden discovery, and increase velocity across the broader eBay marketplace. Next, I'll discuss how we're leveraging AI to reimagine the buying and selling experiences on an ongoing basis.

Speaker #3: For sellers, the next generation of our magical listing experience is making selling on eBay dramatically easier by leveraging AI and our product knowledge graph to do most of the hard work on their behalf.

Jamie Iannone: For sellers, the next generation of our magical listing experience is making selling on eBay dramatically easier by leveraging AI and our product knowledge graph to do most of the hard work on their behalf. We have now fully ramped the latest generation of magical listing to all new and reactivated listers in the UK, Germany, and Australia, and are seeing compelling uplift on key KPIs directionally similar to what we observed in the US.

Speaker #3: We have now fully ramped the latest generation of magical listing to all new and reactivated listers in the U.K., Germany, and Australia, and are seeing compelling uplift on key KPIs, directionally similar to what we observed in the U.S.

Jamie Iannone: Australia is our first market where we have released the latest Magical Listing experience to all C2C sellers, an important step toward extending these benefits to our broader seller base. In Q2, we began integrating enhanced pricing guidance into Magical Listing to help sellers balance velocity and price realization, and we improved the accuracy of package size estimates to help manage shipping costs more efficiently. For buyers, our agentic search pilot reinforced the value of natural language understanding in helping customers uncover more of the products they'll love within eBay's 2.6 billion listings. We are now working to bring more natural language capabilities into core search to deliver greater density of relevant results while developing more conversational multi-turn experiences in the parts of the shopping journey where they add the most value.

Speaker #3: Australia is our first market where we have released the latest magical listing experience to all C2C sellers, an important step toward extending these benefits to our broader seller base.

Speaker #3: In Q2, we began integrating enhanced pricing guidance into Magical Listing to help sellers balance velocity and price realization, and we improved the accuracy of package size estimates to help manage shipping costs more efficiently.

Speaker #3: For buyers, our agentic search pilot reinforced the value of natural language understanding in helping customers uncover more of the products they'll love within eBay's 2.6 billion listings.

Jamie Iannone: For buyers, our agentic search pilot reinforced the value of natural language understanding in helping customers uncover more of the products they'll love within eBay's 2.6 billion listings. We are now working to bring more natural language capabilities into core search to deliver greater density of relevant results while developing more conversational multi-turn experiences in the parts of the shopping journey where they add the most value.

Speaker #3: We are now working to bring more natural language capabilities into Core Search to deliver greater density of relevant results, while developing more conversational, multi-turn experiences in the parts of the shopping journey where they add the most value.

Speaker #3: These innovations build on eBay's structural advantages: 30 years of commercially relevant data, tens of billions of cumulative listings and product images, and our ability to train and deploy AI models efficiently on our private cloud infrastructure.

Jamie Iannone: These innovations build on eBay's structural advantages: 30 years of commercially relevant data, tens of billions of cumulative listings and product images, and our ability to train and deploy AI models efficiently on our private cloud infrastructure. Shipping services are becoming an increasingly important part of our platform and a meaningful enabler of marketplace velocity. By leveraging our scale and carrier relationships, we can reduce cost and complexity, strengthen trust, and make lower-priced transactions more economical to further unlock our TAM. In the UK, the majority of C2C transactions go through our managed shipping program, where we continue to expand our pickup and drop-off capabilities. Through our partnerships with InPost and Royal Mail, buyers and sellers can access approximately 50,000 lockers and parcel shops nationwide.

Speaker #3: Shipping services are becoming an increasingly important part of our platform and a meaningful enabler of marketplace velocity. By leveraging our scale and carrier relationships, we can reduce cost and complexity, strengthen trust, and make lower-priced transactions more economical to further unlock our TAM.

Jamie Iannone: By leveraging our scale and carrier relationships, we can reduce cost and complexity, strengthen trust, and make lower-priced transactions more economical to further unlock our TAM. In the UK, the majority of C2C transactions go through our managed shipping program, where we continue to expand our pickup and drop-off capabilities. Through our partnerships with InPost and Royal Mail, buyers and sellers can access approximately 50,000 lockers and parcel shops nationwide.

Speaker #3: In the U.K., the majority of C2C transactions go through our managed shipping program, where we continue to expand our pickup and drop-off capabilities. Through our partnerships with InPost and Royal Mail, buyers and sellers can access approximately 50,000 lockers and parcel shops nationwide.

Speaker #3: With 95% of U.K. buyers now living within one kilometer of a pickup or drop-off location, this network offers a convenient, lower-cost alternative to home delivery, particularly for lower ASP inventory.

Jamie Iannone: With 95% of UK buyers now living within 1 kilometer of a pickup or drop-off location, this network offers a convenient, lower-cost alternative to home delivery, particularly for lower ASP inventory. We recently announced that eBay International Shipping will also launch in the UK later this month. Following successful launches of this program in the US and Canada, eligible UK sellers will now have access to over 190 countries with lower shipping costs and a simpler end-to-end experience with customs, returns, and international delivery, all managed by eBay. Before closing, I'd like to share a few highlights on eBay's impact. In May, we published our 2025 impact report, which showcased the measurable progress made over the last year from maintaining 100% renewable energy used across our operations to growing positive economic impact through recommerce, and strengthening community support through programs like eBay for Charity and the eBay Foundation.

Speaker #3: We recently announced that eBay International Shipping will also launch in the U.K. later this month, following successful launches of this program in the U.S.

Jamie Iannone: Following successful launches of this program in the US and Canada, eligible UK sellers will now have access to over 190 countries with lower shipping costs and a simpler end-to-end experience with customs, returns, and international delivery, all managed by eBay. Before closing, I'd like to share a few highlights on eBay's impact.

Speaker #3: And in Canada, eligible U.K. sellers will now have access to over 190 countries, with lower shipping costs and a simpler end-to-end experience with customs, returns, and international delivery all managed by eBay.

Speaker #3: Before closing, I'd like to share a few highlights on eBay's impact. In May, we published our 2025 Impact Report, which showcased the measurable progress made over the last year—from maintaining 100% renewable energy usage across our operations to growing positive economic impact through re-commerce.

Jamie Iannone: In May, we published our 2025 impact report, which showcased the measurable progress made over the last year from maintaining 100% renewable energy used across our operations to growing positive economic impact through recommerce, and strengthening community support through programs like eBay for Charity and the eBay Foundation.

Speaker #3: And strengthening community support through programs like eBay for Charity and the eBay Foundation. Through eBay for Charity, buyers and sellers raised $58 million for charities in Q2.

Jamie Iannone: Through eBay for Charity, buyers and sellers raised $58 million for charities in Q2. This included an auction for a private lunch with Warren Buffett and Steph and Ayesha Curry. The winning bid exceeded $9 million, and matching contributions from Mr. Buffett brought the total raised to $27 million for the Glide and Eat. Learn. Play. organizations. We also partnered with The Late Show with Stephen Colbert to auction iconic memorabilia from the Ed Sullivan Theater during the show's final season, raising more than $2 million for World Central Kitchen. eBay was also recognized by The Wall Street Journal as one of the best companies for the future, and by the U.S. News & World Report as one of the best companies to work for, reflecting how our culture and commitment to impact support our long-term success.

Speaker #3: This included an auction for a private lunch with Warren Buffett and Steph and Ayesha Curry. The winning bid exceeded $9 million, and matching contributions from Mr. Buffett brought the total raised to $27 million for the Glide and Eat Learn Play organizations.

Speaker #3: We also partnered with The Late Show with Stephen Colbert to auction iconic memorabilia from the Ed Sullivan Theater during the show's final season, raising more than $2 million for World Central Kitchen.

Jamie Iannone: We also partnered with The Late Show with Stephen Colbert to auction iconic memorabilia from the Ed Sullivan Theater during the show's final season, raising more than $2 million for World Central Kitchen. eBay was also recognized by The Wall Street Journal as one of the best companies for the future, and by the U.S. News & World Report as one of the best companies to work for, reflecting how our culture and commitment to impact support our long-term success.

Speaker #3: eBay was also recognized by The Wall Street Journal as one of the best companies for the future, and by U.S. News & World Report as one of the best companies to work for, reflecting how our culture and commitment to impact support our long-term success.

Speaker #3: In closing, Q2 was another strong quarter, with broad-based growth across our strategic priorities. Focused categories—C2C and re-commerce—each grew more than 20% and now represent more than 70% of our total GMV.

Jamie Iannone: In closing, Q2 was another strong quarter, with broad-based growth across our strategic priorities. Focused categories, C2C, and recommerce each grew more than 20% and now represents more than 70% of our total GMV. Our emerging growth vectors are scaling quickly and becoming more material. eBay Live grew by roughly 8x year-over-year in Q2. Vehicles GMV is growing rapidly as we improve the end-to-end transaction experience, and shipping is lowering costs and friction across domestic and cross-border transactions. AI is delivering measurable impact across both sides of our marketplace. Magical Listing is streamlining listing creation and bringing more C2C inventory onto eBay, while AI enhancements to search and discovery are helping buyers more easily find the most relevant items across our 2.6 billion listings. The addition of Depop broadens our fashion portfolio and expands our reach with younger consumers, strengthening our position in C2C and recommerce.

Speaker #3: Our emerging growth vectors are scaling quickly and becoming more material. eBay Live grew by roughly 8x year over year in Q2. Vehicles GMV is growing rapidly as we improve the end-to-end transaction experience, and shipping is lowering costs and friction across domestic and cross-border transactions.

Speaker #3: AI is delivering measurable impact across both sides of our marketplace. Magical Listing is streamlining listing creation and bringing more C2C inventory onto eBay, while AI enhancements to search and discovery are helping buyers more easily find the most relevant items across our 2.6 billion listings.

Jamie Iannone: AI is delivering measurable impact across both sides of our marketplace. Magical Listing is streamlining listing creation and bringing more C2C inventory onto eBay, while AI enhancements to search and discovery are helping buyers more easily find the most relevant items across our 2.6 billion listings. The addition of Depop broadens our fashion portfolio and expands our reach with younger consumers, strengthening our position in C2C and recommerce.

Speaker #3: The addition of DPoP broadens our fashion portfolio and expands our reach with younger consumers, strengthening our position in C2C and re-commerce. And finally, we continue to balance investments in long-term growth with disciplined execution. Q2 once again demonstrated our ability to invest behind our strategic priorities while still delivering strong growth in operating income and in EPS.

Jamie Iannone: Finally, we continue to balance investments in long-term growth with disciplined execution. Q2 once again demonstrated our ability to invest behind our strategic priorities while still delivering strong growth in operating income and in EPS. I want to thank our employees for the continued execution, and our global community of sellers and buyers for their trust and partnership. With that, I'll turn the call over to Peggy to provide more details on our financial performance and outlook. Peggy, over to you.

Speaker #3: I want to thank our employees for their continued execution and our global community of sellers and buyers for their trust and partnership. With that, I'll turn the call over to Peggy to provide more details on our financial performance and outlook.

