Ebay records strong Q1 following Depop acquisition agreement

US-based e-commerce platform Ebay has reported strong financial results for the first quarter ended March 31, 2026. The company saw gross merchandise volume (GMV) reach 22.20 billion dollars, representing an 18 percent increase on an as-reported basis and a 14 percent rise on a foreign exchange (FX) neutral basis. Revenue for the period climbed to 3.10 billion dollars, up 19 percent compared to the previous year.

The results follow the announcement of a definitive agreement to acquire UK-based consumer-to-consumer (C2C) fashion marketplace Depop from Etsy. The deal, valued at approximately 1.20 billion dollars in cash, is expected to close by the end of the third quarter of 2026. This strategic move aims to deepen the reach of Ebay with younger consumers and expand its footprint in the second-hand fashion sector.

Strategic expansion in fashion and recommerce

Ebay chief executive officer Jamie Iannone stated that the first quarter results marked a strong start to the year. Iannone noted that focus categories, C2C and recommerce strategic priorities are driving broad-based momentum. The company has focused on interactive experiences, including the expansion of Ebay Live to France, Italy and Canada.

In the fashion segment, the platform collaborated with Vogue on the Vogue Vintage Market pop-ups in New York, London and Berlin. These events featured curated premium vintage pieces and auctions held via Ebay Live. Additionally, the company launched The NYC Edit, an online style guide and in-person resale experience that allowed buyers to shop directly from the closets of influencers.

Financial performance and advertising growth

The GAAP net income from continuing operations reached 512 million dollars, while non-GAAP net income stood at 760 million dollars. Advertising revenue continues to be a significant driver for the group, generating 581 million dollars in the first quarter of 2026. First-party advertising products delivered 555 million dollars, an increase of 33% on an as-reported basis.

Ebay chief financial officer Peggy Alford highlighted that the results reflect the powerful operating leverage inherent in the business. Alford confirmed that the company remains committed to disciplined execution of strategic priorities while allocating capital to drive long-term value. During the quarter, the group returned 639 million dollars to stockholders through share repurchases and cash dividends.

Outlook for second quarter 2026

For the second quarter of 2026, Ebay expects revenue to be between 2.97 billion dollars and 3.03 billion dollars. This represents an FX-neutral year-over-year (YoY) growth of 8 percent to 10 percent. The company forecasts GMV to range between 21.30 billion dollars and 21.70 billion dollars for the same period.

The group also released its inaugural Climate Transition Plan, outlining a roadmap to reach net-zero greenhouse gas emissions by 2045. Furthermore, Ebay for Charity enabled participants to raise nearly 60 million dollars worldwide during the first quarter.

The company continues to invest in social commerce, recently announcing a partnership with Meta for the Facebook affiliate program to allow creators to feature inventory directly within their content.