Etsy Earnings Report Reveals Mixed Results

Etsy's earnings report revealed a mixed bag of results, with the company's revenue increasing by 10% year-over-year to $379.6 million.

This growth is largely attributed to the continued shift of consumers towards online marketplaces, which has benefited Etsy's business model.

However, the company's adjusted EBITDA, or earnings before interest, taxes, depreciation, and amortization, declined by 14% year-over-year to $53.8 million.

This decline in adjusted EBITDA suggests that Etsy is still struggling to maintain profitability despite its revenue growth.

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Etsy's Q2 earnings report shows a mixed bag of results. The company reported a 4.8% drop in gross merchandise sales, with the number of active buyers falling by 3.4% to 93.3 million.

Revenue was a bright spot, however, with Etsy beating analyst estimates of $646.53 million, reporting second-quarter revenue of $672.66 million. This growth was primarily driven by the performance of on-site ads.

Etsy's take rate, or the percentage of gross merchandise sales it takes as revenue, also increased to 24% in the second quarter, up from 22% in the prior-year period.

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Etsy's Q2 results were a mixed bag, with sales volumes on its platform declining by 4.8% year-over-year.

The number of active buyers fell by 3.4% to 93.3 million, and the number of active sellers slumped 7.8% to 8.1 million.

Etsy's take rate, the percentage of gross merchandise sales it takes as revenue, increased to 24% in the second quarter, up from 22% in the prior-year period.

Revenue from ads was the main growth driver for Etsy's take rate.

Etsy's Depop fashion marketplace is thriving, with gross merchandise sales growing by 35.3% year-over-year in the second quarter.

The business is now on a $1 billion annual GMS run rate.

Despite the decline in buyer activity, Etsy acquired 4.8 million new buyers during the quarter.

The company has 6.1 million habitual buyers.

Etsy's earnings per share tumbled 39%, but this was mostly due to a noncash charge related to currency fluctuations.

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Etsy's second-quarter earnings report was a mixed bag, with the company beating revenue expectations but missing on earnings per share.

Revenue for the quarter was up 3.8% on a year-over-year basis, driven primarily by the performance of on-site ads. This is a positive sign for the company, as it shows that they're able to drive revenue growth through targeted advertising.

Gross merchandise sales (GMS) totaled $2.8 billion in the quarter, down 4.8% year-over-year. This decline in GMS is a concern for the company, as it indicates that fewer buyers are using the platform.

Active buyers decreased 4.6% year-over-year to 87.3 million. This decline in active buyers is a major contributor to the decline in GMS.

Etsy repurchased $335 million of its common stock in the second quarter. This move suggests that the company is confident in its future prospects and is using its cash reserves to buy back shares.

The company ended the period with $1.5 billion in cash, cash equivalents and short- and long-term investments. This significant cash reserve will give Etsy the flexibility to invest in new initiatives and navigate any challenges that may arise.

Etsy's CEO, Josh Silverman, expressed optimism about the company's future prospects, citing early success in building a more browsable shopping experience and the potential for growth through AI technologies.

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Etsy's stock price saw a surprising boost in premarket trading, rising around 5% despite the company's earnings miss.

The company's gross merchandise sales declined, and earnings fell short of analyst expectations.

However, Etsy managed to beat revenue expectations thanks to a rising take rate, which is a significant factor in the company's financial performance.

The stock was already up about 14% year to date, indicating a strong market momentum.

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Etsy's market performance on the Nasdaq can be a bit volatile.

The company's stock price has fluctuated over the years, but it reached an all-time high in 2021, peaking at $204.14 per share.

In 2020, Etsy's market value surpassed $20 billion, a significant milestone for the company.

The pandemic has had a positive impact on Etsy's business, as people turned to the platform for unique and handmade items.

Etsy's e-commerce platform has seen a significant increase in sales, with a 77% year-over-year growth in 2020.

Etsy's shares took a hit after the company posted mixed results for the first quarter, with revenue beating analyst expectations but gross merchandise sales lagging year over year.

The company's revenue for the quarter was up about 1% to $651.2 million, beating analysts' projected $643 million.

Etsy's CEO Josh Silverman mentioned that the company is "vastly less" dependent on products from China, which was hit by aggressive levies of 145%.

The company took a $101.7 million hit during the quarter as Etsy sold off Reverb, its musical instrument marketplace.

Etsy's earnings per share came in at 46 cents per share adjusted, missing the expected 49 cents per share by LSEG.

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Etsy is expected to report flat revenue year on year at $642 million in Q1, a slowdown from its flat revenue in the same quarter last year. This is a significant drop from the 1.2% year on year revenue growth it reported last quarter.

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Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. This suggests that expectations are relatively stable and not overly optimistic or pessimistic.

Etsy has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 1.4% on average. This track record suggests that the company has a history of beating expectations, but it's still uncertain if it will happen this time around.

Etsy is expected to report flat revenue year on year at $642 million, which is a slowdown from its flat revenue in the same quarter last year.

Analysts are also expecting adjusted earnings to come in at $1.04 per share.

Etsy has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 1.4% on average.

The company's peers in the consumer internet segment have already reported their Q1 results, with Alphabet delivering year-on-year revenue growth of 12% and Coursera reporting revenues up 6.1%.

Alphabet's revenue growth was even higher than analysts' expectations, beating them by 1.2%.

Coursera's revenue growth was also higher than expected, topping estimates by 2.3%.

The consumer internet segment as a whole has seen positive sentiment among investors, with share prices up 2.5% on average over the last month.

Etsy is heading into earnings with an average analyst price target of $54.57, compared to its current share price of $45.

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Let's take a closer look at the key metrics that were reported. Revenue for Q2 2025 was $672.7 million, a 4% increase from Q2 2024.

The company's earnings per share took a hit, though, decreasing by 39% from $0.41 in Q2 2024 to $0.25 in Q2 2025. This missed expectations.

Here are the key metrics in a quick and easy-to-read format:

Take rate, which is the percentage of revenue generated by sales, increased by 2 percentage points from 22% in Q2 2024 to 24% in Q2 2025.

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