Technology
eBay Inc. Reports First Quarter 2026 Results
Published
6 months agoon
By
Revenue of $3.1 billion, up 19% on an as-reported basis and up 17% on an FX-Neutral basis Gross Merchandise Volume (“GMV”) of $22.2 billion, up 18% on an as-reported basis and up 14% on an FX-Neutral basisGAAP and Non-GAAP earnings per diluted share of $1.12 and $1.66, respectively, on a continuing operations basisGAAP and Non-GAAP operating margins of 19.8% and 29.4%, respectivelyReturned $639 million to stockholders in Q1, including $500 million of share repurchases and $139 million paid in cash dividends
SAN JOSE, Calif., April 29, 2026 /PRNewswire/ — eBay Inc. (Nasdaq: EBAY), a global commerce leader that connects millions of buyers and sellers around the world, today reported financial results for its first quarter ended March 31, 2026.
“eBay’s first quarter results marked a strong start to the year,” said Jamie Iannone, Chief Executive Officer at eBay. “We accelerated GMV growth and delivered performance ahead of expectations. Our Focus Categories, C2C and recommerce strategic priorities are driving broad-based momentum, and strengthening our position as the marketplace of choice for enthusiasts.”
“Our strong first quarter results, characterized by robust GMV and revenue growth, along with healthy earnings, reflect the powerful operating leverage inherent in our business,” said Peggy Alford, Chief Financial Officer at eBay. “We remain committed to disciplined execution of our strategic priorities while continuing to allocate capital thoughtfully to drive long-term value and significant returns for our shareholders.”
First Quarter 2026 Business Highlights
eBay announced a definitive agreement to acquire Depop, a leading consumer-to-consumer (“C2C”) fashion marketplace, from Etsy, which would deepen eBay’s reach with younger, fashion-forward consumers and expand its presence in one of the most dynamic areas of resale.The company expanded eBay Live, its interactive live-stream shopping experience, to France, Italy and Canada, growing seller reach and deepening buyer engagement.eBay launched “The 30/30 Collection” on eBay Live, a Pokémon Day auction that showcased 30 years of iconic cards and memorabilia from top sellers, boosting engagement in one of the marketplace’s most popular Focus Categories.Goldin, an eBay company, reached an all-time quarterly GMV record in the first quarter, facilitated by a record-breaking $16.5 million sale of a PSA 10 Pikachu Illustrator card.eBay hosted several Bay Area activations for football’s biggest game, including the immersive eBay End Zone pop-up, celebrity-driven eBay Live shopping events and a community watch party. The events showcased eBay’s unique inventory and relevance across collectibles, fashion and sports memorabilia.eBay’s AI-powered card scanning feature, which surfaces historical pricing and population data from a single photo, expanded to include the company’s top five collectible card game genres, and surpassed 30 million cumulative scans.eBay released “The NYC Edit,” an online style guide highlighting what New Yorkers are buying and selling on eBay. The curated storefronts allowed buyers to shop directly from influencers’ closets, and was accompanied by a three-day in-person resale experience held in April.The company collaborated with Vogue on the Vogue Vintage Market pop-ups in New York, London and Berlin, featuring a curated selection of premium vintage pieces handpicked from eBay by leading voices in fashion. Select items were auctioned via eBay Live where customers around the world could participate and bid in real time.eBay announced a new partnership with Meta for the Facebook affiliate program, allowing creators to feature eBay’s inventory directly within their content, and helping sellers reach new, engaged buyers through social commerce.eBay expanded its financial services offerings in the U.K. by partnering with Liberis to add Flexible Growth Financing to its Seller Capital program, and introduced Pay by Bank at checkout through a partnership with TrueLayer, enabling instant, secure payments.The company announced the appointment of Brian Sharples to its Board of Directors. Mr. Sharples serves as Board Chair of GoDaddy, Inc., and previously co-founded and served as CEO and Chairman of HomeAway, Inc.
Impact
eBay released its inaugural Climate Transition Plan, a company-wide roadmap to reach net-zero greenhouse gas emissions by 2045. The plan details how eBay is well-positioned to drive sustainable commerce at scale, and as a result, create enduring value for customers, communities and the planet.eBay for Charity enabled buyers and sellers to raise nearly $60 million worldwide in the first quarter.eBay received numerous awards, including recognition from Fortune as one of America’s Most Innovative Companies 2026, from Newsweek as one of America’s Greenest Companies 2026, and from TIME as one of America’s Most Iconic Companies 2026.
First Quarter 2026 Financial Highlights
Revenue was $3.1 billion, up 19% on an as-reported basis and up 17% on a foreign exchange (“FX”) neutral basis.GMV was $22.2 billion, up 18% on an as-reported basis and up 14% on an FX-Neutral basis.GAAP net income from continuing operations was $512 million, or $1.12 per diluted share.Non-GAAP net income from continuing operations was $760 million, or $1.66 per diluted share.GAAP and Non-GAAP operating margins were 19.8% and 29.4%, respectively.Generated $970 million of operating cash flow and $898 million of free cash flow from continuing operations.Returned $639 million to stockholders, including $500 million of share repurchases and $139 million paid in cash dividends.