Speaker #3: Peggy, over to you.

Speaker #1: Thank you, Jamie, and hello everyone. In the second quarter, we exceeded expectations across all of our key financial metrics. GMV grew by 14% to $22.4 billion.

Peggy Alford: Thank you, Jamie, and hello, everyone. In Q2, we exceeded expectations across all of our key financial metrics. GMV grew by 14% to $22.4 billion. Revenue grew 14% to $3.13 billion. Non-GAAP operating income grew 16% year-over-year to $893 million. Non-GAAP earnings per share grew 17% year-over-year to $1.60. We also continued our commitment to capital returns, delivering nearly $450 million to shareholders through repurchases and cash dividends. Now let's dive deeper into the numbers. GMV grew 14% to $22.4 billion on an organic FX-neutral basis, while inorganic contributions were not material in the quarter. Foreign exchange provided a tailwind of nearly 1 point to spot GMV growth. Our Q2 growth was driven by the sustained and broad-based momentum across our strategic priorities consistent with last quarter.

Speaker #1: Revenue grew 14% to $3.13 billion. Non-GAAP operating income grew 16% year over year to $893 million. Non-GAAP earnings per share grew 17% year over year to $1.60.

Speaker #1: We also continued our commitment to capital returns, delivering nearly $450 million to shareholders through repurchases and cash dividends. Now, let's dive deeper into the numbers.

Peggy Alford: Now let's dive deeper into the numbers. GMV grew 14% to $22.4 billion on an organic FX-neutral basis, while inorganic contributions were not material in the quarter. Foreign exchange provided a tailwind of nearly 1 point to spot GMV growth. Our Q2 growth was driven by the sustained and broad-based momentum across our strategic priorities consistent with last quarter.

Speaker #1: GMV grew 14% to $22.4 billion on an organic, FX-neutral basis, while inorganic contributions were not material in the quarter. Foreign exchange provided a tailwind of nearly $1.0 billion to spot GMV growth.

Speaker #1: Our Q2 growth was driven by sustained and broad-based momentum across our strategic priorities, consistent with last quarter. Focused category GMV grew 26% and outpaced the remainder of our marketplace by 20 percentage points, with collectibles, motors, fashion, and refurbished all contributing.

Peggy Alford: Focused category GMV grew 26% and outpaced the remainder of our marketplace by 20 percentage points with Collectibles, Motors, Fashion, and Refurbished all contributing. The breadth of this performance reinforces our confidence that our strategy is working, and our momentum is not dependent on any one category. Next, let's look at how our major geographies performed. Our US business delivered another great quarter in Q2, with GMV up 24% as our investments in focused categories, C2C, Live, and Shipping are paying off. For instance, Collectibles growth in Q2 was strong beyond trading cards as coins, comics, and sports memorabilia all grew at a double-digit rate. Both parts and accessories and vehicles contributed to our eBay Motors GMV growth, and our US fashion business also posted double-digit GMV growth led by luxury-focused categories including handbags, jewelry, watches, and apparel.

Speaker #1: The breadth of this performance reinforces our confidence that our strategy is working. And our momentum is not dependent on any one category. Next, let's look at how our major geographies performed.

Peggy Alford: Next, let's look at how our major geographies performed. Our US business delivered another great quarter in Q2, with GMV up 24% as our investments in focused categories, C2C, Live, and Shipping are paying off. For instance, Collectibles growth in Q2 was strong beyond trading cards as coins, comics, and sports memorabilia all grew at a double-digit rate.

Speaker #1: Our U.S. business delivered another great quarter in Q2, with GMV up 24%, as our investments in focused categories—C2C, Live, and Shipping—are paying off.

Speaker #1: For instance, collectibles growth in Q2 was strong beyond trading cards, as coins, comics, and sports memorabilia all grew at a double-digit rate. Both parts and accessories and vehicles contributed to our eBay Motors GMV growth.

Peggy Alford: Both parts and accessories and vehicles contributed to our eBay Motors GMV growth, and our US fashion business also posted double-digit GMV growth led by luxury-focused categories including handbags, jewelry, watches, and apparel.

Speaker #1: And our U.S. fashion business also posted double-digit GMV growth, led by luxury-focused categories including handbags, jewelry, watches, and apparel. International GMV growth improved to 4% year over year in the second quarter on an organic FX-neutral basis, with foreign exchange providing a 160-basis-point tailwind to spot growth.

Peggy Alford: International GMV growth improved to 4% year over year in Q2 on an organic FX-neutral basis, with foreign exchange providing a 160 basis point tailwind to spot growth. The investments we are making in focused categories and C2C in our international markets are working, as GMV growth in both areas grew in the double digits in Q2, helping offset the continued weaker macroeconomic conditions in these regions. GMV growth in the UK, Germany, Australia, and Canada also improved sequentially. Moving on to our buyer metrics. Active buyers grew nearly 2% to 136 million on a trailing 12-month basis, including buyers from recently acquired ties. We are seeing particularly strong growth in the US, where active buyers increased 6% in Q2. Enthusiast buyers totaled 16 million and grew by nearly 3% year over year, and spend per enthusiast buyer increased to approximately $3,600 on a trailing 12-month basis.

Speaker #1: The investments we are making in focused categories in C2C and our international markets are working, as GMV growth in both areas grew in the double digits in Q2, helping offset the continued weaker macroeconomic conditions in these regions.

Speaker #1: GMV growth in the UK, Germany, Australia, and Canada also improved sequentially. Moving on to our buyer metrics, active buyers grew nearly 2% to 136 million on a trailing 12-month basis, including buyers from recently acquired ties.

Peggy Alford: Moving on to our buyer metrics. Active buyers grew nearly 2% to 136 million on a trailing 12-month basis, including buyers from recently acquired ties. We are seeing particularly strong growth in the US, where active buyers increased 6% in Q2. Enthusiast buyers totaled 16 million and grew by nearly 3% year over year, and spend per enthusiast buyer increased to approximately $3,600 on a trailing 12-month basis.

Speaker #1: We are seeing particularly strong growth in the U.S., where active buyers increased 6% in Q2. Enthusiast buyers totaled 16 million and grew by nearly 3% year over year, and spend per enthusiast buyer increased to approximately $3,600 on a trailing 12-month basis.

Speaker #1: In the U.S., our enthusiast buyer growth accelerated to 9% year over year in Q2. Shifting to our income statement, revenue grew 14% to $3.13 billion on an organic, FX-neutral basis.

Peggy Alford: In the US, our enthusiast buyer growth accelerated to 9% year over year in Q2. Shifting to our income statement. Revenue grew 14% to $3.13 billion on an organic FX-neutral basis. Foreign exchange provided a tailwind of approximately 1 point to spot revenue growth. Our Q2 take rate was flat year over year at 14%. Tailwinds from advertising, shipping, and financial services were offset by ongoing category and ASP mix shifts, as well as faster growth in earlier stage businesses like eBay Live. Advertising, shipping, and financial services create value beyond direct monetization. Ads help sellers improve visibility and sales velocity, while shipping and financial services reduce transactional friction, expand choice, and strengthen trust. In Q2, total advertising revenue was $596 million, representing GMV penetration of nearly 2.7%. First-party ads grew 24% to $570 million.

Speaker #1: Foreign exchange provided a tailwind of approximately $1.0 billion to spot revenue growth. Our Q2 take rate was flat year over year at 14%. Tailwinds from advertising, shipping, and financial services were offset by ongoing category and ASP mix shifts, as well as faster growth in earlier-stage businesses like eBay Live.

Speaker #1: Advertising, shipping, and financial services create value beyond direct monetization. Ads help sellers improve visibility and sales velocity, while shipping and financial services reduce transactional friction, expand choice, and strengthen trust.

Peggy Alford: Advertising, shipping, and financial services create value beyond direct monetization. Ads help sellers improve visibility and sales velocity, while shipping and financial services reduce transactional friction, expand choice, and strengthen trust. In Q2, total advertising revenue was $596 million, representing GMV penetration of nearly 2.7%. First-party ads grew 24% to $570 million.

Speaker #1: In Q2, total advertising revenue was $596 million, representing GMV penetration of nearly 2.7%. First-party ads grew 24% to $570 million. Promoted listings comprised nearly 1.3 billion of the 2.6 billion total listings on eBay, and 5.7 million sellers adopted at least one promoted listing product during the quarter.

Peggy Alford: Promoted Listings comprised nearly 1.3 billion of the 2.6 billion total listings on eBay, and 5.7 million sellers adopted at least one Promoted Listing product during the quarter. In addition, off-platform ads grew 21%, primarily driven by strong growth in our Qoo10 business in Japan. We continue to see a long runway for advertising growth, driven by increasing ad relevance, seller adoption, and listing penetration. In Q2, we made it simpler for C2C sellers to promote all of their inventory within our mobile apps. We also rolled out updated relevance models across CPC ads and recommendation services, helping sellers drive more velocity while preserving the buyer experience. Within financial services, we continue to expand buyer choice, reduce friction, and improve the economics of our payment flows. Pay by Bank in the UK is a great example of how a better customer experience can also improve our economics.

Speaker #1: In addition, off-platform ads grew 21%, primarily driven by strong growth in our Q10 business in Japan. We continue to see a long runway for advertising growth, driven by increasing ad relevance, seller adoption, and listing penetration.

Speaker #1: In Q2, we made it simpler for C2C sellers to promote all of their inventory within our mobile apps. We also rolled out updated relevance models across CPC ads and recommendation services, helping sellers drive more velocity while preserving the buyer experience.

Peggy Alford: In Q2, we made it simpler for C2C sellers to promote all of their inventory within our mobile apps. We also rolled out updated relevance models across CPC ads and recommendation services, helping sellers drive more velocity while preserving the buyer experience. Within financial services, we continue to expand buyer choice, reduce friction, and improve the economics of our payment flows. Pay by Bank in the UK is a great example of how a better customer experience can also improve our economics.

Speaker #1: Within financial services, we continue to expand buyer choice, reduce friction, and improve the economics of our payment flows. Pay-by-bank in the UK is a great example of how a better customer experience can also improve our economics.

Speaker #1: This payment method is now fully ramped in the UK and is showing encouraging early adoption, with average order value nearly twice the site average, alongside lower cost of payments.

Peggy Alford: This payment method is now fully ramped in the UK and is showing encouraging early adoption, with average order value nearly twice the site average alongside lower cost of payments. eBay Balance also continues to gain traction across the US, UK, and Germany, allowing sellers to use their proceeds for purchases on eBay while reducing payment costs. These capabilities are part of a broader wallet strategy designed to deepen our financial relationship with our most engaged customers over time. Additionally, revenue from eBay shipping programs grew double digits in Q2. As Jamie noted, we continue to expand our range of domestic and international shipping programs while integrating more lower-cost delivery options within them to improve affordability for buyers and sellers. Turning to our profitability and earnings. Non-GAAP gross margin was 74.1% in Q2, up 1 point year over year.

