Etsy (ETSY) Q4 2025 Earnings
How Did ETSY Stock React to Q4 2025 Earnings?
S&P 500 over the same 30 days: −4.25%.
Did ETSY Beat Earnings? Q4 2025 Results
Yes. Etsy reported Q4 2025 earnings of $0.92 a share on Feb 19, 2026, beating the $0.85 consensus estimate by 7.6%. Revenue was $881.6M against a $884.0M estimate.
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
What Is Etsy's 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
| Metric | Q4 2025 | Q4 2024 | Year over year |
|---|---|---|---|
| Revenue | $668.0M | $672.6M | −0.7% |
| Net Income | $114.0M | $28.8M | +295.3% |
ETSY Revenue by Segment
When Does Etsy Report Next?
Figures from SEC filings and company reports. Not investment advice.