Slide 1: Q2 2025 Financial Results
Q2 2025 Financial Results July 30, 2025 1
Slide 2: Forward-looking Statements
This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include but are not 2 limited to statements relating to: our financial guidance for the third quarter of 2025 and underlying assumptions; our customer relationship flywhe
Slide 3: Q2 25 Consolidated top-line results ahead of expectations
3 Q2 25 Consolidated top-line results Q2 25 Consolidated GMS Q2 25 Consolidated Revenue ahead of expectations; adjusted EBITDA $2.8B $673M -4.8% Y/Y, and -5.8% Y/Y on a +3.8% Y/Y margin in line with currency neutral basis guidance Q2 25 Consolidated Adj. EBITDA Q2 25 Take Rate Excluding Reverb, Q2 2
Slide 4: Creating a powerful customer relationship flywheel
4 Creating a powerful customer relationship flywheel Evolve our surfaces to become more browsable Create more personalized on-site experiences Capture vastly more + enriched data about consumers’ interests, inclinations, identities and habits Generate more personalized marketing Build more powerful m
Slide 5: GMS $2.4B, down 5.4% Y/Y, ahead of expectations
5 GMS $2.4B, down Key GMS drivers: ● Direct, owned marketing efforts contributing 5.4%1 Y/Y, ahead of meaningfully to GMS expectations; a 3.5 pp ● Benefits from increased Paid Social investments improvement from the ● Helpful competitive dynamics in paid search first quarter result channels amplified i
Slide 6: Making the Etsy app the centerpiece of our shopping experience
Making the Etsy app the centerpiece of our shopping 6 experience is beginning to impact buyer satisfaction and GMS Q2 24 View In progress Intuitive navigation Less relevant content Inspirational and Q2 25 App GMS engaging home surface grew Y/Y and Completed represented ~45% mission of total GMS Impr
Slide 7: Our efforts to show buyers 'we know them'
Our efforts to show buyers ‘we 77 know them’ is driving momentum ● Q2 GMS¹ from owned marketing channels (email, push notifications) grew by a third year-over-year ● These channels are now driving a much larger share of overall GMS¹, nearing the impact of product listing ads and non-brand search engi
Slide 8: Making continued progress in AI for Search
8 Making continued progress in AI for Search, and positioning Etsy to be a leader in Agentic Shopping Etsy identified as a top retail ecommerce recipient of agentic chatbot traffic1 1 Etsy integrates seamless product Similarweb, "Top Recipients of AI Chatbot Traffic: Traffic driven by AI chatbot prompts
Slide 9: Getting the Etsy marketplace back to GMS growth
9 Getting the Etsy marketplace back to GMS growth is our #1 priority: four initiatives designed to drive the greatest near-term impact 1 2 3 4 Show up where Match shoppers Retain and reward Further amplify shoppers discover with the right our most valuable human connection - on and off Etsy inventor
Slide 10: Show up where shoppers discover - on and off Etsy
10 1 …to help more people explore and be inspired by all that Etsy has to offer Show up where shoppers discover - on and off Etsy Combining our strong ROI-first mindset with an audience-first approach by: ● Ramping down spend on linear TV ● Accelerating social investment on certain platforms ● Streami
Slide 11: Match shoppers with the right inventory through (even better!) ML
11 2 Match shoppers with the right inventory through (even better!) ML — showing we understand their tastes and needs Buyer New Ranking Cutting-edge approach Insights Models to Recommendations Improving search by using Leveraging LLMs to capture Optimal matching the power of LLMs and non-obvious rel
Slide 12: Evolving 'Recommendations' has been a key growth unlock for Depop
12 2 Evolving 'Recommendations' has been a key growth unlock for Depop Buyer Behavior at Depop 2x increase in the share of products bought from recommendations1 since late 2022 1 Products bought from recommendations refers to purchased items that were first viewed through recommendations (within a 30
Slide 13: Retain and reward our most valuable customers with a portfolio of tactics
13 3 Retain and reward our most valuable customers with a portfolio of tactics, including… Setup & Getting buyers to take key Simpler Launched ‘quick actions’ in Rewards & Evolving our Etsy Insider beta Nudges actions helps us serve Selling Shop Manager and improved Premium program… and more them be
Slide 14: Further amplify human connection on Etsy
14 To stand apart, we must amplify our sellers and 4 the human connections that only Etsy offers Further amplify human connection on Etsy Recent ‘brand mission’ campaign Illustrative examples of work in progress to highlight sellers in the core shopping experience
Slide 15: Top-line results ahead of expectations, with adjusted EBITDA margin on pace
15 Top-line results ahead of expectations, with adjusted EBITDA margin on pace with guidance Consolidated Results Q2 25 GMS Q2 25 Revenue Q2 25 Adjusted EBITDA $2.8B $673M $169M -4.8% Y/Y, -5.8% Y/Y +3.8% Y/Y 25.1% Adj. EBITDA Margin constant currency basis +200 bps y/y take-rate expansion $3,736 $8
Slide 16: Q2 25 Etsy marketplace GMS ahead of expectations
16 Q2 25 Etsy marketplace GMS ahead of expectations; App investments are bearing fruit $2.4B Q2 25 Active Buyers -5.4% Y/Y, -6.3% Y/Y constant currency basis 87.3M -4.6% Y/Y Q2 25 GMS / Active Buyer1 $120 Etsy App growth trends -2.9% Y/Y Compared with Q1 25, this metric was ● App GMS grew on a year-
Slide 17: A higher percentage of sellers are making sales on Etsy
