Item 1. Financial Statements (unaudited)

Index

			Page
Condensed Consolidated Balance Sheet as of June 30, 2026 and December 31, 2025			6
Condensed Consolidated Statement of Income for the three and six months ended June 30, 2026 and 2025			7
Condensed Consolidated Statement of Comprehensive Income for the three and six months ended June 30, 2026 and 2025			8
Condensed Consolidated Statement of Stockholders’ Equity for the three and six months ended June 30, 2026 and 2025			9
Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2026 and 2025			10
Notes to Condensed Consolidated Financial Statements			12
Note 1 — The Company and Summary of Significant Accounting Policies			12
Note 2 — Net Income Per Share			17
Note 3 — Goodwill			18
Note 4 — Segments			19
Note 5 — Investments			20
Note 6 — Derivative Instruments			24
Note 7 — Fair Value Measurement of Assets and Liabilities			28
Note 8 — Supplemental Consolidated Financial Information			31
Note 9 — Debt			33
Note 10 — Commitments and Contingencies			36
Note 11 — Stockholders’ Equity			38
Note 12 — Employee Benefit Plans			39
Note 13 — Income Taxes			40
Note 14 — Accumulated Other Comprehensive Income			41

eBay Inc.

CONDENSED CONSOLIDATED BALANCE SHEET

			June 30, 2026						December 31, 2025
			(In millions, except par value)
			(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents			$	2,310					$	1,867
Short-term investments			997						1,052
Customer accounts and funds receivable			1,589						1,280
Other current assets			1,107						887
Total current assets			6,003						5,086
Long-term investments			2,317						2,767
Property and equipment, net			1,301						1,165
Goodwill			4,471						4,467
Operating lease right-of-use assets			394						428
Deferred tax assets			2,929						2,959
Other assets			518						565
Total assets			$	17,933					$	17,437
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt			$	1,593					$	750
Accounts payable			353						242
Customer accounts and funds payable			1,589						1,280
Accrued expenses and other current liabilities			2,334						2,257
Income taxes payable			23						108
Total current liabilities			5,892						4,637
Operating lease liabilities			278						315
Deferred tax liabilities			1,446						1,431
Long-term debt			5,142						5,996
Other liabilities			510						575
Total liabilities			13,268						12,954
Commitments and Contingencies (Note 10)
Stockholders’ equity:
Common stock, $0.001 par value; 3,580 shares authorized; 445 and 449 shares outstanding			2						2
Additional paid-in capital			19,009						18,785
Treasury stock at cost, 1,316 and 1,307 shares			(54,621)						(53,807)
Retained earnings			40,072						39,296
Accumulated other comprehensive income			203						207
Total stockholders’ equity			4,665						4,483
Total liabilities and stockholders’ equity			$	17,933					$	17,437

The accompanying notes are an integral part of these condensed consolidated financial statements.

eBay Inc.

CONDENSED CONSOLIDATED STATEMENT OF INCOME

			Three Months Ended June 30,												Six Months Ended June 30,
			2026						2025						2026						2025
			(In millions, except per share amounts)
			(Unaudited)
Net revenues			$	3,134					$	2,730					$	6,223					$	5,315
Cost of net revenues			832						750						1,634						1,447
Gross profit			2,302						1,980						4,589						3,868
Operating expenses:
Sales and marketing			697						586						1,370						1,122
Product development			484						452						934						845
General and administrative			306						371						716						632
Transaction losses			133						86						271						167
Amortization of acquired intangible assets			6						6						11						12
Total operating expenses			1,626						1,501						3,302						2,778
Income from operations			676						479						1,287						1,090
Interest and other:
Gain (loss) on equity investments and warrants, net			2						(4)						4						(6)
Interest expense			(65)						(62)						(126)						(123)
Interest income and other, net			52						59						118						140
Income from continuing operations before income taxes			665						472						1,283						1,101
Income tax provision			(113)						(107)						(219)						(235)
Income from continuing operations			552						365						1,064						866
Loss from discontinued operations, net of income taxes			(2)						(1)						(2)						(3)
Net income			$	550					$	364					$	1,062					$	863
Income (loss) per share - basic:
Continuing operations			$	1.24					$	0.79					$	2.38					$	1.86
Discontinued operations			—						—						—						(0.01)
Net income per share - basic			$	1.24					$	0.79					$	2.38					$	1.85
Income (loss) per share - diluted:
Continuing operations			$	1.21					$	0.78					$	2.33					$	1.83
Discontinued operations			—						—						—						(0.01)
Net income per share - diluted			$	1.21					$	0.78					$	2.33					$	1.82
Weighted-average shares:
Basic			445						461						447						465
Diluted			455						470						457						473

The accompanying notes are an integral part of these condensed consolidated financial statements.

eBay Inc.

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

			Three Months Ended June 30,												Six Months Ended June 30,
			2026						2025						2026						2025
			(In millions)
			(Unaudited)
Net income			$	550					$	364					$	1,062					$	863
Other comprehensive income (loss), net of reclassification adjustments:
Foreign currency translation gains (losses)			(12)						39						(19)						64
Unrealized gains (losses) on investments, net			(4)						10						(18)						18
Tax benefit (expense) on unrealized gains (losses) on investments, net			1						(2)						4						(4)
Unrealized gains (losses) on hedging activities, net			9						(55)						36						(114)
Tax benefit (expense) on unrealized gains (losses) on hedging activities, net			(2)						11						(7)						25
Other comprehensive income (loss), net of tax			(8)						3						(4)						(11)
Comprehensive income			$	542					$	367					$	1,058					$	852

The accompanying notes are an integral part of these condensed consolidated financial statements.

eBay Inc.

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

			Three Months Ended June 30,												Six Months Ended June 30,
			2026						2025						2026						2025
			(In millions, except per share amounts)
			(Unaudited)
Common stock:
Balance, beginning of period			$	2					$	2					$	2					$	2
Common stock issued			—						—						—						—
Common stock repurchased			—						—						—						—
Balance, end of period			2						2						2						2
Additional paid-in capital:
Balance, beginning of period			18,844						18,362						18,785						18,289
Common stock and stock-based awards issued			62						93						64						93
Stock-based compensation			182						167						338						304
Tax withholdings related to net share settlements of restricted stock units and awards			(83)						(68)						(189)						(137)
Other			4						4						11						9
Balance, end of period			19,009						18,558						19,009						18,558
Treasury stock at cost:
Balance, beginning of period			(54,310)						(51,920)						(53,807)						(51,290)
Common stock repurchased			(311)						(628)						(814)						(1,258)
Balance, end of period			(54,621)						(52,548)						(54,621)						(52,548)
Retained earnings:
Balance, beginning of period (as adjusted)			39,665						38,193						39,296						37,834
Net income			550						364						1,062						863
Dividends and dividend equivalents declared			(143)						(140)						(286)						(280)
Balance, end of period			40,072						38,417						40,072						38,417
Accumulated other comprehensive income:
Balance, beginning of period			211						192						207						206
Foreign currency translation adjustment			(12)						39						(19)						64
Change in unrealized gains (losses) on investments			(4)						10						(18)						18
Change in unrealized gains (losses) on derivative instruments			9						(55)						36						(114)
Tax benefit (provision) on above items			(1)						9						(3)						21
Balance, end of period			203						195						203						195
Total stockholders’ equity			$	4,665					$	4,624					$	4,665					$	4,624
Dividends and dividend equivalents declared per share or restricted stock unit			$	0.31					$	0.29					$	0.62					$	0.58

The accompanying notes are an integral part of these condensed consolidated financial statements.

