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ETSY Inc

Etsy, Inc. Reports Fourth Quarter and Full Year 2025 Results

Etsy marketplace returns to slight GMS growth in Q4 25; expects GMS growth in FY 2026

BROOKLYN, N.Y. , Feb. 19, 2026 /PRNewswire/ -- 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 financial results for its fourth quarter and full year ended December 31, 2025.

"Our clear strategic focus and solid execution are driving progress on the journey to bring the Etsy marketplace back to sustained growth," said Kruti Patel Goyal, President and Chief Executive Officer of Etsy, Inc. "What sets Etsy apart is not just what we sell, but who we're built for: buyers seeking something personal and sellers bringing creativity to life. By strengthening how we connect the right people with the right items at the right moments, we see a meaningful opportunity to grow relevance, engagement, and market share over time, while continuing to deliver long-term value to all of our stakeholders."

Fourth quarter 2025 performance highlights include:

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 $3,592.6 million, up 2.4% year-over-year and 1.3% on a currency-neutral basis, excluding Reverb from the prior-year period. On an as reported basis, including Reverb's fourth quarter 2024 GMS of $228.3 million, consolidated GMS was down 3.8% year-over-year.
  • Revenue was $881.6 million, up 6.6% year-over-year, excluding Reverb from the prior-year period. On an as reported basis, including Reverb's fourth quarter 2024 revenue of $24.9 million, consolidated revenue was up 3.5% year-over-year.
  • Take rate was 24.5%. Growth in revenue was primarily driven by continued strong consolidated on-site ads performance.
  • Net income was $110.7 million, down $19.2 million year-over-year, reflecting a non-cash foreign exchange gain of $19.1 million in the fourth quarter of 2024, with no comparable gain in the fourth quarter of 2025. Consolidated net income margin was 12.6% and diluted net income per share was $0.92.
  • Non-GAAP Adjusted EBITDA was $222.5 million, with consolidated non-GAAP Adjusted EBITDA margin of approximately 25.2%.
  • Etsy ended the fourth quarter with $1.8 billion in cash and cash equivalents and short- and long-term investments. Under Etsy's stock repurchase program, during the fourth quarter of 2025, Etsy repurchased an aggregate of approximately $133 million, or 2.3 million shares, of its common stock.

Etsy marketplace performance highlights:

  • GMS was $3,292.9 million, up 0.1% year-over-year and down 1.0% on a currency-neutral basis.
  • GMS transacted on the Etsy app grew 6.6% year-over-year, and represented approximately 46% of GMS.
  • Active sellers totaled 5.6 million, a 1.5% year-over-year decrease, but up modestly on a sequential basis with retention of prior year active sellers inflecting positively in the quarter.
  • Active buyers totaled 86.5 million, down 3.4% year-over-year, and nearly flat sequentially, with modest sequential growth in U.S. buyers.
  • During the quarter, Etsy acquired 6.8 million new buyers and reactivated 10.4 million buyers, representing 17.2 million gross buyer additions, a 2.7% increase from the prior year. Additionally, at quarter end our trailing twelve month count of habitual buyers was 5.9 million.
  • GMS per active buyer on a trailing twelve month basis was $121, down 0.5% year-over-year. This metric improved sequentially, and the year-over-year decline moderated.
  • Based on Consumer Edge data, during the quarter we outperformed peers in half of our top six categories, and Etsy's Home and Living category grew year-over-year. Impactful programs during the quarter included our curated gifts ideas and Cyber deals.
  • Key product and marketing initiatives in the fourth quarter included:
    • Strengthening owned marketing channels, with email and push clicks up more than 25% year-over-year, while send volume stayed disciplined.
    • Expanding our third-party shipping partner program into five new markets - Bulgaria, Italy, Lithuania, Spain, and Ukraine - with a mix of trusted and new logistics partners to improve cross-border shipping, delivery reliability, and Delivery Duties Paid coverage for sellers.
    • In addition to our previously announced integration with OpenAI's ChatGPT Instant Checkout, in January of 2026, we announced agentic shopping partnerships with Google and Microsoft that  allow their signed-in U.S. users to purchase select Etsy items directly within AI-powered experiences like AI Mode in Google Search, the Gemini app, and Copilot Checkout, making it more seamless to purchase our sellers' unique items at the moment shoppers move from inspiration to intent. We also announced an agentic payments partnership with Stripe that allows Etsy to accept agentic payments from multiple platforms via a single integration.

