- The company reported that fourth-quarter (Q4) gross merchandise sales (GMS) reached about $3.59 billion, rising 2.4% year-on-year (YoY).
- Transactions through the Etsy mobile app expanded 6.6% YoY and accounted for nearly half of total sales.
- The company added 6.8 million new buyers and reactivated 10.4 million during the quarter.
Etsy Inc. (ETSY) closed out 2025 with modest revenue gains, even as the company reshaped its portfolio with the sale of Reverb and ramped up investments in advertising and AI-driven shopping tools.
The Brooklyn-based e-commerce platform, which connects millions of buyers and independent sellers worldwide, reported that fourth-quarter (Q4) gross merchandise sales (GMS) reached about $3.59 billion, rising 2.4% year-on-year (YoY)
Quarterly Financial Performance
Revenue for the quarter increased 6.6% YoY to $881.6 million, helped by stronger advertising activity on Etsy’s platform. The company posted an earnings per share (EPS) of $0.92. Depop, Etsy’s resale marketplace, delivered currency-neutral GMS growth exceeding 37%, driven by strong demand in the U.S.
Both revenue and EPS came in below the analysts’ consensus estimates of $884 million and $1.36, respectively, according to Fiscal AI data.
Etsy stock traded over 20% higher in Thursday’s premarket. On Stocktwits, retail sentiment around the stock remained in ‘extremely bullish’ territory amid ‘extremely high’ message volume levels.
Marketplace Trends and Outlook
On the core Etsy marketplace, GMS edged 0.1% higher to $3.29 billion. Transactions through the Etsy mobile app expanded 6.6% YoY and accounted for nearly half of total sales.
Active sellers stood at 5.6 million, 1.5% lower than a year ago, while active buyers totaled 86.5 million. The company added 6.8 million new buyers and reactivated 10.4 million during the quarter. Looking ahead, Etsy expects first-quarter 2026 GMS between $2.38 billion and $2.43 billion, with a take rate near 25.5%.
On Wednesday, the company announced that it is selling its Depop marketplace to eBay for $1.2 billion. ETSY stock has declined by over 14% in the last 12 months.
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