eBay Inc.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

			Six Months Ended June 30,
			2026						2025
			(In millions)
			(Unaudited)
Cash flows from operating activities:
Net income			$	1,062					$	863
Loss from discontinued operations, net of income taxes			2						3
Adjustments:
Transaction losses			271						167
Depreciation and amortization			194						131
Stock-based compensation			338						301
Deferred income taxes			43						(58)
Gain on investments, warrants and other, net			(30)						(3)
Changes in assets and liabilities, net of acquisition effects			(361)						(989)
Net cash provided by continuing operating activities			1,519						415
Net cash used in discontinued operating activities			(27)						—
Net cash provided by operating activities			1,492						415
Cash flows from investing activities:
Purchases of property and equipment			(295)						(212)
Purchases of investments			(1,409)						(5,007)
Maturities of investments			1,064						6,530
Sales of investments			684						—
Shareholder distributions from equity investments			194						225
Acquisitions and other			(39)						(92)
Net cash provided by investing activities			199						1,444
Cash flows from financing activities:
Proceeds from issuance of common stock			64						93
Repurchases of common stock			(809)						(1,239)
Payments for taxes related to net share settlements of restricted stock units and awards			(189)						(137)
Payments for dividends			(277)						(268)
Repayment of senior notes			(750)						(800)
Proceeds from issuance of commercial paper			739						943
Repayment of commercial paper			—						(818)
Net funds receivable and payable activity			213						288
Other			(16)						(26)
Net cash used in financing activities			(1,025)						(1,964)
Effect of exchange rate changes on cash, cash equivalents and restricted cash			(23)						50
Net increase (decrease) in cash, cash equivalents and restricted cash			643						(55)
Cash, cash equivalents and restricted cash at beginning of period			3,055						3,286
Cash, cash equivalents and restricted cash at end of period			$	3,698					$	3,231

eBay Inc.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS—(Continued)

			Six Months Ended June 30,
			2026						2025
			(In millions)
			(Unaudited)
Supplemental cash flow disclosures of continuing operations:
Cash paid for:
Interest			$	118					$	132
Income taxes			$	326					$	1,120

The following table reconciles cash, cash equivalents and restricted cash as reported in the condensed consolidated balance sheet to the total of the same amounts presented in the condensed consolidated statement of cash flows as of the dates indicated:

			June 30,
			2026						2025
			(In millions)
			(Unaudited)
Cash and cash equivalents			$	2,310					$	2,070
Customer accounts (including restricted cash of $446 and $365, respectively)			1,231						1,007
Restricted cash included in other current assets			156						152
Restricted cash included in other assets			1						2
Cash, cash equivalents and restricted cash			$	3,698					$	3,231

The accompanying notes are an integral part of these condensed consolidated financial statements.

eBay Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1 — The Company and Summary of Significant Accounting Policies

The Company

eBay Inc. 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. Our Marketplace platforms, including our online marketplace located at www.ebay.com and its localized counterparts, our off-platform marketplaces, and our suite of mobile apps, together, create one of the world's largest and most vibrant marketplaces for discovering great value and a unique selection.

When we refer to “we,” “our,” “us,” the “Company” or “eBay” in this Quarterly Report on Form 10-Q, we mean the Delaware corporation (eBay Inc.) and its consolidated subsidiaries, unless otherwise expressly stated or the context otherwise requires.

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including but not limited to those related to transaction losses, legal contingencies, income taxes, revenue recognition, stock-based compensation, investments, including Level 3 investments, warrants and the recoverability of goodwill. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ from those estimates.

Principles of Consolidation and Basis of Presentation

The accompanying financial statements are consolidated and include the financial statements of eBay Inc. and our wholly and majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. A qualitative approach is applied to assess the consolidation requirement for variable interest entities. Generally, investments in entities where we hold at least a 20% ownership interest and have the ability to exercise significant influence, but not control, over the investee are accounted for using the equity method of accounting, including those in which the fair value option has been elected.

For equity method investments, our share of the investees’ results of operations is included in “Gain (loss) on equity investments and warrants, net” and investment balances are included in “Long-term investments.” For equity method investments under the fair value option, the change in fair value of the investment is included in “Gain (loss) on equity investments and warrants, net” and investment balances are included in “Long-term investments.” Investments in entities where we hold less than a 20% ownership interest are generally accounted for as equity investments to be measured at fair value, under an election, or at cost if it does not have readily determinable fair value, in which case the carrying value would be adjusted upon the occurrence of an observable price change in an orderly transaction for identical or similar instruments or impairment. For investments in entities where we hold less than a 20% ownership interest, the change in fair value of, or any impairment related to, the investment is included in “Gain (loss) on equity investments and warrants, net” and investment balances are included in “Long-term investments.”

These condensed consolidated financial statements and accompanying notes should be read in conjunction with the audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Form 10-K”). We have evaluated all subsequent events through the date these condensed consolidated financial statements were issued. In the opinion of management, these condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of the condensed consolidated financial position, results of operations and cash flows for these interim periods.

eBay Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Significant Accounting Policies

There were no significant changes to our significant accounting policies disclosed in “Note 1 — The Company and Summary of Significant Accounting Policies” in our 2025 Form 10-K, except for our policy related to internal use software costs to reflect the adoption of Accounting Standards Update (“ASU”) 2025-06 beginning in the first quarter of 2026, as noted below.

Internal use software costs

Platform development costs, including direct labor and stock-based compensation, are capitalized when (i) management has authorized and committed to funding the project and (ii) it is probable that the project will be completed and the software will be used to perform its intended function. Costs incurred prior to meeting these criteria are expensed as incurred. Due to the iterative and agile nature of the Company’s product development processes, the Company has determined that significant development uncertainty generally persists until the software is deployed, or within a short period prior to deployment. As a result, we did not capitalize platform development cost for any of the periods presented.

Recently Adopted Accounting Pronouncements

In 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07—Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The guidance is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses, enabling investors to better understand an entity’s overall performance and assess potential future cash flows. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The standard is effective for annual reporting periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. We adopted this guidance in the fourth quarter of 2024 with no material impact on our consolidated financial statements and related disclosures.

In 2023, the FASB issued ASU 2023-08—Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets. The guidance addresses the accounting and disclosure requirements for certain crypto assets and requires entities to subsequently measure certain crypto assets at fair value, with changes in fair value recognized in net income in each reporting period. In addition, entities are required to provide additional disclosures about the holdings of certain crypto assets. The standard is effective for annual reporting periods beginning after December 15, 2024, including interim reporting periods within those fiscal years. We adopted this guidance in the first quarter of 2025 with no material impact on our consolidated financial statements and related disclosures.

In 2023, the FASB issued ASU 2023-09—Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The guidance is intended to further standardize income tax disclosures primarily related to the presentation of the effective tax rate reconciliation and income taxes paid information on our financial statements and disclosures. The standard is effective for annual reporting periods beginning after December 15, 2024. We adopted this guidance prospectively in the fourth quarter of 2025 with no material impact on our consolidated financial statements.

In 2025, the FASB issued ASU 2025-06—Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The guidance is intended to improve certain aspects of the accounting for and disclosure of internally developed software costs specific to website development. The standard is effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. We have elected to early adopt the standard effective January 1, 2026, using the retrospective transition method, which required us to recast each prior reporting period presented consistent with the new standard.

eBay Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

The most significant impact of the standard relates to the capitalization of product development cost for our Marketplace platforms. Under the new standard, due to the iterative and agile nature of our product development, we have determined that significant development uncertainty generally persists until the software is deployed, or within a short period prior to deployment. Consequently, we expect substantially all product development costs related to the Company’s Marketplace platforms would be expensed as the probable-to-complete threshold would not have been met.