Depop marketplace performance highlights:

  • GMS was $299.7 million, up 37.2% year-over-year on a currency-neutral basis, driven primarily by continued strength in the United States. U.S. buyer GMS grew 60.2% year-over-year, with strong momentum in December driven by improved sign-ups and new buyer contribution. Depop's largest-ever brand marketing campaign in the United States contributed to this strong performance.
  • Product enhancements to recommendations and search drove meaningful lifts in purchases and conversion.
  • Depop active sellers totaled 3.2 million, a 41.1% increase year-over-year; active buyers were up 37.7% to 7.0 million.

"We ended the year with solid results, in-line with or better than our expectations," said Lanny Baker, Chief Financial Officer. "Fourth quarter consolidated GMS was $3.6 billion, up 2.4% year-over-year excluding Reverb from the prior-year period. Etsy marketplace GMS grew slightly year-over-year, driven by the impact of our near-term priorities as well as some benefit from foreign exchange rates and competitive spending patterns in certain marketing channels. We saw stabilization and some improvement in our key customer metrics, including moderation in active buyer declines, sequential stabilization in trailing twelve month GMS per active buyer, growth in total gross buyer additions, and sequential growth alongside higher retention of active sellers. Fourth quarter Adjusted EBITDA was $222 million, representing a consolidated Adjusted EBITDA margin of 25.2%, with the core Etsy marketplace hitting our highest Adjusted EBITDA margin level of 2025, at approximately 30%."

Fourth Quarter and Full Year 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 noted in footnote (3) to the table below. The financial measures and key operating metrics we use are:

Three Months Ended  

December 31,

% (Decline)

Growth

Y/Y

Year Ended  

December 31,

% (Decline)

Growth

Y/Y


2025

2024

2025

2024

GMS (1)

$     3,592,650

$    3,735,942

(3.8) %

$   11,916,900

$   12,586,952

(5.3) %

Revenue

$        881,636

$       852,162

3.5 %

$     2,883,501

$     2,808,332

2.7 %

Revenue take rate (2)

24.5 %

22.8 %

170 bps

24.2 %

22.3 %

190 bps

Marketplace revenue

$        612,442

$       607,310

0.8 %

$     2,007,164

$     2,020,744

(0.7) %

Services revenue

$        269,194

$       244,852

9.9 %

$        876,337

$        787,588

11.3 %

Gross profit

$        644,090

$       634,471

1.5 %

$     2,065,701

$     2,033,778

1.6 %

Operating expenses

$        514,693

$       479,339

7.4 %

$     1,799,491

$     1,653,570

8.8 %

Net income

$        110,735

$       129,906

(14.8) %

$        162,982

$        303,281

(46.3) %

Net income margin

12.6 %

15.2 %

(260) bps

5.7 %

10.8 %

(510) bps

Adjusted EBITDA (Non-GAAP)

$        222,461

$       250,641

(11.2) %

$        734,511

$        781,538

(6.0) %

Adjusted EBITDA margin (Non-GAAP)

25.2 %

29.4 %

(420) bps

25.5 %

27.8 %

(230) bps

Net cash provided by operating activities - trailing twelve months

$        693,414

$       752,469

(7.8) %

$        693,414

$        752,469

(7.8) %

Free cash flow (Non-GAAP) - trailing twelve months

$        638,750

$       708,971

(9.9) %

$        638,750

$        708,971

(9.9) %








Active sellers (3)

8,762

8,134

7.7 %

8,762

8,134

7.7 %

Active buyers (3)

93,539

95,459

(2.0) %

93,539

95,459

(2.0) %



(1)

GMS for the year ended December 31, 2025 includes Etsy marketplace GMS of $10,460.7 million, Depop GMS of $1,074.9 million, and Reverb GMS of $381.3 million.

(2)

Revenue take rate is revenue divided by GMS.

(3)

Reverb active buyer and seller metrics are reflected in the 2024 periods presented and excluded from the 2025 periods presented following the completion of its sale.

Definitive Agreement to sell Depop to eBay

We announced yesterday that we have entered into a Sale and Purchase Agreement (the "Purchase Agreement") to sell Depop to eBay Inc. for $1.2 billion in cash, subject to certain adjustments as set forth in the Purchase Agreement. The sale is currently expected to close in the second quarter of 2026, subject to certain closing conditions as set forth in the Purchase Agreement. Etsy will continue to own and operate Depop through such time as the transaction is completed, with Depop's financial results classified as discontinued operations on Etsy's consolidated financial statements for both current and prior periods beginning in the first quarter of fiscal year 2026.

Consolidated First Quarter 2026 Guidance and Full Year Commentary

With the anticipated sale of Depop, which will be classified as discontinued operations beginning in the first quarter of 2026 and presented separately in our financials— our guidance reflects continuing operations only, or the core Etsy marketplace.

