eBay Inc.

Good day, everyone. My name is Leila, and I will be your conference operator today. At this time, I would like to welcome you to the eBay Third Quarter 2025 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.

Good afternoon. Thank you all for joining us for eBay's third quarter 2025 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 FX neutral year over year comparisons. And all earnings per share amounts reflect earnings per diluted share, unless indicated otherwise. 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 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. You should not rely on any forward-looking statements. All information in this presentation is as of October 29th, 2025. We do not intend and undertake no duty to update this information. With that, I'll turn the call over to Jamie.

Thanks, John. Good afternoon, and thank you all for joining us today. I'm pleased to report we delivered better than expected results across our key financial metrics in Q3. Our gross merchandise volume grew 8% to $20.1 billion. Revenue increased by over 8% to $2.82 billion. And our non-gap earnings per share grew over 14% year over year to $1.36. We achieved these strong top and bottom line results amid continued macroeconomic challenges across our international markets and increased headwinds for cross-border trade into the US. Now let's go deeper into the key drivers behind our strong Q3 performance. Focus category GMV growth accelerated to over 15% in Q3, outpaced the remainder of our marketplace by roughly 11 percentage points. This growth was broad-based as all of our focus categories grew positively year over year, with most accelerating sequentially. Although we expect the level of growth in focus categories to normalize in the near future, our momentum speaks to the level of innovation we've driven for customers and the increased likelihood that enthusiasts consider eBay when shopping in these categories. Within our focus categories, collectibles was the largest contributor to growth, driven by another quarter of accelerating year-over-year GMV growth in both collectible card games and sports trading cards. our off-platform marketplaces, TCG Player and Golden, also saw GMV accelerate sequentially. Pokemon GMV grew in the triple digits year over year for the third straight quarter. benefiting from a strong product release cadence. We believe our continued momentum in trading cards is a direct result of the trust and innovation we've driven for hobbyists in recent years, with features like My Collection, AI-powered listing tools, authentication and grading, consignment partnerships, and integrated PSA population data. We've added new ways to buy and connect with other enthusiasts through eBay Live. We've also benefited from a consistent drumbeat of activations at major tentpole events like New York Comic Con and the National Card Collectors Convention, where we had our biggest presence ever this year. While we do not expect GMV growth in this category to be linear every quarter, particularly as we face more challenging comps starting in Q4, we are confident in a long runway for secular growth in trading cards. Motors Parts and Accessories, or P&A, was our second largest contributor to GMV growth in Q3, generating more than one point for the overall marketplace. The introduction of easy and free returns in the U.S. continued to build upon our trusted value proposition in P&A, while the cost and return rates for this program are well within our forecasted ranges. we continue to expand choice and selection in key inventory segments, such as salvage and used parts, which help consumers find value at a time when many are stretched financially. Overall, we have over 750 million live P&A listings, which enables us to offer the largest online selection of unique auto parts and accessories in most of our major markets. Fashion was another notable driver of GMV growth in Q3, led by our luxury, streetwear, and pre-loved apparel focus categories. In Q3, we reinforced our commitment to the circular economy through a collaboration with Marks & Spencer, one of the UK's most iconic retail brands. UK consumers can now drop off used clothing at Marks & Spencer stores and give those items a second life through resale on eBay. The program keeps quality fashion in circulation by repairing, cleaning, and reselling wearable items and responsibly recycling the rest. We're excited by the potential of this partnership to unlock more pre-loved clothing on eBay, extend the lifespan of high-quality products, and raise awareness of our growing role in driving the circular economy. In September, we expanded our authenticity guarantee program in the UK to cover 70 luxury and premium brands in apparel, shoes, and accessories, building upon our existing offerings in sneakers, watches, handbags, and fine jewelry. This makes the UK our first market where luxury items can be authenticated from head to toe, reducing buyer friction and unlocking more high-value transactions across premium brands. eBay Live continues to build momentum with consistent quarter-over-quarter growth across every major key performance indicator we track, including viewers, watch time, sold items, and GMV. In recent weeks, eBay Live's annual GMV run rate was up approximately five times year-over-year. We've created more personalized entry points into eBay Live across our homepage, search, and view item pages, making it easier for our scaled buyer base to discover and join live shopping events that speak directly to their passions. In Q3, we hosted some incredible eBay live shopping events in the U.S. The Backstreet Boys joined Paradise Card Breaks at the eBay Open in Las Vegas. We had Milwaukee Bucks superstar Giannis Antetokounmpo and his brothers joined Ken Golden for a memorable event at the National. Ken also teamed up with Logan Paul for a high-end sports card box break, which drew approximately 20,000 viewers over a multi-hour stream. eBay Live is also getting strong traction