Adoption of the standard using the retrospective method impacted our previously reported results as follows (in millions, except per share data):

CONDENSED CONSOLIDATED BALANCE SHEET
			December 31, 2025
			As Reported						Adjustments from Adoption of ASU 2025-06						As Adjusted
Property and equipment, net			$	1,338					$	(173)					$	1,165
Deferred and other tax liabilities, net			$	1,472					$	(41)					$	1,431
Retained earnings			$	39,428					$	(132)					$	39,296

CONDENSED CONSOLIDATED STATEMENT OF INCOME
			Three Months Ended June 30, 2025
			As Reported						Adjustments from Adoption of ASU 2025-06						As Adjusted
Cost of net revenues			$	776					$	(26)					$	750
Product development			$	421					$	31					$	452
Income tax provision			$	(108)					$	1					$	(107)
Income from continuing operations			$	369					$	(4)					$	365
Net income			$	368					$	(4)					$	364
Income per share - basic:
Continuing operations			$	0.80					$	(0.01)					$	0.79
Discontinued operations			—						—						—
Net income per share - basic			$	0.80					$	(0.01)					$	0.79
Income per share - diluted:
Continuing operations			$	0.79					$	(0.01)					$	0.78
Discontinued operations			—						—						—
Net income per share - diluted			$	0.79					$	(0.01)					$	0.78

eBay Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

CONDENSED CONSOLIDATED STATEMENT OF INCOME
			Six Months Ended June 30, 2025
			As Reported						Adjustments from Adoption of ASU 2025-06						As Adjusted
Cost of net revenues			$	1,499					$	(52)					$	1,447
Product development			$	783					$	62					$	845
Income tax provision			$	(237)					$	2					$	(235)
Income from continuing operations			$	874					$	(8)					$	866
Net income			$	871					$	(8)					$	863
Income (loss) per share - basic:
Continuing operations			$	1.88					$	(0.02)					$	1.86
Discontinued operations			(0.01)						—						(0.01)
Net income per share - basic			$	1.87					$	(0.02)					$	1.85
Income (loss) per share - diluted:
Continuing operations			$	1.85					$	(0.02)					$	1.83
Discontinued operations			(0.01)						—						(0.01)
Net income per share - diluted			$	1.84					$	(0.02)					$	1.82

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
			Six Months Ended June 30, 2025
			As Reported						Adjustments from Adoption of ASU 2025-06						As Adjusted
Net income			$	871					$	(8)					$	863
Depreciation and amortization			$	186					$	(55)					$	131
Deferred income taxes			$	(56)					$	(2)					$	(58)
Purchases of property and equipment			$	(277)					$	65					$	(212)

Recent Accounting Pronouncements Not Yet Adopted

In 2024, the FASB issued ASU 2024-03—Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The guidance is intended to improve disclosures about expenses and address requests from investors for more transparent expense information through disaggregation of relevant expense captions in the notes to the financial statements. The standard is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. We are evaluating the effect that this standard may have on our consolidated financial statements and related disclosures.

In 2025, the FASB issued ASU 2025-07—Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606): Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract. The guidance refines the scope of the guidance on derivatives in ASC 815 (Issue 1) and clarifies the guidance on share-based payments from a customer in ASC 606 (Issue 2) and is intended to address concerns about the application of derivative accounting to contracts that have features based on the operations or activities of one of the parties to the contract and to reduce diversity in the accounting for share-based payments in revenue contracts. The standard is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. We are evaluating the effect that this standard may have on our consolidated financial statements and related disclosures.

eBay Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

In 2025, the FASB issued ASU 2025-09—Derivatives and Hedging (Topic 815): Hedge Accounting Improvements. The guidance is intended to more closely align hedge accounting with the economics of risk management activities. The standard is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. We are evaluating the effect that this standard may have on our consolidated financial statements and related disclosures.

In 2025, the FASB issued ASU 2025-11—Interim Reporting (Topic 270): Narrow-Scope Improvements. The guidance is intended to improve the navigability of the guidance in ASC 270 and clarify when it applies. The guidance also adds lists to ASC 270 of the interim disclosures required by all other Codification topics and establishes a principle under which an entity must disclose events since the end of the last annual reporting period that have a material impact on the entity. The standard is effective for annual reporting periods beginning after December 15, 2027. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements and related disclosures.

In 2026, the FASB issued ASU 2026-02—Environmental Credits and Environmental Credit Obligations (Topic 818). The guidance introduces a comprehensive model that establishes recognition, measurement, presentation, and disclosure requirements for environmental credits and, when applicable, compliance obligations that may be settled by using environmental credits. The standard is effective for annual reporting periods beginning after December 15, 2027 and interim reporting periods within those annual reporting periods. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements and related disclosures.

eBay Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Note 2 — Net Income Per Share

Basic net income per share is computed by dividing net income for the period by the weighted average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing net income for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding during the period. The dilutive effect of outstanding options and equity incentive awards is reflected in diluted net income per share by application of the treasury stock method. The calculation of diluted net income per share excludes all anti-dilutive shares of common stock.

The following table presents the computation of basic and diluted net income per share for the periods indicated (in millions, except per share amounts):

			Three Months Ended June 30,												Six Months Ended June 30,
			2026						2025						2026						2025
Numerator:
Income from continuing operations			$	552					$	365					$	1,064					$	866
Loss from discontinued operations, net of income taxes			(2)						(1)						(2)						(3)
Net income			$	550					$	364					$	1,062					$	863
Denominator:
Weighted average shares of common stock - basic			445						461						447						465
Dilutive effect of equity incentive awards			10						9						10						8
Weighted average shares of common stock - diluted			455						470						457						473
Income (loss) per share - basic:
Continuing operations			$	1.24					$	0.79					$	2.38					$	1.86
Discontinued operations			—						—						—						(0.01)
Net income per share - basic			$	1.24					$	0.79					$	2.38					$	1.85
Income (loss) per share - diluted:
Continuing operations			$	1.21					$	0.78					$	2.33					$	1.83
Discontinued operations			—						—						—						(0.01)
Net income per share - diluted			$	1.21					$	0.78					$	2.33					$	1.82
Common stock equivalents excluded from income per diluted share because their effect would have been anti-dilutive			1						—						1						—

eBay Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Note 3 — Goodwill

Goodwill

The following table presents goodwill activity for the period indicated (in millions):

			December 31, 2025						Goodwill Acquired						Adjustments						June 30, 2026
Goodwill			$	4,467					$	12					$	(8)					$	4,471

The measurement period relating to the acquisition of Caramel ended in February 2026 while the measurement period relating to the acquisition of Tise ends in October 2026. The adjustments to goodwill for the six months ended June 30, 2026 were primarily due to foreign currency translation.

Acquisition of Depop Limited

In February 2026, we entered into a definitive agreement to acquire all of the outstanding equity interests of Depop Limited, a leading consumer-to-consumer (“C2C”) fashion marketplace, for $1.2 billion in cash, subject to certain purchase price adjustments. The transaction closed on July 30, 2026, strengthening our leadership in circular fashion and recommerce. We paid $1.4 billion in cash, inclusive of preliminary purchase price adjustments, subject to finalization. The preliminary purchase price adjustments reflect certain investments made by Depop prior to the acquisition close.

Due to the proximity of the closing date of the transaction to the filing date of this Quarterly Report, the initial accounting for the transaction is incomplete and therefore we are unable to disclose certain information required by ASC 805, Business Combinations, including the provisional amounts recognized as of the acquisition date for each major class of assets acquired, liabilities assumed and goodwill, and as such, required disclosures will be presented in future periods.

eBay Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Note 4 — Segments

We have one reportable segment, which reflects how the chief operating decision maker (“CODM”), the Company’s President and Chief Executive Officer, reviews and assesses performance of the business. The CODM assesses the performance of the Company and decides how to allocate resources based on consolidated net income reported in the condensed consolidated statement of income. The CODM uses consolidated net income in deciding whether to reinvest profits into certain parts of the business or return a portion of such profits to shareholders through dividends and stock repurchases. Significant expense categories regularly provided to and reviewed by the CODM are those presented in the condensed consolidated statement of income. The measure of segment assets is reported on the condensed consolidated balance sheet as total assets, although the CODM does not evaluate asset information for purposes of allocating resources or evaluating performance.

Net Revenues

The following table summarizes net revenues by activity for the periods indicated (in millions):

			Three Months Ended June 30,												Six Months Ended June 30,
			2026						2025						2026						2025
Marketplace revenues			$	2,538					$	2,248					$	5,046					$	4,391
Advertising revenues			596						482						1,177						924
Total net revenues			$	3,134					$	2,730					$	6,223					$	5,315

Net Revenues by Geography

Net revenues, inclusive of the effects of foreign exchange during each period, are attributed to the United States and international geographies primarily based upon the country in which the customer is located.