Q1 26 Guidance

FY 26 Commentary

GMS

$2.38B to $2.43B

We currently expect slight year-over-year growth in

GMS, with positive year-over-year comparisons in

each quarter of 2026

Take Rate

~25.5%

Roughly consistent with Q1 26 guidance

Adjusted EBITDA Margin

~28-30%

Roughly consistent with Q1 26 guidance

Please note that our guidance assumes currency exchange rates remain unchanged at current levels.

Commenting on the 2026 outlook, Baker added, "As we enter 2026, we have a focused set of product and marketing initiatives in flight and several early indicators of progress, and we expect that the full impact of these will take time to translate into long-term sustainable growth. Looking beyond the first quarter, with a singular focus on the Etsy business, growing confidence in our operating priorities, and ongoing stabilization in customer metrics, we feel comfortable providing high level commentary for the year. We've improved the Etsy marketplace's annual GMS performance over the last two years, and we expect to further improve our performance this year - achieving slight growth for the full year, with positive year-over-year comparisons in every quarter."   

With respect to our expectations under "Consolidated First Quarter 2026 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 the Company's 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:

Lauren Bayse, Senior Director, Corporate Communications
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 2026 and the underlying assumptions; the expected timing of the closing of the Depop transaction; 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," "should," "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 and safety 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 and deploy that talent effectively; (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 and uncertainty around 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 increasingly amplified by advances in AI; 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 September 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 the date of this press release. We disclaim any obligation to update forward-looking statements.

Etsy, Inc.

Condensed Consolidated Balance Sheets

(in thousands; unaudited)

 


As of December 31,


2025

2024

Assets



Current assets:



Cash and cash equivalents

$                        1,395,836

$                              811,178

Short-term investments

224,088

228,322

Accounts receivable, net

8,690

8,702

Prepaid and other current assets

127,367

89,931

Funds receivable and seller accounts

205,002

189,558

Total current assets

1,960,983

1,327,691

Restricted cash

8,524

—

Property and equipment, net

229,197

236,706

Goodwill

38,067

137,089

Intangible assets, net

297,352

413,898

Deferred tax assets

119,310

145,630

Long-term investments

134,376

111,725

Other assets

39,445

45,043

Total assets

$                         2,827,254

$                          2,417,782

Liabilities and Stockholders' Deficit



Current liabilities:



Accounts payable

$                              28,810

$                               25,979

Accrued expenses

393,015

374,947

Short-term debt, net

649,008

—

Funds payable and amounts due to sellers

205,002

189,558

Deferred revenue

27,049

19,213

Other current liabilities

60,735

55,416

Total current liabilities

1,363,619

665,113

Finance lease obligations—net of current portion

93,482

93,482

Deferred tax liabilities

8,808

7,957

Long-term debt, net

2,333,230

2,288,083

Other liabilities

126,210

122,013

Total liabilities

3,925,349

3,176,648

Total stockholders' deficit

(1,098,095)

(758,866)

Total liabilities and stockholders' deficit

$                         2,827,254

$                          2,417,782

 

Etsy, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts; unaudited)

 


Three Months Ended  

December 31,

Year Ended  

December 31,


2025

2024

2025

2024

Revenue

$                   881,636

$                    852,162

$               2,883,501

$              2,808,332

Cost of revenue

237,546

217,691

817,800

774,554

Gross profit

644,090

634,471

2,065,701

2,033,778

Operating expenses:





Marketing

305,875

285,165

914,830

856,565

Product development

114,442

111,466

450,192

443,056

General and administrative

94,376

82,708

332,766

353,949

Asset impairment charges

—

—

101,703

—

Total operating expenses

514,693

479,339

1,799,491

1,653,570

Income from operations

129,397

155,132

266,210

380,208

Other income (expense), net

7,356

23,201

(19,545)

30,567

Income before income taxes

136,753

178,333

246,665

410,775

Provision for income taxes

(26,018)

(48,427)

(83,683)

(107,494)

Net income

$                   110,735

$                    129,906

$                  162,982

$                 303,281

Net income per share attributable to common stockholders:





Basic

$                         1.13

$                          1.17

$                        1.59

$                       2.64

Diluted

$                         0.92

$                          1.03

$                        1.39

$                       2.35

Weighted average common shares outstanding:





Basic

98,213

110,630

102,356

114,944

Diluted

123,541

127,245

124,114

131,721

 

Etsy, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands; unaudited)

 


Year Ended  

December 31,


2025

2024

Cash flows from operating activities



Net income

$                           162,982

$                              303,281

Adjustments to reconcile net income to net cash provided by operating activities:



Stock-based compensation expense

244,745

282,847

Depreciation and amortization expense

101,845

108,074

Provision for expected credit losses

9,006

11,950

Deferred provision (benefit) for income taxes

39,215

(14,445)

Asset impairment charges

101,703

—

Other non-cash expense (income), net

34,610

(18,962)

Changes in operating assets and liabilities, net of sale of business

(692)

79,724

Net cash provided by operating activities

693,414

752,469

Cash flows from investing activities



Purchases of property and equipment

(15,386)

(14,208)

Website and app development

(39,278)

(29,290)

Purchases of investments

(326,582)

(330,763)

Sales and maturities of investments

312,842

321,160

Proceeds from sale of business, net of cash

100,485

—

Net cash provided by (used in) investing activities

32,081

(53,101)

Cash flows from financing activities



Payment of tax obligations on vested equity awards

(75,220)

(61,588)

Repurchase of stock

(776,899)

(723,899)

Proceeds from exercise of stock options

17,667

3,907

Proceeds from issuance of convertible senior notes

700,000

—

Payment of debt issuance costs

(11,339)

—

Payments on finance lease obligations

(6,162)

(6,091)

Other financing, net

(17,922)

503

Net cash used in financing activities

(169,875)

(787,168)

Effect of exchange rate changes on cash

37,562

(15,345)

Net increase (decrease) in cash, cash equivalents, and restricted cash

593,182

(103,145)

Cash and cash equivalents at beginning of period

811,178

914,323

Cash, cash equivalents, and restricted cash at end of period

$                       1,404,360

$                              811,178

 

Currency-Neutral GMS Growth

We calculate currency-neutral GMS growth 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 is as follows:

Quarter-to-Date Period Ended

Year-to-Date Period Ended


As Reported

Currency-

Neutral

FX Impact

As Reported

Currency-

Neutral

FX Impact

December 31, 2025

(3.8) %

(4.9) %

1.1 %

(5.3) %

(5.8) %

0.5 %

December 31, 2024

(6.8) %

(6.9) %

0.1 %

(4.4) %

(4.5) %

0.1 %

 

Non-GAAP Financial Measures

Reconciliation of Net Income to Adjusted EBITDA and the Calculation of Adjusted EBITDA Margin

(in thousands, except percentages; unaudited)

 


Three Months Ended  

December 31,

Year Ended  

December 31,


2025

2024

2025

2024

Net Income

$            110,735

$           129,906

$           162,982

$           303,281

Excluding:





Stock-based compensation expense and related payroll taxes (1)

66,267

68,155

252,986

282,847

Depreciation and amortization

24,894

26,402

101,845

108,074

Provision for income taxes

26,018

48,427

83,683

107,494

Interest and other non-operating income, net

(6,419)

(4,111)

(23,940)

(17,176)

Foreign exchange (gain) loss

(133)

(19,090)

40,428

(13,391)

Asset impairment charge

—

—

101,703

—

Acquisition, divestiture, and corporate structure-related expenses

8

43

7,156

1,478

Loss on sale of business

—

—

5,097

—

Restructuring and other exit costs

1,091

909

2,571

2,807

Retroactive non-income tax expense (2)

—

—

—

6,124

Adjusted EBITDA

$            222,461

$           250,641

$            734,511

$           781,538

Divided by





Revenue

$            881,636

$           852,162

$         2,883,501

$        2,808,332

Adjusted EBITDA margin

25.2 %

29.4 %

25.5 %

27.8 %


(1)  Stock-based compensation expense included in the Condensed Consolidated Statements of Operations for the periods presented below is as 

      follows:

 


Three Months Ended  

December 31,

Year Ended  

December 31,


2025

2024

2025

2024

Cost of revenue

$                     6,617

$                     8,071

$                28,004

$                 32,575

Marketing

4,292

5,499

14,572

23,508

Product development

36,066

35,996

136,345

144,549

General and administrative

17,147

18,589

66,591

82,215

Stock-based compensation expense

$                   64,122

$                  68,155

$               245,512

$              282,847



(2)

Retroactive non-income tax expense related to the digital services tax legislation in Canada, which was enacted on June 28, 2024 retroactive to January 1, 2022.

 

Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow

(in thousands; unaudited)

 


Year Ended December 31,


2025

2024

Net cash provided by operating activities

$                        693,414

$                        752,469

Purchases of property and equipment

(15,386)

(14,208)

Website and app development

(39,278)

(29,290)

Free cash flow

$                        638,750

$                         708,971

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SOURCE Etsy, Inc.