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

About this update from Etsy, Inc.

BROOKLYN, N.Y -- 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 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: See full release at: https://investors.etsy.com/news-events/press-releases/detail/218/etsy-inc-reports-fourth-quarter-and-full-year-2025-results (C) 2026 Electronic News Publishing, source ENP Newswire

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