in the UK following its formal launch in May at Comic-Con London. Since then, we've seen a consistent cadence of exciting live shopping events, from a Love Island charity auction stream and eBay's Endless Runway event at London Fashion Week, to Pokemon Weekend and new channels for toys and memorabilia. In September, Shark Ninja also hosted our first refurbished appliance sales event with great success. It's exciting to see how quickly eBay Live is building cultural relevance and meaningful engagement with enthusiasts across the UK. Overall, we're thrilled by the response we're seeing from sellers and buyers on eBay Live and see significant potential for live commerce to become a strategic growth vector for our marketplace. Improvements to our consumer-to-consumer or C2C value proposition in key geographies represent another strategic growth factor for our business. One year after we launched our UK C2C initiative, we continue to see compelling results. In the first half of 2025, we saw UK C2C GMB growth remain well above our pre-launch baseline as we introduced a buyer-facing fee and ramped adoption of our managed shipping program, which streamlines the shipping process, reduces cost, and improves trust. In Q3, we introduced additional C2C changes, including faster payouts for long-tenured sellers, greater transparency into all-in pricing when sellers are listing items and negotiating offers, and more competitive terms for items priced below 20 British pounds. As a result, we saw UK customer satisfaction improve notably alongside accelerating year-over-year GMV growth during the quarter. We recently added shipping support for bulky and heavy items through DHL, and we exited Q3 with the majority of UK C2C transactions utilizing our managed shipping program, which is now mandated for all eligible items. Earlier this month, we closed the acquisition of Ties, a leading social marketplace in the Nordics focused on preload fashion and lifestyle goods. Ties has built a highly engaged Gen Z and millennial community and a strong track record in social community-led commerce. This acquisition strengthens our leadership in the circular economy, increases our presence in the Nordic markets, and accelerates our work to make consumer selling more seamless, trusted, and scalable. I'm excited to welcome the Ties team to eBay, and I look forward to our teams learning from each other as we drive innovation for fashion enthusiasts and accelerate the circular economy. Our years of investment in artificial intelligence have enabled us to leverage our scale and three decades of commercially relevant data and insights to transform the eBay experience for customers. In recent years, we've utilized generative AI to dramatically improve the selling experience on eBay through progressive iterations of our magical listing technology. In addition to selling, we've been testing a variety of agentic experiences in search and shopping to learn how buyers and sellers engage with AI at different phases of the customer journey. This includes both on eBay agentic experiences like our AI shopping agent pilot and third-party agents from companies like OpenAI. Our AI shopping agent has given buyers a new way to shop across our inventory with personalized product picks and expert guidance based on their individual shopping preferences. As the pilot has progressed, we've significantly improved the underlying technology powering the experience. For example, we were able to build hyper-optimized large language models in-house that perform specific shopping agent tasks at lower latency and for significantly reduced costs versus commercial models. With these learnings and efficiency improvements, we're now poised to gradually bring agentic capabilities into the core of eBay's business through the main search experience over the coming quarters. Our early learnings have also guided the development of our unified agentic commerce platform, which integrates our hybrid cloud infrastructure, large language model ecosystem, our model context protocol server, and other agentic protocols with our proprietary data layer. This platform enables a fully connected experience between eBay agents and generalized third-party agents from companies like OpenAI, which allows us to service the most personalized and relevant products to shoppers in real time based on our 30 years of listings, pricings, transactions, and behavior signals. we believe this platform will enable us to deliver more personalized, seamless, and trusted experiences for eBay buyers, regardless of where they started their shopping journey. With these capabilities now in place, we are well positioned to continue improving the on eBay experience with agentic tools, touching more of the end-to-end shopping journey, but also connect to compelling third-party agentic experiences. I'm also excited to see how easy and seamless it is to shop on eBay using the iPhone camera after our recent integration into Apple's visual intelligent feature in iOS 26. Now, when a user takes a photo or screenshot of a product they like to shop for online, they can quickly surface relevant listings on eBay, helping more iOS users discover our breadth and depth of unique inventory through an intuitive experience. iPhone users can also take advantage of a great new feature for auctions after we launched live activities functionality on iOS in September, which gives bidders real-time updates directly on their phone's lock screen during the final 10 minutes of an eBay auction. This engaging feature has seen click-through rates more than four times higher than our standard push notifications for auction listings, helping ensure buyers never miss a chance to bid on their next great eBay find. Connections between buyers and sellers have always been at the heart of eBay's marketplace, and now we're using AI to make those interactions faster and easier to manage. In Q3, we wrote out an AI assistant for member-to-member messaging across the US, UK, and Australia. This