eBay’s online advertising segment grew 31.4% year-over-year, driving nearly 20% of total Q1 revenue amid broader market outperformance.
eBay reported $3.1 billion in Q1 2025 revenue, a 19% year-over-year increase, with online advertising contributing $581 million, or nearly 20% of total revenue. The segment’s 31.4% growth from $442 million in the same period last year highlights its expanding role in profitability, given its higher margins compared to marketplace transactions.
The company’s 24.4% year-to-date rally has surpassed the S&P 500’s 7.9% gain, supported by 136 million active buyers and strategic moves like the Depop acquisition. While net income remained flat in Q1, the shift toward ad revenue could boost future earnings.
eBay’s focus on collectibles and younger demographics through Depop may further drive average revenue per user, reinforcing its competitive position in e-commerce.