Etsy, Inc. (NASDAQ: 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 second quarter ended June30, 2025.
“We are encouraged by our second quarter performance, which reflects tangible progress in our key investment areas,” said Josh Silverman, Etsy, Inc. Chief Executive Officer. “These efforts are designed to strengthen customer relationships on the Etsy marketplace, deepen buyer engagement, and reignite GMS growth. We're seeing early success in our efforts to build a more browsable shopping experience, particularly on our App, amplified by more personalized marketing and emergent AI technologies. We believe this is creating a significant runway for growth, as well as an opportunity to generate sustainable value for our stakeholders by capitalizing on what makes Etsy special.”
Second Quarter 2025 Highlights
Etsy completed the sale of Reverb on June 2, 2025. Reverb is included in our consolidated results for the first two months of the second quarter of 2025, representing $153.0 million of GMS and $17.6 million of revenue, and for the full three months of the second quarter of 2024, when it represented $225.2 million of GMS and $24.4 million of revenue.
Below are select consolidated results:
— GMS was $2.8 billion, down 4.8% year-over-year and down 5.8% on a currency-neutral basis. Excluding Reverb, consolidated GMS was $2.7 billion in the second quarter of 2025, down 2.6% year-over-year on the same basis.
— Revenue was $672.7 million, up 3.8% versus the second quarter of 2024, with a take rate of 24.0%. Our positive revenue growth was driven primarily by the performance of on-site ads and, to a lesser extent, payments for both Depop and Etsy.
— Net income was $28.8 million, down $24.2 million year-over-year, reflecting a non-cash foreign exchange loss of $25.4 million as compared to a non-cash foreign exchange gain of $4.9 million in the second quarter of 2024. Consolidated net income margin was approximately 4.3% and diluted net income per share was $0.25.
— Non-GAAP Adjusted EBITDA was $169.0 million, with consolidated non-GAAP Adjusted EBITDA margin of approximately 25.1%.
— During the quarter Etsy completed a private placement of convertible notes, raising approximately $700 million in cash.
— Etsy ended the second quarter with $1.5 billion in cash and cash equivalents and short- and long-term investments. Under Etsy's stock repurchase program, during the second quarter of 2025 Etsy repurchased an aggregate of approximately $335 million, or 6.4 million shares, of its common stock.
Performance highlights for the Etsy marketplace include:
— GMS was $2.4 billion, down 5.4% year-over-year and down 6.3% on a currency-neutral basis. After a softer start to the quarter, which was magnified by the shift in Easter timing, we saw more favorable GMS trends across the remainder of the quarter. On an as reported basis, Etsy marketplace GMS improved 3.5 percentage points in the second quarter of 2025 as compared to the first quarter of 2025.
— GMS on the Etsy App grew on a year-over-year basis and sequentially, and represented approximately 45% of Etsy marketplace GMS.
— Key product initiatives in the quarter included advancing search quality by testing more signals in our algorithms, growing our AI-powered discovery experience with additional themes, and releasing new seller tools to simplify shop operations.
— Key marketing initiatives included growing GMS through more personalized retention and engagement strategies, strong performance in paid social channels, optimization of product listing ad data feeds, and brand investments that amplified Etsy's differentiation.
— Active buyers decreased 4.6% year-over-year to 87.3 million. We reactivated 6.5 million buyers in the quarter, a 2.8% increase from the number of buyers reactivated in the prior year, and up 1.3% sequentially. During the quarter, Etsy acquired 4.8 million new buyers, and our trailing twelve month count of habitual buyers was 6.1 million at quarter end.
— GMS per active buyer on a trailing twelve month basis was $120, showing signs of stabilization. This metric held steady sequentially, and declined 2.9% year-over-year. Monthly GMS per active buyer trends strengthened over the course of the quarter, inflecting into positive year-over-year comparisons in May and June, even on an FX-adjusted basis.
Depop continued to see strong top-line growth, with second quarter 2025 GMS of $249.6 million, up 35.3% year-over-year; and 54% year-over-year growth in the United States. Key performance highlights for the quarter included:
— Improving search and recommendation relevance and freshness through ranking model updates, as well as leveraging more frequent model training.
— Driving greater early visibility and success for new sellers by enabling free item boosts for recently onboarded sellers and enhancing price recommendations.
— Record quarter for sign-ups driven from paid media acquisition channels.
“Second quarter GMS and revenue came in ahead of expectations, and adjusted EBITDA was in line with our guidance, as we are managing the business to invest in future growth while also delivering very healthy margins,” said Lanny Baker, Chief Financial Officer. “Our take rate was very strong, at 24%, primarily driven by the expansion of Etsy Ads revenue from continued improvements to our bidding algorithms, as well as some benefit from payments. We also strengthened our balance sheet through a highly successful convertible notes offering and repurchased approximately $335 million of Etsy stock, in line with our high conviction in Etsy's long-term opportunities. With approximately $1.5 billion in cash and cash equivalents and short- and long-term investments at the end of the period, and expectations for continued strong free cash flow generation, we are very confident in Etsy's financial flexibility to continue stock repurchases, manage our debt balance, and make ongoing investments in Etsy and Depop.”
Second 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) and for all periods presented in this table, except as noted below. The financial measures and key operating metrics we use are:
Consolidated Third Quarter 2025 Financial Guidance
Please note that our guidance assumes currency exchange rates remain unchanged at current levels. Investors can visit the second quarter earnings presentation on our website to see select Reverb historical quarterly financial GMS and revenue results.
“Getting the Etsy marketplace back to GMS growth in the near term is our number one priority, and we have four strategic initiatives designed with this in mind,” said Mr. Silverman. “These include showing up where shoppers discover, matching shoppers with the right content through better machine learning, retaining and rewarding our most valuable customers, and further amplifying the human connection that makes Etsy unique. In addition, with Depop now at a $1 billion dollar annualized GMS run rate, we are working to further capitalize on its momentum. We're accelerating marketing investments designed to reach and engage an expanded U.S. audience via a broader channel mix and more robust community-led programs.”
Mr. Baker added, “We are pleased to see compounding impacts from Etsy marketplace product and marketing investments as we head into the second half of the year, and that our third quarter consolidated GMS guidance represents a quarter-over-quarter improvement in the apples-to-apples growth rate at the midpoint. In addition, our guidance reflects sequential expansion and strong profitability for the core Etsy business, where we consistently manage adjusted EBITDA margins to the high-20% range.”
With respect to our expectations under “Consolidated Third 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 loss (gain), 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 third quarter of 2025 and the underlying assumptions; our ability to accelerate our customer relationship flywheel; our expectations for strong free cash flow generation; our ability to drive growth and success; our ability to capitalize on Depop's momentum; our future opportunities to support GMS improvement; the impact of our product development and marketing initiatives; the ability of our product and marketing investments to create a runway for growth and sustainable value for our stakeholders; and our financial flexibility to continue stock repurchases, manage our debt balance, and make ongoing investments in the business. 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 March 31, 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.
Currency-NeutralGMS
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:
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SOURCE Etsy, Inc.
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