Etsy, Inc. Reports Third Quarter 2025 Results
BROOKLYN, N.Y., Oct. 29, 2025 /PRNewswire/ -- 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.
Performance highlights for the Etsy marketplace include:
Performance highlights for the Depop marketplace include:
"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
2025
2024
2025
2024
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 bps
24.0 %
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 bps
2.6 %
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) bps
25.6 %
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 investments
259,211
228,322
Accounts receivable, net
7,412
8,702
Prepaid and other current assets
109,827
89,931
Funds receivable and seller accounts
168,237
189,558
Total current assets
1,793,627
1,327,691
Restricted cash
1,962
—
Property and equipment, net
231,825
236,706
Goodwill
38,060
137,089
Intangible assets, net
304,052
413,898
Deferred tax assets
134,342
145,630
Long-term investments
108,346
111,725
Other assets
40,597
45,043
Total assets
$ 2,652,811
$ 2,417,782
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable
$ 9,215
$ 25,979
Accrued expenses
309,348
374,947
Finance lease obligations—current
1,197
6,148
Funds payable and amounts due to sellers
168,237
189,558
Deferred revenue
25,612
19,213
Other current liabilities
51,463
49,268
Total current liabilities
565,072
665,113
Finance lease obligations—net of current portion
93,857
93,482
Deferred tax liabilities
5,346
7,957
Long-term debt, net
2,980,605
2,288,083
Other liabilities
120,515
122,013
Total liabilities
3,765,395
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,
2025
2024
2025
2024
Revenue
$ 678,026
$ 662,410
$ 2,001,865
$ 1,956,170
Cost of revenue
194,645
185,640
580,254
556,863
Gross profit
483,381
476,770
1,421,611
1,399,307
Operating expenses:
Marketing
207,841
196,526
608,955
571,400
Product development
113,379
107,251
335,750
331,590
General and administrative
79,450
86,176
238,390
271,241
Asset impairment charge
—
—
101,703
—
Total operating expenses
400,670
389,953
1,284,798
1,174,231
Income from operations
82,711
86,817
136,813
225,076
Other income (expense), net
9,374
(13,007)
(26,901)
7,366
Income before income taxes
92,085
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:
Basic
99,334
114,181
103,660
116,372
Diluted
124,957
130,748
116,774
133,116
Etsy, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands; unaudited)
Nine Months Ended
September 30,
2025
2024
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 expense
181,390
214,692
Depreciation and amortization expense
76,951
81,672
Provision for expected credit losses
7,100
10,141
Deferred provision (benefit) for income taxes
21,274
(13,727)
Asset impairment charge
101,703
—
Other non-cash expense (income), net
36,168
(2,066)
Changes in operating assets and liabilities (net of impact of sale of business)
(100,543)
(26,577)
Net cash provided by operating activities
376,290
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 investments
227,563
263,210
Proceeds from sale of business, net of cash
100,485
—
Net cash provided by (used in) investing activities
31,529
(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 options
15,331
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 cash
36,487
8,658
Net increase (decrease) in cash and cash equivalents
439,724
(95,384)
Cash and cash equivalents at beginning of period
811,178
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 Ended
Year-to-Date Period Ended
As Reported
Currency-
Neutral
FX Impact
As Reported
Currency-
Neutral
FX 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,
2025
2024
2025
2024
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 amortization
24,263
27,739
76,951
81,672
Provision for income taxes
16,582
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 costs
1,883
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 margin
25.4 %
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,
2025
2024
2025
2024
Cost of revenue
$ 6,477
$ 8,013
$ 21,387
$ 24,504
Marketing
4,521
5,690
10,280
18,009
Product development
33,726
36,048
100,279
108,553
General and administrative
16,048
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.
SOURCE Etsy, Inc.