Etsy, Inc. reported its financial results for the third quarter of 2025, revealing a total revenue of $678.0 million, a 2.4% increase from $662.4 million in the same period last year. The company's net income for the quarter was $75.5 million, up 31.6% from $57.4 million in Q3 2024. For the nine months ending September 30, 2025, Etsy's revenue reached $2.0 billion, compared to $1.96 billion in the prior year, while net income for the same period was $52.2 million, a significant decline from $173.4 million in 2024, largely due to a $101.7 million impairment charge related to the sale of its Reverb marketplace.
The company experienced a notable shift in its revenue composition, with marketplace revenue decreasing by 1.7% to $468.1 million, primarily due to the impact of the Reverb sale. In contrast, services revenue increased by 12.7% to $210.0 million, driven by higher advertising revenue. Etsy's gross merchandise sales (GMS) for the quarter were $2.7 billion, reflecting a 6.5% decline year-over-year, attributed to lower consumer discretionary spending and a competitive retail environment.
Etsy's operational metrics showed a slight decrease in active sellers, totaling 8.5 million, and active buyers at 93.2 million, down 3.7% from the previous year. The company continues to focus on enhancing its marketplace offerings and improving user engagement, with a reported increase in the average price per click on Etsy Ads contributing to the rise in services revenue. The company also highlighted its strategic decision to sell Reverb to concentrate on its core Etsy and Depop marketplaces, which are expected to drive future growth.
Looking ahead, Etsy's management expressed optimism about the company's ability to navigate current macroeconomic challenges and improve GMS through enhanced app performance and effective marketing initiatives. The company ended the quarter with $1.5 billion in cash and cash equivalents, alongside a $400 million revolving credit facility, positioning it well for future investments and operational needs. However, the ongoing economic environment and competitive pressures remain key factors that could influence Etsy's performance in the coming quarters.
About ETSY INC
Etsy operates online marketplaces connecting millions of buyers and independent sellers worldwide. Its core platform features unique, handcrafted, and vintage items across categories like jewelry, homeware, and craft supplies. Focused on fostering human connections, trust, and community, Etsy leverages advanced technology, personalized search, and marketing to drive growth, support seller success, and promote sustainable, creative commerce globally.
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