Speaker #1: eBay Balance also continues to gain traction across the US, UK, and Germany, allowing sellers to use their proceeds for purchases on eBay while reducing payment costs.

Speaker #1: These capabilities are part of a broader wallet strategy designed to deepen our financial relationship with our most engaged customers over time. Additionally, revenue from eBay shipping programs grew double digits in the second quarter.

Peggy Alford: Additionally, revenue from eBay shipping programs grew double digits in Q2. As Jamie noted, we continue to expand our range of domestic and international shipping programs while integrating more lower-cost delivery options within them to improve affordability for buyers and sellers. Turning to our profitability and earnings. Non-GAAP gross margin was 74.1% in Q2, up 1 point year over year.

Speaker #1: As Jamie noted, we continue to expand our range of domestic and international shipping programs while integrating more lower-cost delivery options within them to improve affordability for buyers and sellers.

Speaker #1: Turning to our profitability and earnings, non-GAAP gross margin was 74.1% in Q2, up 1 point year over year. Our non-GAAP operating income grew 16% to $893 million, reflecting healthy flow-through from our GMV outperformance alongside incremental investments within our strategic priority areas.

Peggy Alford: Our non-GAAP operating income grew 16% to $893 million, reflecting healthy flow-through from our GMV outperformance alongside incremental investments within our strategic priority areas. Sales and marketing expense increased in Q2 as we saw opportunities to invest across the funnel with attractive ROI to drive GMV growth, with incremental spending focused on strategic areas like C2C and eBay Live. We continued to see strong efficiency in our lower funnel campaigns, even as we began to lap a notable step-up in efficiency in the prior year, midway through the quarter. Alongside other operational efficiencies, we also saw a moderation in transaction losses sequentially as a result of our team's work to optimize our newer shipping programs and customer experience, with further progress expected in H2. Our strong operating performance translated into non-GAAP earnings per share of $1.60, up 17%, and GAAP earnings per share of $1.21.

Speaker #1: Sales and marketing expense increased in Q2, as we saw opportunities to invest across the funnel with attractive ROI to drive GMV growth, with incremental spending focused on strategic areas like C2C and eBay Live.

Speaker #1: We continue to see strong efficiency in our lower-funnel campaigns, even as we began to lap a notable step-up in efficiency in the prior year midway through the quarter.

Peggy Alford: We continued to see strong efficiency in our lower funnel campaigns, even as we began to lap a notable step-up in efficiency in the prior year, midway through the quarter. Alongside other operational efficiencies, we also saw a moderation in transaction losses sequentially as a result of our team's work to optimize our newer shipping programs and customer experience, with further progress expected in H2. Our strong operating performance translated into non-GAAP earnings per share of $1.60, up 17%, and GAAP earnings per share of $1.21.

Speaker #1: Alongside other operational efficiencies, we also saw a moderation in transaction losses sequentially as a result of our team's work to optimize our newer shipping programs and customer experience, with further progress expected in the second half of the year.

Speaker #1: Our strong operating performance translated into non-GAAP earnings per share of $1.60, up 17%, and GAAP earnings per share of $1.21. Shifting to our balance sheet and capital allocation.

Peggy Alford: Shifting to our balance sheet and capital allocation. We generated free cash flow of $326 million in Q2 and ended the period with cash and fixed income investments of $4.9 billion and gross debt of $6.7 billion on our balance sheet. Our equity investments and warrants were valued at roughly $780 million. We repurchased $310 million of eBay shares in Q2 at an average price of approximately $104. The pace of repurchases in Q2 was influenced by share price volatility during the quarter, which impacted our pre-established repurchase programs. We also paid a quarterly cash dividend of $138 million in June, or $0.31 per share. On 30 July, we closed the acquisition of Depop for $1.4 billion in cash, reflecting the purchase price of $1.2 billion and approximately $200 million of net purchase price adjustments.

Speaker #1: We generated free cash flow of $326 million in Q2 and ended the period with cash and fixed income investments of $4.9 billion and gross debt of $6.7 billion on our balance sheet.

Speaker #1: Our equity investments and warrants were valued at roughly $780 million. We repurchased $310 million of eBay shares in the second quarter at an average price of approximately $104.

Speaker #1: The pace of repurchases in Q2 was influenced by share price volatility during the quarter, which impacted our pre-established repurchase programs. We also paid a quarterly cash dividend of $138 million in June, or $0.31 per share.

Peggy Alford: The pace of repurchases in Q2 was influenced by share price volatility during the quarter, which impacted our pre-established repurchase programs. We also paid a quarterly cash dividend of $138 million in June, or $0.31 per share. On 30 July, we closed the acquisition of Depop for $1.4 billion in cash, reflecting the purchase price of $1.2 billion and approximately $200 million of net purchase price adjustments.

Speaker #1: On July 30th, we closed the acquisition of DPOP for $1.4 billion in cash, reflecting the purchase price of $1.2 billion and approximately $200 million of net purchase price adjustments.

Speaker #1: The purchase price adjustments mainly reflected certain investments that Etsy and DPOP made prior to the acquisition close. Next, I will share some thoughts on our outlook, starting with the third quarter.

Peggy Alford: The purchase price adjustments mainly reflected certain investments that Etsy and Depop made prior to the acquisition close. Next, I will share some thoughts on our outlook, starting with Q3. Please reference the earnings presentation accompanying our release for our outlook in spot growth terms and foreign exchange implications. We expect consolidated GMV between $22 and $22.4 billion in Q3, including the impact of recently acquired Depop, which represents total FX-neutral growth between 10% and 12% year-over-year, or organic growth between 7% and 9%. Our guidance implies Depop would contribute approximately two and a half percentage points to total FX-neutral GMV growth in a partial quarter. Our consolidated GMV guidance implies continued broad-based growth from the core eBay marketplace as our strategic priorities continue to drive durable growth across multiple categories.

Speaker #1: Please reference the earnings presentation accompanying our release for our outlook and spot growth terms and foreign exchange implications. We expect consolidated GMV between $22 and $22.4 billion in Q3, including the impact of recently acquired DPOP, which represents total FX-neutral growth between 10% and 12% year over year, or organic growth between 7% and 9%.

Peggy Alford: We expect consolidated GMV between $22 and $22.4 billion in Q3, including the impact of recently acquired Depop, which represents total FX-neutral growth between 10% and 12% year-over-year, or organic growth between 7% and 9%.

Speaker #1: Our guidance implies DPOP would contribute approximately 2.5 percentage points to total FX-neutral GMV growth in a partial quarter. Our consolidated GMV guidance implies continued broad-based growth from the core eBay marketplace, as our strategic priorities continue to drive durable growth across multiple categories.

Peggy Alford: Our guidance implies Depop would contribute approximately two and a half percentage points to total FX-neutral GMV growth in a partial quarter. Our consolidated GMV guidance implies continued broad-based growth from the core eBay marketplace as our strategic priorities continue to drive durable growth across multiple categories.

Speaker #1: The implied year-over-year deceleration from Q2 to Q3 is primarily due to the lapping dynamics we have discussed in recent quarters, which we started to observe in July as expected.

Peggy Alford: The implied year-over-year deceleration from Q2 to Q3 is primarily due to the lapping dynamics we have discussed in recent quarters, which we started to observe in July as expected. In contrast, our outlook contemplates an acceleration in Depop year-over-year GMV growth versus Q2 on a pro forma basis, driven in part by the effectiveness of recent marketing and shipping investments. We forecast consolidated revenue to be between $3.07 and $3.12 billion in Q3, which represents total FX-neutral growth between 8% and 10% year-over-year, or organic growth between approximately 7% and 9%. We expect Depop to contribute approximately one and a half percentage points to total FX-neutral revenue growth, which is lower than its contribution to GMV growth, primarily because a significant portion of our planned shipping investment will be recognized as contra revenue.

Speaker #1: In contrast, our outlook contemplates an acceleration in DPOP's year-over-year GMV growth versus Q2 on a pro forma basis, driven in part by the effectiveness of recent marketing and shipping investments.

Speaker #1: We forecast consolidated revenue to be between $3.07 and $3.12 billion in the third quarter, which represents total FX-neutral growth between 8% and 10% year over year, or organic growth between approximately 7% and 9%.

Peggy Alford: We forecast consolidated revenue to be between $3.07 and $3.12 billion in Q3, which represents total FX-neutral growth between 8% and 10% year-over-year, or organic growth between approximately 7% and 9%. We expect Depop to contribute approximately one and a half percentage points to total FX-neutral revenue growth, which is lower than its contribution to GMV growth, primarily because a significant portion of our planned shipping investment will be recognized as contra revenue.

Speaker #1: We expect DPOP to contribute approximately 1.5 percentage points to total FX-neutral revenue growth, which is lower than its contribution to GMV growth primarily because a significant portion of our planned shipping investment will be recognized as contra revenue.

Speaker #1: We have seen strong buyer response to improved shipping affordability, including higher customer acquisition and transaction velocity, particularly at more accessible price points. We believe this investment can unlock a larger addressable market in C2C fashion, and we will continue to calibrate it based on the returns we observe.

Peggy Alford: We have seen strong buyer response to improved shipping affordability, including higher customer acquisition and transaction velocity, particularly at more accessible price points. We believe this investment can unlock a larger addressable market in C2C fashion, and we will continue to calibrate it based on the returns we observe. We expect consolidated non-GAAP operating income growth to be between 1% and 5% year over year in Q3, which implies non-GAAP operating margin between 25.1% and 25.6%. This includes an expected 3 to 4 point headwind to non-GAAP operating income growth from Depop. Our outperformance in H1 has created incremental capacity to invest behind strategic priorities where we are seeing strong returns, including C2C, eBay Live, and our shipping roadmap, while continuing to drive healthy flow-through from the core business.

Speaker #1: We expect consolidated non-GAAP operating income growth to be between 1% and 5% year over year in Q3, which implies a non-GAAP operating margin between 25.1% and 25.6%.

Speaker #1: This includes an expected 3 to 4-point headwind to non-GAAP operating income growth from DPOP. Our outperformance in the first half has created incremental capacity to invest behind strategic priorities where we are seeing strong returns, including C2C, eBay Live, and our shipping roadmap, while continuing to drive healthy flow-through from the core business.

Peggy Alford: This includes an expected 3 to 4 point headwind to non-GAAP operating income growth from Depop. Our outperformance in H1 has created incremental capacity to invest behind strategic priorities where we are seeing strong returns, including C2C, eBay Live, and our shipping roadmap, while continuing to drive healthy flow-through from the core business.

Speaker #1: We are also investing behind DPOP's strong momentum and the significant opportunity we see in C2C and a younger customer demographic. Importantly, a portion of this investment is being funded by allocating existing marketing spend to DPOP, which mitigates the incremental pressure on consolidated operating income.

