Etsy Earnings: Investments Yielding Positive Results and Supporting Network Edge

Etsy, Inc. is a leading e-commerce marketplace for vintage and craft goods, with a strong presence in the US, UK, and other countries. The company has generated $12.5 billion in 2024 consolidated gross merchandise volume and earns revenue from listing fees, commissions, and advertising services. As investments start to yield positive results, Etsy's network edge is expected to support its growth.

Etsy, Inc. (NASDAQ: ETSY), a leading e-commerce platform for vintage and craft goods, announced its second-quarter financial results for the period ended June 30, 2025. The company reported a mixed performance, with gross merchandise sales (GMS) declining by 4.8% year-over-year and revenue increasing by 3.8%.

Key Highlights:

- Gross Merchandise Sales (GMS): Total GMS was $2.8 billion, down 4.8% year-over-year and 5.8% on a currency-neutral basis. Excluding the sale of Reverb, consolidated GMS was $2.7 billion, down 2.6% year-over-year.
- Revenue: Revenue was $672.7 million, up 3.8% versus the second quarter of 2024, with a take rate of 24.0%. The 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: 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.
- Adjusted EBITDA: Non-GAAP Adjusted EBITDA was $169.0 million, with a consolidated non-GAAP Adjusted EBITDA margin of approximately 25.1%.
- Cash Position: Etsy ended the second quarter with $1.5 billion in cash and cash equivalents and short- and long-term investments.

Performance on the Etsy Marketplace:

- GMS: Marketplace GMS was $2.4 billion, down 5.4% year-over-year and 6.3% on a currency-neutral basis. GMS on the Etsy App grew on a year-over-year basis and sequentially, representing approximately 45% of Etsy marketplace GMS.
- Active Buyers: Active buyers decreased 4.6% year-over-year to 87.3 million. The company reactivated 6.5 million buyers in the quarter, a 2.8% increase from the prior year, and acquired 4.8 million new buyers. The trailing twelve month count of habitual buyers was 6.1 million at quarter end.
- Depop: 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.

Future Outlook:

Etsy's Chief Executive Officer, Josh Silverman, expressed optimism about the company's future, stating, "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." These include showing up where shoppers discover, matching shoppers with the right content through better machine learning, retaining and rewarding valuable customers, and amplifying the human connection that makes Etsy unique. Additionally, Depop, now at a $1 billion annualized GMS run rate, will see continued investment to capitalize on its momentum.

References:

[1] https://finance.yahoo.com/news/etsy-inc-reports-second-quarter-110000282.html