tool takes information from the listing details to provide immediate, high-quality suggested answers to buyer inquiries, enabling quicker responses. Sellers have told us this feature has been extremely helpful in answering buyer questions promptly, giving them more time to list items and grow their businesses on eBay. Within member-to-member messaging, we've also rolled out a fully integrated offers experience directly into the messaging flow for customers in the US, Germany, and Australia. This means buyers and sellers can now negotiate offers, view their full offer history, and execute counter offers without ever leaving the conversation thread, reducing friction and driving improved sales velocity. With each successive quarter, AI is becoming more embedded throughout the eBay experience. As we build on this progress, we believe AI will continue to make eBay simpler, more personal, and more connected for every user. Moving to advertising. In Q3, first-party advertising revenue on the eBay platform grew nearly 23%, driven by broad-based growth across our ads portfolio. Active promoted listings comprised nearly 1.2 billion of more than 2.4 billion total listings on eBay, while over 4.4 million sellers adopted at least a single promoted listings product during the quarter. Promoted listings general ads were the largest contributor to year-over-year ad revenue growth in Q3, followed by PL priority placements, promoted off-site ads, and promoted stores units. we continue to leverage our proprietary AI capabilities to enhance advertising performance. For instance, we recently launched a new multimodal embedding model on view item pages to deliver more relevant recommendations to buyers. This model led to a measurable uplift in promoted listings revenue by leveraging a listing's imagery in addition to its title and other listings details to surface higher quality recommendations. In financial services, we reached a major milestone for our seller capital program in Q3. Since the inception of this program in 2021, more than $1 billion in growth capital has been dispersed to eBay sellers across the US, UK, and Germany through our financing partners, including more than $200 million through the first three quarters of 2025. Many sellers have told us this additional working capital has made a significant difference in their ability to invest in inventory, people, and technology to grow their businesses on eBay. Turning next to our shipping initiatives, which have become a critical strategic imperative in today's increasingly complex environment for cross-border trade. The recent elimination of the de minimis exemption for imports under $800 has created an incremental cost and friction for cross-border trade into the U.S. To help our sellers and buyers navigate these challenges, we meaningfully accelerated our multi-year product roadmap for shipping solutions. In October, we launched eBay International Shipping in Canada, our third largest corridor for U.S. imports after Greater China and Japan. This rollout brings the best parts of the U.S. program to both business and consumer sellers in Canada, along with additional capabilities like delivery duties paid functionality and automated application of country of origin data. In Q4, we also began enabling business sellers in Germany to access Speedpack, an end-to-end cross-border shipping solution offered through a joint venture, which is already available to sellers in Greater China and Japan. Speedpack automates customs documentation and tariff calculations, helping sellers manage new trade requirements with greater efficiency. By simplifying compliance and improving delivery time predictability, Speedpack strengthens the resilience of cross-border trade on eBay and ensures buyers continue to receive a reliable shopping experience with transparent duties. As we advance our strategic initiatives, we're equally focused on fostering the culture and talent that makes this progress possible. I'm proud that our dedication to building an inclusive workplace environment continues to be recognized externally. eBay has been named one of Forbes America's best employers for company culture, one of Time World's best companies, and one of Newsweek America's greatest companies for 2025. These acknowledgements reaffirm our efforts to foster a positive, high-performing culture that attracts and retains some of the best talent in the industry. In closing, Q3 was another strong quarter for eBay, underscoring the momentum in our strategy and the resilience of our marketplace. Our focus categories continue to drive significant growth for our overall marketplace, driven by continued innovation, trusted experiences, and increased selection for enthusiasts worldwide. Our agenda commerce platform opens up entirely new opportunities for eBay by enabling connectivity between on eBay and third-party agents to facilitate personalized conversational shopping experiences that bring eBay's unique inventory and trust to wherever buyers begin their search. AI also continues to make selling on eBay more seamless and efficient, from our magical listing technology to our new member-to-member messaging tools that help sellers manage buyer inquiries in real time. I'm incredibly excited about our expansion of eBay Live into new European markets, which builds upon the tremendous momentum we're seeing in the U.S. as we bring live, community-driven commerce to more enthusiasts. Lastly, our investments in global shipping services are not only helping us support sellers in the current environment, but are accelerating our roadmap to make cross-border trade more frictionless, which can drive more velocity for consumers and small businesses around the world. Together, these investments keep eBay well-positioned for continued long-term sustainable growth as we reinvent the future of e-commerce for enthusiasts. With that, I'll turn the call over to Peggy, who will provide more details on our financial performance and outlook. Peggy, over to you.