Etsy Reports $651.2 Million Revenue with Net Loss of $52.1 Million in Q1 2025

Etsy, Inc. reported a total revenue of $651.2 million for the first quarter of 2025, reflecting a slight increase of 0.8% compared to $645.9 million in the same period of 2024. The company's marketplace revenue decreased by 1.8% to $458.5 million, while services revenue rose by 7.7% to $192.7 million. Despite the revenue growth, Etsy recorded a net loss of $52.1 million, a significant decline from a net income of $63.0 million in the prior year, primarily due to a non-cash goodwill impairment charge of $101.7 million related to its Reverb reporting unit.

The company experienced a decrease in active sellers and buyers, with active sellers dropping to 8.1 million from 9.1 million and active buyers decreasing to 94.8 million from 96.4 million year-over-year. Gross merchandise sales (GMS) fell by 6.5% to $2.8 billion, attributed to a decline in consumer discretionary spending and a competitive retail environment. The revenue take rate improved to 23.3%, up from 21.6% in the previous year, indicating a more favorable pricing strategy.

Etsy's operational metrics showed a positive trend in services revenue, driven by a 6.2% increase in on-site advertising revenue. The company also reported positive operating cash flows of $49.2 million for the quarter. As of March 31, 2025, Etsy had cash and cash equivalents of $867.7 million, alongside a $400 million senior secured revolving credit facility, which remains undrawn. The company is focused on enhancing its technology infrastructure and expanding its global presence, particularly in markets outside the United States.

In terms of strategic developments, Etsy announced an agreement to sell Reverb for $105 million, which is expected to close in the coming months, subject to customary conditions. This decision follows the impairment charge and reflects a strategic shift to concentrate on its core marketplaces. The company continues to invest in product development and marketing to strengthen its competitive position, despite the challenges posed by macroeconomic conditions and evolving consumer preferences. Looking ahead, Etsy aims to leverage its marketplace playbook to drive growth and improve profitability while navigating the complexities of the e-commerce landscape.