Peggy Alford: We are also investing behind Depop's strong momentum and the significant opportunity we see in C2C in a younger customer demographic. Importantly, a portion of this investment is being funded by allocating existing marketing spend to Depop, which mitigates the incremental pressure on consolidated operating income. We believe we are striking the right balance by investing behind our strongest growth opportunities, where we expect attractive returns while continuing to deliver healthy consolidated earnings growth. We forecast consolidated non-GAAP earnings per share between $1.36 and $1.42 in Q3, which implies year over year growth between 1% and 5%. This includes an expected mid-single digit headwind to non-GAAP EPS growth from Depop, with the impact to EPS being modestly higher than operating income due to foregone interest income on the cash used for this transaction.

Speaker #1: We believe we are striking the right balance by investing behind our strongest growth opportunities, where we expect attractive returns, while continuing to deliver healthy consolidated earnings growth.

Speaker #1: We forecast consolidated non-GAAP earnings per share between $1.36 and $1.42 in Q3, which implies year-over-year growth between 1% and 5%. This includes an expected mid-single-digit headwind to non-GAAP EPS growth from DPOP, with the impact to EPS being modestly higher than operating income due to foregone interest income on the cash used for this transaction.

Peggy Alford: We forecast consolidated non-GAAP earnings per share between $1.36 and $1.42 in Q3, which implies year over year growth between 1% and 5%. This includes an expected mid-single digit headwind to non-GAAP EPS growth from Depop, with the impact to EPS being modestly higher than operating income due to foregone interest income on the cash used for this transaction.

Speaker #1: Shifting to our full-year outlook. We are now planning our business around consolidated year-over-year GMV growth between '11 and a half and '12 and a half percent on an FX neutral basis driven by our established strategic priorities emerging growth vectors like EBAY Live and vehicles and our acquisition of DPOP.

Peggy Alford: Shifting to our full year outlook, we are now planning our business around consolidated year over year GMV growth between 11.5% and 12.5% on an FX-neutral basis, driven by our established strategic priorities, emerging growth sectors like eBay Live and Vehicles, and our acquisition of Depop. This includes an expected contribution of roughly one and a half percentage points from Depop and assumes its GMV growth will accelerate by double-digit percentage points in H2 of this year versus Q2 on a pro forma basis, reflecting Depop's strong momentum.

Speaker #1: This includes an expected contribution of roughly 1.5 percentage points from DPOP and assumes its GMV growth will Will accelerate by double digit percentage points in the second half of this year , versus Q2 on a pro forma basis , reflecting Depop's strong momentum We expect consolidated full year revenue growth to be roughly half a point below GMV growth on an FX neutral basis , or between 11 and 12% year over year .

Peggy Alford: This includes an expected contribution of roughly one and a half percentage points from Depop and assumes its GMV growth will accelerate by double-digit percentage points in H2 of this year versus Q2 on a pro forma basis, reflecting Depop's strong momentum.

Peggy Alford: We expect consolidated full year revenue growth to be roughly half a point below GMV growth on an FX-neutral basis, or between 11% and 12% year over year, as healthy growth in advertising and shipping revenue is expected to be offset by mix shifts in our business, including higher growth contributions from Live and Vehicles and the impact of the Depop acquisition. We expect Depop to contribute roughly 1 percentage point to consolidated revenue growth. We now expect consolidated non-GAAP operating income growth between 10% and 12% year over year in 2026, which contemplates a stronger outlook for operating income growth driven by the core eBay marketplace, while Depop is expected to be roughly 2 percentage point headwind to growth.

Speaker #1: As healthy growth in advertising and shipping revenue is expected to be offset by mixed shifts in our business, including higher growth contributions from live and vehicles and the impact of the Depop acquisition, we expect Depop to contribute roughly one percentage point to consolidated revenue growth. We now expect consolidated non-GAAP operating income growth between 10% and 12% year over year in 2026, which contemplates a stronger outlook for operating income growth driven by the core eBay marketplace.

Peggy Alford: We now expect consolidated non-GAAP operating income growth between 10% and 12% year over year in 2026, which contemplates a stronger outlook for operating income growth driven by the core eBay marketplace, while Depop is expected to be roughly 2 percentage point headwind to growth.

Speaker #1: While Depop is expected to be roughly a two percentage point headwind to growth, we expect full-year consolidated non-GAAP earnings per share growth between 10% and 12% year over year, with Depop representing roughly two and a half percentage points of dilution to our non-GAAP EPS.

Peggy Alford: We expect full year consolidated non-GAAP earnings per share growth between 10% and 12% year over year, with Depop representing roughly 2.5 percentage points of dilution to our non-GAAP EPS. We anticipate our lower cash balance and higher interest expense would pressure the net interest and other line items year over year, partially offsetting the tailwind from our share repurchases. We continue to expect a non-GAAP tax rate of 17.5% for the full year, which is 1 percentage point higher than our tax rate in 2025. Our capital allocation outlook remains unchanged. We forecast capital expenditures to be between 4% and 5% of revenue for the full year. We continue to target roughly $2 billion of share repurchases for the full year and plan to increase our quarterly repurchase rate from Q2.

Speaker #1: We anticipate our lower cash balance and higher interest expense would pressure the net interest and other line item year over year, partially offsetting the tailwind from our share repurchases.

Speaker #1: We continue to expect a non-GAAP tax rate of 17.5% for the full year, which is one percentage point higher than our tax rate in 2025.

Peggy Alford: We continue to expect a non-GAAP tax rate of 17.5% for the full year, which is 1 percentage point higher than our tax rate in 2025. Our capital allocation outlook remains unchanged. We forecast capital expenditures to be between 4% and 5% of revenue for the full year. We continue to target roughly $2 billion of share repurchases for the full year and plan to increase our quarterly repurchase rate from Q2.

Speaker #1: Our capital allocation outlook remains unchanged. We forecast capital expenditures to be between 4% and 5% of revenue for the full year. We continue to target roughly $2 billion of share repurchases for the full year, and plan to increase our quarterly repurchase rate from Q2.

Speaker #1: In addition , our board declared a quarterly cash dividend of $0.31 per share for the third quarter to be paid in September . In closing , Q2 was another strong quarter that clearly demonstrated the power of our strategy broad based momentum across our strategic priorities delivered outperformance on both the top and bottom lines .

Peggy Alford: Our board declared a quarterly cash dividend of $0.31 per share for Q3 to be paid in September. In closing, Q2 was another strong quarter that clearly demonstrated the power of our strategy. Broad-based momentum across our strategic priorities delivered outperformance on both the top and bottom lines. We enter H2 in a strong position with our improved full-year outlook reflecting the momentum we see across focused categories, C2C, and recommerce. We are confident in our strategy and focused on driving durable, profitable growth for our shareholders. With that, Jamie and I will now take your questions.

Speaker #1: We enter the second half of the year in a strong position . With our improved full year outlook reflecting the momentum we see across focus categories C to sea and Recommerce .

Speaker #1: We are confident in our strategy and focused on driving durable, profitable growth for our shareholders. With that, Jamie and I will now take your questions.

Speaker #2: We will now begin Q&A for today's session. We'll be utilizing the Raise Hand feature. If you'd like to ask a question, simply click on the Raise Hand button at the bottom of your screen.

Operator: We will now begin Q&A. For today's session, we will be utilizing the raise hand feature. If you would like to ask a question, simply click on the raise hand button at the bottom of your screen. Once you have been called on, please unmute yourself and begin to ask your question. Please limit to one question and one follow-up before jumping back in the queue. Thank you. We will now pause a moment to assemble the queue. Your first question comes from the line of Colin Sebastian with Baird. Please unmute your line and ask your question.

Speaker #2: Once you've been called on, please unmute yourself and begin to ask your question. Please limit your participation to one question and one follow-up before jumping back in the queue.

Speaker #2: Thank you. We will now pause a moment to assemble the queue. Your first question comes from the line of Colin Sebastian with Baird.

Speaker #2: Please unmute your line and ask your question.

Speaker #3: Great . Thank you and I . The questions . I guess first off , I mean , you talked about higher engagement of live buyers .

Colin Sebastian: Great. Thank you. I appreciate the questions. I guess, first off, you talked about higher engagement of eBay Live buyers. I was hoping you could perhaps explain a little more about how this can resonate across the broader platform, how extensible this is to other categories and a larger buyer base. Secondly, Jamie, on the AI-powered discovery and listing tools, those seem fairly well utilized now across the marketplace. What's the next frontier for AI on eBay, or untapped opportunity, I guess, if it's seller-side automation or search and discovery or something else? Thank you very much.

Speaker #3: And I was hoping you could perhaps explain a little bit more about how this can resonate across the broader platform—how extensible this is to other categories.

Speaker #3: And a larger buyer base . And then , and then secondly , Jamie , on the AI powered discovery and listing tools , those seem fairly well utilized .

Colin Sebastian: Secondly, Jamie, on the AI-powered discovery and listing tools, those seem fairly well utilized now across the marketplace. What's the next frontier for AI on eBay, or untapped opportunity, I guess, if it's seller-side automation or search and discovery or something else? Thank you very much.

Speaker #3: Now across the marketplace . What's the next frontier for E for AI on eBay ? , or untapped opportunity ? I guess if it's seller side automation or search and discovery or something else .

Speaker #3: Thank you very much. Yeah.

Speaker #4: Thanks for the questions , Colin . So first off , on , on live buyers , what's exciting to see is the synergies between our core marketplace and on eBay live .

Jamie Iannone: Yeah. Thanks for the questions, Colin. First off, on Live buyers, what's exciting to see is the synergies between our core marketplace and eBay Live. When we look at buyers that start shopping in Live, they're spending 70% more than comparable buyers that are not shopping on Live. It's great to see the engagement that we're getting, the increased views, et cetera, saving sellers and driving that engagement. We put up some healthy buyer numbers this quarter, and it's great to see kind of what's happening with Live. It's a really nice halo. We're seeing the same type of thing on the seller side, where our sellers that are doing Live are seeing faster growth because of their participation in Live. On Magical Listings, we're really excited. Now it's been hundreds of millions of listings that are out there.

Speaker #4: So when we look at buyers that start shopping in live, they're spending 70% more than comparable buyers that are not shopping on live.

Speaker #4: And it's great to see like the engagement that we're getting , the increased views , et , , saving sellers and driving that engagement .

Speaker #4: And so , you know , we put up some healthy buyer numbers this quarter . , and it's great to see kind of what's happening with live .

Jamie Iannone: We put up some healthy buyer numbers this quarter, and it's great to see kind of what's happening with Live. It's a really nice halo. We're seeing the same type of thing on the seller side, where our sellers that are doing Live are seeing faster growth because of their participation in Live. On Magical Listings, we're really excited. Now it's been hundreds of millions of listings that are out there.

Speaker #4: It's a really nice halo . We're seeing the nice thing , the same type of thing on the seller side where our sellers that are doing live are seeing faster growth .

Speaker #4: , because of the , , because of their participation in live , you know , on magical listings . , we're really excited .

Speaker #4: I mean , now it's been , you know , hundreds of millions of listings that are out there . , we've expanded it now across our , , major geographies across US , UK and Germany .

