Etsy Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −4.25%.
Did ETSY Beat Earnings? Q4 2025 Results
Etsy delivered a stronger-than-expected second quarter for fiscal 2026, with revenue of $668.00 million beating consensus estimates by 3.30%, even as the top line slipped 0.7% year-over-year on a continuing operations basis following the divestitures of Reverb and Depop. The clearest engine behind the beat was the Etsy marketplace itself, where gross merchandise sales reached $2.60 billion, growing 7.5% year-over-year and marking the third consecutive quarter of GMS expansion, fueled by a 12.5% surge in mobile app GMS that now accounts for roughly 47% of total volume. Adjusted EBITDA of $195.00 million carried a 29.2% margin, while net income came in at $114.00 million, up $67.00 million from a year ago for the Etsy marketplace. The company also announced a roughly 12% workforce reduction, framed as an organizational reshaping toward machine learning and international growth rather than pure cost containment, and authorized a fresh $2.00 billion buyback, with the $1.40 billion Depop sale proceeds expected to accelerate repurchases. Management raised its full-year 2026 outlook, projecting mid-single-digit GMS growth for the year ahead.
- Etsy marketplace GMS grew 7.5% YoY, third consecutive quarter of YoY growth
- Mobile app GMS growth accelerated to 12.5% YoY, driving ~47% of total GMS
- Average order value was the largest contributor to GMS growth, with higher listing prices as the prevailing driver
- Take rate expanded 130 bps YoY to 25.9%, driven by Etsy Ads ML improvements and Offsite Ads
- Gross buyer additions increased 7.1% YoY with growth across both new and reactivated buyers
- Non-app GMS grew 3.4% YoY, second consecutive quarter of growth
- GMS per active buyer increased to $124 on trailing 12-month basis, up 2.8% YoY
- Nearly half of incremental revenue flowed through to Adjusted EBITDA in the quarter
“From day one as CEO, I've been clear about three things: our differentiation as a human-centered marketplace is our greatest strength; we have a massive market opportunity ahead of us; and realizing that opportunity requires clear strategic focus and disciplined execution.”
Etsy CEO, on the earnings call
Forward Guidance & Outlook
Etsy raised its full-year 2026 outlook for continuing operations (Etsy marketplace only). The company anticipates mid-single-digit GMS growth for full year 2026, representing a more than 10 percentage point improvement from high-single-digit GMS declines in early 2025. The restructuring benefit has been incorporated into the increased full-year adjusted EBITDA margin outlook. The company assumes overall macroeconomic factors remain relatively consistent, and that currency tailwinds and prior-year comparisons become less favorable as the year progresses. Etsy plans to explore additional R&D investment in new product capabilities, marketing initiatives, customer trust, and international growth to accelerate learnings in 2026 and inform 2027 plans.
ETSY YoY Financials
ETSY Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.