eBay Inc. stock research
FY2025 Q1
eBay (EBAY) Gross Margin — Quarter Ended Mar 31, 2025
Revenue was stable versus both the prior quarter and the same quarter last year. Gross profit was level, while cost of revenue was lower sequentially, resulting in a slight improvement in gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue was stable versus both the prior quarter and the same quarter last year. Gross profit was level, while cost of revenue was lower sequentially, resulting in a slight improvement in gross margin.
- The main observable driver of gross margin improvement is the sequential decline in cost of revenue relative to stable revenue, which directly lifted gross profit as a share of revenue.
- Gross margin was marginally higher than both the immediately preceding quarter and the same quarter one year earlier. The cost of revenue was lower sequentially, while revenue and gross profit remained broadly unchanged.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
73.0%
Gross profit
$1.9B
Revenue
$2.6B
Cost of revenue
$697.0M
Quarter-over-quarter change
+0.9 pts
Year-over-year change
+0.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2024 | $2.6B | $1.8B | $735.0M | 71.4% |
| Sep 30, 2024 | $2.6B | $1.8B | $727.0M | 71.8% |
| Dec 31, 2024 | $2.6B | $1.9B | $718.0M | 72.2% |
| Mar 31, 2025 | $2.6B | $1.9B | $697.0M | 73.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+0.9 pts
Year-over-year change
Mar 31, 2024
+0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The main observable driver of gross margin improvement is the sequential decline in cost of revenue relative to stable revenue, which directly lifted gross profit as a share of revenue.
Gross margin was marginally higher than both the immediately preceding quarter and the same quarter one year earlier. The cost of revenue was lower sequentially, while revenue and gross profit remained broadly unchanged.
Monitor whether cost of revenue can sustain its lower level in coming quarters, as it was the primary factor behind the margin improvement.