The following table summarizes net revenues based on geography for the periods indicated (in millions):

			Three Months Ended June 30,												Six Months Ended June 30,
			2026						2025						2026						2025
United States			$	1,757					$	1,397					$	3,490					$	2,743
United Kingdom			387						381						774						712
China			330						314						653						611
Rest of world			660						638						1,306						1,249
Total net revenues			$	3,134					$	2,730					$	6,223					$	5,315

eBay Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Note 5 — Investments

The following tables summarize the unrealized gains and losses and estimated fair value of our investments classified as available-for-sale debt securities as of the dates indicated (in millions):

			June 30, 2026
			Gross Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Estimated Fair Value
Short-term investments:
Corporate bonds			$	763					$	1					$	—					$	764
Commercial paper			149						—						—						149
Government and agency securities			84						—						—						84
			$	996					$	1					$	—					$	997
Long-term investments:
Corporate bonds			$	1,522					$	4					$	(6)					$	1,520
Government and agency securities			24						—						—						24
			$	1,546					$	4					$	(6)					$	1,544

			December 31, 2025
			Gross Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Estimated Fair Value
Short-term investments:
Corporate bonds			$	743					$	2					$	—					$	745
Commercial paper			243						—						—						243
Government and agency securities			65						—						(1)						64
			$	1,051					$	2					$	(1)					$	1,052
Long-term investments:
Corporate bonds			$	1,797					$	16					$	—					$	1,813
Government and agency securities			25						—						—						25
			$	1,822					$	16					$	—					$	1,838

Our fixed-income investments predominantly consist of investment grade corporate bonds, commercial paper and government and agency securities. The corporate bonds, commercial paper and government and agency securities that we invest in are generally deemed to be low risk based on their credit ratings from the major rating agencies to minimize exposure to credit losses. As of June 30, 2026, unrealized losses on available-for-sale debt securities were primarily related to continued market volatility. The Company does not intend and is not more likely than not required to sell the investments before the recovery of the amortized cost basis. We did not recognize any credit-related impairment through an allowance for credit losses as of June 30, 2026.

The following tables present fair values and gross unrealized losses recorded to “Accumulated other comprehensive income” (“AOCI”) as of June 30, 2026 and December 31, 2025, aggregated by the length of time that individual securities have been in a continuous loss position (in millions):

						June 30, 2026
						Less than 12 months												Greater than 12 months												Total
						Fair Value						Unrealized Loss						Fair Value						Unrealized Loss						Fair Value						Unrealized Loss
Corporate bonds						$	1,240					$	(6)					$	12					$	—					$	1,252					$	(6)

eBay Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

						December 31, 2025
						Less than 12 months												Greater than 12 months												Total
						Fair Value						Unrealized Loss						Fair Value						Unrealized Loss						Fair Value						Unrealized Loss
Corporate bonds						$	434					$	—					$	7					$	—					$	441					$	—
Government and agency securities						11						—						64						(1)						75						(1)
						$	445					$	—					$	71					$	(1)					$	516					$	(1)

Refer to “Note 14 — Accumulated Other Comprehensive Income” for amounts reclassified to earnings from AOCI.

The following table presents estimated fair values of our short-term and long-term investments classified as available-for-sale debt securities by date of contractual maturity as of the date indicated (in millions):

			June 30, 2026
One year or less			$	997
One year through two years			563
Two years through three years			499
Three years through four years			252
Four years through five years			196
Thereafter			34
Total			$	2,541

Equity Investments

The following table summarizes our equity investments as of the dates indicated (in millions):

			Balance Sheet Location						June 30, 2026						December 31, 2025
Equity investments without readily determinable fair values			Long-term investments						$	670					$	825
Equity investments under the equity method of accounting			Long-term investments						48						49
Equity investments under the fair value option			Long-term investments						55						55
Total equity investments									$	773					$	929

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Equity investments without readily determinable fair values

Equity investments without readily determinable fair values are non-marketable equity securities, which are investments in privately-held companies for which we do not exercise significant influence and are accounted for under the measurement alternative. Under the measurement alternative, the carrying value is measured at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. Changes in value and impairments of equity investments without readily determinable fair values are recognized in “Gain (loss) on equity investments and warrants, net” on our condensed consolidated statement of income. Equity investments without readily determinable fair values are presented within “Long-term investments” on our condensed consolidated balance sheet.

Equity investment in Aurelia

In the second quarter of 2024, we completed the sale of (1) 227 million Adevinta ASA (“Adevinta”) shares in exchange for $2.4 billion in cash and (2) 177 million Adevinta shares in exchange for 177 million shares of a new entity, Aurelia Netherlands TopCo B.V. (“Aurelia”). The newly acquired investment in Aurelia was valued at $1.9 billion and represented approximately 18.3% ownership of the outstanding equity.

Concurrently, we granted Aurelia UK Feederco Limited, the buyer of our previously owned Adevinta shares, a six-month option to purchase a portion of our Aurelia shares (the “Aurelia Option”). In the fourth quarter of 2024, the Aurelia Option was exercised, upon which we sold 97 million shares in Aurelia in exchange for $1.0 billion in cash. The remaining investment represented 8.3% of the outstanding equity of Aurelia.

The equity investment in Aurelia is accounted for under the measurement alternative as we are not able to exercise significant influence based on the governance structure of Aurelia.

In the first quarter of 2025, Aurelia implemented a recapitalization in connection with the creation of a management incentive plan. Prior to the recapitalization, we only held common shares in Aurelia. Subsequent to the recapitalization, we now hold both common and preferred shares in Aurelia.

In the second quarter of 2025 and the first quarter of 2026, we received cash distributions of $225 million and $194 million, respectively, related to our equity investment in Aurelia. These distributions represent a return of capital based on the nature of the transactions and terms of Aurelia’s shareholder agreement to which we are party. The distributions resulted in reductions of $214 million and $179 million, respectively, to the carrying value of the investment on our condensed consolidated balance sheet and foreign exchange gains of $11 million and $15 million, respectively, recognized in “Interest income and other, net” on our condensed consolidated statement of income. Cash received from the distributions was classified as investing activities on our condensed consolidated statement of cash flows.

The recapitalization and the shareholder distributions did not impact our ownership as we continued to own approximately 8.3% of the total outstanding preferred and common shares of Aurelia as of June 30, 2026.

The carrying value of our remaining investment in Aurelia was $474 million as of June 30, 2026 compared to $653 million as of December 31, 2025.

Other equity investments without readily determinable fair values

Certain other individually immaterial equity investments aggregating to $196 million and $172 million as of June 30, 2026 and December 31, 2025, respectively, are accounted for under the measurement alternative. The change in value of our other equity investments without readily determinable fair values for each of the three and six-month periods ended June 30, 2026 and 2025 was immaterial both individually and in the aggregate.

eBay Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Equity investments under the equity method of accounting

We account for certain other individually immaterial equity investments through which we exercise significant influence but do not have control over the investee under the equity method. Our condensed consolidated statement of income includes, as a component of “Gain (loss) on equity investments and warrants, net,” our share of the net income or loss of the investee. Equity method investments are presented within “Long-term investments” on our condensed consolidated balance sheet.

Certain individually immaterial equity investments aggregating to $48 million and $49 million as of June 30, 2026 and December 31, 2025, respectively, are accounted for under the equity method of accounting. Our share of the net income or loss of our equity method investments for each of the three and six-month periods ended June 30, 2026 and 2025 was immaterial both individually and in the aggregate.

Equity investments under the fair value option

Certain individually immaterial equity investments aggregating to $55 million as of both June 30, 2026 and December 31, 2025 are measured at fair value using the net asset value per share and therefore have not been classified in the fair value hierarchy. Refer to “Note 7 — Fair Value Measurement of Assets and Liabilities” for more information.

Gains and losses on equity investments

The following table summarizes unrealized gains and losses on equity investments for the three and six months ended June 30, 2026 and 2025 as presented within “Gain (loss) on equity investments and warrants, net” for the periods indicated (in millions):

			Three Months Ended June 30,												Six Months Ended June 30,
			2026						2025						2026						2025
Net gains (losses) recognized during the period on equity investments			$	—					$	(4)					$	11					$	(6)
Less: Net gains recognized on equity investments sold during the period			—						—						—						2
Total unrealized gains (losses) on equity investments held, end of period			$	—					$	(4)					$	11					$	(8)

eBay Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Note 6 — Derivative Instruments

Our primary objective in holding derivatives is to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates and interest rates. These hedging contracts reduce, but do not entirely eliminate, the impact of adverse foreign exchange rate and interest rate movements. We do not use any of our derivative instruments for trading purposes.