Jamie Iannone: We've expanded it now across our major geographies, across US, UK, and Germany. We just added it to Australia, and we continue to see great reaction from sellers. Faster listing times, stronger repeat behavior, and significantly more sold items in GMV per listing attempter. That's leading to measurable uplift on C2C sellers and supply. We talked about the success we're seeing in C2C. The next step is to expand that to all C2C sellers, because it's right now just in new and reactivated sellers. Australia is the first market where we're doing that. In fact, starting this month, we've expanded that to all C2C sellers, and we'll learn a lot through that market to keep expanding it. Broadly, beyond selling, we continue to apply our 30 years of data to lots of different areas. AI is being helpful to us in advertising.

Speaker #4: , we just added it to Australia and we continue to see great reaction from sellers faster listing times , stronger repeat behavior . And significantly more sold items and GMV per listing attempt .

Speaker #4: And that's leading to a measurable uplift on C to C sellers . And supply , , and , you know , we talked about the success we're seeing in C to C , , the next step is to expand that to all C to C sellers .

Jamie Iannone: The next step is to expand that to all C2C sellers, because it's right now just in new and reactivated sellers. Australia is the first market where we're doing that. In fact, starting this month, we've expanded that to all C2C sellers, and we'll learn a lot through that market to keep expanding it. Broadly, beyond selling, we continue to apply our 30 years of data to lots of different areas. AI is being helpful to us in advertising.

Speaker #4: , because it's right now just in new and reactivated sellers . And so Australia is the first market where we're doing that , , in fact , starting this month , we are , we've expanded that to all C to C sellers and we'll learn a lot through that market to keep expanding it , you know , , broadly , you know , beyond selling , we continue to , you know , apply our 30 years of data to lots of different areas .

Speaker #4: AI is being helpful to us in advertising. It's really helping us drive our search experience and our search conversion with what we're doing there.

Jamie Iannone: It's really helping us drive our search experience and our search conversion with what we're doing there. We're using it in our CRM materials to be much more targeted, and we're seeing much more engagement there. Really across the board, we're seeing it. In terms of Magical Listings, we've still got a lot more penetration to go to drive to increase the experience, and continue to drive our listings growth with it.

Speaker #4: , we're using it in our CRM materials to be much more targeted . And we're seeing much more engagement there . So really across the board , we're seeing it , but in terms of magical listings , we've still got a lot more penetration to go to drive to , increase the experience and continue to drive our listings growth with it

Speaker #3: Thank you .

Colin Sebastian: Thank you.

Speaker #2: Your next question comes from the line of Michael Morton with MoffettNathanson. Please unmute your line and ask your question.

Operator: Your next question comes from the line of Michael Morton with MoffettNathanson. Please unmute your line and ask your question.

Speaker #5: Good afternoon. Thank you for all the context on the plan, investments in the C2C business, and the Depop acquisition. Big picture.

Peggy Alford: Good afternoon. Thank you for all the context on the planned investments in the C2C business and the Depop acquisition. Big picture, I was wondering what your outlook is for the competitive intensity in this market, I would say, in the US, but also internationally. C2C is accelerating, but that's not a secret, and there are several players making aggressive investments in that. My second question, maybe just a boring accounting one. For eBay Motors, when you speak to eBay Motors and you talk about it contributing 2% of GMV growth, I just want to make sure that's not including parts and accessories, and if it is just eBay Motors as in vehicles. Can you kind of help us understand that growth rate that's organic, more volume, versus being able to be measured due to the Caramel integration where you can kind of guarantee that the transaction occurred?

Michael Morton: Good afternoon. Thank you for all the context on the planned investments in the C2C business and the Depop acquisition. Big picture, I was wondering what your outlook is for the competitive intensity in this market, I would say, in the US, but also internationally. C2C is accelerating, but that's not a secret, and there are several players making aggressive investments in that.

Speaker #5: I was wondering what your outlook is for the competitive intensity . , in this market . I would say in the US , but also internationally , CDC is accelerating , but that's not a secret .

Speaker #5: And there are several players making aggressive investments in that. And then my second question, maybe just a boring accounting one, is for eBay Motors.

Michael Morton: My second question, maybe just a boring accounting one. For eBay Motors, when you speak to eBay Motors and you talk about it contributing 2% of GMV growth, I just want to make sure that's not including parts and accessories, and if it is just eBay Motors as in vehicles. Can you kind of help us understand that growth rate that's organic, more volume, versus being able to be measured due to the Caramel integration where you can kind of guarantee that the transaction occurred?

Speaker #5: When you speak to eBay Motors and you talk about it contributing 2% of GMV growth, I just want to make sure that's not including Parts & Accessories.

Speaker #5: And if it is just eBay motors , as in vehicles , , is can you kind of help us understand that growth rate ?

Speaker #5: That's organic, more volume versus being able to be measured due to the Carmel integration, where you can kind of guarantee that the transaction occurred.

Speaker #5: Thank you .

Peggy Alford: Thank you.

Michael Morton: Thank you.

Speaker #4: Yeah . I'll take the first one . So , you know , first on the opportunity there , we see a huge under-penetrated opportunity in C to C fashion in the US market .

Jamie Iannone: Yeah, I'll take the first one. First on the opportunity there, we see a huge under-penetrated opportunity in C2C fashion in the US market, and the market growth we're seeing really validates the size of that opportunity. We're coming at this from a real position of strength. eBay has over a $10 billion business in fashion, and C2C GMV is growing faster than our overall US business. Now we've added Depop, which brings an established brand, a discovery-led product experience, and a strong reach with younger consumers. When you look at it, both eBay and Depop delivered very strong growth in Q2, suggesting that Depop's momentum was incremental to ours, and the addressable market is expanding. We're really focused on using these complementary value propositions to unlock substantially more consumer supply and capture more of the significant untapped market opportunity in C2C and in recommerce.

Speaker #4: And the market growth we're seeing really validates the size of that opportunity. We're coming at this from a real position of strength.

Speaker #4: eBay has $10 billion business in fashion and C to C . GMV is growing faster than our overall US business . And now we've added Depop , which brings an established brand , a discovery led product experience and a strong reach with younger consumers .

Speaker #4: And when you look at it, both eBay and Depop delivered very strong growth in Q2, suggesting that Depop's momentum was incremental to ours, and the addressable market is expanding.

Jamie Iannone: When you look at it, both eBay and Depop delivered very strong growth in Q2, suggesting that Depop's momentum was incremental to ours, and the addressable market is expanding. We're really focused on using these complementary value propositions to unlock substantially more consumer supply and capture more of the significant untapped market opportunity in C2C and in recommerce.

Speaker #4: So we're focused on using these complementary value propositions to unlock substantially more consumer supply and capture more of the significant untapped market opportunity in C2C and in recommerce.

Speaker #4: Thank you. Do you want to take the question?

Jamie Iannone: Peggy, do you want to take the Motors question?

Speaker #1: Sure . Thanks for the question , Mike . So for eBay Motors , that includes both a parts and accessories and vehicles . , the majority of it is parts and accessories since that's the established , , piece of it .

Peggy Alford: Sure. Thanks for the question, Mike. For eBay Motors, that includes both parts and accessories and vehicles. The majority of it is parts and accessories since that's the established piece of it. Vehicles is earlier stage, but becoming a larger contribution to overall Motors and to the company overall. Obviously, the acquisition of Caramel has just really improved the user experience and the ability to list vehicles, and sort of have an all-in offering, which is helping the growth of the Motors business, vehicles specifically, but also with parts and accessories being very complementary to the vehicles business.

Speaker #1: Vehicles is in an earlier stage, but becoming a larger contribution to overall Motors and to the company overall. And obviously, the acquisition of Caramel has just really improved the user experience and the ability to list vehicles.

Peggy Alford: Obviously, the acquisition of Caramel has just really improved the user experience and the ability to list vehicles, and sort of have an all-in offering, which is helping the growth of the Motors business, vehicles specifically, but also with parts and accessories being very complementary to the vehicles business.

Speaker #1: , and , you know , sort of have an all in offering , which is helping the growth of the motors business . , vehicle specifically , but also , you know , with parts and accessories being very complimentary to the vehicles business

Jamie Iannone: Appreciate it.

Michael Morton: Appreciate it.

Speaker #6: Appreciate it .

Speaker #2: Your next question comes from the line of Ken with Wells Fargo. Please unmute your line and ask your question.

Operator: Your next question comes from the line of Ken Gawrelski with Wells Fargo. Please unmute your line and ask your question.

Speaker #7: Yes .

Ken Gawrelski: Yes. Sorry about that. I had to unmute. Could we talk a little bit more about Depop and the opportunity there? Could you talk a little bit about ongoing marketing intensity? There's a new market entrant in the US. You've faced this market entrant in Europe, UK, Germany, other European markets. Could you talk about what you learned from those lessons, what you might apply to what you see here in the US? Talk about using Depop as kind of an offensive weapon relative to maybe the tactics you used in the UK and Germany. Thank you.

Speaker #3: Sorry about that .

Speaker #8: , I had to unmute . , could we talk a little bit more about Depop and the opportunity there ? How do you could you talk a little bit about ongoing marketing intensity ?

Speaker #8: , there's a new market entrant in the US . You've faced this market entrant , , in Europe , U.K. , Germany , other European markets .

Speaker #8: , could you talk about , you know , what you learned from those lessons , what you might apply to , , what you see here in the US , , and talk about using Depop , , you know , as a kind of an offensive weapon relative to maybe the tactics you used in the UK and Germany .

Speaker #8: Thank you

Speaker #4: Yeah . I'll take that . So look , when you look at the US consumer first , eBay brings a really strong US C to C business .

Jamie Iannone: Yeah. I'll take that. Look, when you look at the US consumer, first, eBay brings a really strong US C2C business. It's one of our strongest area. When you look at the US market, we believe that the pre-loved closet, if you will, is even under-penetrated relative to other markets. We see a massive TAM, and that TAM is generally, and broadly incremental to kind of TAM that we've seen on the eBay business before. When you look at it, fashion, C2C, and recommerce were already important drivers to eBay's growth before the acquisition. Depop brings a fast-growing, established brand, community, a great sell-to-buy flywheel, and a real discovery-led product experience that also expands their reach with younger consumers. In a world of limited resources, they decided to focus their efforts on the US market, and it's been performing very well.

Speaker #4: It's one of our strongest areas. But when you look at the US market, we believe that the, you know, the pre-loved closet, if you will, is even under-penetrated relative to other markets.

Speaker #4: So we see a massive TAM, and that TAM is generally, broadly incremental to the kind of TAM that we've seen on the eBay business before.

Speaker #4: So when you look at it , fashion C to C and Recommerce we're already important drivers to eBay's growth before the acquisition , but Depop brings , , you know , a fast growing established brand community , a great sell to buy flywheel and a real discovery led product experience that also expands their reach with younger consumers .

Jamie Iannone: When you look at it, fashion, C2C, and recommerce were already important drivers to eBay's growth before the acquisition. Depop brings a fast-growing, established brand, community, a great sell-to-buy flywheel, and a real discovery-led product experience that also expands their reach with younger consumers. In a world of limited resources, they decided to focus their efforts on the US market, and it's been performing very well.

