eBay Inc. (EBAY) Cash Flow Statement

The OCF/NI ratio of 0.95 in Q2 2026 is the lowest in the last four quarters, but this follows a quarter where OCF nearly doubled net income (1.89x). The negative working capital change of -$433M in Q2, versus a positive $72M in Q1, suggests that cash collections lagged accrual-based revenue recognition, possibly due to seasonal payment timing. Investors should monitor whether this volatility persists, as it may indicate that reported earnings are not consistently translating into cash at the same rate.

The most recent quarter (Q2 2026) shows FCF of $300M, a significant improvement from the -$441M in the year-ago quarter, but still well below the $898M generated in Q1 2026. This volatility appears driven by working capital swings, particularly a $433M outflow in Q2 2026, which may be tied to seasonal payment processing. The trailing twelve-month FCF margin is approximately 20%, which is healthy for an asset-light marketplace, but the quarterly swings warrant caution when extrapolating near-term cash generation.

The capital intensity ratio has trended upward over the past two years, with Q2 2026 CapEx of $223M representing the highest quarterly spend in the dataset. This may indicate a shift toward more asset-heavy initiatives, such as expanding authentication centers or enhancing AI capabilities, which could pressure FCF margins if sustained. However, the absolute level remains modest relative to peers, and the company's asset-light model still generates strong cash conversion, with D&A covering a significant portion of CapEx in most quarters.

The negative working capital change of $433M in Q2 2026 is the second-largest outflow in the dataset, suggesting that eBay may be extending payment terms to sellers or experiencing a seasonal buildup in receivables. This volatility is a key driver of the OCF/NI ratio fluctuations, and investors should adjust for these swings when assessing underlying cash generation. The company's ability to manage these cycles will be critical to maintaining a stable cash flow profile.

Over the past ten quarters, eBay has returned over $5.5 billion to shareholders through buybacks and dividends, with buybacks averaging over $600M per quarter. This capital deployment strategy appears to be a priority, even in quarters with weaker cash generation, such as Q2 2025 when FCF was negative. The company also made a large acquisition in Q4 2024 ($1.9B net), which may indicate a shift toward strategic investments, but the overall pattern suggests a commitment to returning capital to shareholders.

The cumulative OCF/NI ratio of 1.16 over the period suggests that eBay's earnings are well-backed by cash, with the excess driven by non-cash charges like D&A and SBC. However, the gap has narrowed in recent quarters, with Q2 2026 OCF below net income, which may indicate a normalization. This long-term alignment between earnings and cash flow supports the view that eBay's profitability is sustainable, but the recent volatility warrants monitoring.