We use foreign currency exchange contracts to reduce the volatility of cash flows related to forecasted revenues, expenses, assets and liabilities, including intercompany balances denominated in foreign currencies. These contracts are generally one month to one year in duration but with maturities up to 24 months. The objective of the foreign exchange contracts is to ensure that ultimately the U.S. dollar-equivalent cash flows are not adversely affected by changes in the applicable U.S. dollar/foreign currency exchange rate. We evaluate the effectiveness of our foreign exchange contracts designated as cash flow hedges on a quarterly basis.

We use interest rate swaps to manage interest rate risk on our fixed rate notes issued in November 2025 and maturing in 2035. These interest rate swaps had the economic effect of modifying the fixed interest obligations associated with $400 million of these notes so that the interest payable on these senior notes effectively became variable based on Secured Overnight Financing Rate (“SOFR”) plus a spread. The duration of these interest rate contracts is for three years and five years expiring in November 2028 and 2030 respectively.

In 2024, we entered into derivative instruments to hedge the variability of forecasted interest payments on anticipated debt issuance using forward-starting interest rate swaps. These interest rate swaps effectively fixed the benchmark interest rate and had the economic effect of hedging the variability of forecasted interest payments for up to ten years on an anticipated debt issuance. Similar to other cash flow hedges, we recorded changes in the fair value of these interest rate swaps in AOCI until the anticipated debt issuance. In November 2025, we issued $1.0 billion of senior notes, which consisted of notes maturing in 2029 and 2035. As a result, we terminated the interest rate swaps and the immaterial gain associated with the termination will be amortized to interest expense over the term of our notes due in November 2035.

Cash Flow Hedges

For derivative instruments that are designated as cash flow hedges, the derivative’s gain or loss is initially reported as a component of AOCI and subsequently reclassified into earnings in the same period the forecasted hedged transaction affects earnings. Derivative instruments designated as cash flow hedges must be de-designated as hedges when it is probable that the forecasted hedged transaction will not occur in the initially identified time period or within a subsequent two-month time period. Unrealized gains and losses in AOCI associated with such derivative instruments are immediately reclassified into earnings. As of June 30, 2026, we have estimated that $7 million of net derivative losses related to our foreign exchange cash flow hedges and $6 million of net derivative gains related to our interest rate cash flow hedges included in AOCI will be reclassified into earnings within the next 12 months. We classify cash flows related to our cash flow hedges as operating activities on our condensed consolidated statement of cash flows.

Fair Value Hedges

We have designated the interest rate swaps used to manage interest rate risk on our fixed rate notes issued in November 2025 and maturing in 2035 as qualifying hedging instruments and are accounting for them as fair value hedges. These transactions are designated as fair value hedges for financial accounting purposes because they protect us against changes in the fair value of certain of our fixed rate borrowings due to benchmark interest rate movements. Changes in the fair values of these interest rate swap agreements are recognized in other assets or other liabilities with a corresponding increase or decrease in long-term debt. Each quarter, the net amount between the interest we expect to pay based on SOFR plus a spread to the counterparty and the interest we expect to receive from the counterparty per the fixed rate of these senior notes is recognized as “Interest expense.”

eBay Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Non-Designated Hedges

Our derivatives not designated as hedging instruments consist of foreign currency forward contracts that we primarily use to hedge monetary assets or liabilities, including intercompany balances and equity investments denominated in non-functional currencies. The gains and losses on our derivatives not designated as hedging instruments are recognized in “Interest income and other, net,” which are offset by the foreign currency gains and losses on the related assets and liabilities that are also recognized in “Interest income and other, net.” We classify cash flows related to our non-designated hedging instruments in the same line item as the cash flows of the related assets or liabilities, which is generally within operating activities on our condensed consolidated statement of cash flows. Cash flows related to the settlement of non-designated hedging instruments related to equity investments are classified within investing activities on our condensed consolidated statement of cash flows.

Fair Value of Derivative Contracts

The following table presents the fair values of our outstanding derivative instruments as of the dates indicated (in millions):

			Balance Sheet Location						June 30, 2026						December 31, 2025
Derivative Assets:
Foreign exchange contracts designated as cash flow hedges			Other current assets						$	28					$	8
Foreign exchange contracts not designated as hedging instruments			Other current assets						22						9
Foreign exchange contracts designated as cash flow hedges			Other assets						14						12
Warrants and other			Other assets						3						10
Total derivative assets									$	67					$	39
Derivative Liabilities:
Foreign exchange contracts designated as cash flow hedges			Other current liabilities						$	5					$	5
Foreign exchange contracts not designated as hedging instruments			Other current liabilities						18						5
Interest rate contracts designated as fair value hedges			Other liabilities						8						2
Total derivative liabilities									$	31					$	12
Total fair value of derivative instruments									$	36					$	27

Under the master netting agreements with the respective counterparties to our derivative contracts, subject to applicable requirements, we are allowed to net settle transactions of the same type with a single net amount payable by one party to the other. However, we have elected to present the derivative assets and derivative liabilities on a gross basis on our condensed consolidated balance sheet. As of June 30, 2026, the potential effect of rights of set-off associated with the foreign exchange contracts would be an offset to both assets and liabilities by $21 million, resulting in net derivative assets of $43 million and immaterial net derivative liabilities. As of June 30, 2026, there was no potential effect of rights of set-off associated with the interest rate contracts as there were no asset positions.

eBay Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Effect of Derivative Contracts on Accumulated Other Comprehensive Income

The following tables present the activity of derivative instruments designated as cash flow hedges gross of tax as of June 30, 2026 and December 31, 2025, and the impact of these derivative contracts on AOCI as of the dates indicated (in millions):

			December 31, 2025						Amount of Gain Recognized in Other Comprehensive Income						Less: Amount of Gain (Loss) Reclassified From AOCI to Earnings						June 30, 2026
Foreign exchange contracts designated as cash flow hedges			$	(44)					$	25					$	(14)					$	(5)
Interest rate contracts designated as cash flow hedges			37						—						3						34
Total			$	(7)					$	25					$	(11)					$	29

			December 31, 2024						Amount of Loss Recognized in Other Comprehensive Income						Less: Amount of Gain Reclassified From AOCI to Earnings						June 30, 2025
Foreign exchange contracts designated as cash flow hedges			$	25					$	(105)					$	2					$	(82)
Interest rate contracts designated as cash flow hedges			50						(3)						4						43
Total			$	75					$	(108)					$	6					$	(39)

Effect of Derivative Contracts on Condensed Consolidated Statement of Income

The following table summarizes the total loss recognized on our condensed consolidated statement of income from our foreign exchange derivative contracts by location for the periods indicated (in millions):

			Three Months Ended June 30,												Six Months Ended June 30,
			2026						2025						2026						2025
Gain (loss) from foreign exchange contracts designated as cash flow hedges recognized in net revenues			$	(1)					$	(6)					$	(14)					$	2
Loss from foreign exchange contracts not designated as hedging instruments recognized in interest income and other, net			(3)						(6)						(4)						(5)
Total loss recognized from foreign exchange derivative contracts in the condensed consolidated statement of income			$	(4)					$	(12)					$	(18)					$	(3)

The following table summarizes the total gain recognized on our condensed consolidated statement of income from our interest rate derivative contracts by location for the periods indicated (in millions):

			Three Months Ended June 30,												Six Months Ended June 30,
			2026						2025						2026						2025
Gain from interest rate contracts designated as cash flow hedges recognized in interest expense			$	1					$	2					$	3					$	4
Loss from interest rate contracts designated as fair value hedges recognized in interest expense			(4)						—						(6)						—
Gain from hedged items attributable to hedged risk recognized in interest and other, net			4						—						6						—
Total gain recognized from interest rate derivative contracts in the condensed consolidated statement of income			$	1					$	2					$	3					$	4

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

The following table summarizes the total gain (loss) recognized on our condensed consolidated statement of income due to changes in the fair value of the warrants for the periods indicated (in millions):

			Three Months Ended June 30,												Six Months Ended June 30,
			2026						2025						2026						2025
Gain (loss) attributable to changes in the fair value of warrants recognized in gain (loss) on equity investments and warrants, net			$	2					$	—					$	(7)					$	—

