eBay Inc.

Good day, everyone. My name is Megan, and I will be your conference operator today. At this time, I would like to welcome you to the eBay fourth 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'd 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 fourth 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 may 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 organic, 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 forecasts 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 released from earlier today. You should not rely on any forward-looking statements. All information in this presentation is as of February 18, 2026. 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. We finished 2025 with incredible momentum as we delivered Q4 results that meaningfully exceeded our expectations. Before I get into the details of the quarter, I'll start with some highlights for the full year. Gross merchandise volume grew by nearly 6% to approximately $80 billion globally in 2025, while U.S. GMV grew by nearly 10%. Importantly, our growth was broad-based across all of our most established strategic priorities. First, focus category GMV growth accelerated to over 12%. In addition, multiple years of investment in our consumer-to-consumer, or C2C, experience have reduced transactional friction and reinvigorated growth in this segment, which makes up roughly one-quarter of our total GMV. Alongside these efforts, we've made significant investments in accelerating e-commerce on eBay, which we define as the sale of pre-owned and refurbished goods. We've invested in full funnel marketing to drive awareness and consideration of eBay for consumers shopping pre-loved. Innovations like Magical Listings have unlocked consumers' closets, basements, and garages to increase the supply of pre-owned goods on eBay. We have also introduced direct e-commerce collaborations with iconic brands and strategically expanded inventory in key areas like certified recycled auto parts. This work has fueled the circular economy, and as a result, e-commerce made up over 40% of GMV on the eBay platform in 2025. In aggregate, these strategic priorities, focus categories C2C and re-commerce, comprised approximately two-thirds of our business in 2025, or more than $50 billion of unique GMV. This GMV grew by approximately 10% and accelerated throughout the course of the year, reinforcing the broad-based impact of our strategy on overall GMV growth. We saw equally compelling results on the monetization front as we continued to scale our suite of eBay services. Revenue increased by nearly 7% to $11.1 billion, outpacing GMV by over one point, primarily driven by growth in advertising, which reached approximately $2 billion in annual revenue. We expanded our financial services footprint. driving incremental GMV through improved risk modeling and flexible payment options like Klarna, while working with partners to deploy working capital to trusted sellers. We also scaled managed shipping in the U.K. and accelerated our product roadmap for cross-border solutions to help our sellers navigate new tariffs and trade policy changes. Our top-line outperformance throughout 2025 enabled us to accelerate investments in areas like eBay Live, vehicles, and full-funnel marketing to support key categories and geographies. We balanced these investments in strategic growth vectors with operational discipline, which enabled us to grow non-GAAP operating income by roughly 7% to nearly $3.1 billion. Lastly, we created significant shareholder value by growing non-GAAP earnings per share by 13% to $5.52, while returning approximately $3 billion of capital to shareholders through repurchases and dividends. These results meaningfully outperformed our expectations entering the year, highlighting our ability to navigate a dynamic macro environment and an increasingly complex global trade landscape. We also shared some exciting news today alongside our fourth quarter results. eBay has entered into a definitive agreement to acquire Depop for approximately $1.2 billion in cash. This acquisition further strengthens our C2C value proposition, augmenting our organic momentum with a leading circular fashion marketplace that brings complementary strengths and demographic reach. I'll share more on this transaction shortly, and Peggy will discuss some of the financial details and forward-looking implications. But first, I'll discuss the key drivers of our strong Q4 performance. The collectibles category had another standout quarter and was the largest contributor to GMV growth in Q4. driven by continued strength in trading cards, growing contributions from our off-platform marketplaces, TCG Player and Golden, and a notable acceleration in other subcategories like bullion and collectible coins amid unique demand for precious metals in recent months. Within trading cards, we continue to leverage AI to extend our industry-leading value proposition. In Q4, we launched early access to a new AI-powered card scanning experience powered by a set of proprietary models trained on over 40 million card samples. Now, users can scan a single photo to instantly detect their exact card and parallel, while also surfacing historical prices, PSA population data, and other valuable insights. This eliminates time-consuming manual research and helps collectors decide when to buy, sell, or grade valuable trading cards. Since we launched this beta feature in November, feedback has been overwhelmingly positive, and trading card enthusiasts have already scanned over 15 million cards to instantly identify and value their assets. We also continue to drive synergies with our off-platform collectibles marketplaces to better serve enthusiasts across every price point. In Q4, we launched a new search experience that surfaces unique inventory from Golden directly within eBay search results. This integration addresses an inventory gap for rare, high-SP items while giving Golden sellers access to eBay's scaled global demand. In December, Season 3 of King of Collectibles, The Golden Touch, debuted on Netflix and ranked in the top ten shows in seven countries, including the U.S., U.K., Australia, and Canada. This season featured Golden's first on-the-ground collaboration with eBay in Japan, highlighting how our teams are working together to connect global collectors with high-value inventory. Motors Parts and Accessories, or P&A, also finished the year strong, contributing over one point of