eBay Inc. (EBAY) just reminded everyone why it's still a force in e-commerce, posting fourth-quarter results Wednesday evening that sailed past Wall Street's expectations and announcing a strategic acquisition that signals confidence in the resale fashion market.

Strong Quarter, Even Stronger Guidance

The numbers tell a compelling story. eBay pulled in $2.97 billion in revenue for the quarter, comfortably ahead of the $2.89 billion analysts were expecting. Adjusted earnings came in at $1.41 per share, beating the $1.35 consensus estimate.

Revenue climbed 15% year-over-year, driven by a 10% jump in gross merchandise volume to $21.2 billion. The company's cash generation remained healthy, with $595 million in operating cash flow and $478 million in free cash flow from continuing operations. As of December 31, 2025, eBay sat on $4.8 billion in total cash, cash equivalents, and non-equity investments.

"We have built significant momentum across our strategic priorities, delivering meaningful growth and reinforcing our leadership in recommerce. As we continue to harness AI to elevate the customer experience worldwide, eBay is in the strongest position it has been in years," said CEO Jamie Iannone.

Perhaps more impressive than the quarter itself was the guidance. eBay expects first-quarter revenue between $3 billion and $3.05 billion, well above the $2.79 billion analysts had penciled in. Adjusted earnings are projected at $1.53 to $1.59 per share, again topping the $1.48 consensus.

Bringing Depop Back Home

In a separate announcement that accompanied earnings, eBay revealed it's acquiring Depop from Etsy Inc. (ETSY). The fashion-focused marketplace, known for its social media-style approach to secondhand clothing, will be funded with cash on hand. The transaction is expected to close in the second quarter of 2026.

"Depop has built a trusted, social-forward marketplace with strong momentum in the pre-loved fashion category, and we are confident that as part of eBay, Depop will be even more well-positioned for long-term growth, benefiting from our scale, complementary offerings, and operational capabilities," Iannone said.

Market Reaction

Investors clearly liked what they saw. eBay shares jumped 6.78% in after-hours trading to $87.75 following the earnings release and acquisition announcement.