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Etsy, Inc. Reports Third Quarter 2025 Results
Brooklyn, NY - October 29, 2025 - Etsy, Inc. (NYSE: ETSY), which operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers around the world, today announced results for its third quarter ended September 30, 2025.

“Etsy’s third quarter consolidated results surpassed expectations across all three of our key financial metrics — and GMS for Etsy and Depop combined returned to year-over-year growth,” said Josh Silverman, Etsy, Inc. Chief Executive Officer. “Etsy marketplace GMS improved sequentially, reflecting growing traction in our customer-centric priorities — from showing up where shoppers discover, to enhancing AI-powered matching, retaining and rewarding our most valuable customers, and further amplifying the human connection that makes Etsy so unique. Depop also continued to accelerate GMS growth, building its position as a leading player in the U.S. resale clothing business.”
Third Quarter 2025 Highlights
Consolidated results: Etsy completed the sale of Reverb on June 2, 2025. Note that on an ‘as reported’ basis, all year-over-year consolidated performance comparisons were impacted by this transaction.
•GMS was $2,724.7 million, up 0.9% year-over-year and 0.1% on a currency-neutral basis, excluding Reverb from the prior-year period. On an as reported basis, including Reverb‘s third quarter 2024 GMS of $213.7 million, consolidated GMS was down 6.5% year-over-year.
•Revenue was $678.0 million, up 6.1% year-over-year, excluding Reverb from the prior-year period. On an as reported basis, including Reverb’s third quarter 2024 revenue of $23.2 million, consolidated revenue was up 2.4% year-over-year.
•Take rate was 24.9%. Growth in revenue was primarily driven by continued strong Etsy and Depop on-site ads performance.
•Net income was $75.5 million, up $18.1 million year-over-year, reflecting a non-cash foreign exchange gain of $0.8 million as compared to a non-cash foreign exchange loss of $16.8 million in the third quarter of 2024. Consolidated net income margin was 11.1% and diluted net income per share was $0.63.
•Non-GAAP Adjusted EBITDA was $171.9 million, with consolidated non-GAAP Adjusted EBITDA margin of approximately 25.4%.
•Etsy ended the third quarter with $1.6 billion in cash and cash equivalents and short- and long-term investments. Under Etsy’s stock repurchase program, during the third quarter of 2025 Etsy repurchased an aggregate of approximately $120 million, or 2.1 million shares, of its common stock.

Performance highlights for the Etsy marketplace include:
•GMS was $2,432.6 million, down 2.4% year-over-year and down 3.2% on a currency-neutral basis.
•GMS transacted on the Etsy App grew 5% year-over-year, and represented approximately 46% of GMS.
•Etsy signed a partnership agreement with OpenAI which enables U.S. ChatGPT users to discover and purchase millions of unique items from our U.S. sellers directly within the ChatGPT interface, tapping into high intent traffic from an emerging platform.
•Key product and marketing initiatives in the quarter include:
◦Improving Search ranking models to deliver more relevant results, driving a lift in conversion rates.
◦Launching new seller tools to save time and support business growth — such as task prioritization, marketplace insights, and AI-powered features such as title suggestions and Writing Assistant.
◦Enhancing the Etsy App to make shopping more personalized and engaging, with a refreshed home hub, improved discovery feeds, and a reorganized Shop Tab featuring recommendations tailored for each user.
◦Optimizations of data feeds and advanced segmentation strategies contributed to strong GMS from paid search channels.
◦Deeper machine learning based personalization which drove accelerating performance in Etsy owned marketing channels.
•Active sellers totaled 5.5 million, a 10.9% year-over-year decrease, but up modestly on a sequential basis, consistent with the expected impact of the seller set-up fee implemented in April 2024. The percentage of total active sellers with a sale increased year-over-year in the third quarter.
•Active buyers totaled 86.6 million, down 5.0% year-over-year, and down 0.8% sequentially. We reactivated 6.6 million buyers in the quarter, a 3.8% increase from the number of buyers reactivated in the prior year, and up 0.8% sequentially. During the quarter, Etsy acquired 4.8 million new buyers, and our trailing twelve month count of habitual buyers was 6.0 million at quarter end.
•GMS per active buyer on a trailing twelve month basis was $121, down 1.6% year-over-year. This metric improved sequentially, and the year-over-year decline moderated.

