Etsy

ETSY Q1 2025 Earnings

Reported Apr 30, 2025 at 7:02 AM ET · SEC Source

Q1 25 EPS

$-0.49

MISS 204.34%

Est. $0.47

Q1 25 Revenue

$651.2M

BEAT +1.48%

Est. $641.7M

vs S&P Since Q1 25

+49.1%

BEATING MARKET

ETSY +81.5% vs S&P +32.4%

Market Reaction

Did ETSY Beat Earnings? Q1 2025 Results

Etsy's first quarter of 2025 delivered a mixed picture that leaned toward disappointment, as a $101.70 million goodwill impairment charge tied to its Reverb music gear marketplace drove the company to a GAAP loss of $0.49 per share, badly missing the… Read more Etsy's first quarter of 2025 delivered a mixed picture that leaned toward disappointment, as a $101.70 million goodwill impairment charge tied to its Reverb music gear marketplace drove the company to a GAAP loss of $0.49 per share, badly missing the $0.47 consensus estimate by 204.34%. On the top line, however, Etsy offered a brighter read, with revenue rising 0.8% year-over-year to $651.18 million, edging past the $641.68 million consensus by 1.48%. The Reverb charge, which preceded the unit's announced sale to private buyers, overshadowed otherwise steady operational execution, including adjusted EBITDA of $171.10 million at a 26.3% margin. Consolidated gross merchandise sales slipped 6.5% to $2.79 billion, with the core Etsy marketplace facing softer buyer trends, though management pointed to record app engagement as evidence of underlying resilience. Looking ahead, Etsy guided Q2 GMS declines at a pace similar to, or modestly better than, Q1's performance, with an adjusted EBITDA margin near 25%, as the company navigates tariff uncertainty by leaning into its domestic-seller positioning.

Key Takeaways

  • Significant growth in on-site advertising revenue for both Etsy and Depop
  • Full quarter impact of the seller set-up fee
  • Continued benefit from Payments expansion
  • Take rate reached new quarterly high of 23.3%, up 170 bps YoY
  • Depop achieved highest quarterly GMS since acquisition in 2021
  • Etsy app delivered highest-ever share of GMS with upward trend in monthly active users
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ETSY YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

24/7 Wall St

ETSY Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“Etsy's first quarter 2025 financial results were aligned with our expectations, with solid adjusted EBITDA performance despite pressure on the top line. We're excited to see green shoots, particularly in our App metrics, indicating that our work to build deeper connections with buyers and encourage more frequent visits is taking hold. By leveraging the power of artificial intelligence and machine learning, we're creating a more inspiring and engaging app experience that provides us with richer insights to personalize Etsy in meaningful ways for each buyer. We believe our seasoned team is ready to drive the next phase of Etsy's growth and success, and that our resilient two-sided marketplace business model can help us weather macroeconomic volatility.”

— Josh Silverman, Q1 2025 Earnings Press Release