eBay announces strong 2025 results and definitive agreement to acquire Depop

eBay Inc. reported robust financial results for the fourth quarter and full year of 2025, a period chief executive officer Jamie Iannone described as a "milestone year" driven by disciplined strategic execution and a focus on recommerce.

For the full year ended December 31, 2025, the company generated 11.1 billion dollars in revenue, an 8 percent increase on an as-reported basis, with gross merchandise volume (GMV) rising 7 percent to 79.6 billion dollars. The fourth quarter alone saw revenue grow 15 percent to 3 billion dollars, bolstered by accelerating growth in enthusiast focus categories such as collectibles, fashion, and luxury goods.

Beyond financial performance, eBay reported exceeding its five-year impact goals, achieving nearly 25 billion dollars in cumulative positive economic impact from pre-loved and refurbished goods while preventing over 360,000 metric tons of waste from entering landfills.

eBay to acquire Depop from Etsy

In a major move to deepen its reach with Gen Z and millennial consumers, eBay also announced a definitive agreement to acquire the mobile-first fashion marketplace Depop, Inc. from Etsy, Inc. for approximately 1.2 billion dollars in cash. Depop, which generated roughly 1 billion dollars in gross merchandise sales in 2025, has a highly engaged community where 90 percent of active buyers are under the age of 34. The acquisition is expected to close in the second quarter of 2026.

Iannone noted that Depop will benefit from eBay’s global scale and "Authenticity Guarantee" programs, while its unique brand and platform will help accelerate eBay’s newest and fastest-growing focus categories in the expanding recommerce landscape.

eBay focuses on AI integration, projects strong Q1 growth

The company’s strategic shift has been heavily supported by its pillar of "magical innovations," specifically through large-scale artificial intelligence (AI) integration. In 2025, eBay expanded its AI-enabled "Magical Listing" experience, which allows sellers to generate comprehensive product listings from a single photo.

The marketplace also launched an AI-powered card scanning experience using Smart Lens technology to support informed trading decisions for collectors. These innovations, alongside the expansion of eBay Live into Germany and Australia, have strengthened engagement across focus categories.

For the first quarter of 2026, the company expects revenue between 3 billion dollars and 3.05 billion dollars, representing a 13 percent to 15 percent foreign exchange neutral growth, GMV between 21.5 billion dollars to 21.9 billion dollars, diluted GAAp EPS between 1.14 dollars to 1.20 dollars and diluted non-GAAP EPS in the range of 1.53 dollars to 1.59 dollars.