Etsy, Inc. reported its financial results for the fiscal year ending December 31, 2025, revealing a total revenue of $2.88 billion, a 2.7% increase from $2.81 billion in 2024. However, the company experienced a decline in Gross Merchandise Sales (GMS), which fell by 5.3% to $11.92 billion, primarily due to the sale of its Reverb marketplace and ongoing pressures on consumer discretionary spending. The Etsy marketplace generated $10.46 billion in GMS, while Depop contributed $1.07 billion, marking a 36.3% increase year-over-year for the latter.

In terms of profitability, Etsy's net income decreased significantly by 46.3% to $163 million, down from $303 million in the previous year. This decline was attributed to a $101.7 million impairment charge related to the goodwill of Reverb, which was sold in June 2025. The company's Adjusted EBITDA also fell by 6% to $734.5 million, reflecting a margin of 25.5%, down from 27.8% in 2024. Despite these challenges, Etsy's services revenue, which includes advertising and shipping label fees, grew by 11.3% to $876.3 million, indicating a shift in revenue generation strategies.

Etsy's operational metrics showed a slight decline in active buyers, which decreased by 3% to 86.5 million, while the number of active sellers increased by 7.7% to 8.76 million. The company reported that 45% of GMS was transacted through its mobile app, up from 42% in 2024, highlighting a growing trend in mobile engagement. The U.S. market continued to dominate, accounting for 74% of GMS, with significant opportunities for growth in international markets, particularly where Etsy's penetration remains low.

Strategically, Etsy announced a leadership transition, with Kruti Patel Goyal appointed as CEO effective January 1, 2026, following Josh Silverman's decision to step down. The company also entered into a Sale and Purchase Agreement with eBay for the sale of Depop for $1.2 billion, expected to close in the second quarter of 2026. The proceeds from this transaction are intended to support share repurchases and investments in the Etsy marketplace. Etsy's cash and cash equivalents stood at $1.4 billion at year-end, providing a solid foundation for future growth initiatives and operational stability.

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.

This description was generated via AI from an annual report. Updated 8 months ago.

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