Etsy reported third‑quarter 2025 results with revenue of $678 million, earnings per share of $0.63, gross merchandise sales of $2.724 billion, 86.6 million active buyers, and 5.5 million active sellers. Compared with the same quarter in 2024, revenue rose 2.5 %, gross merchandise sales fell 6.5 %, active buyers declined 4.6 %, and active sellers dropped 11.3 %.
Depop, Etsy’s fashion resale platform, generated $292.1 million in gross merchandise sales, up 39.4 % year‑over‑year. The segment’s margin contracted sequentially because of accelerated brand‑marketing spend, while active sellers grew 40.8 % and active buyers increased 38.8 % YoY.
For the fourth quarter of 2025, Etsy guided gross merchandise sales of $3.5 billion to $3.65 billion, a take rate of 24.5 %, and an adjusted EBITDA margin of 24 %. The margin guidance is below the consensus estimate of 27 %, reflecting management’s view that discretionary‑spending headwinds and the seller set‑up fee will continue to pressure performance.
Josh Silverman will step down as chief executive officer and become executive chair, while Kruti Patel Goyal will assume the CEO role effective January 1, 2026. Silverman said the company is “not satisfied with any decline in Etsy GMS,” and Goyal will focus on discovery, personalization, loyalty, and seller empowerment.
Etsy completed the sale of its musical‑instrument marketplace Reverb on June 2, 2025, which affects year‑over‑year comparisons. The company is reallocating marketing spend from traditional TV to digital channels and has partnered with OpenAI to let U.S. ChatGPT users discover and purchase items directly within the ChatGPT interface, underscoring its AI‑driven personalization strategy.
Headwinds include pressure on consumer discretionary spending, the expiration of the de minimis import exemption, and the impact of the seller set‑up fee introduced in April 2024, which has contributed to a decline in active sellers. Despite sequential improvements in gross merchandise sales per buyer and growth among high‑income buyers, the overall decline in gross merchandise sales and active buyers remains a concern for management.
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