Companies /Consumer Cyclical

Etsy Inc

NASDAQ: ETSY Internet Retail
$82.94
â–² $1.20 (+1.47%) today
Markets closed · 6:09am ET

Q2 2025 Earnings

Reported Jul 30, 2025, 7:01am ET · SEC source
$0.25
Miss −49.29%
EPS · est. $0.49
$672.7M
Beat +3.86%
Revenue · est. $647.6M
−16.1%
Trailing market
ETSY vs S&P since report
2 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−5%0+5%Jul 30Jul 31report 7:01am ETearnings+0.2%−8.8%
−5%0+5%Jul 30Jul 31earnings+0.2%−8.8%
ETSY −8.8%S&P 500 +0.2%
−5%0+5%Jul 30Jul 31report 7:01am ETearnings+0.2%−8.8%
−5%0+5%Jul 30Jul 31earnings+0.2%−8.8%
ETSY −8.8%NASDAQ +0.2%
−10%−5%0+5%Jul 29Aug 7report 7:01am ETearnings+0.0%−8.1%
−10%−5%0+5%Jul 29Aug 7earnings+0.0%−8.1%
ETSY −8.1%S&P 500 +0.0%
−10%−5%0+5%Jul 29Aug 7report 7:01am ETearnings+0.5%−8.1%
−10%−5%0+5%Jul 29Aug 7earnings+0.5%−8.1%
ETSY −8.1%NASDAQ +0.5%
+2.79%
Day of report
−5.99%
Next session
−9.33%
One week
−14.47%
30 days

S&P 500 over the same 30 days: +1.67%.

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 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 <a href="https://247wallst.com/investing/2025/07/30/live-will-etsy-nasdaq-etsy-soar-after-earnings-today/">shares rallying after results</a>, 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

“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.”

Etsy CEO, on the earnings call

Forward Guidance & Outlook

For Q3 2025, Etsy guided consolidated GMS of $2.6 billion to $2.7 billion, a take rate of approximately 24.5%, and adjusted EBITDA margin of approximately 25%. Management noted the Q3 GMS guidance represents a quarter-over-quarter improvement in the apples-to-apples growth rate at the midpoint and reflects sequential expansion and strong profitability for the core Etsy business, where adjusted EBITDA margins are consistently managed in the high-20% range. Guidance assumes currency exchange rates remain unchanged at current levels.

ETSY YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$200.0M$400.0M$600.0M$647.8M$672.7MRevenue$463.7M$479.1MGross Profit$70.2M$76.4MOperating Income$53.0M$28.8MNet Income
$0$200.0M$400.0M$600.0MRevenueGross ProfitOperating IncomeNet Income

ETSY Revenue by Segment

Marketplace Revenue$468.2M
Services Revenue$204.5M+15.3%

Figures from SEC filings and company reports. Not investment advice.