Etsy Inc | 10-Q: Q3 2025 Earnings Report

Etsy reported Q3 2025 revenue of $678.0 million, up 2.4% year-over-year, while net income increased 31.6% to $75.5 million. Gross merchandise sales (GMS) declined 6.5% to $2.7 billion, reflecting lower Etsy marketplace GMS and the sale of Reverb in June 2025. Services revenue grew 12.7% to $210.0 million, primarily driven by a $13.5 million increase in advertising revenue.The company maintained strong profitability with an Adjusted EBITDA of $171.9 million, representing a 25.4% margin. Operating expenses increased 2.7% to $400.7 million, while marketing expenses rose 5.8% to $207.8 million due to increased investment in performance marketing. The marketplace's active buyer base decreased 3.7% year-over-year to 93.2 million.Looking ahead, Etsy continues to focus on driving growth in its core marketplace through improved app performance and effective marketing initiatives. The company completed the sale of Reverb for $105.0 million in June 2025 and issued $700.0 million in convertible senior notes. The company's cash position remained strong with $1.5 billion in cash and short-term investments as of quarter-end.

Etsy reported Q3 2025 revenue of $678.0 million, up 2.4% year-over-year, while net income increased 31.6% to $75.5 million. Gross merchandise sales (GMS) declined 6.5% to $2.7 billion, reflecting lower Etsy marketplace GMS and the sale of Reverb in June 2025. Services revenue grew 12.7% to $210.0 million, primarily driven by a $13.5 million increase in advertising revenue.The company maintained strong profitability with an Adjusted EBITDA of $171.9 million, representing a 25.4% margin. Operating expenses increased 2.7% to $400.7 million, while marketing expenses rose 5.8% to $207.8 million due to increased investment in performance marketing. The marketplace's active buyer base decreased 3.7% year-over-year to 93.2 million.Looking ahead, Etsy continues to focus on driving growth in its core marketplace through improved app performance and effective marketing initiatives. The company completed the sale of Reverb for $105.0 million in June 2025 and issued $700.0 million in convertible senior notes. The company's cash position remained strong with $1.5 billion in cash and short-term investments as of quarter-end.