Companies /Consumer Cyclical

Etsy Inc

NASDAQ: ETSY Internet Retail
$83.62
â–² $0.68 (+0.82%) today
Markets open · 10:59am ET

Q3 2025 Earnings

Reported Oct 29, 2025, 7:02am ET · SEC source
$0.63
Beat +21.11%
EPS · est. $0.52
$678.0M
Beat +3.18%
Revenue · est. $657.1M
−14.9%
Trailing market
ETSY vs S&P since report
2 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−12%−6%0+6%Oct 29Oct 30report 7:02am ETearnings−0.7%−13.4%
−12%−6%0+6%Oct 29Oct 30earnings−0.7%−13.4%
ETSY −13.4%S&P 500 −0.7%
−14%−7%0+7%Oct 29Oct 30report 7:02am ETearnings−0.9%−13.4%
−14%−7%0+7%Oct 29Oct 30earnings−0.9%−13.4%
ETSY −13.4%NASDAQ −0.9%
−9%0+9%Oct 28Nov 6report 7:02am ETearnings−1.4%−10.1%
−9%0+9%Oct 28Nov 6earnings−1.4%−10.1%
ETSY −10.1%S&P 500 −1.4%
−9%0+9%Oct 28Nov 6report 7:02am ETearnings−1.8%−10.1%
−9%0+9%Oct 28Nov 6earnings−1.8%−10.1%
ETSY −10.1%NASDAQ −1.8%
−12.80%
Day of report
−5.03%
Next session
−7.56%
One week
−15.95%
30 days

S&P 500 over the same 30 days: −1.04%.

Did ETSY Beat Earnings? Q3 2025 Results

Etsy delivered a convincing third-quarter beat on Wednesday, with earnings per share of $0.63 clearing the $0.52 consensus estimate by 21.11% and revenue of $678.03 million topping expectations by 3.18% as the marketplace platform posted 2.4% year-over-year top-line growth. The clearest engine behind the outperformance was Depop, Etsy's secondhand fashion marketplace, which generated $292.10 million in gross merchandise sales, up 39.4% year-over-year, with U.S. GMS surging 59% on improved buyer conversion and new user growth. That momentum is reshaping how the company allocates capital going forward, with management leaning into discretionary brand marketing at Depop, which compressed consolidated adjusted EBITDA margin by 230 basis points to 25.4%. The structural picture is complicated by the June 2025 sale of Reverb, which strips a meaningful contribution from prior-year comparisons. For Q4 2025, Etsy guided consolidated GMS of $3.50 billion to $3.65 billion with an adjusted EBITDA margin of approximately 24%, reflecting continued Depop investment even as the core Etsy marketplace holds profitability near 30%. Etsy's stock has gained roughly 55.82% over the past twelve months heading into the print.

Key Takeaways
  • Strong Etsy and Depop on-site ads performance driving revenue growth and take rate expansion to 24.9%
  • Depop GMS accelerated to 39.4% YoY growth, with U.S. GMS up 59%
  • Etsy marketplace year-over-year GMS comparisons improved approximately 300 basis points sequentially
  • Etsy App GMS grew 5% YoY, representing approximately 46% of total marketplace GMS
  • Non-cash FX gain of $0.8M vs. $16.8M FX loss in Q3 2024 positively impacted net income
  • Paid search optimizations and advanced segmentation drove strong GMS from paid channels
  • Reactivated 6.6 million buyers in the quarter, up 3.8% YoY

“Etsy's third quarter consolidated results surpassed expectations across all three of our key financial metrics — and GMS for Etsy and Depop combined returned to year-over-year growth.”

Etsy CEO, on the earnings call

Forward Guidance & Outlook

For Q4 2025, Etsy guides consolidated GMS of $3.5B–$3.65B, take rate of approximately 24.5%, and Adjusted EBITDA margin of approximately 24%. At the midpoint, Q4 consolidated GMS would represent further sequential improvement in the combined Etsy marketplace and Depop year-over-year growth rate. The lower Adjusted EBITDA margin guidance reflects stable, strong profitability for the Etsy marketplace paired with a significant sequential increase in discretionary brand marketing investment at Depop, driven by management's excitement about the apparel resale market opportunity and Depop's encouraging momentum. Guidance assumes currency exchange rates remain unchanged at current levels.

ETSY YoY Financials

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$0$200.0M$400.0M$600.0M$662.4M$678.0MRevenue$476.8M$483.4MGross Profit$86.8M$82.7MOperating Income$57.4M$75.5MNet Income
$0$200.0M$400.0M$600.0MRevenueGross ProfitOperating IncomeNet Income

ETSY Revenue by Segment

Marketplace Revenue$468.1M−1.7%
Services Revenue$210.0M+12.7%

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