Notional Amounts of Derivative Contracts

Derivative transactions are measured in terms of the notional amount, but this amount is not recognized on our condensed consolidated balance sheet and is not, when viewed in isolation, a meaningful measure of the risk profile of the instruments. The notional amount is generally not exchanged but is used only as the basis on which the value of foreign exchange payments under these contracts is determined. The following table presents the notional amounts of our outstanding derivatives as of the dates indicated (in millions):

			June 30, 2026						December 31, 2025
Foreign exchange contracts designated as cash flow hedges			$	1,550					$	1,677
Foreign exchange contracts not designated as hedging instruments			2,231						1,914
Interest rate contracts designated as fair value hedges			400						400
Total			$	4,181					$	3,991

Credit Risk

Our derivatives expose us to credit risk to the extent that the counterparties may be unable to meet the terms of the arrangement. We seek to mitigate such risk by limiting our counterparties to, and by spreading the risk across, major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored on an ongoing basis.

eBay Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Note 7 — Fair Value Measurement of Assets and Liabilities

The following tables present our financial assets and liabilities measured at fair value on a recurring basis as of the dates indicated (in millions):

			June 30, 2026						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
Assets:
Cash, cash equivalents and restricted cash:
Cash and cash equivalents			$	2,310					$	2,310					$	—					$	—
Customer accounts			1,231						1,231						—						—
Restricted cash included in other current assets			156						156						—						—
Restricted cash included in other assets			1						1						—						—
Total cash, cash equivalents and restricted cash			3,698						3,698						—						—
Derivatives			67						—						64						3
Short-term investments:
Corporate bonds			764						—						764						—
Commercial paper			149						—						149						—
Government and agency securities			84						—						84						—
Total short-term investments			997						—						997						—
Long-term investments:
Corporate bonds			1,520						—						1,520						—
Government and agency securities			24						—						24						—
Total long-term investments			1,544						—						1,544						—
Total financial assets			$	6,306					$	3,698					$	2,605					$	3
Liabilities:
Derivatives			$	31					$	—					$	31					$	—

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

			December 31, 2025						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
Assets:
Cash, cash equivalents and restricted cash:
Cash and cash equivalents			$	1,867					$	1,867					$	—					$	—
Customer accounts			1,017						1,017						—						—
Restricted cash included in other current assets			170						170						—						—
Restricted cash included in other assets			1						1						—						—
Total cash, cash equivalents and restricted cash			3,055						3,055						—						—
Derivatives			39						—						29						10
Short-term investments:
Corporate bonds			745						—						745						—
Commercial paper			243						—						243						—
Government and agency securities			64						—						64						—
Total short-term investments			1,052						—						1,052						—
Long-term investments:
Corporate bonds			1,813						—						1,813						—
Government and agency securities			25						—						25						—
Total long-term investments			1,838						—						1,838						—
Total financial assets			$	5,984					$	3,055					$	2,919					$	10
Liabilities:
Derivatives			$	12					$	—					$	12					$	—

Our financial assets and liabilities are valued using market prices on both active markets (Level 1), less active markets (Level 2) and little or no market activity (Level 3). Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 instrument valuations are obtained from readily available pricing sources for comparable instruments, identical instruments in less active markets, or models using market observable inputs. Level 3 instrument valuations typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. We did not have any transfers of financial instruments between valuation levels for the six months ended June 30, 2026.

Other financial instruments, including accounts receivable, funds receivable, accounts payable and funds payable, are carried at cost, which approximates their fair value due to the short-term nature of these instruments.

eBay Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Fair value measurement of derivative instruments

The majority of our derivative instruments are valued using pricing models that take into account the contract terms as well as multiple inputs where applicable, such as equity prices, interest rate yield curves, option volatility and currency rates. Refer to “Note 6 — Derivative Instruments” for further details on our derivative instruments.

Fair value measurement of equity investments

Certain immaterial equity investments under the fair value option aggregating to $55 million as of both June 30, 2026 and December 31, 2025, are measured at fair value using the net asset value per share and therefore have not been classified in the fair value hierarchy. Refer to “Note 5 — Investments” for further details about our equity investments.

eBay Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Note 8 — Supplemental Consolidated Financial Information

Contract Balances

Timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable represents amounts invoiced and revenue recognized prior to invoicing when we have satisfied our performance obligation and have the unconditional right to payment. The allowance for doubtful accounts and authorized credits is estimated based upon our assessment of various factors including historical experience, the age of the accounts receivable balances, current economic conditions, reasonable and supportable forecasts, and other factors that may affect our customers’ ability to pay. The allowance for doubtful accounts and authorized credits is immaterial as of both June 30, 2026 and December 31, 2025.

Deferred revenue consists of fees received related to unsatisfied performance obligations at the end of the period. Due to the generally short-term duration of contracts, the majority of the performance obligations are satisfied in the following reporting period. The amount of revenue recognized for both the six months ended June 30, 2026 and June 30, 2025 that was included in the deferred revenue balance at the beginning of the respective periods was immaterial.

Customer accounts and funds receivable

			June 30, 2026						December 31, 2025
			(In millions)
Customer accounts			$	1,231					$	1,017
Funds receivable			358						263
Customer accounts and funds receivable			$	1,589					$	1,280

Other current assets

			June 30, 2026						December 31, 2025
(In millions)
Income and other tax receivable			$	338					$	194
Restricted cash			156						170
Accounts receivable, net			155						135
Prepaid expenses			144						126
Short-term derivative assets			50						17
Other			264						245
Other current assets			$	1,107					$	887

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Accrued expenses and other current liabilities

			June 30, 2026						December 31, 2025
(In millions)
Compensation and related benefits			$	518					$	644
Accrued indirect tax expense			498						509
Accrued marketing expenses			267						226
Operating lease liabilities			117						119
Transaction loss liability			108						90
Accrued general and administrative expenses			91						70
Shipping and carrier liabilities			88						91
Deferred revenue			51						43
Accrued interest expense			48						45
Other			548						420
Accrued expenses and other current liabilities			$	2,334					$	2,257

Interest income and other, net

			Three Months Ended June 30,												Six Months Ended June 30,
			2026						2025						2026						2025
			(In millions)
Interest income			$	58					$	64					$	116					$	141
Foreign exchange and other			(6)						(5)						2						(1)
Total interest income and other, net			$	52					$	59					$	118					$	140

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Note 9 — Debt

The following table summarizes the carrying value of our outstanding debt as of the dates indicated (in millions, except percentages):

						Coupon Rate						June 30, 2026						Effective Interest Rate						December 31, 2025						Effective Interest Rate
Long-Term Debt
Senior Notes:
Senior notes due 2026						1.400		%				$	—					—		%				$	750					1.252		%
Senior notes due 2027						3.600		%				850						3.689		%				850						3.689		%
Senior notes due 2027						5.950		%				300						6.064		%				300						6.064		%
Senior notes due 2029						4.250		%				600						4.419		%				600						4.419		%
Senior notes due 2030						2.700		%				950						2.623		%				950						2.623		%
Senior notes due 2031						2.600		%				750						2.186		%				750						2.186		%
Senior notes due 2032						6.300		%				425						6.371		%				425						6.371		%
Senior notes due 2035						5.125		%				400						5.226		%				400						5.226		%
Senior notes due 2042						4.000		%				750						4.114		%				750						4.114		%
Senior notes due 2051						3.650		%				1,000						2.517		%				1,000						2.517		%
Total senior notes												6,025												6,775
Hedge accounting fair value adjustments (1)												(8)												(2)
Unamortized discount and debt issuance costs												(25)												(27)
Less: Current portion of long-term debt												(850)												(750)
Total long-term debt												5,142												5,996
Short-Term Debt
Current portion of long-term debt												850												750
Commercial paper												750												—
Unamortized discount and debt issuance costs												(7)												—
Total short-term debt												1,593												750
Total Debt												$	6,735											$	6,746

(1)Includes the fair value adjustments to debt associated with interest rate swaps designated as fair value hedges.

Senior Notes

In May 2026, we repaid the $750 million aggregate principal amount of our previously outstanding 1.400% senior notes due 2026 on the date of maturity. Cash paid related to the repayment was classified as a financing activity on our condensed consolidated statement of cash flows.