GMV growth for our overall marketplace in Q4. We are seeing a repair-over-replace trend among consumers maintaining aging vehicles, and with more than 800 million live P&A listings globally, our inventory depth uniquely positions us to meet this demand. In the U.S., we scaled our automated fitment capabilities, enhancing millions of domestic listings with billions of compatibility attributes in Q4. By leveraging our proprietary data to automatically populate these details on behalf of sellers, we are reducing friction while expanding the inventory backed by our guaranteed fit protection. Our easy and free returns program also continues to drive conversion lift, while return rates remain stable, demonstrating that reduced friction builds confidence for auto enthusiasts. Fashion was also one of the leading contributors to growth in Q4, led by our luxury and pre-loved apparel-focused categories. Fashion overall generated well north of $10 billion in GMV globally in 2025. Similar to what we've done in collectibles, we've increasingly leveraged every aspect of our build-buy partner strategy to improve our value proposition for fashion enthusiasts and accelerate GMV growth. On the build side, we've completely reimagined the selling experience through multiple iterations of our magical listing technology. We modernized the fashion shopping journey by expanding our AI-powered discovery platform from the U.K. into the U.S., Germany, Australia, Italy, and France. We invested in technology and talent to broaden the authenticity guarantee program to cover more categories, brands, and price points, including optional authentication to enhance trust for lower ASP goods. And eBay Live has been particularly impactful for fashion, as the ability to storytell and showcase inventory in real time enables sellers to build immediate trust with their community and ultimately drive greater sales velocity for their stores. Our work with key partners also contributed to a notable improvement in consideration of eBay in fashion throughout the course of 2025. Partnerships with Love Island, Condé Nast, and Vogue Vintage Market helped elevate the perception of eBay as a trusted place to shop. Passionate eBay advocates like Chapel Roan and Emma Chamberlain have raised awareness of eBay's fashion offering during some of the biggest cultural moments for enthusiasts like the Met Gala. Our collaboration with Marks & Spencer... one of the UK's most iconic retailers, enables consumers to drop off apparel at hundreds of store locations to be resold on eBay. And our certified by brand and pre-loved partner programs have enabled many more of the world's leading brands and trusted resellers to increase the breadth and depth of fashion inventory on our marketplace. Our momentum in fashion has meaningfully benefited organic growth in our marketplace, with fashion serving as the second largest contributor to our U.S. GMV growth in Q4, with particular strength in C2C. We complemented this organic momentum with the recent acquisition of Thais, a leading C2C marketplace in the Nordics, which further extends our value proposition globally. And now, we're excited to further expand our total addressable market in C2C with the acquisition of Depop, which is a natural strategic and cultural fit with our company, offering clear opportunities for synergies between our respective marketplaces. Depop has established itself as a leading C2C fashion marketplace that currently serves a base of approximately 7 million active buyers and 3 million active sellers, with most of its audience under the age of 34. Depop facilitated approximately $1 billion in gross merchandise sales in 2025, with nearly 60% year-over-year growth in the U.S. market. This acquisition is compelling on a number of fronts. Recommerce is one of the fastest-growing segments in global retail, led by Gen Z and millennial consumers who prioritize sustainability, individuality, and value. These consumers are accelerating the shift towards circular fashion through social-driven shopping behaviors. Depop's mobile-first, social-forward experience has cultivated an extremely engaged user base that complements eBay's global scale. For instance, over one-third of Depop buyers listed one or more products on the marketplace in 2025. And this engagement fuels a sell-to-buy flywheel that drives sales velocity across a broad array of brands and price points. I'm confident this acquisition will drive meaningful benefits for users across both eBay and Depop. Depop's seller and buyer communities will gain access to eBay's suite of value-added services, including financial services, shipping and cross-border trade solutions, as well as trusted experiences like authenticity guarantee. Depop strengthens eBay's leadership in C2C, broadens our demographic reach, and expands our presence in fashion and adjacent lifestyle categories. Similar to how we've demonstrated the power of cross-listing inventory with golden and collectibles, we see a clear opportunity to replicate that success with Depop, given its complementary range of brands and price points. Integrating Depop into eBay's portfolio should further reinforce our customer proposition in a rapidly evolving e-commerce environment and ultimately drive long-term value for shareholders. Another emerging growth factor we're excited about in 2026 is the momentum we're seeing in eBay Live. eBay Live is rapidly evolving into a multi-category shopping destination as we diversify our inventory and programming beyond collectibles. Fashion is becoming a more significant growth driver, particularly in luxury watches. During the holiday season, we achieved a single-day record for eBay Live GMV on Black Friday, including approximately $2 million of sales during a single event. In recent weeks, eBay Live GMV is tracking at an annualized run rate roughly seven times higher year over year, led by rapid growth in the U.S. market. In Q4, we expanded our global footprint by launching eBay Live in Germany and Australia, followed by recent additional launches in France, Italy, and Canada in Q1. 