Etsy Stock Earnings Reports

Etsy reported Q3 2025 results that beat expectations on GMS, revenue and adjusted EBITDA, driven by improving momentum across the Etsy marketplace and strong growth at Depop. Consolidated GMS was $2.72B (Etsy marketplace GMS -2.4% YoY; Depop GMS +39.4% YoY), consolidated revenue was $678M (+6.1% YoY ex-Reverb), and adjusted EBITDA margin was 25.4%. Leadership: CEO Josh Silverman announced a planned transition to Executive Chair, with Kruti Patel Goyal named CEO effective January 1, 2026. Strategy: management outlined four priorities — showing up where shoppers discover, matching shoppers with personalized items, deepening loyalty, and amplifying seller creativity — with AI/ML central to those initiatives. Product traction: app improvements and new recommendation models are driving higher engagement (app users visit ~5x more often and view ~3x more pages per visit), and app GMS grew ~20% YoY in Q3. AI partnerships: Etsy is an early partner with OpenAI for an in-chat instant checkout feed (Etsy processes payments and pays a CPA fee to OpenAI; not currently passed to sellers). Marketing & investment: consolidated marketing spend rose, driven by a brand investment in Depop to accelerate awareness (will compress margin near-term but viewed as a discretionary, longer-term opportunity). Cash flow & capital allocation: strong free cash flow (>$200M in the quarter), $1.6B cash & investments, $3B convertible debt, and $120M share repurchases (2.1M shares) with a 17% share count reduction since Dec 2023. Guidance: Q4 consolidated GMS expected $3.5B–$3.65B with consolidated adjusted EBITDA margin ~24%, assuming stable macro conditions. Risks/caveats: macro/consumer uncertainty into holiday season, tariff/de minimis impacts were a modest headwind, and Depop brand investment will reduce near-term margins.