0001065088-26-000093
SEC filingRevenue grew strongly to $3.1B, driven by GMV and advertising, but operating margin compressed to 19.8%, resulting in modest net income improvement.
Net revenues increased 19.5% to $3.1B for the three months ended March 31, 2026, compared to $2.6B in the same period of 2025. The growth was primarily driven by higher Gross Merchandise Volume (GMV), increased first-party advertising penetration, and higher volume and favorable rates associated with our U.S. shipping program. This performance reflects continued strength in our Marketplace platforms and the effectiveness of our advertising initiatives.
Net cash provided by operating activities increased to $969.0M for the three months ended March 31, 2026, compared to the same period in 2025, primarily due to higher net revenues and other working capital movements. Capital expenditures were $72.0M, down from $143.0M in the prior year period, resulting in free cash flow of $897.0M. The strong cash generation supports our capital allocation priorities, including share repurchases and dividends.
Seasonal trends in net revenues have been and are expected to be influenced by macroeconomic conditions, including tariffs and global trade policies, foreign exchange rate fluctuations, and competitive dynamics. The impact of these events has increased and may continue to increase our borrowing costs and other costs of capital, and otherwise adversely affect our business, results of operations, financial condition, and liquidity.