Etsy

ETSY Q2 2025 Earnings

Reported Jul 30, 2025 at 7:01 AM ET · SEC Source

Q2 25 EPS

$0.25

MISS 49.29%

Est. $0.49

Q2 25 Revenue

$672.7M

BEAT +3.86%

Est. $647.6M

vs S&P Since Q2 25

+7.2%

BEATING MARKET

ETSY +22.8% vs S&P +15.6%

Market Reaction

Did ETSY Beat Earnings? Q2 2025 Results

Etsy delivered a mixed second quarter, posting a sharp earnings miss alongside a modest revenue beat as the company navigated persistent headwinds in its core marketplace. The handmade and vintage e-commerce platform earned $0.25 per share, falling w… Read more Etsy delivered a mixed second quarter, posting a sharp earnings miss alongside a modest revenue beat as the company navigated persistent headwinds in its core marketplace. The handmade and vintage e-commerce platform earned $0.25 per share, falling well short of the $0.49 consensus estimate, a 49.29% miss driven largely by a $25.44 million non-cash foreign exchange loss that weighed heavily on net income. Revenue, however, climbed 3.8% year-over-year to $672.66 million, topping the $647.63 million consensus by 3.86%, as a rising take rate, up 200 basis points to 24.0%, offset continued softness in gross merchandise sales. Consolidated GMS declined 4.8% to $2.81 billion, though Depop was a standout, with GMS surging 35.3% to $249.60 million, including 54% U.S. Growth, as the resale platform hit an annualized $1.00 billion GMS run rate. With shares rallying after results, investors appeared to focus on the forward picture; management guided Q3 consolidated GMS of $2.60 billion to $2.70 billion, a 24.5% take rate, and a 25% adjusted EBITDA margin, signaling sequential improvement ahead.

Key Takeaways

  • On-site ads (Etsy Ads) revenue expansion from improved bidding algorithms drove positive revenue growth
  • Payments revenue growth for both Depop and Etsy
  • Take rate expansion to 24.0%, up 200 basis points year-over-year
  • Etsy App GMS grew year-over-year and sequentially, representing approximately 45% of Etsy marketplace GMS
  • Depop GMS surged 35.3% year-over-year to $249.6 million with 54% U.S. growth
  • Reactivated 6.5 million buyers, up 2.8% year-over-year
  • Monthly GMS per active buyer inflected into positive year-over-year comparisons in May and June
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ETSY YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

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ETSY Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“We are encouraged by our second quarter performance, which reflects tangible progress in our key investment areas. These efforts are designed to strengthen customer relationships on the Etsy marketplace, deepen buyer engagement, and reignite GMS growth. We're seeing early success in our efforts to build a more browsable shopping experience, particularly on our App, amplified by more personalized marketing and emergent AI technologies. We believe this is creating a significant runway for growth, as well as an opportunity to generate sustainable value for our stakeholders by capitalizing on what makes Etsy special.”

— Josh Silverman, Q2 2025 Earnings Press Release