(In millions, except per share data and percentages)
First Quarter
2026
2025
Change
eBay Inc.
Net revenues
$ 3,089
$ 2,585
$ 504
19 %
GAAP – Continuing Operations
Net income
$ 512
$ 501
$ 11
2 %
Earnings per diluted share
$ 1.12
$ 1.05
$ 0.07
7 %
Non-GAAP – Continuing Operations
Net income
$ 760
$ 654
$ 106
16 %
Earnings per diluted share
$ 1.66
$ 1.37
$ 0.29
21 %
Other Selected Financial and Operational Results
Advertising revenue – The company’s total advertising offerings generated $581 million of revenue in the first quarter of 2026, representing 2.6% of GMV. First-party advertising products on the eBay platform delivered $555 million of revenue in the first quarter of 2026, up 33% on an as-reported basis and up 28% on an FX-Neutral basis.Operating margin – GAAP operating margin decreased to 19.8% for the first quarter of 2026, compared to 23.6% for the same period last year. Non-GAAP operating margin decreased to 29.4% for the first quarter of 2026, compared to 29.6% for the same period last year.Income tax rate – The GAAP effective tax rate for continuing operations for the first quarter of 2026 was 17.1%, compared to 20.4% for the first quarter of 2025. The non-GAAP effective tax rate for continuing operations for the first quarter of 2026 was 17.5%(1).Cash flow – The company generated $970 million of operating cash flow and $898 million of free cash flow during the first quarter of 2026 from continuing operations.Capital returns – The company repurchased $500 million of its common stock, or approximately 6 million shares, in the first quarter of 2026. The company’s total repurchase authorization remaining as of March 31, 2026 was approximately $2.3 billion. The company also paid cash dividends of $139 million during the first quarter of 2026.Cash and cash equivalents and non-equity investments – The company’s cash and cash equivalents and non-equity investments portfolio totaled $5.1 billion as of March 31, 2026.
(1) We are using a non-GAAP effective tax rate of 17.5% in 2026 for evaluating our operating results, up from 16.5% in 2025. This rate could continue to change for various reasons including significant changes in our geographic earnings mix or fundamental tax law changes in major jurisdictions in which we operate.
Business Outlook
eBay is providing the following guidance for continuing operations for the second quarter 2026.
(In billions, except per share data and percentages)
Q2 2026 Guidance
Revenue
$2.97 – $3.03
FX-Neutral Y/Y Growth
8% – 10%
Gross Merchandise Volume
$21.3 – $21.7
FX-Neutral Y/Y Growth
8% – 10%
Diluted GAAP EPS
$1.09 – $1.14
Diluted Non-GAAP EPS
$1.46 – $1.51
Dividend Declaration
eBay’s Audit Committee declared a second quarter 2026 cash dividend of $0.31 per share of the company’s common stock. The dividend is payable on June 12, 2026 to stockholders of record as of May 29, 2026.
Definitive Agreement to Acquire Depop, Inc.
In February 2026, eBay Inc. and Etsy, Inc. announced that they entered into a definitive agreement for eBay to acquire Depop, Inc. for approximately $1.2 billion in cash, subject to certain purchase price adjustments. The pending acquisition is now expected to close by the end of the third quarter of 2026, subject to the satisfaction of certain closing conditions and receipt of required regulatory approvals. eBay and Etsy have received regulatory clearances in the United States and Germany, and reviews are in progress in other markets, including the United Kingdom and Australia.
Quarterly Conference Call and Webcast
eBay Inc. will host a conference call to discuss first quarter 2026 results at 2:30 p.m. Pacific Time today. A live webcast of the conference call, together with a slide presentation that includes supplemental financial information and reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures, can be accessed through the company’s Investor Relations website at https://investors.ebayinc.com. In addition, an archive of the webcast will be accessible for at least three months through the same link.
eBay Inc. uses its Investor Relations website at https://investors.ebayinc.com and social media channels as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor this website, in addition to following our press releases, Securities and Exchange Commission (SEC) filings, public conference calls and webcasts.
About eBay
eBay Inc. (Nasdaq: EBAY) is a global commerce leader that connects people and builds communities to create economic opportunity for all. Our technology empowers millions of buyers and sellers in more than 190 markets around the world, providing everyone the opportunity to grow and thrive. Founded in 1995 in San Jose, California, eBay is one of the world’s largest and most vibrant marketplaces for discovering great value and unique selection. In 2025, eBay enabled nearly $80 billion of gross merchandise volume. For more information about the company and its global portfolio of online brands, visit www.ebayinc.com.
Presentation
All growth rates represent year-over-year comparisons, except as otherwise noted. All amounts in tables are presented in U.S. dollars, rounded to the nearest million, except as otherwise noted. As a result, certain amounts may not sum or recalculate using the rounded dollar amounts provided. References to “revenue” refer to “net revenues” as reported in the company’s consolidated statement of income.
New Accounting Standard
In September 2025, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Accounting for and Disclosure of Software Costs. eBay adopted the standard effective January 1, 2026 using the full retrospective method, which required the restatement of each prior reporting period presented.
