GMV grew due to the execution of strategy across Focus Categories, country-specific investments, and horizontal initiatives. However, GMV growth was partially offset by pressure in discretionary spending across most of the largest markets primarily resulting from geopolitical events, inflationary pressure, foreign exchange rate volatility, elevated interest rates, and lower consumer confidence.

Advertising revenues increased 15% year over year, indicating successful monetization of the platform through advertising initiatives.

Focus Categories GMV grew in aggregate, faster than the remainder of our marketplace, primarily driven by Trading Cards, Motors Parts & Accessories (“P&A”), Luxury goods, Refurbished, and Apparel. This indicates successful strategic focus.

The company repurchased $625 million of common stock, indicating management's belief that the company's stock is undervalued. This also returns value to shareholders.

The company paid $134 million in cash dividends during the quarter and declared a future dividend, demonstrating a commitment to returning capital to shareholders.

The company settled with the Drug Enforcement Administration and entered into a deferred prosecution agreement with the U.S. Attorney, indicating past compliance issues. The company is subject to an independent compliance monitor, adding oversight.

The 10-Q highlights that current global economic and geopolitical events and conditions may amplify many of the company's risks. These risks are not the only risks that may affect us. Additional risks that we are not aware of or do not believe are material at the time of this filing may also become important factors that adversely affect our business.

Foreign currency movements relative to the U.S. dollar had an unfavorable impact of $21 million for the three months ended March 31, 2025 compared to a favorable impact of $14 million during the same period in 2024.

The company is exposed to interest rate risk relating to its investments and outstanding debt. A hypothetical 1% increase in interest rates would have resulted in a decrease in the fair value of our investments of $35 million.

Take rate increased slightly to 13.78% from 13.72% in the prior year, indicating improved monetization of GMV.

In the United States, strategic investments and partnerships in Collectibles, including Trading Cards, resulted in improved conversion and was a key contributor to growth, indicating a successful strategy.

Cross-border trade was a key driver of International GMV growth, led by exports from Greater China and Japan into our major markets. This indicates the company is successfully leveraging its global presence.

The increase in cost of net revenues was partially offset by a $10 million decrease in payment processing costs driven by rate improvements, indicating some operational efficiency gains.

The increase in cost of net revenues was primarily due to an $18 million increase in depreciation expense due to the prior year benefit related to the change in useful lives of our servers and networking equipment, indicating prior accounting changes are now impacting costs.

The decrease in sales and marketing expenses for the three months ended March 31, 2025 compared to the same period in 2024 was primarily due to the favorable impact of foreign currency movements, indicating that underlying operational efficiency is not necessarily improved.

The increase in product development expenses for the three months ended March 31, 2025 compared to the same period in 2024 was primarily due to an increase in employee-related costs as we continue to invest in strategic areas such Artificial Intelligence (“Al”) to make our marketplace more efficient and intuitive.

Capitalized internal use and platform development costs were $28 million for the three months ended March 31, 2025 compared to $29 million during the same period in 2024. These costs are primarily reflected as a cost of net revenues when amortized in future periods.

Our top technology priorities include improving seller tools and buyer experiences across our Marketplace platforms powered by intelligent computing at scale, indicating a focus on enhancing the user experience.

In March 2025, the company repaid $800 million in senior notes and issued $575 million in commercial paper, indicating active management of the capital structure.

The company repurchased $625 million of common stock, with $2.7 billion remaining authorized for future repurchases, indicating a continued focus on returning capital to shareholders.

A quarterly cash dividend of $0.29 per share was declared, demonstrating a commitment to returning capital to shareholders.

Jamie Iannone and Cornelius Boone adopted trading plans intended to satisfy affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act, indicating a commitment to transparency and compliance.

The U.S. Department of Justice dismissed a civil complaint alleging liability for the sale of regulated or illicit products, indicating a positive outcome for the company's environmental compliance efforts.

On January 31, 2024, the Drug Enforcement Administration, U.S. Department of Justice (the “DOJ”) and the Company entered into a settlement agreement (the “DEA Settlement Agreement”), which fully resolved DOJ's allegations of noncompliance arising under the Controlled Substances Act. Pursuant to the DEA Settlement Agreement, the Company paid $59 million and agreed to implement enhanced processes regarding its monitoring and reporting of listings that violate the Company's policies.

GMV growth was partially offset by pressure in discretionary spending across most of our largest markets primarily resulting from geopolitical events, inflationary pressure, foreign exchange rate volatility, elevated interest rates, and lower consumer confidence.

Foreign currency movements relative to the U.S. dollar had an unfavorable impact of $21 million on net revenues and a favorable impact of $12 million on operating expenses, indicating the importance of monitoring and managing currency risks.

The company is subject to various risks and uncertainties that may affect our business, results of operations and financial condition including, not limited to, those described in “Part I — Item 1A: Risk Factors” in the 2024 Form 10-K. Current global economic and geopolitical events and conditions may amplify many of these risks.