Performance highlights for the Depop marketplace include:
•GMS was $292.1 million, up 39.4% year-over-year, an acceleration from the prior quarter. New user growth and improvements to buyer conversion were primarily responsible for 59% year-over-year GMS growth in the United States. Australia also saw strong momentum, driven by more than 100% year-over-year growth in new user signups, supported by increased investments in paid marketing activity.
•Depop active sellers totaled 3.0 million, a 40.8% increase year-over-year; active buyers were up 38.8% to 6.6 million.
•Additional highlights for the quarter included:
◦Launching Depop’s largest-ever brand campaign in September, targeted at raising awareness in the U.S.
◦Introducing ‘Outfits,’ a new in-app styling feature that lets users collage pieces and shop directly from their creations.

“Better than expected performance at both Etsy and Depop enabled us to exceed the top end of our consolidated GMS guidance range,” said Lanny Baker, Chief Financial Officer. “Third quarter consolidated GMS was $2.7 billion, up 0.9% year-over-year excluding Reverb from the prior-year period. Etsy marketplace year-over-year GMS comparisons improved approximately 300 basis points sequentially driven primarily by our strategic priorities. Adjusted EBITDA was $172 million, representing a consolidated margin of 25.4%. Within that performance, the Etsy marketplace’s margin was just shy of 30%, and Depop’s margin declined sequentially as we began to accelerate brand marketing to expand their opportunity, particularly in the U.S.”



Third Quarter 2025 Financial Summary
(in thousands, except percentages; unaudited)
The financial results of Reverb have been included in our consolidated financial results until June 2, 2025 (the date of sale), except as noted in footnote (5) to the table below. The financial measures and key operating metrics we use are:
Three Months Ended 
 September 30,
% (Decline)
Growth
Y/Y
Nine Months Ended 
 September 30,		% (Decline)
Growth
Y/Y
 2025202420252024
GMS (1)$2,724,665 $2,915,256 (6.5)%$8,324,250 $8,851,010 (6.0)%
Revenue$678,026 $662,410 2.4 %$2,001,865 $1,956,170 2.3 %
Revenue take rate (2)24.9 %22.7 %220  bps24.0 %22.1 %190  bps
Marketplace revenue$468,058 $476,075 (1.7)%$1,394,722 $1,413,434 (1.3)%
Services revenue$209,968 $186,335 12.7 %$607,143 $542,736 11.9 %
Gross profit$483,381 $476,770 1.4 %$1,421,611 $1,399,307 1.6 %
Operating expenses$400,670 $389,953 2.7 %$1,284,798 $1,174,231 9.4 %
Net income$75,503 $57,366 31.6 %$52,247 $173,375 (69.9)%
Net income margin (3)11.1 %8.7 %240  bps2.6  %8.9 %(630) bps
Adjusted EBITDA (Non-GAAP)$171,928 $183,587 (6.4)%$512,050 $530,897 (3.6)%
Adjusted EBITDA margin (Non-GAAP) (4)25.4 %27.7 %(230) bps25.6 %27.1 %(150) bps
Active sellers (5)8,501 8,522 (0.2)%8,501 8,522 (0.2)%
Active buyers (5)93,161 96,707 (3.7)%93,161 96,707 (3.7)%
(1)Consolidated GMS for the three and nine months ended September 30, 2025 includes Etsy marketplace GMS of $2,432.6 million and $7,167.7 million, respectively.
(2)Revenue take rate is consolidated revenue divided by consolidated GMS.
(3)Consolidated net income margin is net income divided by revenue.
(4)Consolidated non-GAAP Adjusted EBITDA margin is consolidated non-GAAP Adjusted EBITDA divided by consolidated revenue.
(5)Reverb active buyer and seller metrics are reflected in the 2024 periods presented and excluded from the 2025 periods presented following the completion of its sale.
Consolidated Fourth Quarter 2025 Financial Guidance
Q4 25 Guidance
GMS $3.5B-$3.65B
Take Rate~24.5%
Adjusted EBITDA Margin~24%
Regarding Etsy’s outlook, Baker commented, “We are pleased that at the midpoint, our fourth quarter consolidated GMS would represent further sequential improvement in our combined Etsy marketplace and Depop year-over-year growth rate. Our expectation for fourth quarter consolidated adjusted EBITDA margin reflects stable, strong profitability for the Etsy marketplace, paired with a significant sequential increase in brand marketing investment at Depop which will compress margin performance. This investment in Depop is discretionary and opportunistic, arising from our excitement about the scale and growth of the apparel resale market, as well as Depop's own very encouraging momentum.”
Please note that our guidance assumes currency exchange rates remain unchanged at current levels.
With respect to our expectations under “Consolidated Fourth Quarter 2025 Financial Guidance” above, reconciliation of Adjusted EBITDA margin guidance to the closest corresponding GAAP measure is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity, and low visibility with respect to the charges excluded from Adjusted EBITDA; in particular, stock-based compensation expense and related payroll taxes, foreign exchange (gain) loss, interest and other non-operating income, net, provision for income taxes, acquisition, divestiture, and corporate structure-related expenses, and other non-recurring expenses.