Non-GAAP Financial Measures
This press release includes the following financial measures defined as “non-GAAP financial measures” by the SEC: non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating income and margin, non-GAAP effective tax rate, free cash flow and FX-Neutral basis. These non-GAAP financial measures are presented on a continuing operations basis. These measures may be different from non-GAAP financial measures used by other companies. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation of, or as a substitute for, the financial information prepared and presented in accordance with generally accepted accounting principles (“GAAP”). For a reconciliation of these non-GAAP financial measures, except for figures in this press release presented on an “FX-Neutral basis,” to the nearest comparable GAAP measures, see “Non-GAAP Measures of Financial Performance,” “Reconciliation of GAAP Operating Income to Non-GAAP Operating Income,” “Reconciliation of GAAP Net Income to Non-GAAP Net Income and GAAP Effective Tax Rate to Non-GAAP Effective Tax Rate” and “Reconciliation of Operating Cash Flow to Free Cash Flow” included in this press release. For figures in this press release reported “on an FX-Neutral basis,” we calculate the year-over-year impact of foreign currency movements using prior period foreign currency rates, excluding hedging activity, applied to current year transactional currency amounts.
Forward-Looking Statements
This press release contains forward-looking statements relating to, among other things, the future performance of eBay Inc. and its consolidated subsidiaries that are based on the company’s current expectations, forecasts and assumptions and involves risks and uncertainties. These statements include, but are not limited to, management’s vision for the future of eBay and our ability to accomplish our vision, expected financial results for the second quarter and full year 2026 and expected drivers thereof, the future growth in our business, and our ability to drive sustainable long-term growth and create lasting value for our stockholders, the impact of current and contemplated strategic initiatives and offerings, partnerships with and acquisitions of other companies, and new and updated product features or programs, including the initiatives, offerings, partnerships, acquisitions, features and programs discussed in our business highlights, the effects of foreign currency volatility and our ability to respond to such effects, operating efficiency and margins, and dividends and share repurchases.
Actual results could differ materially from those expressed or implied and reported results should not be considered as an indication of future performance. Factors that could cause or contribute to such differences include, but are not limited to: significant variation in our operating and financial results, including GMV and net revenues; our ability to compete in the markets in which we participate; our ability to generate revenue from our advertising products, including our Promoted Listings; our ability to generate consumer engagement and spending; our ability to keep pace with technological changes, including emerging AI technologies, and with changes in consumer demands and expectations; our ability to operate internationally and generate revenue from our international operations and our exposure to costs and risks in connection therewith; the impact of changes in global trade policies on our revenue, profit and ability to support cross-border trade; our ability to manage our buyer and seller trust protection programs; the risk of systems failures and business interruptions to our business; operation of and ongoing investment into our payments and financial services offerings; risk of fraud on our platforms; the impact of any cyberattacks or data security breaches; our ability to attract, retain and develop our senior managers and other key employees; our and our customers’ dependence on third-party providers, some of which are our competitors; the impact of our current, contemplated and future acquisitions, dispositions, joint ventures, strategic partnerships and strategic investments, including our expectations regarding the time to close, and our ability to close, and subsequently realize the projected benefits from, the pending Depop acquisition; the impact of extensive and increasing regulation and oversight that affect our business; the risk of liability for the actions of our customers, including products sold by sellers on our platforms; the impact of increasing levels of regulation in the areas of privacy, protection of user data and cybersecurity; the risks associated with third party allegations relating to intellectual property rights; current and potential litigation and regulatory and government inquiries, investigations and litigation involving us; the impact of evolving sales and other tax regimes in various jurisdictions; our ability to protect or enforce our intellectual property rights; risks and costs relating to stakeholder expectations around environmental, social and governance matters; potential exposure to claims and liabilities as a result of the distribution of PayPal; the risk of exposure to greater than anticipated tax liabilities; fluctuations in interest rates, and changes in regulatory guidance relating thereto; fluctuations in foreign currency exchange rates; our ability to generate sufficient cash flow to service our indebtedness and to comply with financial covenants in our outstanding debt instruments; and the risk that our stock repurchases may not be effected or may not achieve the desired objectives.
The forward-looking statements in this release do not include the potential impact of any acquisitions or divestitures that may be announced and/or completed after the date hereof.
More information about factors that could affect the company’s operating results is included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, copies of which may be obtained by visiting the company’s Investor Relations website at https://investors.ebayinc.com or the SEC’s website at www.sec.gov. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to the company on the date hereof. The company assumes no obligation to update such statements.
eBay Inc.
Unaudited Condensed Consolidated Balance Sheet
March 31,
2026
December 31,
2025
(In millions)
ASSETS
Current assets:
Cash and cash equivalents
$ 2,894
$ 1,867
Short-term investments
966
1,052
Customer accounts and funds receivable
1,490
1,280
Other current assets
909
887
Total current assets
6,259
5,086
Long-term investments
2,010
2,767
Property and equipment, net
1,198
1,165
Goodwill
4,463
4,467
Operating lease right-of-use assets
446
428
Deferred tax assets
2,949
2,959
Other assets
568
565
Total assets
$ 17,893
$ 17,437
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt
$ 750
$ 750
Accounts payable
311
242
Customer accounts and funds payable
1,491
1,280
Accrued expenses and other current liabilities
2,457
2,257
Income taxes payable
125
108
Total current liabilities
5,134
4,637
Operating lease liabilities
332
315
Deferred tax liabilities
1,438
1,431
Long-term debt
5,994
5,996
Other liabilities
583
575
Total liabilities
13,481
12,954
Total stockholders’ equity
4,412
4,483
Total liabilities and stockholders’ equity
$ 17,893
$ 17,437
eBay Inc.
