Etsy, Inc. Reports Second Quarter 2025 Results
BROOKLYN, N.Y., July 30, 2025 /PRNewswire/ -- Etsy, Inc. (NASDAQ:ETSY), which operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers around the world, today announced results for its second quarter ended June 30, 2025.
"We are encouraged by our second quarter performance, which reflects tangible progress in our key investment areas," said Josh Silverman, Etsy, Inc. Chief Executive Officer. "These efforts are designed to strengthen customer relationships on the Etsy marketplace, deepen buyer engagement, and reignite GMS growth. We're seeing early success in our efforts to build a more browsable shopping experience, particularly on our App, amplified by more personalized marketing and emergent AI technologies. We believe this is creating a significant runway for growth, as well as an opportunity to generate sustainable value for our stakeholders by capitalizing on what makes Etsy special."
Second Quarter 2025 Highlights
Etsy completed the sale of Reverb on June 2, 2025. Reverb is included in our consolidated results for the first two months of the second quarter of 2025, representing $153.0 million of GMS and $17.6 million of revenue, and for the full three months of the second quarter of 2024, when it represented $225.2 million of GMS and $24.4 million of revenue.
Below are select consolidated results:
GMS was $2.8 billion, down 4.8% year-over-year and down 5.8% on a currency-neutral basis. Excluding Reverb, consolidated GMS was $2.7 billion in the second quarter of 2025, down 2.6% year-over-year on the same basis.
Revenue was $672.7 million, up 3.8% versus the second quarter of 2024, with a take rate of 24.0%. Our positive revenue growth was driven primarily by the performance of on-site ads and, to a lesser extent, payments for both Depop and Etsy.
Net income was $28.8 million, down $24.2 million year-over-year, reflecting a non-cash foreign exchange loss of $25.4 million as compared to a non-cash foreign exchange gain of $4.9 million in the second quarter of 2024. Consolidated net income margin was approximately 4.3% and diluted net income per share was $0.25.
Non-GAAP Adjusted EBITDA was $169.0 million, with consolidated non-GAAP Adjusted EBITDA margin of approximately 25.1%.
During the quarter Etsy completed a private placement of convertible notes, raising approximately $700 million in cash.
Etsy ended the second quarter with $1.5 billion in cash and cash equivalents and short- and long-term investments. Under Etsy's stock repurchase program, during the second quarter of 2025 Etsy repurchased an aggregate of approximately $335 million, or 6.4 million shares, of its common stock.
Performance highlights for the Etsy marketplace include:
GMS was $2.4 billion, down 5.4% year-over-year and down 6.3% on a currency-neutral basis. After a softer start to the quarter, which was magnified by the shift in Easter timing, we saw more favorable GMS trends across the remainder of the quarter. On an as reported basis, Etsy marketplace GMS improved 3.5 percentage points in the second quarter of 2025 as compared to the first quarter of 2025.
GMS on the Etsy App grew on a year-over-year basis and sequentially, and represented approximately 45% of Etsy marketplace GMS.
Key product initiatives in the quarter included advancing search quality by testing more signals in our algorithms, growing our AI-powered discovery experience with additional themes, and releasing new seller tools to simplify shop operations.
Key marketing initiatives included growing GMS through more personalized retention and engagement strategies, strong performance in paid social channels, optimization of product listing ad data feeds, and brand investments that amplified Etsy's differentiation.
Active buyers decreased 4.6% year-over-year to 87.3 million. We reactivated 6.5 million buyers in the quarter, a 2.8% increase from the number of buyers reactivated in the prior year, and up 1.3% sequentially. During the quarter, Etsy acquired 4.8 million new buyers, and our trailing twelve month count of habitual buyers was 6.1 million at quarter end.
GMS per active buyer on a trailing twelve month basis was $120, showing signs of stabilization. This metric held steady sequentially, and declined 2.9% year-over-year. Monthly GMS per active buyer trends strengthened over the course of the quarter, inflecting into positive year-over-year comparisons in May and June, even on an FX-adjusted basis.
Depop continued to see strong top-line growth, with second quarter 2025 GMS of $249.6 million, up 35.3% year-over-year; and 54% year-over-year growth in the United States. Key performance highlights for the quarter included:
Improving search and recommendation relevance and freshness through ranking model updates, as well as leveraging more frequent model training.
Driving greater early visibility and success for new sellers by enabling free item boosts for recently onboarded sellers and enhancing price recommendations.
Record quarter for sign-ups driven from paid media acquisition channels.
