How does eBay (EBAY) make money?

eBay (EBAY) generates revenue primarily from Marketplaces, which accounted for 81.6% of total revenue in TTM through Q1 2026. The company reported $11.6B in revenue and converted 17.6% of it into net profit, equivalent to roughly $2.04B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of eBay (EBAY)?

eBay (EBAY) reported a gross profit margin of 72% in TTM through Q1 2026, equivalent to $8.36B in gross profit on $11.6B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of eBay (EBAY)?

eBay (EBAY) reported an operating profit margin of 19.6% in TTM through Q1 2026, equivalent to $2.27B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of eBay (EBAY)?

eBay (EBAY) reported a net profit margin of 17.6% in TTM through Q1 2026, equivalent to $2.04B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is eBay (EBAY) profitable?

Yes. eBay (EBAY) reported $2.04B in net income for TTM through Q1 2026, with a net profit margin of 17.6%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does eBay (EBAY) invest in research and development?

eBay (EBAY) invested $1.73B in research and development during TTM through Q1 2026, roughly 14.9% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

How much does eBay (EBAY) spend on capital expenditures?

eBay (EBAY) spent $454M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 3.9% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does eBay (EBAY) generate?

eBay (EBAY) generated $1.69B in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 14.5%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of eBay (EBAY)?

eBay (EBAY) had an effective tax rate of 12.6% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of eBay (EBAY)?

eBay (EBAY) reports revenue across 2 reportable product segments, led by Marketplaces at 81.6% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

Where does eBay (EBAY) generate most of its revenue?

UNITED STATES is the largest geographic market for eBay (EBAY), accounting for 53.2% of revenue in the most recent annual filing. The complete regional split — including international markets and any Rest-of-World rollup — is shown in the revenue-by-geography table on this page.

How eBay Makes Money: 2026 Visual Revenue Map

eBay (EBAY) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported April 29, 2026).

eBay (EBAY) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for eBay (EBAY), TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Marketplaces	$9.47B	81.6%
Advertising Revenues	$2.13B	18.4%
Total	$11.6B	100%

Marketplaces$9.47B
Advertising Revenues$2.13B
Total$11.6B

eBay (EBAY) Revenue by Geography — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported regions changed mid-year.

Revenue contribution by geographic region for eBay (EBAY), TTM through Q1 2026
Region	Revenue (USD)	% of total
UNITED STATES	$6.18B	53.2%
Rest of World	$1.78B	15.3%
UNITED KINGDOM	$1.62B	14%
CHINA	$1.28B	11%
GERMANY	$748M	6.4%
Total	$11.6B	100%

UNITED STATES
Rest of World
UNITED KINGDOM
CHINA
GERMANY
Total

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, eBay (EBAY) reports revenue across 2 reportable product segments; the largest segment was Marketplaces at 81.6%, followed by Advertising Revenues (18.4%). Geographically, UNITED STATES accounted for 53.2% of revenue, followed by Rest of World (15.3%) and UNITED KINGDOM (14%).

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