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 September30, 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 theEtsy 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 strongGMS from paid search channels.
— Deeper machine learning based personalization which drove accelerating performance inEtsy 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 theDepop 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:
— LaunchingDepop'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 bothEtsy 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 notedin footnote (5) to the table below. The financial measures and key operating metrics we use are:
Consolidated Fourth Quarter 2025 Financial Guidance
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 theSecurities 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 thedate 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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