Unaudited Condensed Consolidated Statement of Income
Three Months Ended
March 31,
2026
2025
(In millions, except per share
amounts)
Net revenues
$ 3,089
$ 2,585
Cost of net revenues (1)
802
697
Gross profit
2,287
1,888
Operating expenses:
Sales and marketing (1)
673
536
Product development (1)
450
393
General and administrative (1)
410
261
Transaction losses
138
81
Amortization of acquired intangible assets
5
6
Total operating expenses
1,676
1,277
Income from operations
611
611
Interest and other:
Gain (loss) on equity investments and warrants, net
2
(2)
Interest expense
(61)
(61)
Interest income and other, net
66
81
Income from continuing operations before income taxes
618
629
Income tax provision
(106)
(128)
Income from continuing operations
512
501
Loss from discontinued operations, net of income taxes
—
(2)
Net income
$ 512
$ 499
Income per share – basic:
Continuing operations
$ 1.14
$ 1.07
Discontinued operations
—
—
Net income per share – basic
$ 1.14
$ 1.07
Income per share – diluted:
Continuing operations
$ 1.12
$ 1.05
Discontinued operations
—
—
Net income per share – diluted
$ 1.12
$ 1.05
Weighted average shares:
Basic
448
467
Diluted
457
475
(1) Includes stock-based compensation as follows:
Cost of net revenues
$ 11
$ 9
Sales and marketing
47
20
Product development
76
69
General and administrative
22
38
$ 156
$ 136
eBay Inc.
Unaudited Condensed Consolidated Statement of Cash Flows
Three Months Ended
March 31,
2026
2025
(In millions)
Cash flows from operating activities:
Net income
$ 512
$ 499
Loss from discontinued operations, net of income taxes
—
2
Adjustments:
Transaction losses
138
81
Depreciation and amortization
93
52
Stock-based compensation
156
136
Loss (gain) on investments and other, net
(31)
2
Deferred income taxes
21
30
Change in fair value of warrants
9
—
Changes in assets and liabilities, net of acquisition effects
72
(47)
Net cash provided by continuing operating activities
970
755
Net cash used in discontinued operating activities
(1)
—
Net cash provided by operating activities
969
755
Cash flows from investing activities:
Purchases of property and equipment
(72)
(111)
Purchases of investments
(364)
(3,043)
Maturities of investments
352
4,587
Sales of investments
684
—
Shareholder distributions from equity investments
194
—
Acquisitions and other
(11)
(89)
Net cash provided by investing activities
783
1,344
Cash flows from financing activities:
Proceeds from issuance of common stock
2
—
Repurchases of common stock
(486)
(615)
Payments for taxes related to net share settlements of restricted stock units and awards
(106)
(69)
Payments for dividends
(139)
(134)
Repayment of senior notes
—
(800)
Proceeds from issuance of commercial paper
—
568
Repayment of commercial paper
—
(441)
Net funds receivable and payable activity
168
243
Net cash used in financing activities
(561)
(1,248)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(12)
19
Net increase in cash, cash equivalents and restricted cash
1,179
870
Cash, cash equivalents and restricted cash at beginning of period
3,055
3,286
Cash, cash equivalents and restricted cash at end of period
$ 4,234
$ 4,156
eBay Inc.
Unaudited Summary of Consolidated Net Revenues
Three Months Ended
March 31,
2026
December 31,
2025
September 30,
2025
June 30,
2025
March 31,
2025
(In millions, except percentages)
Total net revenues (1)(2)
$ 3,089
$ 2,965
$ 2,820
$ 2,730
$ 2,585
Current quarter vs prior year quarter
19 %
15 %
9 %
6 %
1 %
Percent from international
44 %
46 %
48 %
49 %
48 %
(1) Hedge gain/(loss)
$ (13)
$ (19)
$ (24)
$ (6)
$ 8
(2) Foreign currency impact
$ 78
$ 16
$ 20
$ 32
$ (21)
eBay Inc.
Unaudited Supplemental Operating Data
Three Months Ended
March 31,
2026
December 31,
2025
September 30,
2025
June 30,
2025
March 31,
2025
(In millions, except percentages)
Active Buyers (1)
136
135
134
134
134
Current quarter vs prior year quarter
1 %
1 %
1 %
1 %
1 %
Active Buyers excluding Tise (2)
135
134
Gross Merchandise Volume (3)
U.S.