Webcast and Conference Call Information
Etsy will host a video webcast conference call to discuss these results at 8:30 a.m. Eastern Time today, which will be live-streamed via our Investor Relations website (investors.etsy.com) under the Events section. A copy of the earnings call presentation will also be posted to our website.

A replay of the video webcast will be available through the same link following the conference call starting at 12:00 p.m. Eastern Time today, for at least three months thereafter.
About Etsy
Etsy, Inc. operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers around the world. These marketplaces share a mission to “Keep Commerce Human,” and we’re committed to using the power of business and technology to strengthen communities and empower people. Our primary marketplace, Etsy.com, is the global destination for unique and creative goods. Buyers come to Etsy to be inspired and delighted by items that are crafted and curated by creative entrepreneurs. For sellers, we offer a range of tools and services that address key business needs.
Etsy, Inc. also owns fashion resale marketplace Depop. Our marketplaces operate independently, while benefiting from shared expertise in product, marketing, technology, and customer support.
Etsy was founded in 2005 and is headquartered in Brooklyn, New York.
Etsy has used, and intends to continue using, its Investor Relations website and the Etsy News Blog (etsy.com/news) to disclose material non-public information and to comply with its disclosure obligations under Regulation FD. Accordingly, you should monitor our investor relations website and the Etsy News Blog in addition to following our press releases, SEC filings, and public conference calls and webcasts.
Investor Relations Contact:
Deb Wasser, Vice President, Investor Relations
Sarah Marx, Senior Director, Investor Relations
ir@etsy.com
Media Relations Contact:
Kelly Clausen, Vice President, Communications & Community
press@etsy.com

Cautionary Statement Regarding Forward-Looking Statements
This press release contains or references forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include statements relating to our financial guidance for the fourth quarter of 2025 and the underlying assumptions; the momentum of our customer-centric priorities; and the impact of our strategic investments in both Etsy and Depop through 2026. Forward-looking statements include all statements that are not historical facts. In some cases, forward-looking statements can be identified by terms such as “aim,” “anticipate,” “believe,” “could,” “enable,” “estimate,” “expect,” “goal,” “intend,” “may,” “optimistic,” “outlook,” “plan,” “potential,” “target,” “will,” or similar expressions and derivative forms and/or the negatives of those words.
Forward-looking statements involve substantial risks and uncertainties that may cause actual results to differ materially from those that we expect. These risks and uncertainties include but are not limited to: (1) macroeconomic, geopolitical, and other events outside of our control; (2) the level of demand for our services or products sold in our marketplaces; (3) the importance to our success of the trustworthiness of our marketplaces and our ability to attract and retain active and engaged communities of buyers and sellers; (4) any real or perceived inaccuracies in our operational metrics; (5) if we or our third-party providers are unable to protect against technology vulnerabilities, service interruptions, security breaches, or other cyber incidents; (6) our dependence on continued and unimpeded access to third-party services, platforms, and infrastructure; (7) operational and compliance risks related to our payments systems; (8) the global scope of our business; (9) our ability to recruit and retain employees; (10) our ability to compete effectively; (11) our ability to enhance our current offerings and develop new offerings to respond to the changing needs of sellers and buyers; (12) risks related to our environmental, social, and governance activities and disclosures; (13) barriers to international trade and our efforts to grow our marketplace globally; (14) acquisitions, dispositions, or strategic partnerships that may prove unsuccessful or divert management attention; (15) our ability to deal effectively with fraud or other illegal activity; and (16) litigation and evolving global legal and regulatory requirements, including privacy and data protection laws, tax laws, product liability laws, laws regulating speech and platform moderation, antitrust laws, and intellectual property and counterfeiting regulations. These and other risks and uncertainties are more fully described in our filings with the Securities and Exchange Commission, including in the section entitled “Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, and subsequent reports that we file with the Securities and Exchange Commission. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, we cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. Forward-looking statements represent our beliefs and assumptions only as of the date of this press release. We disclaim any obligation to update forward-looking statements.