Speaker #4: , in a world of limited resources , you know , they decided to focus their efforts on the US market . And it's been performing very well .

Speaker #4: You know , if you look at the time of the acquisition , , can we had , you know , they had 7 million buyers by the end of Q two , they had 9 million buyers .

Jamie Iannone: If you look at the time of the acquisition, Ken, they had 7 million buyers. By the end of Q2, they had 9 million buyers. We see the opportunity to combine that with eBay's scaled demand, our trust, our shipping capabilities, our marketplace infrastructure, that can really help them capture more of that untapped opportunity. We're really excited. Our analysis suggests that C2C secondhand fashion only has low single-digit online penetration today compared to significantly higher in Europe. We're excited to kind of go after that TAM and leverage the investments. Peggy, do you want to talk more about how we're thinking about the marketing side?

Speaker #4: And we see , you know , the opportunity to combine that with eBay's scale demand . Our trust , our shipping capabilities , our marketplace infrastructure that can really help them capture more of that untapped opportunity .

Speaker #4: So we're really excited , you know , our analysis suggests that C to C secondhand fashion only has , you know , low single digit online penetration today .

Jamie Iannone: Our analysis suggests that C2C secondhand fashion only has low single-digit online penetration today compared to significantly higher in Europe. We're excited to kind of go after that TAM and leverage the investments. Peggy, do you want to talk more about how we're thinking about the marketing side?

Speaker #4: Compared to significantly higher in Europe . And so we're excited to kind of go after that . Tam and leverage the investments . Peggy , do you want to talk more about how we're thinking about the marketing side ?

Speaker #1: Yeah . You know , the investments that we're making are primarily within full funnel marketing and shipping affordability . , it's important to note that some of our planned investments in Depop are being funded by , , deploying existing eBay , C to C and fashion marketing dollars .

Peggy Alford: Yeah. The investments that we're making are primarily within full-funnel marketing and shipping affordability. It's important to note that some of our planned investments in Depop are being funded by deploying existing eBay C2C and fashion marketing dollars. It doesn't translate incrementally to expenses overall for eBay. The shipping investments are coming in the way of tiered buyer-facing incentives that reduce the all-in cost of a purchase, which is particularly important for lower ASP fashion, where shipping can represent a meaningful portion of the total price. By increasing the affordability at a broader range of price points, we're seeing increased conversion, more customer acquisition, converting those buyers into enthusiasts, and so we're really seeing that the ROI of that investment is worth the investment. Overall, we were able to do this all within a very healthy financial architecture overall for eBay.

Speaker #1: , it doesn't translate incrementally to expenses overall for eBay . , the shipping investments are coming in the way of tiered buyer facing incentives that reduce the all in cost of a purchase , which is a particularly important for lower ASP fashion .

Peggy Alford: The shipping investments are coming in the way of tiered buyer-facing incentives that reduce the all-in cost of a purchase, which is particularly important for lower ASP fashion, where shipping can represent a meaningful portion of the total price.

Speaker #1: Where shipping can represent a meaningful portion of the total price. So by increasing the affordability at a broader range of price points, we're seeing increased conversion, more customer acquisition, and converting those buyers into enthusiasts.

Peggy Alford: By increasing the affordability at a broader range of price points, we're seeing increased conversion, more customer acquisition, converting those buyers into enthusiasts, and so we're really seeing that the ROI of that investment is worth the investment. Overall, we were able to do this all within a very healthy financial architecture overall for eBay.

Speaker #1: And so we're really seeing that the ROI of that investment is , is worth the investment . And overall , we were able to do this all within a very healthy financial architecture .

Speaker #1: Overall for eBay .

Speaker #8: Can I ask one follow up , please ? Do you mind ? , just as you think about , you know , , the tactics it employed in Western Europe , , there it all ultimately ended up in commission changes , , from a seller to , , to a buyer fee in the UK .

Ken Gawrelski: Could I ask one follow-up, please, if you don't mind? Just as you think about the tactics employed in Western Europe, it ultimately ended up in commission changes from a seller to a buyer fee in the UK, and then, a complete reduction in the fee, I think, or elimination of the fee in Germany. What's your level of confidence that the tactics you're employing now will be more effective in the US? I completely appreciate what you're saying, and that you have a much stronger platform here to fight with. Could you please just touch on those points for us, please?

Speaker #8: And then , you know , a complete reduction in the fee . I think , or elimination in the fee in Germany What's your level of confidence that , , that the tactics you're employing now , will be effective in the more effective in the US ?

Ken Gawrelski: What's your level of confidence that the tactics you're employing now will be more effective in the US? I completely appreciate what you're saying, and that you have a much stronger platform here to fight with. Could you please just touch on those points for us, please?

Speaker #8: , I completely appreciate what you're saying and that you have a much stronger platform here to , to fight with , but could you , could you please just touch on those points for us , please ?

Speaker #4: Yeah . As it relates to the US , we have no current plans to change , you know , the fees as it relates to eBay .

Jamie Iannone: Yeah. As it relates to the US, we have no current plans to change the fees as it relates to eBay. Depop already has a buyer fee model, which is complementary to that discovery-led type of experience. That's kind of built into that pricing change. They made that change quite some time ago. Overall, we feel like we're in a very strong competitive position. When you look at the combination of the scale and the capabilities that we've built, the strength that we have in our eBay fashion business, combined with this high growth, well-established brand that really appeals to younger consumers, we feel very, very strong. I had a huge group of interns here this summer, and I went around and said, "How many of you use Depop?" Almost every hand went up.

Speaker #4: , Depop already has a buyer fee model , which is , you know , complementary to kind of that discovery led type of experience .

Speaker #4: And so , , that's kind of built into that pricing change . They made that change quite , quite some time ago . And so overall , we feel like we're in a very strong competitive position .

Jamie Iannone: Overall, we feel like we're in a very strong competitive position. When you look at the combination of the scale and the capabilities that we've built, the strength that we have in our eBay fashion business, combined with this high growth, well-established brand that really appeals to younger consumers, we feel very, very strong. I had a huge group of interns here this summer, and I went around and said, "How many of you use Depop?" Almost every hand went up.

Speaker #4: When you look at the combination of the scale and the capabilities that we've built , the strength that we have in our eBay fashion business , combined with this high growth , well brand that really appeals to younger consumers .

Speaker #4: , you know , we feel very , very strong . You know , I have , I had a huge group of interns here , , this summer and , you know , I went around and said , you know , how many of you use Depop ?

Speaker #4: And almost every hand went up . , and they talked about how much they love the experience . , the high customer satisfaction , the sell to buy flywheel .

Jamie Iannone: They talked about how much they love the experience, the high customer satisfaction, the sell to buy flywheel, and I think that's why it's such a strong and growing brand, and I'm excited. It's only a couple of days into the acquisition, but I'm really excited to be able to unlock more and more of the synergies that we've talked about to this real hypergrowth asset that's now part of eBay.

Speaker #4: , and I think that's why it's such a strong and growing brand . And I'm excited . I mean , it's only a couple days , , into the acquisition , but I'm really excited to , kind of be able to unlock more and more of the synergies that we've talked about , , to this , to this real hyper growth asset that's now part of eBay .

Speaker #8: Thank you so much .

Ken Gawrelski: Thank you so much.

Speaker #2: Your next question comes from the line of Ross Sandler with Barclays. Please unmute your line and ask your question.

Operator: Your next question comes from the line of Ross Sandler with Barclays. Please unmute your line and ask your question.

Speaker #3: , thanks guys .

Ross Sandler: Thanks, guys. Maybe shifting gears to core eBay ex Depop. We're about to lap some of the non-durable items that you guys have talked about in the past, yet the Q3 and the implied kind of Q4 GMV looks like it's just shy of 10% organic. Just curious for an update on some of those lapping dynamics. It seems like we're broadening out a bit across these focus categories. Maybe some of that non-durable is becoming more durable. Just curious to hear what's going on with the consumer and your increased confidence in this growth rate in the back half. Thanks a lot.

Speaker #7: , maybe shifting gears to core eBay ex Depop . So the , , we're about to lap some of the kind of non durable items that you guys have talked about in the past , yet the three Q and the implied kind of .

Speaker #7: Four Q GMV looks like it's , you know , just shy of 10% kind of organic . So , just curious for an update on , you know , some of those lapping dynamics , you know , it seems like we're broadening out a bit across these focus categories .

Ross Sandler: It seems like we're broadening out a bit across these focus categories. Maybe some of that non-durable is becoming more durable. Just curious to hear what's going on with the consumer and your increased confidence in this growth rate in the back half. Thanks a lot.

Speaker #7: , and so maybe some of that non-durable is becoming more durable . Just curious to hear what , what's going on with the , the consumer and , you know , your increased confidence in this growth rate in the back half .

Speaker #7: Thanks a lot

Speaker #4: Peggy, do you want to take that one?

Jamie Iannone: Peggy, you want to take that one?

Speaker #1: Yeah , sure . So first , , on your question about lapping dynamics , , you know , in Q3 , , some of the dynamics in Q3 will be lapping a full quarter of last year's benefit from the launch of our US Klarna partnership , as opposed to only a partial quarter in Q2 .

Peggy Alford: Yeah, sure. First, on your question about lapping dynamics. In Q3, some of the dynamics in Q3, we'll be lapping a full quarter of last year's benefit from the launch of our US Klarna partnership as opposed to only a partial quarter in Q2. We also will continue to lap last year's marketing efficiency gains from a favorable competitive environment. For the core marketplace, excluding Depop, we believe that a year-over-two-year comparison provides a clearer view. You can really see the lapping dynamics that way. On that basis, our outlook implies a Q3 GMV growth that's still quite healthy.

Speaker #1: We also will continue to lap last year's marketing efficiency gains . , from a favorable competitive environment . , and then for the core marketplace , excluding Depop , we believe that a year over two year comparison provides a clearer view .

Peggy Alford: For the core marketplace, excluding Depop, we believe that a year-over-two-year comparison provides a clearer view. You can really see the lapping dynamics that way. On that basis, our outlook implies a Q3 GMV growth that's still quite healthy.

Speaker #1: You can really see the lapping dynamics that way. And on that basis, our outlook implies a Q3 GMV growth that's still quite healthy.

Speaker #1: When we think about the second half in total . So the whole second half of the year , beyond the lapping dynamics , we expect , , and this is baked in a deceleration in Pokemon growth as we lap last year's triple digit growth with tougher year over year comparisons in the second half .

Peggy Alford: When we think about the H2 in total, the whole H2 of the year, beyond the lapping dynamics we expect, and this is baked in, a deceleration in Pokémon growth as we lap last year's triple-digit growth with tougher year-over-year comparisons in the H2. Beginning in Q4, we'll start to lap the strength in the bullion demand, which we flagged in late 2025 and early 2026. Outside of that, we believe that the majority of our growth is durable and we remain very confident about the underlying strength of our business, which is what drove us to raise our full year outlook. In that, we've considered a variety of scenarios as it relates to the macroeconomic environment. We're not expecting any significant change that we've baked in. All of that is included in our confidence in raising the full year.