$ 11,503
$ 10,721
$ 9,872
$ 9,428
$ 9,066
Current quarter vs prior year quarter
27 %
19 %
13 %
7 %
1 %
International
$ 10,694
$ 10,516
$ 10,233
$ 10,086
$ 9,687
Current quarter vs prior year quarter
10 %
2 %
7 %
5 %
0 %
Total Gross Merchandise Volume
$ 22,197
$ 21,237
$ 20,105
$ 19,514
$ 18,753
Current quarter vs prior year quarter
18 %
10 %
10 %
6 %
1 %
(1)
Active Buyers consist of all buyers who paid for a transaction on our Marketplace platforms within the previous 12-month period. Buyers may register more than once, and as a result, may have more than one account.
(2)
On October 1, 2025, we completed the acquisition of Tise AS.
(3)
Gross Merchandise Volume consists of the total value of all paid transactions between users on our Marketplace platforms during the applicable period inclusive of shipping fees and taxes, without adjustment for returns or cancellations.
eBay Inc.
Business Outlook
The guidance figures provided below and elsewhere in this press release are forward-looking statements, reflect a number of estimates, assumptions and other uncertainties, and are approximate in nature because the company’s future performance is difficult to predict. Such guidance is based on information available on the date of this press release, and the company assumes no obligation to update it.
The company’s future performance involves risks and uncertainties, and the company’s actual results could differ materially from the information below and elsewhere in this press release. Some of the factors that could affect the company’s operating results are set forth under the caption “Forward-Looking Statements” above in this press release. More information about factors that could affect the company’s operating results is included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, copies of which may be obtained by visiting eBay’s investor relations website at https://investors.ebayinc.com or the SEC’s website at www.sec.gov.
eBay Inc.
Three Months Ending
June 30, 2026
(In billions, except per share amounts)
GAAP
Non-GAAP (a)
Net revenues
$2.97 – $3.03
$2.97 – $3.03
Diluted EPS from continuing operations
$1.09 – $1.14
$1.46 – $1.51
Gross Merchandise Volume
$21.3 – $21.7
(a) Estimated non-GAAP amounts above for the three months ending June 30, 2026 reflect adjustments that exclude the estimated amortization of acquired intangible assets of approximately $12 million, estimated stock-based compensation expense and associated employer payroll tax expense of approximately $168-$178 million, and estimated adjustment between our GAAP and non-GAAP tax expense of approximately $(10)-$(20) million. The estimated GAAP diluted EPS above does not assume any gains or losses on our remaining equity investments.
eBay Inc.
Non-GAAP Measures of Financial Performance
To supplement the company’s condensed consolidated financial statements presented in accordance with generally accepted accounting principles, or GAAP, the company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating income and margin, non-GAAP effective tax rate, free cash flow and figures in this press release presented on an “FX-Neutral basis.” These non-GAAP financial measures are presented on a continuing operations basis.
These non-GAAP measures are not in accordance with, or an alternative to, measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the company’s results of operations as determined in accordance with GAAP. These measures should only be used to evaluate the company’s results of operations in conjunction with the corresponding GAAP measures.
Reconciliation to the nearest GAAP measure of all non-GAAP measures included in this press release, except for figures in this press release presented on an “FX-Neutral basis,” can be found in the tables included in this press release. For figures in this press release reported on an “FX-Neutral basis,” the company calculates the year-over-year impact of foreign currency movements using prior period foreign currency rates, excluding hedging activity, applied to current year transactional currency amounts.
These non-GAAP measures are provided to enhance investors’ overall understanding of the company’s current financial performance and its prospects for the future. Specifically, the company believes the non-GAAP measures provide useful information to both management and investors by excluding certain expenses, gains and losses, or net purchases of property and equipment, as the case may be, that may not be indicative of its core operating results and business outlook. In addition, because the company has historically reported certain non-GAAP results to investors, the company believes that the inclusion of non-GAAP measures provides consistency in the company’s financial reporting.
For its internal budgeting process, and as discussed further below, the company’s management uses financial measures that do not include stock-based compensation expense, employer payroll taxes on stock-based compensation, amortization or impairment of acquired intangible assets, impairment of goodwill, amortization of deferred tax assets associated with the realignment of its legal structure and related foreign exchange effects, significant gains or losses from the disposal/acquisition of a business, certain gains and losses on investments including changes in fair value, changes in foreign currency exchange rates and the impact of any related foreign exchange derivative instruments, gains or losses associated with a warrant agreement that the company entered into with Adyen, restructuring-related charges and the income taxes associated with the foregoing. In addition to the corresponding GAAP measures, the company’s management also uses the foregoing non-GAAP measures in reviewing the financial results of the company.
The company excludes the following items from non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating income and margin and non-GAAP effective tax rate:
Stock-based compensation expense and related employer payroll taxes. This expense consists of expenses for stock options, restricted stock and employee stock purchases. The company excludes stock-based compensation expense from its non-GAAP measures primarily because they are non-cash expenses that management does not believe are reflective of ongoing operating results. The related employer payroll taxes are dependent on the company’s stock price and the vesting of restricted stock by employees and the timing and size of stock option exercises, over which management has limited to no control, and as such management does not believe it correlates to the company’s operation of the business.