Etsy, Inc.
Condensed Consolidated Balance Sheets
(in thousands; unaudited)

As of
September 30,
2025		As of
December 31,
2024
ASSETS
Current assets:
Cash and cash equivalents$1,248,940 $811,178 
Short-term investments259,211 228,322 
Accounts receivable, net7,412 8,702 
Prepaid and other current assets109,827 89,931 
Funds receivable and seller accounts168,237 189,558 
Total current assets1,793,627 1,327,691 
Restricted cash1,962 — 
Property and equipment, net231,825 236,706 
Goodwill38,060 137,089 
Intangible assets, net304,052 413,898 
Deferred tax assets134,342 145,630 
Long-term investments108,346 111,725 
Other assets40,597 45,043 
Total assets$2,652,811 $2,417,782 
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable$9,215 $25,979 
Accrued expenses309,348 374,947 
Finance lease obligations—current1,197 6,148 
Funds payable and amounts due to sellers168,237 189,558 
Deferred revenue25,612 19,213 
Other current liabilities51,463 49,268 
Total current liabilities565,072 665,113 
Finance lease obligations—net of current portion93,857 93,482 
Deferred tax liabilities5,346 7,957 
Long-term debt, net2,980,605 2,288,083 
Other liabilities120,515 122,013 
Total liabilities3,765,395 3,176,648 
Total stockholders’ deficit(1,112,584)(758,866)
Total liabilities and stockholders’ deficit$2,652,811 $2,417,782 



Etsy, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts; unaudited)

Three Months Ended 
 September 30,		Nine Months Ended 
 September 30,
 2025202420252024
Revenue$678,026 $662,410 $2,001,865 $1,956,170 
Cost of revenue194,645 185,640 580,254 556,863 
Gross profit483,381 476,770 1,421,611 1,399,307 
Operating expenses:
Marketing207,841 196,526 608,955 571,400 
Product development113,379 107,251 335,750 331,590 
General and administrative79,450 86,176 238,390 271,241 
Asset impairment charge— — 101,703 — 
Total operating expenses400,670 389,953 1,284,798 1,174,231 
Income from operations82,711 86,817 136,813 225,076 
Other income (expense), net9,374 (13,007)(26,901)7,366 
Income before income taxes92,085 73,810 109,912 232,442 
Provision for income taxes(16,582)(16,444)(57,665)(59,067)
Net income$75,503 $57,366 $52,247 $173,375 
Net income per share attributable to common stockholders:
Basic$0.76 $0.50 $0.50 $1.49 
Diluted$0.63 $0.45 $0.47 $1.34 
Weighted-average common shares outstanding:
Basic99,334 114,181 103,660 116,372 
Diluted124,957 130,748 116,774 133,116 




Etsy, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands; unaudited)