Speaker #1: And then beginning in Q4, we'll start to lap the strength in the bullion demand, which we flagged in late '25 and early '26.

Speaker #1: So outside of that , we believe that the majority of our growth is durable and we remain very confident , confident about the underlying strength of our business , which is what drove us to raise our full year outlook .

Peggy Alford: Outside of that, we believe that the majority of our growth is durable and we remain very confident about the underlying strength of our business, which is what drove us to raise our full year outlook. In that, we've considered a variety of scenarios as it relates to the macroeconomic environment. We're not expecting any significant change that we've baked in. All of that is included in our confidence in raising the full year.

Speaker #1: , and , you know , in that we've considered a variety of scenarios as it relates to the macro and economic environment . We're not expecting any significant change that we've baked in .

Speaker #1: And all of that is included in our confidence in raising the full year.

Speaker #2: Your next question comes from the line of Deepak Mathivanan with Cantor Fitzgerald. Please unmute your line and ask your question.

Operator: Your next question comes from the line of Deepak Mathivanan with Cantor Fitzgerald. Please unmute your line and ask your question.

Speaker #9: Great . Thanks for taking the questions . Jamie , can I ask about eBay live ? Basically , we've seen growth in approximately 7 to 8 year on year over the last few quarters .

Deepak Mathivanan: Thanks for taking the questions. Jamie, can I ask about eBay Live? Basically, we've seen growth approximately 7x to 8x year-on-year over the last few quarters. Any incremental color you can provide on penetration in terms of seller or buyer participation? How are you now increasingly using AI to make merchandising live easier? Second question, maybe for Peggy on marketing reallocation from core to Depop. Are there certain pockets that are discretionary in core that you think can be reallocated to Depop over the next few quarters? Any additional insights you can provide on what those dollars would be? Thanks so much.

Speaker #9: Any incremental color you can provide on penetration in terms of seller or buyer participation? How are you now increasingly using AI to make merchandising live easier?

Speaker #9: And then second question , maybe for Peggy on marketing reallocation from core to bebop . , are there certain pockets that are discretionary in core that you think can be reallocated to bebop , you know , over the next few quarters ?

Deepak Mathivanan: Second question, maybe for Peggy on marketing reallocation from core to Depop. Are there certain pockets that are discretionary in core that you think can be reallocated to Depop over the next few quarters? Any additional insights you can provide on what those dollars would be? Thanks so much.

Speaker #9: Any additional insights you can provide on what those dollars would be? Thanks so much.

Speaker #4: Yeah . Look , I think , , we're really excited because eBay live is growing , as you said , 7 to 8 X year over year .

Jamie Iannone: Yeah, look, I think we're really excited because eBay Live is growing, as you said, 7x, 8x year-over-year. To date, it's kind of been more of an invite-only type of program. Starting just this past month, we actually moved it to a self-service type of thing. We're going to keep kind of the same high trust bar that we have on the platform, but making it easier for sellers to come into the platform, and onboard there. We see that, as I talked about upfront, it's really strengthening sellers' businesses when they come on. Sellers who stream regularly see more visits than comparable sellers. It's really driving that.

Speaker #4: , and to date , it's kind of been more of a , you know , invite only type of program and starting , , just this past month , we actually moved it to a self-service type of thing .

Speaker #4: So we're going to keep kind of the same high trust bar that we have on the platform, but make it easier for sellers to come into the platform.

Jamie Iannone: We're going to keep kind of the same high trust bar that we have on the platform, but making it easier for sellers to come into the platform, and onboard there. We see that, as I talked about upfront, it's really strengthening sellers' businesses when they come on. Sellers who stream regularly see more visits than comparable sellers. It's really driving that.

Speaker #4: , and onboard there . , and we see that , you know , as I talked about upfront , it's really strengthening sellers , businesses when they come on .

Speaker #4: So sellers who stream regularly see more visits , , than , than comparable sellers . And so it's really driving that . , you've also seen us doing a lot more demand scaling , whether that's , you know , the paid social things that we're doing , , working with our sellers , , increasing the prominence of live on the , , on the overall kind of website and app , , you know , when you look at it , we're , we're actually taking share in all seven markets .

Jamie Iannone: You've also seen us doing a lot more demand scaling, whether that's the paid social things that we're doing, working with our sellers, increasing the prominence of live on the overall kind of website and app. When you look at it, we're actually taking share in all seven markets. We just had this great activation at The National, which is the largest collectibles trade show. We were there with Logan Paul and Ken Goldin hosting lives, et cetera. Rob Gronkowski did one. We're really kind of happy with the growth that we're seeing, but I'm also really excited for these new demand drivers and opening up sellers kind of more broadly on the marketplace. Peggy, do you want to take the second one?

Speaker #4: , we just had this great activation at the National , which is the largest , , collectibles trade show . , and you know , we were there with Logan Paul and Ken Golden .

Jamie Iannone: We were there with Logan Paul and Ken Goldin hosting lives, et cetera. Rob Gronkowski did one. We're really kind of happy with the growth that we're seeing, but I'm also really excited for these new demand drivers and opening up sellers kind of more broadly on the marketplace. Peggy, do you want to take the second one?

Speaker #4: , you know , hosting lives . Etc. . Ron Gronkowski did the , did one and we're really kind of happy with the growth that we're seeing .

Speaker #4: But I'm also really excited for these new demand drivers and opening up sellers kind of more broadly on the marketplace . Peggy , do you want to take the second one ?

Speaker #4: Sure .

Peggy Alford: Sure. One of the things that we've been focused on for a while now is really a discipline around OPEX and efficiency, with a focus on delivering sustainable growth in operating income and earnings per share. We've been executing on a strategy where we're really focused on balancing investment in GMV and revenue growth, while also improving operating margin and return to capital in order to get that mix right. When we think about Depop, we feel like over time, eBay's scale, marketing expertise, carrier relationships, shipping technology, are all areas that are going to help us convert today's growth investment into a structurally better unit economic model. That's what gave us the confidence to say that Depop is going to become accretive to consolidated non-GAAP operating income in 2028.

Speaker #1: You know, one of the things that we've been focused on for a while now is really a discipline around opex and efficiency, with a focus on delivering sustainable growth in operating income and earnings per share.

Speaker #1: We've been executing on a strategy where we're really focused on balancing investment in GMV and revenue growth, while also improving operating margin and return to capital.

Speaker #1: , in order to get that , that mix right . And so when we think about Depop , we feel like over time , eBay's scale marketing expertise , carrier relationships , shipping technology are all areas that are going to help us convert today's growth investment into a structurally better unit economic model .

Peggy Alford: When we think about Depop, we feel like over time, eBay's scale, marketing expertise, carrier relationships, shipping technology, are all areas that are going to help us convert today's growth investment into a structurally better unit economic model. That's what gave us the confidence to say that Depop is going to become accretive to consolidated non-GAAP operating income in 2028.

Speaker #1: And, you know, that's what gave us the confidence to say that Depop is going to become accretive to consolidated non-GAAP operating income in 2028.

Speaker #1: And so, what's great about the way we're investing is that there's a lot of synergies between eBay and Depop. And so, that enables us to really focus our investment in areas that are going to allow us to capture a growing TAM in the fashion C-to-C business.

Peggy Alford: What's great about the way we're investing is that there's a lot of synergies between eBay and Depop, and so that enables us to really focus our investment in areas that are going to allow us to capture a growing TAM in the fashion C2C business. That's where we're able to continue to get efficiency to invest in the top line.

Speaker #1: And so that's where we're able to continue to gain efficiency to invest in the top line.

Speaker #2: Your next question comes from the line of Tom Champion with Piper. Please unmute your line and ask your question.

Operator: Your next question comes from the line of Tom Champion with Piper. Please unmute your line and ask your question.

Speaker #7: Hi . Good afternoon . Everyone . , Jamie , maybe to begin with , you , , it's been quite a journey in GMV growth from post Covid to now .

Tom Champion: Hi, good afternoon, everyone. Jamie, maybe to begin with you. It's been quite a journey in GMV growth from post-COVID to now. I'm just curious if you could take a step back and frame for us what you think the GMV growth opportunity is, maybe on a longer term basis. Is there a back of the envelope or heuristic that you go back to? Maybe, Peggy, for you, I'm just curious if you could talk about active buyer growth, and the prospects for that relative to the 2% we've seen the last couple quarters. I think you referenced some stronger enthusiast buyer growth recently. Any comments on that would be really helpful. Thank you.

Speaker #7: I'm just curious if you could take a step back and frame for us what you think the GMV growth opportunity is, maybe on a longer-term basis?

Speaker #7: Is there a back of the envelope or heuristic that that you go back to and then maybe , Peggy , for you , , I'm just curious if you could talk about active buyer growth .

Tom Champion: Maybe, Peggy, for you, I'm just curious if you could talk about active buyer growth, and the prospects for that relative to the 2% we've seen the last couple quarters. I think you referenced some stronger enthusiast buyer growth recently. Any comments on that would be really helpful. Thank you.

Speaker #7: and the prospects for that relative to the , , 2% we've seen the last couple quarters , I think you referenced some , some stronger enthusiast buyer growth recently .

Speaker #7: Any comments on that would be really helpful. Thank you.

Speaker #4: Yeah . Thanks for the questions , Tom . Good to talk to you . So if you look at , , you know , our growth right now , it's really kind of broad based and across the board , which speaks to kind of the durability , I'd say specifically to your question , if you look at the two year stack for the second half of the year , it's a good indicator of the durable underlying strength of our marketplace , which I think , you know , compares very well to , to benchmarks .

Jamie Iannone: Yeah. Thanks for the questions, Tom. Good to talk to you. If you look at our growth right now, it's really kind of broad-based and across the board, which speaks to kind of the durability. I'd say specifically to your question, if you look at the two-year stack for H2, it's a good indicator of the durable underlying strength of our marketplace, which I think compares very well to benchmarks. The other thing I'd say is that we are taking share in focus categories in C2C and in eBay Live. Every quarter our strategic priorities are growing in mix. These tailwinds are influencing more of our total marketplace growth. It's great to see now that 70% of our GMV is driven in these strategic areas of the business.

Speaker #4: The other thing I'd say is that , you know , we are taking share in focus categories in sea to sea and in eBay live .

Jamie Iannone: The other thing I'd say is that we are taking share in focus categories in C2C and in eBay Live. Every quarter our strategic priorities are growing in mix. These tailwinds are influencing more of our total marketplace growth. It's great to see now that 70% of our GMV is driven in these strategic areas of the business.

Speaker #4: And every quarter , our strategic priorities are growing in mix . So these tailwinds are influencing more of our total marketplace growth . And , you know , it's great to see now that 70% of our GMV is driven in these strategic areas of the business .

Speaker #4: , and we're seeing that , you over 20% growth in our focus categories and in Recommerce and sea to sea , which makes me feel great about the durability of the growth that you're seeing in the business .