Amortization or impairment of acquired intangible assets, impairment of goodwill, certain amortization of deferred tax assets and related foreign exchange effects, significant gains or losses and transaction expenses from the acquisition or disposal of a business and certain gains or losses on investments. The company incurs amortization or impairment of acquired intangible assets and goodwill in connection with acquisitions and may incur significant gains or losses from the acquisition or disposal of a business and therefore excludes these amounts from its non-GAAP measures. The company also excludes certain gains and losses on investments. The company excludes the non-cash amortization of deferred tax assets associated with the realignment of its legal structure, which is not reduced by the effects of the Tax Cuts and Jobs Act, and related foreign exchange effects. The company excludes these items because management does not believe they correlate to the ongoing operating results of the company’s business.
Restructuring. These charges consist of expenses for employee severance and other exit and disposal costs. The company excludes significant restructuring charges primarily because management does not believe they are reflective of ongoing operating results.
Other certain significant gains, losses, or charges that are not indicative of the company’s core operating results. These are significant gains, losses, or charges during a period that are the result of isolated events or transactions which have not occurred frequently in the past and are not expected to occur regularly or be repeated in the future. The company excludes these amounts from its results primarily because management does not believe they are indicative of its current or ongoing operating results. These amounts include changes in fair value and the related change in foreign currency exchange rates of equity securities with readily determinable fair values, globally.
Change in fair market value of warrants. These are gains or losses associated with warrant agreements entered into with vendors, which are attributable to changes in fair value during the period.
Income tax effects and adjustments. We are using a non-GAAP tax rate of 17.5% for evaluating our operating results, up from 16.5% in 2025. This rate could change for various reasons including significant changes in our geographic earnings mix or fundamental tax law changes in major jurisdictions in which we operate.
In addition to the non-GAAP measures discussed above, the company also uses free cash flow. Free cash flow represents operating cash flows less purchases of property and equipment. The company considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after the purchases of property, buildings, and equipment, which can then be used to, among other things, invest in the company’s business, make strategic acquisitions, repurchase stock and pay dividends. A limitation of the utility of free cash flow as a measure of financial performance is that it does not represent the total increase or decrease in the company’s cash balance for the period and does not exclude certain non-discretionary expenditures, such as mandatory debt service requirements.
eBay Inc.
Reconciliation of GAAP Operating Income to Non-GAAP Operating Income
Three Months Ended
March 31,
2026
2025
(In millions, except
percentages)
GAAP operating income
$ 611
$ 611
Stock-based compensation expense and related employer payroll taxes
167
144
Amortization of acquired intangible assets within cost of net revenues and operating expenses
12
12
Restructuring and executive bonuses
104
—
Other general and administrative expenses
13
—
Total non-GAAP operating income adjustments
296
156
Non-GAAP operating income
$ 907
$ 767
GAAP operating margin
19.8 %
23.6 %
Non-GAAP operating margin
29.4 %
29.6 %
Presented on a continuing operations basis
Reconciliation of GAAP Net Income to Non-GAAP Net Income and
GAAP Effective Tax Rate to Non-GAAP Effective Tax Rate
Three Months Ended
March 31,
2026
2025
(In millions, except per share
amounts and percentages)
GAAP income from continuing operations before income taxes
$ 618
$ 629
GAAP provision for income taxes
(106)
(128)
GAAP net income from continuing operations
$ 512
$ 501
Non-GAAP adjustments to net income from continuing operations:
Non-GAAP operating income from continuing operations adjustments (see table above)
$ 296
$ 156
Change in fair value of other equity investments
(1)
(3)
Change in fair value of warrants
9
—
Income tax effects and adjustments
(56)
—
Non-GAAP net income from continuing operations
$ 760
$ 654
Diluted net income from continuing operations per share:
GAAP
$ 1.12
$ 1.05
Non-GAAP
$ 1.66
$ 1.37
Shares used in GAAP diluted net income per share calculation
457
475
Shares used in non-GAAP diluted net income per share calculation
457
475
GAAP effective tax rate – Continuing operations
17.1 %
20.4 %
Income tax effects and adjustments to net income from continuing operations
0.4 %
(3.9) %
Non-GAAP effective tax rate – Continuing operations
17.5 %
16.5 %
Presented on a continuing operations basis
Reconciliation of Operating Cash Flow to Free Cash Flow
Three Months Ended
March 31,
2026
2025
(In millions)
Net cash provided by continuing operating activities
$ 970
$ 755
Less: Purchases of property and equipment
(72)
(111)
Free cash flow
$ 898
$ 644
Presented on a continuing operations basis
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SOURCE eBay Inc.
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Context Labs AI Distillery™ Lets Enterprises Run Sovereign AI on Data They Own
Published
11 minutes agoon
November 1, 2026By
Company launches the Context Engine for trusted sovereign AI, which packages an enterprise’s own data with verified lineage for use with the frontier or open-weight model the enterprise chooses.
ABU DHABI, United Arab Emirates, Nov. 1, 2026 /PRNewswire/ — Context Labs B.V. (“Context Labs”), the AI Data Infrastructure company, today launched the Context Labs AI Distillery™, the Context Engine for trusted sovereign AI. The AI Distillery converts an enterprise’s operational and business data into a governed Context Package that the enterprise owns, creating their own protected competitive moat. Every answer an AI model draws from the package is traced to its source records, and the package works with the frontier or open weight model the customer chooses, inside the customer’s own environment.
