Revenue
Earnings
eBay expects adjusted earnings per share for Q1 2025 to range between $1.32-1.36. Analysts are predicting EPS of $1.34. This compares to adjusted EPS of $1.25 reported in Q1 2024. In Q4 2024, adjusted EPS rose 16% YoY to $1.25.
Points to note
For the first quarter of 2025, eBay expects gross merchandise volume (GMV) to range between $18.3-18.6 billion, representing an FX-neutral YoY growth of 0-1%. The company anticipates continued momentum in focus categories, positive contributions from horizontal innovations and continued benefits from its UK initiative, but remains cautious about macroeconomic challenges and the impact of tariffs.
In Q4, GMV grew 2% YoY, with growth in both the US and International divisions, helped by holiday activity. Focus category GMV grew over 6%, helped by gains across trading cards, parts & accessories (P&A), luxury, and refurbished. GMV growth benefited from horizontal innovation, cross-category shopping, and geo-specific investments.
eBay’s acquisition of Caramel is expected to drive benefits, as customers will now be able to purchase vehicles on eBay’s platform in a more simplified way using Caramel’s capabilities. This is expected to help eBay tap into the vast addressable market of collectible cars and also help drive cross-category synergies between the vehicles category and the P&A category, which is the company’s largest focus category. This could be a significant boost to the top line.
eBay’s efforts to take advantage of the C2C opportunity in the UK by removing seller fees and introducing buyer protection fees are expected to yield benefits. In addition, its initiatives in improving shipping facilities as well as home pickup and drop-off facilities are expected to help drive recommerce in the UK.
eBay has guided for GAAP EPS of $0.98-1.02 for Q1 2025. The company forecasts adjusted operating margin to range between 29.0-29.4% in the first quarter.