eBay Inc. stock research
FY2025 Q4
eBay (EBAY) Gross Margin — Quarter Ended Dec 31, 2025
Revenue and gross profit both increased compared to the immediate prior quarter and the same quarter one year ago. Gross margin improved versus the prior quarter but weakened compared to the same quarter last year.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue and gross profit both increased compared to the immediate prior quarter and the same quarter one year ago. Gross margin improved versus the prior quarter but weakened compared to the same quarter last year.
- Gross profit grew more than cost of revenue relative to the prior quarter, driving the gross margin higher. This relationship reversed against the year-ago quarter, where cost of revenue grew faster relative to revenue.
- Compared to the prior quarter, gross margin improved as revenue growth outpaced cost of revenue growth. Compared to the same quarter last year, gross margin weakened as cost of revenue increased at a faster rate than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
71.4%
Gross profit
$2.1B
Revenue
$3.0B
Cost of revenue
$849.0M
Quarter-over-quarter change
+0.5 pts
Year-over-year change
-0.8 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 |
|---|---|---|---|---|
| Mar 31, 2025 | $2.6B | $1.9B | $697.0M | 73.0% |
| Jun 30, 2025 | $2.7B | $2.0B | $776.0M | 71.6% |
| Sep 30, 2025 | $2.8B | $2.0B | $821.0M | 70.9% |
| Dec 31, 2025 | $3.0B | $2.1B | $849.0M | 71.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
+0.5 pts
Year-over-year change
Dec 31, 2024
-0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit grew more than cost of revenue relative to the prior quarter, driving the gross margin higher. This relationship reversed against the year-ago quarter, where cost of revenue grew faster relative to revenue.
Compared to the prior quarter, gross margin improved as revenue growth outpaced cost of revenue growth. Compared to the same quarter last year, gross margin weakened as cost of revenue increased at a faster rate than revenue.
Monitor the relationship between revenue and cost of revenue growth rates to assess whether gross margin can stabilize or recover.