Analysts have quantified the obstacle to scaling enterprise AI. Gartner predicts that through 2026 organizations will abandon 60% of AI projects unsupported by AI-ready data, and that over 40% of agentic AI projects will be canceled by the end of 2027. McKinsey reports that eight in ten companies name data limitations as the barrier to scaling AI agents. Gartner has also described what enterprises now need: software that lets teams construct, govern and deliver semantically organized knowledge to AI agents, built on ontologies and knowledge graphs.
The Context Labs AI Distillery™ is designed around six outcomes:
Own your IP. An enterprise’s knowledge, know-how and operating context stay inside a Context Package that only it controls and are not used to train third-party AI models.
Own your AI. The intelligence employees create in everyday use accrues to the enterprise, not to a model provider, and grows with every interaction.
Trusted, provable answers. Every output carries its data lineage and decision provenance, so answers can be verified, audited, and defended.
Build, protect and scale a proprietary competitive asset. The Context Package captures how the enterprise describes and runs its operations, starting with one facility and extending to others without rebuilding.
Sovereign by design. The AI Distillery runs inside the customer’s own data center or chosen cloud, so data stays where the customer decides.
Freedom of model choice, at lower cost. Customers can use any frontier or open-weight model and switch models without rebuilding the Context Package. Precise, verified context reduces the tokens each query uses.
The AI Distillery works in three steps: distill, package, and prove. It maps an enterprise’s structured and unstructured data to industry-specific ontologies, stores the result in a Context Package with cryptographic provenance, and checks answers against the company’s own records before any model goes into production. Work that has typically required teams of specialist engineers becomes a guided, governed workflow.
Context Agents and the Semantic Context Tunnel. Context Agents answer operational, commercial and compliance questions from the enterprise’s Context Package, with every figure traced to its source. The Semantic Context Tunnel brings the same context into the AI assistant employees already use. Both work within the access controls the enterprise sets.
“Models come and go. An enterprise’s context should not,” said Dan Harple, Founder, Chairman and CEO of Context Labs. “Frontier models will keep improving, but they do not supply governance, provenance or trust, and they should not absorb the knowledge that makes a company competitive. The AI Distillery gives enterprises a moat they own: their own context, proven and protected, working with whichever model they choose. That is how our customers own their IP and own their AI.”
At ADIPEC 2026, Context Labs is demonstrating the AI Distillery on energy-sector use cases, in which a Context Agent answers operational questions with every figure traced to the underlying plant records. Context Labs is located Arab Development Group stand, Stand #5240, Hall 5 and in the Dell AI Factory with NVIDIA, AI Zone, Hall 13.
Availability. The Context Labs AI Distillery™ is available now through the Microsoft Marketplace. Each enterprise license includes an industry starter kit to accelerate time to value. Companies can request a briefing or technical working session at contextlabs.com/distillery.
About Context Labs B.V.
Context Labs is an AI Data Infrastructure company delivering the Context Engine for Trusted and Secure Sovereign AI. Its platform turns complex, fragmented operational, engineering and enterprise data into continuously verified, auditable information that AI systems, people and markets can trust. Built on an extensible library of industry-specific ontologies that map to established standards published by ISO and other standards bodies, the platform is deployable across sectors, with use-case applications delivering decision-ready intelligence on a common foundation. The Context Labs AI Distillery™ lets enterprises run sovereign AI inside their own data centers, so they own their IP and own their AI. Formed out of MIT research and led by a team that helped drive the at-scale growth of the Internet, Context Labs has offices in Amsterdam, Cambridge (Mass.), Houston and Abu Dhabi. Learn more at www.contextlabs.com.
Media contact
press@contextlabs.com | 1-617-902-0932 | contextlabs.com/resources
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Technology
From IFA Berlin to CES 2027: OlloBot Continues Its Journey in Emotional Companionship
Published
4 hours agoon
November 1, 2026By
HONG KONG, Oct. 31, 2026 /PRNewswire/ — AI companion robot brand OlloBot made its European debut at IFA Berlin 2026, where its AI companion robot OlloNi SS1 was named an Honoree in the Best in Home & Entertainment category of the IFA Innovation Awards. The recognition, alongside feedback from visitors at the show, offered further encouragement for OlloBot’s belief that the future of home robotics lies not only in what robots can do, but also in the connections they can build with people.
In the Top 10 Trends in China’s Robotics and Embodied Intelligence Market for 2026, IDC identifies the evolution of educational and companion robots into all-age home intelligent terminals as a key trend. The report highlights a growing emphasis on long-term companionship, contextual understanding and ongoing content services, with value extending beyond specific functions to lasting relationships and services.
OlloBot is building its identity around this shift. Rather than developing humanoid robots or devices primarily centered on task execution, the brand is exploring a different path through what it calls “Cyber Pet,” an emerging category of home companions designed around emotional relationships. Its approach starts with a simple question: how can a robot become a familiar and meaningful presence in someone’s life?
