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- **Leadership Transition**: Josh Silverman steps down as CEO; Kruti Goyal to lead AI-driven growth strategy.
- **Q3 Financials**: Revenue $678M (+6.1% YoY), adjusted EBITDA $172M (25.4% margin). Depop GMS up 39.4% YoY.
- **App Growth**: App GMS outperforms non-app by 13%, with ML-driven engagement up 20% YoY.
- **OpenAI Integration**: Early success with higher-intent buyers, no seller fees, long-term brand opportunity.
- **Depop Investment**: Q4 marketing spend accelerates for U.S. expansion, targeting $1B+ annualized GMS.

**【CEO Summary Section】**
- **Leadership Transition**: Josh Silverman steps down as CEO, transitioning to Executive Chair, while Kruti Goyal becomes CEO effective January 2026. Kruti, with 15+ years at Etsy, will lead the next phase focused on AI-driven personalization and growth.
- **Q3 2025 Results**: Consolidated GMS of $2.72 billion (0.9% YoY growth), revenue of $678 million (6.1% YoY), and adjusted EBITDA of $172 million (25.4% margin). Etsy marketplace GMS down 2.4% YoY, but sequential improvement of 300 basis points. Depop GMS up 39.4% YoY to $292 million, driven by U.S. growth and brand campaigns.
- **AI Integration**: Partnership with OpenAI enables purchases via ChatGPT, with Etsy covering transaction fees. Early data shows higher intent and conversion rates from agentic commerce.
- **App Success**: App GMS outperforms non-app by 13 percentage points, with home screen engagement up significantly. New ML models improve recommendations, driving 20% YoY growth in app GMS.

**【CFO Financial Commentary】**
- **Financial Highlights**: Q3 revenue $678 million (2.4% reported growth), services revenue up 12.7% YoY, and consolidated take rate 24.9% (220 basis points YoY expansion). Free cash flow $200 million, cash reserves $1.6 billion, and $120 million in share buybacks.
- **Depop Investment**: Q4 brand marketing spend accelerates, compressing margins to 24% but positioning for long-term growth in the $1 billion+ annualized GMS business. U.S. GMS up 59% YoY, with focus on expanding awareness among younger demographics.
- **Tariff Resilience**: Despite U.S. import headwinds, domestic supply (60+ million active U.S. listings) and proactive seller support mitigate impact, with GMS per buyer stable at $121.

**【Q&A Key Highlights】**
- **OpenAI Partnership**: Transaction fees akin to influencer marketing, with no seller pass-through. Early data shows higher intent buyers, but scale remains small. Long-term potential to drive brand consideration across new channels.
- **App Engagement**: App users visit 5x more frequently and convert 1.5x better than non-app users. ML-driven discovery feeds and redesigns (e.g., home screen hubs) drive 20% YoY GMS growth.
- **Depop Strategy**: $208 million Q3 marketing spend (30.7% of revenue) focused on U.S. expansion. Holiday campaign emphasizes authenticity and community, targeting Gen Z and younger demographics.
- **Loyalty Program**: Beta launch of Etsy Insider Loyalty Program offers 5% credit and shipping discounts, targeting top buyers. Early results show engagement uplift, with focus on frequency and retention.
- **Tariff Outlook**: Uncertainty around consumer spending, but Etsy's diversified supply and proactive seller support mitigate risks. U.S. domestic GMS growth offsets international headwinds.


Etsy, Inc. (ETSY) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

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Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

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Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

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Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

ETSY

ETSY fundamentals

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