EB

eBay Inc. stock research

Jun 30, 2025

FY2025 Q2

eBay (EBAY) Gross Margin — Quarter Ended Jun 30, 2025

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. The gross margin declined from the preceding quarter but rose slightly from a year earlier, reflecting a mixed performance.

Gross margin takeaway

Quarter ended Jun 30, 2025 · FY2025 Q2

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. The gross margin declined from the preceding quarter but rose slightly from a year earlier, reflecting a mixed performance.

  • The relationship between cost of revenue and revenue growth is the primary observable driver. Sequentially, cost of revenue increased at a higher rate than revenue, while year-over-year the opposite occurred.
  • Compared to the immediately preceding quarter, gross margin weakened as cost of revenue rose more than revenue. Compared to the same quarter one year earlier, gross margin improved slightly as revenue growth outpaced cost of revenue growth.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

71.6%

Gross profit

$2.0B

Revenue

$2.7B

Cost of revenue

$776.0M

Quarter-over-quarter change

-1.5 pts

Year-over-year change

+0.2 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2024$2.6B$1.8B$727.0M71.8%
Dec 31, 2024$2.6B$1.9B$718.0M72.2%
Mar 31, 2025$2.6B$1.9B$697.0M73.0%
Jun 30, 2025$2.7B$2.0B$776.0M71.6%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2025

-1.5 pts

Year-over-year change

Jun 30, 2024

+0.2 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The relationship between cost of revenue and revenue growth is the primary observable driver. Sequentially, cost of revenue increased at a higher rate than revenue, while year-over-year the opposite occurred.

Compared to the immediately preceding quarter, gross margin weakened as cost of revenue rose more than revenue. Compared to the same quarter one year earlier, gross margin improved slightly as revenue growth outpaced cost of revenue growth.

Monitor the trend of cost of revenue growth relative to revenue growth in upcoming quarters.