17 17 A higher percentage of sellers are making sales on Etsy 5.4M Active Etsy marketplace sellers ● Active seller count declined 18% Y/Y, a moderation in Y/Y decline from Q1 and flat sequentially ● The new seller set-up fee and stepped up enforcement actions have meaningfully slowed the onboarding o
Slide 18: Consolidated take rate ahead of expectations
18 Consolidated take Incremental Consolidated Take Rate Bridge rate ahead of Q2 24 vs. Q2 25 expectations, primarily due to continued on-site ads expansion, and contribution from payments Marketplace Revenue ($M) -0.5% Y/Y $468.2 Q2 25 Consolidated Revenue $673M, up 3.8% Y/Y $204.5 Seller Services *
Slide 19: Product development teams are accelerating contribution and impact
19 Product development teams are accelerating contribution and impact Consolidated Q2 25 Product Development Etsy Marketplace Product Development spend reflects leverage gained as a % of Q2 25 Highlights revenue ● Balanced portfolio of initiatives designed to get Etsy GMS on a growth trajectory -2.3%
Slide 20: Deeper marketing spend is a sensible and opportunistic investment
20 We believe deeper marketing spend is a sensible and opportunistic investment in our future, as we simultaneously work to build more direct relationships with our customers Paid Social as a % of Consolidated Marketing Spend Consolidated Performance & Brand Performance marketing spend as a % of Rev
Slide 21: Financial flexibility to continue share repurchases, manage our debt balance
21 Financial flexibility to continue share repurchases, manage our debt balance, and make ongoing investments in the business Trailing Twelve Month Consolidated Free Cash Flow Cash Balance 6/30/251 ($M) ~$1.5B Share repurchases during Q2 25 ~$335M Q2 25 Consolidated Free Cash Flow $90M In Q2 2025, we
Slide 22: Consolidated Guidance as of July 30, 2025
22 Consolidated Q3 25 Guidance Guidance as of GMS $2.6B to $2.7B July 30, 2025 which, at the midpoint, would represent further quarter-over-quarter improvement in the apples-to-apples growth rate Take Rate ~24.5% Adjusted EBITDA Margin ~25% Please note that our guidance assumes currency exchange rat
Slide 23: Q&A
Q&A
Slide 24: Appendix
Appendix
Slide 25: Q2 25 Active buyer metrics
25 Q2 25 Active buyer metrics Q2 25 Active Buyers Q2 25 New Buyers Q2 25 Reactivated Buyers 87.3M 4.8M 6.5M -4.6% Y/Y -14.5% Y/Y +2.8% Y/Y Q2 25 Repeat Buyers Q2 25 Habitual Buyers Q2 25 GMS / Active Buyer1 35.3M 6.1M $120 -4.7% Y/Y -12.2% Y/Y -2.9% Y/Y Metrics presented are for the Etsy marketplace
Slide 26: Q2 25 Etsy Marketplace GMS breakdown by category and geography
26 Q2 25 Etsy Marketplace GMS breakdown by category and geography Etsy marketplace Category GMS (%) Etsy marketplace Geography GMS (%) 4% Our top categories declined on a Y/Y basis Top 6 categories represented ~86% of U.S. Buyer GMS and non-U.S. Buyer GMS GMS both declined Y/Y Metrics presented repr
Slide 27: Condensed Consolidated Balance Sheets
27 Condensed As of June 30, 2025 As of December 31, 2024 Consolidated (in thousands) Cash and cash equivalents $ 1,183,357 $ 811,178 Balance Sheets Short-term investments 228,979 228,322 Accounts receivable, net 6,474 8,702 Funds receivable and seller accounts 140,596 189,558 Property and equipment,
Slide 28: Condensed Consolidated Statement of Operations
28 Condensed Three months Three months Consolidated ended 6/30/25 ended 6/30/24 (in thousands) Statement of Revenue $ 672,663 $ 647,806 Cost of revenue 193,548 184,090 Operations Gross profit Marketing 479,115 212,110 463,716 183,063 Product development 111,861 114,493 General and administrative 78,7
Slide 29: Condensed Consolidated Statement of Operations
29 Condensed Six months Six months Consolidated ended 6/30/25 ended 6/30/24 (in thousands) Statement of Revenue $ 1,323,839 $ 1,293,760 Cost of revenue 385,609 371,223 Operations Gross profit Marketing 938,230 401,114 922,537 374,874 Product development 222,371 224,339 General and administrative 158,
Slide 30: Condensed Consolidated Statement of Cash Flows
30 Condensed Six months Six months ended ended 6/30/25 6/30/24 Consolidated (in thousands) Net (loss) income $ (23,256) $ 116,009 Statement of Net cash provided by operating activities 157,320 220,094 Net cash provided by (used in) investing activities 55,546 (27,744) Cash Flows Net cash provided by
Slide 31: Reconciliation of Quarterly Net Income to Adj. EBITDA
Reconciliation of Quarterly Net Income to Adj. EBITDA 31 2Q25 1Q25 4Q24 3Q24 2Q24 (in thousands) Net income (loss) $ 28,840 $ (52,096) $ 129,906 $ 57,366 $ 53,005 Excluding: Stock-based compensation expense and related payroll taxes (1) 60,974 63,573 68,155 69,292 74,717 Depreciation and amortizatio
Slide 32: Reconciliation of Operating Cash Flow to Free Cash Flow
32 Reconciliation of Operating Cash Flow to Free Cash Flow Free cash flow is considered to be a non-GAAP financial measure. We believe that free cash flow, which measures our ability to generate cash from our business operations, is an important financial measure for use in evaluating the Company's finan
Slide 33: Reconciliation of Operating Cash Flow to Free Cash Flow
33 Reconciliation of Operating Cash Flow to Free Cash Flow Free cash flow is considered to be a non-GAAP financial measure. We believe that free cash flow, which measures our ability to generate cash from our business operations, is an important financial measure for use in evaluating the Company's finan