Behind eBay's 15% Revenue Growth and US$3bn Returns

eBay delivered US$11.1bn in full-year 2025 revenue, representing 8% growth on an as-reported basis, whilst executing a US$3bn capital return programme that included US$2.5bn in share repurchases and US$531m in cash dividends.

The global commerce platform announced these results on 18 February 2025 alongside plans to acquire Depop from Etsy for approximately US$1.2bn in cash.

The transaction marks a strategic pivot towards higher-margin fashion resale categories and a younger demographic, with eBay targeting Depop's Gen Z and Millennial customer base. Etsy originally acquired Depop in 2021 for US$1.6bn, making the sale a US$400m loss for the craft marketplace operator.

Fourth-quarter performance exceeded expectations, with revenue reaching US$3bn, up 15% on an as-reported basis. Gross Merchandise Value for the full year totalled US$79.6bn, reflecting 7% growth on an as-reported basis.

These metrics demonstrate accelerating momentum in eBay's core marketplace operations whilst the company simultaneously deployed capital towards both shareholder returns and strategic acquisitions.

Capital allocation and shareholder returns

The US$3bn returned to stockholders during 2025 underscores management's commitment to balancing growth investments with direct value creation. Chief Financial Officer Peggy Alford says: "Our Q4 results conclude a very strong 2025 for eBay, with accelerating growth and significant progress across our strategy. This continued strength coupled with our solid financial foundation positions us to deliver long-term value for our shareholders."

The share repurchase programme of US$2.5bn represents a substantial reduction in outstanding equity, whilst the US$531m dividend distribution provides direct income to investors. This dual approach to capital return gives shareholders both immediate cash flow and potential appreciation through reduced share count.

Transaction economics and strategic rationale

The Depop acquisition provides eBay access to one of the fastest-growing fashion resale marketplaces in the US.

Etsy CEO Kruti Patel Goyal says: "We are excited that this transaction allows us to focus exclusively on the compelling opportunity we see in front of us: to grow the Etsy marketplace in ways that matter most to our buyers and sellers. We believe this transaction is a great outcome for Etsy's shareholders, and a positive next step for all involved.

"We are proud of what the Depop team has built – a truly differentiated brand and product, grounded in clear purpose and strong community – becoming one of the fastest-growing fashion resale marketplaces in the US. I am confident that Depop is well-positioned for its next phase of growth as part of eBay."

eBay CEO Jamie Iannone says: "With deep recommerce roots, Depop is an amazing brand that we're excited to partner with in building the future of consumer-to-consumer (C2C)."

The US$1.2bn cash consideration represents approximately 11% of eBay's full-year revenue, indicating management's conviction in the fashion resale sector's growth trajectory.

This acquisition complements eBay's broader recommerce positioning, where the company achieved close to US$25bn in positive economic impact from pre-loved and refurbished goods during 2025.

Revenue growth drivers

eBay's Q4 acceleration from 8% full-year growth to 15% quarterly growth indicates strengthening business fundamentals. The company expanded its eBay Live interactive live-stream shopping experience to Germany and Australia during the quarter, broadening its addressable market across multiple geographies.

Technology investments include a new artificial intelligence (AI)-powered card scanning experience leveraging Smart Lens technology, providing historical pricing, PSA population data and insights for collectables traders.

These product enhancements drive engagement and transaction frequency across eBay's platform.

A multi-year partnership with Condé Nast established eBay as the official Pre-Loved Partner across Vogue, GQ and Vanity Fair, reinforcing the company's position in pre-loved fashion ahead of the Depop acquisition. Iannone says: "2025 was a milestone for eBay, and our results reflect the strength of our strategy and the disciplined execution behind it.

"We have built significant momentum across our strategic priorities, delivering meaningful growth and reinforcing our leadership in recommerce. As we continue to harness AI to elevate the customer experience worldwide, eBay is in the strongest position it has been in years."

The Gross Merchandise Value metric of US$79.6bn, up 7% on an as-reported basis, translates to a take rate approximating 14% when measured against the US$11.1bn revenue figure.

This monetisation efficiency, combined with accelerating topline growth and disciplined capital allocation, positions eBay for continued value creation as the Depop integration proceeds through 2026.