Jamie Iannone: We're seeing that over 20% growth in our focus categories and in recommerce and C2C, which makes me feel great about the durability of the growth that you're seeing in the business. Peggy, do you want to take the buyer question?

Speaker #4: You want to take the buyer question? Sure.

Peggy Alford: Sure. Yeah, we were very encouraged to see global active buyers grow 2% year over year to 136 million in Q2. In addition, enthusiast buyers grew by nearly 3% year over year, with average spend per enthusiast buyer also growing to $3,600. We've seen that buyer trends in the US have been even stronger. We've seen growth in active buyers at +6% year over year, and in the US, enthusiast buyers up 9%. We're seeing strength across buyer counts, cohort mix, engagement, spend trends. What's been nice also is that we talked about the synergies of the Depop business. Depop had approximately 7 million buyers on a trailing 12-month basis when we announced the acquisition and had close to 9 million active buyers in Q2. We feel that these are very additive to the active buyer base.

Speaker #1: Yeah, you know, we were very encouraged to see global active buyers grow 2% year over year to 136 million in Q2.

Speaker #1: , in addition , enthusiast buyers grew by nearly 3% year over year , with average spend per enthusiast . Buyer also growing to $3,600 .

Speaker #1: We've seen that buyer trends in the US have been even stronger. We've seen growth in active buyers at plus 6% year over year.

Speaker #1: And in the US , enthusiast buyers up 9% . And we're seeing strength across buyer accounts . Cohort mix engagements , spend trends and , and so what's been nice also is that , you know , we talked about the synergies of the Depop business .

Peggy Alford: We're seeing strength across buyer counts, cohort mix, engagement, spend trends. What's been nice also is that we talked about the synergies of the Depop business. Depop had approximately 7 million buyers on a trailing 12-month basis when we announced the acquisition and had close to 9 million active buyers in Q2. We feel that these are very additive to the active buyer base.

Speaker #1: Depop had approximately 7 million buyers on a trailing 12-month basis when we announced the acquisition, and had close to 9 million active buyers in Q2.

Speaker #1: And we feel that these are very additive to the active buyer base, and so we're excited to include them in our buyer count starting in Q3.

Peggy Alford: We're excited to include them in our buyer count starting in Q3.

Speaker #7: Thank you .

Tom Champion: Thank you.

Speaker #2: Your next question comes from the line of Michael McGovern with Bank of America. Please unmute your line and ask your question.

Operator: Your next question comes from the line of Michael McGovern with Bank of America. Please unmute your line and ask your question.

Speaker #10: Great . Thank you . , I just wanted to ask about the advertising penetration . I saw it ticked up to 2.7% in the quarter .

Michael McGovern: Great, thank you. I just wanted to ask about the advertising penetration. I saw it ticked up to 2.7% in the quarter, still seeing really strong growth. As we get close to that 3% target, is there a timeframe for when we might see ad growth converge a little bit with GMV growth? Is that 3% a ceiling or can you continue to push beyond that? Thank you.

Speaker #10: Still seeing really strong growth . , but as we get closer to that 3% target , , you know , is there a time frame for when we might see ad growth converge a little bit with GMV growth ?

Speaker #10: And is that 3% a ceiling, or can you continue to push beyond that? Thank you.

Speaker #4: Yeah . Thanks for the question , Mike . Look , Q2 is another strong quarter for Ads growth at 23% . , FX neutral growth .

Jamie Iannone: Yeah. Thanks for the question, Mike. Look, Q2 was another strong quarter for ads growth at 23% FX-neutral growth. It was really across all of our 1P ad products, which grew 24%, CPA, CPC, and off-site ads. As you said, it now represents 2.7%. We've always said that that 3% is just a midterm goal and that we continue to believe that our advertising revenue will outpace the growth of the business, the growth of GMV. We continue to have multiple levers, including seller adoption, listings penetration, ad rate optimization, as well as scaling new products.

Speaker #4: And it was really across all of our one ad products , which grew 24% CPA , CPC , and offsite ads . , as you said , , you know , it now represents 2.7% .

Speaker #4: But we've always said that that 3% is just a mid-term goal, and that we continue to believe our advertising revenue will outpace the growth of the business, the growth of GMV.

Speaker #4: And we continue to have multiple levers , including seller adoption listings , penetration , ad rate optimization , as well as scaling new products .

Speaker #4: And , you know , we've been bringing AI technologies in both on the , the ability to improve the yield that our sellers are getting on the ad placements .

Jamie Iannone: We've been bringing AI technologies in, both on the ability to improve the yield that our sellers are getting on the ad placements, but also to just improve the overall experience from the seller side to leverage AI for recommendations, for campaign building, for suggestions on their dashboard, and that's performing well. We continually believe we have a nice long runway for advertising growth.

Speaker #4: But also to just improve the overall experience from the seller side, to leverage AI for recommendations for campaign building, for suggestions on their dashboard.

Speaker #4: And that's performing well. So, we continue to believe we have a nice, long runway for advertising growth.

Speaker #3: Operator .

John Egbert: Operator, can we do one more question please?

Speaker #11: Can we do one more question, please?

Speaker #2: Go for it

Operator: Go for it.

Speaker #4: We want to take one more question. Operator?

Jamie Iannone: We want to take one more question, operator.

Speaker #2: Your next question comes from the line of Nikhil Devnani with Bernstein. Please unmute your line and ask your question.

Operator: Your next question comes from the line of Nikhil Devnani with Bernstein. Please unmute your line and ask your question.

Speaker #12: Great . Thanks for squeezing me in . I wanted to ask a couple first , just on the GMV strength . Is it possible to deconstruct the contribution from order volume , strength versus ASP dynamics ?

Nikhil Devnani: Great. Thanks for squeezing me in. I wanted to ask a couple. First, just on the GMV strength, is it possible to deconstruct the contribution from order volume strength versus ASP dynamics? Secondly, maybe one for Peggy. If you just put aside Depop, and we think about core eBay, have you pulled forward or accelerated various investment efforts over the past year against the stronger top line you've had? I'm just trying to put your overall EBIT algo into broader context of your investment mandates. Thank you.

Speaker #12: And then secondly, maybe one for Peggy: if you just put aside Depop and we think about core eBay, have you pulled forward or accelerated various investment efforts over the past year against the stronger topline you've had?

Speaker #12: I'm just trying to put your overall EBIT algo into broader context of your investment mandates. Thank you.

Speaker #4: Yeah , I'll take the first one . So , you know , when I look at GMV growth , it's really balanced , which is great to see .

Jamie Iannone: Yeah, I'll take the first one. When I look at the GMV growth, it's really balanced, which is great to see. It's balanced across buyers, frequency, sold items, and ASP. Those ASP changes are really about mix. It's really about think about some of our focus categories growing faster on the platform overall. What I would just highlight is, the growth is super durable across the board when you look at focus categories, C2C, recommerce, and across the different elements that make up GMV, which give us a lot of conviction about the durability. Peggy, do you want to take the second one?

Speaker #4: It's balanced across buyers frequency , sold items and and ASP and those ASP changes are really about mix . It's really about think about like , you know , some of our focus categories growing faster on the platform overall .

Speaker #4: , and so , you know , what , what I would just highlight is , you know , the growth is super adorable across the board .

Jamie Iannone: What I would just highlight is, the growth is super durable across the board when you look at focus categories, C2C, recommerce, and across the different elements that make up GMV, which give us a lot of conviction about the durability. Peggy, do you want to take the second one?

Speaker #4: When you look at focus categories , C to C , Recommerce and across the different elements that make up GMV , which give us a lot of , lot of conviction about the durability .

Speaker #4: Peggy, do you want to take the second one?

Speaker #1: Of course . Yes . , you know , we , , have taken the opportunity , , for the last several quarters that when we outperform on the top line , which we have been that we reinvest a portion of that so that we can continue to drive durable GMV growth ahead .

Peggy Alford: Of course, yes. We have taken the opportunity, for the last several quarters, that when we outperform on the top line, which we have been, that we reinvest a portion of that so that we can continue to drive durable GMV growth ahead, and you see that in the results. We did that in the H1. We also plan to reinvest more of our top-line performance in high-return opportunities in the H2, which will also include investing in Depop as we talked about. We're always focused on making sure that we're balancing being able to invest in the top line long-term growth and having healthy flow through to the bottom line, which we'll continue to be focused on in the H2.

Speaker #1: And you see that in the results . And so we did that in the first half . we also plan to reinvest more of our top line performance in high return opportunities in the second half .

Peggy Alford: We also plan to reinvest more of our top-line performance in high-return opportunities in the H2, which will also include investing in Depop as we talked about. We're always focused on making sure that we're balancing being able to invest in the top line long-term growth and having healthy flow through to the bottom line, which we'll continue to be focused on in the H2.

Speaker #1: , which will also include investing in Depop , as we talked about , , but you know , we're always focused on making sure that we're balancing , , you know , being able to invest in the top line , long term growth and having healthy , , flow through to the bottom line , which will continue to be focused on in the second half .

Jamie Iannone: Yeah, if I take a step back, Nikhil, the strong growth we're seeing now across the board is really the results of investments that we've made years ago. We invested in our focus categories, we built out these authentication capabilities, and they're now growing 26% on the site. A year ago, we bought Caramel and invested in vehicles and talked about the run rate of $hundreds of millions last Q that we're seeing there. What we feel great about is we're able to drive this growth and this investment, and still return a really healthy financial architecture. Raising our full-year guide to have OI and EPS in the double-digit range, I think speaks to the power of our platform and our ability to invest in that long-term growth. It's a formula that's been working for us, and we're going to continue to move forward.

Speaker #4: If I take a step back , Nikhil . You know , the strong growth we're seeing now across the board is really the results of , you know , investments that we've made years ago .

Speaker #4: You know , we invested in our focus categories . We built out these authentication capabilities and they're now growing 26% on the site , you know , a year ago , we bought caramel and invested in vehicles and talked about the , you know , run rate of hundreds of millions of dollars last quarter that we're seeing there .

Speaker #4: , and so what we feel great about is we're able to drive this growth and this investment . And still , , you know , return a really healthy financial , , architecture , you know , raising our full year guide to have OE and EPS in the double digit range , I think speaks to the power of our platform and our ability to invest in that long term growth .

Jamie Iannone: What we feel great about is we're able to drive this growth and this investment, and still return a really healthy financial architecture. Raising our full-year guide to have OI and EPS in the double-digit range, I think speaks to the power of our platform and our ability to invest in that long-term growth. It's a formula that's been working for us, and we're going to continue to move forward.

Speaker #4: So it's a formula that's been working for us . And we're going to we're going to continue to move forward .

Speaker #12: Thank you. Appreciate it.

Nikhil Devnani: Thank you. Appreciate it.

Speaker #4: Thank you .

Jamie Iannone: Thank you.

Operator: Thank you for joining. This concludes today's call. You may now disconnect.

Q2 2026 eBay Inc Earnings Call

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