For OlloBot, the answer lies in restraint. A companion robot should not replace human relationships or compete for a user’s constant attention. It should learn when to engage and when to step back. The goal is not about delivering a moment of novelty or amusement. It is about creating a unique relationship that can expand with each interaction and gradually become personally meaningful.
“We believe home robots need to enter the household through emotional connection,” said Lyn Fang, founder of OlloBot. “Technology can create the conditions for interaction, but meaningful companionship comes from how those interactions make people feel over time.”
At IFA, the enthusiasm from visitors offered a tangible reflection of this approach. Under the theme “Touch. Feel. Bond.,” OlloBot created an open, home-inspired setting where visitors could interact with OlloNi SS1 directly. Powered by OlloBot’s proprietary EmpathCore emotional engine and Affinilog interaction system, OlloNi SS1 engages dynamically through touch, sound and facial expressions. OlloNi SS1 also appeared in IFA’s “Robots on the Runway” showcase, where its emotional engine enabled it to react to its surroundings in real time. Visitors were not simply examining a device or comparing functions. They were exploring how it responded to them. The experience reinforced the brand’s conviction that, in the home, emotional connection can matter as much as technical capability.
Next stop: Las Vegas
The recognition and feedback at IFA mark an encouraging step as OlloBot continues to advance its product development and commercialization. Looking ahead to CES 2027, OlloBot is set to take the next step in its journey by introducing two all-new robot family members: a desktop lamp-form robot and OlloBot Gen 2. Visitors will also get a first look at a rich lineup of IP merchandise and ecosystem peripherals built around the flagship OlloVerse universe. Please stay tuned—OlloBot looks forward to welcoming everyone in Las Vegas and sharing how its expanding ecosystem continues to redefine emotional companionship in the home.
About OlloBot
OlloBot is an AI companion robot brand developed by Ollobot Robotics Limited, a Hong Kong-based company and part of BizConf Technology Co., Ltd. (SZSE: 300578).
The company focuses on embodied intelligence and family-oriented AI companion robots designed to support more natural interaction, emotional presence and connection in modern homes. Through its Cyber Pet concept, OlloBot aims to explore how AI and robotics can become a more meaningful and approachable part of everyday family life.
For more information, please visit ollobot.com.
YouTube:https://www.youtube.com/@ollo_botFacebook:https://www.facebook.com/ollobotofficialInstagram:https://www.instagram.com/ollo_botThreads:https://www.threads.com/@ollo_botTikTok:https://www.tiktok.com/@ollo_botX:https://x.com/OLLOBOT_Real
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SOURCE OlloBot
Technology
A new way to explore Japan with AI: Naviu AR Travel Companion for Japan Launches November 1 2026
Published
4 hours agoon
November 1, 2026By
Patent pending geospatial technology brings 29 language guidance and city scale AR navigation to travelers
TOKYO, Oct. 31, 2026 /PRNewswire/ — Naviu, a business under TANGLE Inc., offering an AI-powered augmented-reality travel companion for Japan, launches on iOS and Android on November 1. Built on patent-pending geospatial technology, Naviu places AR content and navigation accurately in the real world across entire cities, without requiring a visual positioning system.
Travelers can ask Naviu about anything around them and receive answers in any of 29 languages, grounded in their exact location. A semi-transparent AR path provides turn-by-turn guidance, an AI companion walks with the traveler, and the app reveals side-street cafes, local landmarks, and other places that conventional maps and guidebooks may overlook.
About Naviu
Naviu combines an ask-anything AI guide, city-scale AR navigation, photo recognition, bespoke trip planning, and an optional cultural storytelling companion. Its spatial content network also allows brands, cities, and creators to place interactive 3D and AR content in the real world. AR experiences are already live at landmarks including Senso-ji, Tokyo Skytree, Tokyo Tower, Meiji Jingu, and Tokyo Station.
Naviu is available on the App Store and Google Play.
Official site: naviu.app
Key Features
Ask-anything AI guide: Conversational answers about any place in 29 languages, grounded in precise location dataCultural storytelling and guidance: An optional companion mode that guides travelers street by street and narrates local history and storiesAR navigation: A semi-transparent augmented-reality path overlaid on real streets across entire citiesPhoto recognition: Travelers can point the camera at a temple, sign, or storefront and ask what it isBespoke trip planning: Itineraries built around dietary needs, interests, accessibility, and available timeSpatial content network: Brands, cities, and creators can place interactive 3D and AR content in the real world
Statement from the Head of Naviu
“The hard part of traveling in Japan isn’t getting lost. It’s standing in front of something remarkable with no idea what it is. Naviu answers that question in your own language, right where you’re standing, so the city opens up instead of staying a backdrop.”
Jack Mead
CEO of Ashita Co. and Head of Naviu
About TANGLE Inc
TANGLE Inc. is the Tokyo-based company behind the tour operators TOMOGO! and Untold Japan. Its mission, Make the City Yours, reflects a decade of helping travelers discover Japan beyond the guidebook and now extends that experience into software through Naviu.
Company
TANGLE Inc.
Headquarters
Tokyo, Japan
Representative Director
Kengo Goto
Business
TOMOGO!, Untold Japan, and development and operation of Naviu
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SOURCE TANGLE Inc.
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