In November 2025, we issued $1.0 billion aggregate principal amount of senior notes, which consisted of $600 million aggregate principal amount of 4.250% fixed rate notes due 2029 and $400 million aggregate principal amount of 5.125% fixed rate notes due 2035. Cash proceeds related to the issuance of our 4.250% and 5.125% senior notes were classified as a financing activity on our consolidated statement of cash flows.

In October 2025, we redeemed the $425 million aggregate principal amount of our previously outstanding 5.900% senior notes due in November 2025. Total cash consideration paid was $425 million, as the redemption price was equal to 100% of the principal amount. In addition, we paid accrued and unpaid interest on the principal amount. Cash paid related to the redemption was classified as a financing activity on our consolidated statement of cash flows.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

In March 2025, we repaid the $800 million aggregate principal amount of our previously outstanding 1.900% senior notes due 2025 on the date of maturity. Cash paid related to the repayment was classified as a financing activity on our condensed consolidated statement of cash flows.

We may redeem some or all of our outstanding fixed rate notes at any time prior to maturity, generally at a make-whole redemption price, plus accrued and unpaid interest.

If a change of control triggering event (as defined in the applicable series of notes) occurs with respect to any of our outstanding fixed rate notes, we must, subject to certain exceptions, offer to repurchase all of the notes of the applicable series at a price equal to 101% of the principal amount, plus accrued and unpaid interest.

The indenture pursuant to which the senior notes were issued includes customary covenants that, among other things and subject to exceptions, limit our ability to incur, assume or guarantee debt secured by liens on specified assets or enter into sale and lease-back transactions with respect to specified properties, and also includes customary events of default with customary grace periods in certain circumstances, including payment defaults and bankruptcy-related defaults.

In connection with the November 2025 issuance of senior notes, we entered into interest rate swap agreements that effectively converted $400 million of our fixed rate debt to floating rate debt based on the SOFR. These swaps were designated as fair value hedges against changes in the fair value of certain fixed rate senior notes resulting from changes in interest rates. The gains and losses related to changes in the fair value of interest rate swaps substantially offset changes in the fair value of the hedged portion of the underlying debt that are attributable to changes in market interest rates.

The effective interest rates for our senior notes include the interest payable, the amortization of debt issuance costs and the amortization of any original issue discount and premium on these senior notes. Interest on these senior notes is payable either quarterly or semiannually. Interest expense associated with these senior notes, including amortization of debt issuance costs, was $58 million and $118 million for the three and six months ended June 30, 2026, respectively, compared to $55 million and $112 million for the same periods in 2025. As of June 30, 2026 and December 31, 2025, the estimated fair value of these senior notes, using Level 2 inputs, was $5.4 billion and $6.3 billion, respectively.

Commercial Paper

We have a commercial paper program pursuant to which we may issue commercial paper notes in an aggregate principal amount at maturity of up to $1.5 billion outstanding at any time with maturities of up to 397 days from the date of issue. Commercial paper is carried at amortized cost, which approximates its fair value due to the short-term nature of these instruments.

During the six months ended June 30, 2026, we issued $750 million aggregate principal amount of commercial paper notes with original maturities greater than 90 days. As of June 30, 2026, we had $750 million aggregate principal amount of commercial paper notes outstanding with a weighted average interest rate of 4.12% per annum and a weighted average remaining term of 76 days.

During the six months ended June 30, 2025, we repaid the $830 million aggregate principal amount of the previously outstanding commercial paper notes on the dates of maturity and issued $955 million aggregate principal amount of commercial paper notes, of which $567 million aggregate principal amount had original maturities less than 90 days and $388 million aggregate principal amount had original maturities greater than 90 days. As of December 31, 2025, we had no commercial paper notes outstanding.

Cash proceeds related to the issuance of commercial paper and cash used to repay commercial paper were classified as financing activities on our condensed consolidated statement of cash flows.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Credit Agreement

We have a credit agreement maturing in January 2029 that provides for an unsecured $2.0 billion five-year revolving credit facility. We may also, subject to the agreement of the applicable lenders, increase the commitments under the revolving credit facility by up to $1.0 billion. Funds borrowed under the credit agreement may be used for working capital, capital expenditures, acquisitions and other general corporate purposes and bear interest at either (i) a customary forward-looking term rate based on the secured overnight financing rate published by CME Group for the relevant interest period plus an adjustment of 0.1% or (ii) a customary base rate formula, plus a margin (based on our public debt ratings) ranging from 0% to 0.375%.

As of June 30, 2026, no borrowings were outstanding under our $2.0 billion credit agreement. However, as described above, we have a commercial paper program pursuant to which we may issue commercial paper notes in an aggregate principal amount at maturity of up to $1.5 billion, and we are required to maintain available borrowing capacity under our credit agreement in order to repay commercial paper borrowings in the event we are unable to repay those borrowings from other sources when they become due. As of June 30, 2026, we had $750 million aggregate principal amount of commercial paper notes outstanding; therefore, $1.3 billion of borrowing capacity was available for other purposes permitted by the credit agreement, subject to customary conditions to borrowing. The credit agreement includes a covenant limiting our consolidated leverage ratio to no more than 4.0:1.0, subject to, if so elected by us upon the occurrence of a qualified material acquisition, a step-up to 4.5:1.0 for the four fiscal quarters completed following such qualified material acquisition. The credit agreement includes customary events of default, with corresponding grace periods in certain circumstances, including payment defaults, cross-defaults and bankruptcy-related defaults. In addition, the credit agreement contains customary affirmative and negative covenants, including restrictions regarding the incurrence of liens and subsidiary indebtedness, in each case, subject to customary exceptions. The credit agreement also contains customary representations and warranties.

We were in compliance with all financial covenants on our outstanding debt instruments for the six months ended June 30, 2026.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Note 10 — Commitments and Contingencies

Off-Balance Sheet Arrangements

As of June 30, 2026, we had no off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on our consolidated financial condition, results of operations, liquidity, capital expenditures or capital resources.

Litigation and Other Legal Matters

We are involved in legal and regulatory proceedings on an ongoing basis. If we believe that a loss arising from such matters is probable and can be reasonably estimated, we accrue the estimated liability in our financial statements. If only a range of estimated losses can be determined, we accrue an amount within the range that, in our judgment, reflects the most likely outcome; if none of the estimates within that range is a better estimate than any other amount, we accrue the low end of the range. For those proceedings in which an unfavorable outcome is reasonably possible but not probable, we have disclosed an estimate of the reasonably possible loss or range of losses or we have concluded that an estimate of the reasonably possible loss or range of losses arising directly from the proceeding (i.e., monetary damages or amounts paid in judgment or settlement) is not material. If we cannot estimate the probable or reasonably possible loss or range of losses arising from a proceeding, we have disclosed that fact. In assessing the materiality of a proceeding, we evaluate, among other factors, the amount of monetary damages claimed, as well as the potential impact of non-monetary remedies sought by plaintiffs (e.g., injunctive relief) that may require us to change our business practices in a manner that could have a material adverse impact on our business. Legal fees are expensed as incurred.

Amounts accrued for legal and regulatory proceedings were not material as of June 30, 2026 and December 31, 2025. We have concluded, based on currently available information, that reasonably possible losses arising directly from the proceedings (i.e., monetary damages or amounts paid in judgment or settlement) in excess of our recognized accruals are also not material. However, legal and regulatory proceedings are inherently unpredictable and subject to uncertainties. If one or more matters were resolved against us in a reporting period for amounts in excess of management’s expectations, the impact on our operating results or financial condition for that reporting period could be material.

Indemnification Provisions

We entered into a separation and distribution agreement and various other agreements with PayPal to govern the separation and relationship of the two companies. These agreements provide for specific indemnity and liability obligations and could lead to disputes between us and PayPal, which may be significant. In addition, the indemnity rights we have against PayPal under the agreements may not be sufficient to protect us and our indemnity obligations to PayPal may be significant.

In addition, we have entered into indemnification agreements with each of our directors and executive officers and with certain other persons who serve as officers or directors of certain of our subsidiaries. These agreements require us to indemnify such individuals, to the fullest extent permitted by applicable law, for certain liabilities to which they may become subject as a result of their affiliation with us.