"Second quarter GMS and revenue came in ahead of expectations, and adjusted EBITDA was in line with our guidance, as we are managing the business to invest in future growth while also delivering very healthy margins," said Lanny Baker, Chief Financial Officer. "Our take rate was very strong, at 24%, primarily driven by the expansion of Etsy Ads revenue from continued improvements to our bidding algorithms, as well as some benefit from payments. We also strengthened our balance sheet through a highly successful convertible notes offering and repurchased approximately $335 million of Etsy stock, in line with our high conviction in Etsy's long-term opportunities. With approximately $1.5 billion in cash and cash equivalents and short- and long-term investments at the end of the period, and expectations for continued strong free cash flow generation, we are very confident in Etsy's financial flexibility to continue stock repurchases, manage our debt balance, and make ongoing investments in Etsy and Depop."
Second Quarter 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) and for all periods presented in this table, except as noted below. The financial measures and key operating metrics we use are:
Three Months Ended
June 30,
% (Decline)
Growth
Y/Y
Six Months Ended
June 30,
% (Decline)
Growth
Y/Y
2025
2024
2025
2024
GMS (1)
$ 2,806,249
$ 2,949,254
(4.8) %
$ 5,599,585
$ 5,935,754
(5.7) %
Revenue
$ 672,663
$ 647,806
3.8 %
$ 1,323,839
$ 1,293,760
2.3 %
Revenue take rate (2)
24.0 %
22.0 %
200 bps
23.6 %
21.8 %
180 bps
Marketplace revenue
$ 468,169
$ 470,377
(0.5) %
$ 926,664
$ 937,359
(1.1) %
Services revenue
$ 204,494
$ 177,429
15.3 %
$ 397,175
$ 356,401
11.4 %
Gross profit
$ 479,115
$ 463,716
3.3 %
$ 938,230
$ 922,537
1.7 %
Operating expenses
$ 402,686
$ 393,547
2.3 %
$ 884,128
$ 784,278
12.7 %
Net income (loss)
$ 28,840
$ 53,005
(45.6) %
$ (23,256)
$ 116,009
(120.0) %
Net income (loss) margin (3)
4.3 %
8.2 %
(390) bps
(1.8) %
9.0 %
(1,080) bps
Adjusted EBITDA (Non-GAAP)
$ 169,020
$ 179,375
(5.8) %
$ 340,122
$ 347,310
(2.1) %
Adjusted EBITDA margin (Non-GAAP) (4)
25.1 %
27.7 %
(260) bps
25.7 %
26.8 %
(110) bps
Active sellers (5)
8,118
8,801
(7.8) %
8,118
8,801
(7.8) %
Active buyers (5)
93,334
96,610
(3.4) %
93,334
96,610
(3.4) %
(1)
Consolidated GMS for the three and six months ended June 30, 2025 includes Etsy marketplace GMS of $2.4 billion and $4.7 billion, respectively.
(2)
Revenue take rate is consolidated revenue divided by consolidated GMS.
(3)
Consolidated net income (loss) margin is net income (loss) divided by revenue.
(4)
Consolidated non-GAAP Adjusted EBITDA margin is consolidated non-GAAP Adjusted EBITDA divided by consolidated revenue.
(5)
Consolidated active sellers and active buyers includes Etsy marketplace active sellers and active buyers of 5.4 million and 87.3 million, respectively, and excludes Reverb active sellers and active buyers as of June 30, 2025.
Consolidated Third Quarter 2025 Financial Guidance
Q3 25 Guidance
GMS
$2.6B to $2.7B
Take Rate
~24.5%
Adjusted EBITDA Margin
~25%
Please note that our guidance assumes currency exchange rates remain unchanged at current levels. Investors can visit the second quarter earnings presentation on our website to see select Reverb historical quarterly financial GMS and revenue results.
"Getting the Etsy marketplace back to GMS growth in the near term is our number one priority, and we have four strategic initiatives designed with this in mind," said Mr. Silverman. "These include showing up where shoppers discover, matching shoppers with the right content through better machine learning, retaining and rewarding our most valuable customers, and further amplifying the human connection that makes Etsy unique. In addition, with Depop now at a $1 billion dollar annualized GMS run rate, we are working to further capitalize on its momentum. We're accelerating marketing investments designed to reach and engage an expanded U.S. audience via a broader channel mix and more robust community-led programs."
Mr. Baker added, "We are pleased to see compounding impacts from Etsy marketplace product and marketing investments as we head into the second half of the year, and that our third quarter consolidated GMS guidance represents a quarter-over-quarter improvement in the apples-to-apples growth rate at the midpoint. In addition, our guidance reflects sequential expansion and strong profitability for the core Etsy business, where we consistently manage adjusted EBITDA margins to the high-20% range."
With respect to our expectations under "Consolidated Third Quarter 2025 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 ...
