EBAY · 10-Q · 2026Q3 · Full report

Gross Margin Drivers

EBAY INC · 2026-10-29 · Importance 29 · Surprise 6

Third-quarter cost of net revenues increased year over year, including $56 million of additional payment processing costs, $22 million of authentication and shipping costs, and $20 million of promoted offsite advertising costs.

Key facts

• eBay’s cost of net revenues was reduced by $32 million in the three months ended September 30, 2026 due to a U.K. shipping program modification that changed revenue recognition from gross to net at the beginning of 2026. source
• eBay’s cost of net revenues increased by $56 million in payment processing costs, $22 million in authentication and shipping costs, $20 million in promoted offsite advertising costs and $9 million in data center and site operations costs in the three months ended September 30, 2026. source
• eBay’s cost of net revenues increased by $138 million in payment processing costs, $67 million in authentication and shipping costs, $56 million in promoted offsite advertising costs, $37 million in data center and site operations costs and $19 million from unfavorable foreign currency movements in the nine months ended September 30, 2026. source
• eBay’s cost of net revenues was reduced by $59 million in the nine months ended September 30, 2026 due to the U.K. shipping program modification and gross-to-net revenue recognition change. source