In the ordinary course of business, we have included limited indemnification provisions in certain of our agreements with parties with which we have commercial relations, including our standard marketing, promotions and application programming interface license agreements. Under these contracts, we may indemnify, hold harmless and agree to reimburse the indemnified party for losses suffered or incurred by the indemnified party in connection with claims by a third party with respect to intellectual property infringement, including to our trademarks, logos and proprietary software, and other branding elements, such as domain names, to the extent that such are applicable to our performance under the subject agreement. In certain cases, we have agreed to provide indemnification for gross negligence, willful misconduct, fraud and breach of representations, warranties and applicable law. It is not possible to determine the maximum potential loss under these indemnification provisions due to our limited history of prior indemnification claims and the unique facts and circumstances involved in each

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

particular provision. To date, losses recognized on our condensed consolidated statement of income in connection with our indemnification provisions have not been material, either individually or collectively.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Note 11 — Stockholders’ Equity

Stock Repurchase Program

Our stock repurchase programs are intended to programmatically offset the impact of dilution from our equity compensation programs and, subject to market conditions and other factors, to make opportunistic and programmatic repurchases of our common stock to reduce our outstanding share count and return value to stockholders. Any share repurchases under our stock repurchase programs may be made through open market transactions, block trades, privately negotiated transactions (including accelerated share repurchase transactions) or other means at times and in such amounts as management deems appropriate and will be funded from our working capital or other financing alternatives. Our stock repurchase programs may be limited or terminated at any time without prior notice. The timing and actual number of shares repurchased will depend on a variety of factors, including corporate and regulatory requirements, price and other market conditions and management’s determination as to the appropriate use of our cash. Cash paid related to the repurchase of common stock was classified as a financing activity on our consolidated statement of cash flows.

In February 2026, our Audit Committee authorized an incremental $2.0 billion under our stock repurchase program in addition to the $5.0 billion previously authorized in 2024. Our stock repurchase program has no expiration from the date of authorization.

The following table summarizes stock repurchase activity under our stock repurchase programs for the period indicated (in millions, except per share amounts):

			Shares Repurchased (1)						Average Price per Share (2)						Value of Shares Repurchased (2)						Remaining Amount Authorized
Balance as of January 1, 2026																					$	798
Authorization of additional repurchases in February 2026																					2,000
Repurchase of shares of common stock			9						$	94.95					$	810					(810)
Balance as of June 30, 2026																					$	1,988

(1)These repurchased shares of common stock were recognized as treasury stock and were accounted for under the cost method. None of the repurchased shares of common stock have been retired.

(2)Excludes immaterial broker commissions and excise tax accruals.

Dividends

During the three and six months ended June 30, 2026, we paid a total of $138 million and $277 million in cash dividends, respectively, compared to $134 million and $268 million paid during the same periods in 2025. In July 2026, our Audit Committee declared a cash dividend of $0.31 per share of common stock to be paid on September 11, 2026 to stockholders of record as of August 28, 2026.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Note 12 — Employee Benefit Plans

Restricted Stock Unit Activity

The following table presents restricted stock unit (“RSU”) activity under our equity incentive plans for the period indicated (in millions):

			Units
Outstanding as of January 1, 2026			19
Awarded			8
Vested			(5)
Forfeited			(2)
Outstanding as of June 30, 2026			20

The weighted average grant date fair value for RSUs awarded for the six months ended June 30, 2026 was $92.83 per share.

Stock-Based Compensation Expense

The following table presents the impact on our results of continuing operations of recording stock-based compensation expense for the periods indicated (in millions):

			Three Months Ended June 30,												Six Months Ended June 30,
			2026						2025						2026						2025
Cost of net revenues			$	13					$	10					$	24					$	19
Sales and marketing			27						24						49						44
Product development			86						86						162						155
General and administrative			56						45						103						83
Total stock-based compensation expense			$	182					$	165					$	338					$	301

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Note 13 — Income Taxes

We are subject to both direct and indirect taxation in the United States and various states and foreign jurisdictions. We are under examination by certain tax authorities for the 2015 to 2024 tax years. We believe that adequate amounts have been reserved for any adjustments that may ultimately result from these or other examinations. The material jurisdictions where we are subject to potential examination by tax authorities for tax years after 2009 include, among others, the United States (at the federal level and in the State of California), Germany, India, Switzerland and the United Kingdom.

We have recognized the tax consequences of all foreign unremitted earnings and management has no specific plans to indefinitely reinvest the unremitted earnings of our foreign subsidiaries as of the balance sheet date. In the second quarter of 2025, we made the final payment of $292 million related to the repatriation of foreign earnings previously included in “Income taxes payable” on our condensed consolidated balance sheet as of December 31, 2024. We have not provided for deferred taxes on outside basis differences in our investments in our foreign subsidiaries that are unrelated to unremitted earnings. These basis differences will be indefinitely reinvested. A determination of the unrecognized deferred taxes related to these other components of our outside basis differences is not practicable.

On July 4, 2025, the United States enacted the One Big Beautiful Bill Act. Included in this legislation are provisions that allow for the immediate expensing of domestic research and development and certain capital expenditures, as well as other changes related to the taxation of profits derived from foreign operations. We recorded a $65 million net tax benefit in 2025 related to the effects of this Act.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

Note 14 — Accumulated Other Comprehensive Income

The following tables summarize the changes in AOCI for the periods indicated (in millions):

			Unrealized Gains on Derivative Instruments						Unrealized Gains (Losses) on Investments						Foreign Currency Translation						Estimated Tax (Expense) Benefit						Total
Balance as of March 31, 2026			$	20					$	3					$	171					$	17					$	211
Other comprehensive income (loss) before reclassifications			9						(4)						(6)						(7)						(8)
Less: Amount of gain (loss) reclassified from AOCI			—						—						—						—						—
Net current period other comprehensive income (loss)			9						(4)						(6)						(7)						(8)
Balance as of June 30, 2026			$	29					$	(1)					$	165					$	10					$	203

			Unrealized Gains (Losses) on Derivative Instruments						Unrealized Gains on Investments						Foreign Currency Translation						Estimated Tax Benefit						Total
Balance as of March 31, 2025			$	16					$	1					$	155					$	20					$	192
Other comprehensive income (loss) before reclassifications			(59)						10						39						10						—
Less: Amount of gain (loss) reclassified from AOCI			(4)						—						—						1						(3)
Net current period other comprehensive income (loss)			(55)						10						39						9						3
Balance as of June 30, 2025			$	(39)					$	11					$	194					$	29					$	195

			Unrealized Gains (Losses) on Derivative Instruments						Unrealized Gains (Losses) on Investments						Foreign Currency Translation						Estimated Tax (Expense) Benefit						Total
Balance as of December 31, 2025			$	(7)					$	17					$	178					$	19					$	207
Other comprehensive income (loss) before reclassifications			25						(18)						(13)						(6)						(12)
Less: Amount of gain (loss) reclassified from AOCI			(11)						—						—						3						(8)
Net current period other comprehensive income (loss)			36						(18)						(13)						(9)						(4)
Balance as of June 30, 2026			$	29					$	(1)					$	165					$	10					$	203

			Unrealized Gains (Losses) on Derivative Instruments						Unrealized Gains (Losses) on Investments						Foreign Currency Translation						Estimated Tax (Expense) Benefit						Total
Balance as of December 31, 2024			$	75					$	(7)					$	130					$	8					$	206
Other comprehensive income (loss) before reclassifications			(108)						18						64						20						(6)
Less: Amount of gain (loss) reclassified from AOCI			6						—						—						(1)						5
Net current period other comprehensive income (loss)			(114)						18						64						21						(11)
Balance as of June 30, 2025			$	(39)					$	11					$	194					$	29					$	195

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

The following table summarizes the reclassifications out of AOCI for the periods indicated (in millions):

Details about AOCI Components						Affected Line Item in the Statement of Income						Amount of Gain (Loss) Reclassified From AOCI
												Three Months Ended June 30,												Six Months Ended June 30,
												2026						2025						2026						2025
Gains (losses) on cash flow hedges:
Foreign exchange contracts						Net revenues						$	(1)					$	(6)					$	(14)					$	2
Interest rate contracts						Interest expense						1						2						3						4
						Income from continuing operations before income taxes						—						(4)						(11)						6
						Income tax provision						—						1						3						(1)
Total reclassifications for the period						Net income						$	—					$	(3)					$	(8)					$	5