eBay Marketplace Momentum Signals Growth as Depop Acquisition Expands Fashion Strategy

eBay Raises Full-Year Outlook Following Strong Marketplace Growth

eBay (EBAY) delivered second-quarter revenue, gross merchandise volume, and adjusted earnings that exceeded analyst expectations while raising its full-year growth outlook.

The results reflected broad-based strength across the marketplace, with strategic categories, advertising, and active buyers all contributing to higher growth. The company also finalized its acquisition of fashion marketplace Depop, expanding its reach among younger consumers while introducing near-term integration costs.

Key Points

• eBay reported second-quarter revenue of $3.13 billion and gross merchandise volume of $22.4 billion, both up 15% year over year and above analyst expectations.
• The company raised its full-year guidance following stronger marketplace momentum and completed its $1.4 billion acquisition of Depop.
• Strategic categories, advertising, live shopping, and recommerce continued driving growth across the platform.

What Drove eBay's Strong Second Quarter?

eBay reported second-quarter revenue of $3.13 billion, an increase of 15% from the prior year, while adjusted earnings reached $1.60 per diluted share, exceeding analyst expectations of $1.51.

Gross merchandise volume (GMV), which measures the total value of goods sold across the marketplace, increased 15% to $22.4 billion and marked the company's ninth consecutive quarter of GMV growth.

Management attributed the performance to broad-based marketplace strength, particularly across collectibles, fashion, refurbished products, motors, and consumer-to-consumer sales.

Focused categories grew 26% during the quarter and represented more than 40% of total GMV for the first time. According to management, those strategic priorities now account for more than 70% of overall marketplace activity.

Advertising also remained an important contributor. First-party advertising revenue increased 25% year over year to $570 million, while total advertising revenue reached $596 million.

The company also reported 136 million active buyers, up 2% from a year earlier, with enthusiast buyers continuing to account for approximately 70% of gross merchandise volume.

Why Does the Depop Acquisition Matter?

On July 30, eBay officially completed its acquisition of Depop from Etsy (ETSY) for approximately $1.4 billion in cash, including purchase-price adjustments.

Depop focuses on peer-to-peer fashion resale and has built a large following among Gen Z and Millennial shoppers. Management said the platform had nearly 9 million active buyers during the second quarter, compared with roughly 7 million when the acquisition was originally announced.

The company plans to maintain Depop as a separate brand while leveraging eBay's marketplace infrastructure, shipping capabilities, trust features, and marketing resources to support future growth.

Although management expects Depop to strengthen eBay's long-term fashion strategy, the acquisition is expected to reduce third-quarter non-GAAP operating income growth by approximately three to four percentage points and create a mid-single-digit headwind to earnings-per-share growth during the integration period.

How Is eBay Expanding Beyond Its Traditional Marketplace?

Alongside marketplace growth, eBay continued investing in several newer initiatives.

eBay Live recorded another record quarter, with gross merchandise volume increasing roughly eightfold year over year across its seven operating markets. The company recently expanded self-service onboarding for eligible sellers across more than 300 product categories and plans additional international expansion.

Management also highlighted continued progress in artificial intelligence. The company's AI-powered listing tools simplify product creation by using eBay's product knowledge graph, while AI-assisted card scanning has surpassed 80 million cumulative scans.

Growth also continued across motors, authenticated luxury goods, refurbished products, and fashion, reinforcing management's strategy of concentrating on higher-value marketplace categories that can support long-term engagement and higher transaction activity.

What It Means for Investors

eBay's second-quarter results suggest that its marketplace strategy continues to gain traction across several high-value categories.

The company not only exceeded expectations for revenue, gross merchandise volume, and adjusted earnings, but also raised its full-year outlook for revenue, GMV, and adjusted earnings growth. Continued expansion in advertising, collectibles, fashion, motors, recommerce, and live shopping demonstrates that growth is becoming broader across the platform.

At the same time, investors will likely monitor how quickly the Depop acquisition contributes to earnings. Management acknowledged that integration costs are expected to pressure third-quarter profitability even as the acquisition expands eBay's presence among younger fashion consumers.

Conclusion

eBay (EBAY) entered the second half of 2026 with improving marketplace momentum, stronger financial performance, and a higher full-year outlook.

Growth across strategic categories, advertising, live commerce, and active buyers supported another quarter of double-digit expansion, while the completion of the Depop acquisition adds another long-term growth avenue within the fast-growing resale market.

Although the acquisition is expected to weigh on near-term earnings growth, management believes it strengthens eBay's position in consumer-to-consumer fashion and complements its broader strategy of expanding higher-value marketplace categories.

FAQs

Why did eBay raise its full-year outlook?

eBay raised its full-year outlook after reporting stronger-than-expected second-quarter revenue, gross merchandise volume, and adjusted earnings, supported by broad marketplace growth and continued momentum across its strategic categories.

What is Depop, and why did eBay acquire it?

Depop is a peer-to-peer fashion resale marketplace popular with Gen Z and Millennial shoppers. eBay acquired the platform for approximately $1.4 billion to strengthen its fashion marketplace and expand its reach among younger consumers.

How did eBay perform during the second quarter?

eBay reported revenue of $3.13 billion, gross merchandise volume of $22.4 billion, and adjusted earnings of $1.60 per share, all exceeding analyst expectations.

What were the main growth drivers?

Growth was led by strategic categories including collectibles, fashion, motors, recommerce, first-party advertising, and continued expansion of eBay Live.

Will the Depop acquisition affect earnings?

Management expects Depop to create a temporary headwind to third-quarter earnings growth because of integration costs, although it believes the acquisition will strengthen long-term marketplace growth.

This article was created with AI assistance and reviewed by an editor. For details, please refer to our Terms of Use.

Explore Research with Stock Investor

Stock Investor is SharperTrades’ platform for long-term investing research and portfolio management. Members receive research reports, portfolio updates, conviction tracking, and in-depth analysis designed to support disciplined investment decisions.

Explore Additional Market Services

SharperTrades offers additional ways to stay connected to the market. Block Orders tracks institutional activity and highlights active trade setups and price behavior across long and short opportunities. For options-focused traders, Essential Option Income provides a structured approach to income strategies.

Build Your Market Knowledge

If you value the clear, explanatory approach of Market Brief, explore SharperTrades Academy, where we publish in-depth content and structured programs covering technical analysis, options, and risk management to help you better interpret market behavior.

Think More Clearly with SteadyCapital

SteadyCapital is SharperTrades' AI-powered behavioral investing app designed to help investors make better decisions. Review investment ideas, run company valuations, compare businesses, challenge your assumptions, and use the AI Coach to think more clearly before making important investment decisions.

Risk Disclosure

All content is provided for educational purposes only and does not constitute investment advice. Trading involves risk, and past performance is not indicative of future results. Please review our full Risk Disclosure for additional information.