Nine Months Ended 
 September 30,
 20252024
Cash flows from operating activities
Net income$52,247 $173,375 
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense181,390 214,692 
Depreciation and amortization expense76,951 81,672 
Provision for expected credit losses7,100 10,141 
Deferred provision (benefit) for income taxes21,274 (13,727)
Asset impairment charge101,703 — 
Other non-cash expense (income), net36,168 (2,066)
Changes in operating assets and liabilities (net of impact of sale of business)
(100,543)(26,577)
Net cash provided by operating activities376,290 437,510 
Cash flows from investing activities
Purchases of property and equipment(14,120)(10,174)
Website and app development(31,308)(22,860)
Purchases of investments(251,091)(266,935)
Sales and maturities of investments227,563 263,210 
Proceeds from sale of business, net of cash100,485 — 
Net cash provided by (used in) investing activities31,529 (36,759)
Cash flows from financing activities
Payment of tax obligations on vested equity awards(42,526)(42,136)
Repurchase of stock(643,670)(464,314)
Proceeds from exercise of stock options15,331 3,830 
Proceeds from issuance of convertible senior notes 700,000 — 
Payment of debt issuance costs (11,339)— 
Payments on finance lease obligations(4,594)(4,591)
Other financing, net(17,784)2,418 
Net cash used in financing activities(4,582)(504,793)
Effect of exchange rate changes on cash36,487 8,658 
Net increase (decrease) in cash and cash equivalents439,724 (95,384)
Cash and cash equivalents at beginning of period811,178 914,323 
Cash, cash equivalents, and restricted cash at end of period$1,250,902 $818,939 




Currency-Neutral GMS
We calculate currency-neutral GMS by translating current period GMS for goods sold that were listed in non-U.S. dollar currencies into U.S. dollars using prior year foreign currency exchange rates.
As reported and currency-neutral GMS decline for the periods presented below are as follows:
 Quarter-to-Date Period EndedYear-to-Date Period Ended
As ReportedCurrency-NeutralFX ImpactAs ReportedCurrency-NeutralFX Impact
September 30, 2025(6.5)%(7.2)%0.7 %(6.0)%(6.2)%0.2 %
September 30, 2024(4.1)%(4.4)%0.3 %(3.3)%(3.5)%0.2 %

Non-GAAP Financial Measures

Reconciliation of Net Income to Adjusted EBITDA and the Calculation of Adjusted EBITDA Margin
(in thousands, except percentages; unaudited)
Three Months Ended 
 September 30,		Nine Months Ended 
September 30,
2025202420252024
Net income$75,503 $57,366 $52,247 $173,375 
Excluding:
Stock-based compensation expense and related payroll taxes (1)(2)62,172 69,292 186,719 214,692 
Depreciation and amortization24,263 27,739 76,951 81,672 
Provision for income taxes16,582 16,444 57,665 59,067 
Interest and other non-operating income, net(7,680)(3,808)(17,521)(13,065)
Foreign exchange (gain) loss(777)16,815 40,561 5,699 
Asset impairment charge— — 101,703 — 
Acquisition, divestiture, and corporate structure-related expenses(18)(697)7,148 1,435 
Loss on sale of business— — 5,097 — 
Restructuring and other exit costs1,883 1,556 1,480 1,898 
Retroactive non-income tax expense (3)— (1,120)— 6,124 
Adjusted EBITDA$171,928 $183,587 $512,050 $530,897 
Divided by:
Revenue$678,026 $662,410 $2,001,865 $1,956,170 
Adjusted EBITDA margin25.4 %27.7 %25.6 %27.1 %
(1)Stock-based compensation expense included in the Condensed Consolidated Statements of Operations for the periods presented below is as follows:
Three Months Ended 
 September 30,		Nine Months Ended 
 September 30,
 2025202420252024
Cost of revenue$6,477 $8,013 $21,387 $24,504 
Marketing4,521 5,690 10,280 18,009 
Product development33,726 36,048 100,279 108,553 
General and administrative16,048 19,541 49,444 63,626 
Stock-based compensation expense $60,772 $69,292 $181,390 $214,692 
(2)Beginning in the first quarter of 2025, the Company is excluding payroll tax expense related to stock-based compensation from Adjusted EBITDA because these taxes are directly related to stock-based compensation expense which is excluded from Adjusted EBITDA. The Company did not retrospectively apply this change to prior periods as the impact was immaterial to such periods. In the three and nine months ended September 30, 2024 payroll tax expense related to stock-based compensation was $0.7 million and $4.8 million, respectively.

(3)Retroactive non-income tax expense related to the digital services tax legislation in Canada, which was enacted on June 28, 2024 retroactive to January 1, 2022.