Etsy (ETSY) Q3 2025 earnings summary

Executive summary

• Q3 2025 consolidated results exceeded expectations, with Etsy and Depop combined returning to year-over-year GMS growth, driven by AI-powered personalization, app-centric discovery, and customer-centric initiatives.

• Leadership transition announced: CEO Josh Silverman to become Executive Chair, Kruti Patel Goyal to assume CEO role effective January 1, 2026.

• Completed sale of Reverb on June 2, 2025, impacting year-over-year comparisons and focusing on core marketplaces Etsy and Depop.

• Strategic initiatives in mobile, machine learning, loyalty programs, and AI-driven enhancements fueled engagement and operational improvements.

• Issued $700 million in new convertible notes and repurchased 2.5 million shares for $150 million in June 2025.

Financial highlights

• Q3 2025 consolidated GMS was $2.72B, up 0.9% year-over-year excluding Reverb; as reported, GMS declined 6.5% due to Reverb sale.

• Q3 2025 revenue reached $678 million, up 6.1% year-over-year excluding Reverb, and up 2.4% as reported.

• Adjusted EBITDA was $172 million (25.4% margin); net income was $75.5 million, up 31.6% year-over-year, with a net income margin of 11.1%.

• Free cash flow for Q3 2025 was $205 million; cash and investments totaled $1.6 billion at quarter end.

• Depop GMS was $292 million, up 39.4% year-over-year, with strong U.S. and Australia growth.

Outlook and guidance

• Q4 2025 consolidated GMS guidance is $3.5B–$3.65B, with a take rate of ~24.5% and adjusted EBITDA margin of ~24%.

• Expectation for further sequential improvement in combined Etsy and Depop year-over-year growth rate.

• Depop margin expected to compress due to increased brand marketing investment.

• Guidance is subject to significant macroeconomic uncertainty, including inflation, interest rates, and global events.