EBAY INCEBAY
EBAY INC Fair Value Disclosure
Fair Value Measurement of Assets and Liabilities
The following tables present our financial assets and liabilities measured at fair value on a recurring basis as of the dates indicated (in millions):
| December 31, 2025 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
| Assets: | |||||||||||||||||||||||
Cash, cash equivalents and restricted cash: | |||||||||||||||||||||||
| Cash and cash equivalents | $ | 1,867 | $ | 1,867 | $ | — | $ | — | |||||||||||||||
| Customer accounts | 1,017 | 1,017 | — | — | |||||||||||||||||||
| Restricted cash included in other current assets | 170 | 170 | — | — | |||||||||||||||||||
| Restricted cash included in other assets | 1 | 1 | — | — | |||||||||||||||||||
| Total cash, cash equivalents and restricted cash | 3,055 | 3,055 | — | — | |||||||||||||||||||
| Derivatives | 39 | — | 29 | 10 | |||||||||||||||||||
| Short-term investments: | |||||||||||||||||||||||
Corporate bonds | 745 | — | 745 | — | |||||||||||||||||||
Commercial paper | 243 | — | 243 | — | |||||||||||||||||||
| Government and agency securities | 64 | — | 64 | — | |||||||||||||||||||
| Total short-term investments | 1,052 | — | 1,052 | — | |||||||||||||||||||
| Long-term investments: | |||||||||||||||||||||||
Corporate bonds | 1,813 | — | 1,813 | — | |||||||||||||||||||
| Government and agency securities | 25 | — | 25 | — | |||||||||||||||||||
| Total long-term investments | 1,838 | — | 1,838 | — | |||||||||||||||||||
| Total financial assets | $ | 5,984 | $ | 3,055 | $ | 2,919 | $ | 10 | |||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Derivatives | $ | 12 | $ | — | $ | 12 | $ | — | |||||||||||||||
| December 31, 2024 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
| Assets: | |||||||||||||||||||||||
Cash, cash equivalents and restricted cash: | |||||||||||||||||||||||
| Cash and cash equivalents | $ | 2,433 | $ | 2,433 | $ | — | $ | — | |||||||||||||||
| Customer accounts | 763 | 763 | — | — | |||||||||||||||||||
| Restricted cash included in other current assets | 88 | 88 | — | — | |||||||||||||||||||
| Restricted cash included in other assets | 2 | 2 | — | — | |||||||||||||||||||
| Total cash, cash equivalents and restricted cash | 3,286 | 3,286 | — | — | |||||||||||||||||||
| Derivatives | 97 | — | 82 | 15 | |||||||||||||||||||
| Short-term investments: | |||||||||||||||||||||||
Corporate bonds | 805 | — | 805 | — | |||||||||||||||||||
Commercial paper | 2,289 | — | 2,289 | — | |||||||||||||||||||
| Government and agency securities | 363 | — | 363 | — | |||||||||||||||||||
| Total short-term investments | 3,457 | — | 3,457 | — | |||||||||||||||||||
| Long-term investments: | |||||||||||||||||||||||
Corporate bonds | 1,119 | — | 1,119 | — | |||||||||||||||||||
| Government and agency securities | 190 | — | 190 | — | |||||||||||||||||||
| Total long-term investments | 1,309 | — | 1,309 | — | |||||||||||||||||||
| Total financial assets | $ | 8,149 | $ | 3,286 | $ | 4,848 | $ | 15 | |||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Derivatives | $ | 18 | $ | — | $ | 18 | $ | — | |||||||||||||||
Our financial assets and liabilities are valued using market prices on both active markets (Level 1), less active markets (Level 2) and little or no market activity (Level 3). Level 1 instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 instrument valuations are obtained from readily available pricing sources for comparable instruments, identical instruments in less active markets, or models using market observable inputs. Level 3 instrument valuations typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. We did not have any transfers of financial instruments between valuation levels during 2025 or 2024.
Other financial instruments, including accounts receivable, funds receivable, accounts payable and funds payable, are carried at cost, which approximates their fair value due to the short-term nature of these instruments.
Fair value measurement of derivative instruments
The majority of our derivative instruments are valued using pricing models that take into account the contract terms as well as multiple inputs where applicable, such as equity prices, interest rate yield curves, option volatility and currency rates.
The Adyen warrant, which was accounted for as a derivative instrument, was valued using a Black-Scholes model. Key assumptions used in the valuation included risk-free interest rates; Adyen’s common stock price, equity volatility and common stock outstanding; exercise price; and details specific to the warrant. The value was also probability adjusted for management’s assumptions with respect to vesting of the remaining tranches which were each subject to meeting processing volume milestone targets. In the fourth quarter of 2024, we met the processing
volume milestone required to vest in the second tranche of the Adyen warrant. As of December 31, 2024, the probability of meeting the processing volume milestone requirements for the remaining two tranches of the Adyen warrant was zero. The Adyen warrant expired on January 31, 2025.
The following table presents a reconciliation of the opening to closing balance of the Adyen warrant measured using significant unobservable inputs (Level 3) as of the dates indicated (in millions):
| December 31, 2024 | |||||
Opening balance at January 1, 2024 | $ | 364 | |||
| 158 | |||||
| Exercise of options under warrant | (522) | ||||
Closing balance at December 31, 2024 | $ | — | |||
Refer to “Note 6 — Derivative Instruments” for further details on our derivative instruments.
Fair value measurement of equity investments
Our equity investment in Adevinta was accounted for under the fair value option and classified within Level 1 in the fair value hierarchy as the fair value was measured based on Adevinta’s closing stock price and prevailing foreign exchange rate at each balance sheet date. In the second quarter of 2024, we sold our remaining stake in Adevinta.
Our equity investment in Gmarket was accounted for under the fair value option and classified within Level 3 in the fair value hierarchy as valuation of the investment reflected management’s estimate of assumptions that market participants would use in pricing the asset. In the fourth quarter of 2024, we sold our remaining stake in Gmarket valued at $323 million.
The following table presents a reconciliation of the opening to closing balance of the equity investment in Gmarket measured using significant unobservable inputs (Level 3) as of the dates indicated (in millions):
| December 31, 2024 | |||||
Opening balance at January 1, 2024 | $ | 335 | |||
| Change in fair value | (12) | ||||
Fair value of shares sold | (323) | ||||
Closing balance at December 31, 2024 | $ | — | |||
Certain other immaterial equity investments under the fair value option aggregating to $55 million and $54 million as of December 31, 2025 and December 31, 2024, respectively, are measured at fair value using the net asset value per share and therefore, have not been classified in the fair value hierarchy.
Refer to “Note 5 — Investments” for further details about our equity investments.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 4, 2021 | |
| 2019 | Jan 31, 2020 | |
| 2018 | Jan 30, 2019 | |
| 2017 | Feb 5, 2018 | |
| 2016 | Feb 6, 2017 | |
| 2015 | Feb 1, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.