2025 was also a watershed year for horizontal innovation, as our proprietary AI infrastructure enabled us to transition from generative AI pilots to scalable, agentic experiences that actively do more of the hard work for our sellers and buyers. In Q4, we began rolling out the next generation of our magical listing experience, a true breakthrough that moves beyond AI-assisted tools to a fully AI-native architecture. Unlike prior iterations, where we integrated generative AI technology into legacy workflows, this new experience leverages AI agents from the start to autonomously build listings from images alone. Now, any smartphone camera can act as an AI agent that guides you on which photos to take for your specific product to increase the likelihood of a sale. In the background, AI agents create the title, category, and item specifics by leveraging advanced models and our product knowledge graph. AI also provides intelligent pricing recommendations based on real-time transaction data, helping sellers balance velocity and price realization to optimize their cash flow. The early results have been powerful. After making this the default listing experience for all new and reactivated listers on iOS and Android in the U.S., we have seen a more than one-quarter decrease in average listing time and greater than 50% increase in new listing creation rate, double-digit percentage increases in sold items and GMV per lister, and customer satisfaction exceeding 95%. We are continuing to fine-tune the experience and are excited to bring this game-changing capability to more countries and seller cohorts over the coming months, further unlocking our total addressable market in e-commerce. For buyers, we are redefining discovery through agentic search, which we started rolling out to a subset of our U.S. mobile traffic in December. This technology allows buyers to shop using natural language in a back and forth dialogue, just like they would with a knowledgeable sales associate that understands their style, preferences, and shopping history. As a result, new buyers are able to seamlessly filter results and more easily discover the amazing breadth and depth of inventory on eBay, just like enthusiasts have been able to do for many years. As this technology is built into the core search experience rather than off to the side, it's important that it's scalable. We've powered this experience using a set of lightweight proprietary models that leverage a query agent to classify intent, which enables us to effectively balance the tradeoffs between latency, compute costs, and query optimization quality. We plan to scale agentic search to more users throughout 2026, laying the groundwork for an even more personalized shopping journey for our customers. In October, we launched eBay International Shipping, or EIS, in Canada, our third largest corridor for U.S. imports. This rollout brings the benefits of our U.S. program to Canadian sellers, including delivery duties, paid functionality, and the automated application of country of origin data. Our Canadian seller ramp has progressed ahead of schedule and will continue to expand seller and listing eligibility in 2026 as we refine our offering. In Q4, we also enabled business sellers in Germany to access Speedpack, our end-to-end cross-border shipping solution enabled through a joint venture, which was already offered in greater China and Japan. Speedpack automates customs documentation and tariff calculations, simplifying compliance for small businesses that lack the resources to manage these changes independently. In Japan, where Speedpack has seen strong adoption, Speedpack is now utilized for the majority of direct shipments to the U.S., ensuring a reliable, transparent experience for buyers. Importantly, between EIS and SpeedPak, we now have cross-border solutions in place for our largest corridors importing goods to the U.S., and will continue to ramp shipping solutions to additional corridors throughout 2026. I'm also pleased to share that we closed out 2025 by exceeding our ambitious five-year impact goals. From 2021 to 2025, we set out to drive $22 billion in positive economic impact from the sale of pre-loved and refurbished goods on our platform. Based on our outperformance in e-commerce, we estimate we achieved a cumulative positive impact of close to $25 billion. We also helped prevent nearly 8.2 million metric tons of carbon emissions from entering the atmosphere, above our target of 8 million. Lastly, we estimate over 360,000 metric tons of waste were diverted from landfills from re-commerce on eBay, exceeding our target of 350,000. These results demonstrate how promoting the circular economy delivers tangible environmental benefits while creating meaningful economic value for our global community. In closing, 2025 was a milestone year for eBay. We accelerated GMV growth to nearly 6%, with 8% growth in the second half of the year. Roughly two-thirds of our GMV was driven by our most established strategic priorities, focus categories, C2C, and re-commerce. This GMV grew 10% in 2025 and exited the year growing even faster. I'm incredibly proud to see years of investment and execution reflected in the strength and momentum in our business. At the same time, I'm even more excited about the roadmap for 2026. In addition to scaling our established strategic priorities this year, we plan to accelerate emerging growth factors like our secure, fully digital transaction solution for vehicles, which serves as a powerful multiplier for our broader eBay Motors offering. Each enthusiast vehicle sold on eBay unlocks further customer lifetime value, driving recurring demand for our P&A business as buyers return to maintain, modify, or restore their newly purchased vehicle. We also have ambitious plans for eBay Live, which has evolved from a fast-growing U.S. pilot at the start of 2025 to a rapidly scaling commerce engine that's available in seven countries today. By integrating live shopping directly into our core experience, we are building a new flywheel that allows enthusiasts to discover, interact, and transact in real time across many of our strongest categories. Lastly, I've never been more optimistic about our AI roadmap as we start 2026, as we build upon the robust technical infrastructure and the foundry of proprietary models that we've developed over the past year. This foundation enables us to further raise the bar for innovation, unlock our decades of proprietary data, and deliver hyper-personalized, agentic experiences that anticipate our customers' needs and drive tangible value for our business. I want to thank our employees for their incredible execution this year and our community of sellers and buyers for their continued partnership. With that, I'll turn the call over to Peggy to provide more details on our financial performance. Peggy, over to you.