Etsy Returns to Growth in Q4 2025
Etsy, Inc. reported a slight return to Gross Merchandise Sales (GMS) growth in the fourth quarter of 2025. The company announced it expects GMS growth to continue throughout the fiscal year 2026. The results were released for the two-sided online marketplace which connects millions of buyers and sellers globally.
- The slight return to growth represents a 2.4% year-over-year increase in Gross Merchandise Sales (GMS) when excluding the musical instrument marketplace Reverb, which was sold in June 2025. On an as-reported basis, including Reverb's Q4 2024 GMS, consolidated GMS was down 3.8%. - While GMS saw a modest increase, the number of active buyers on the Etsy marketplace declined by 3.4% year-over-year to 86.5 million in the fourth quarter. The number of active sellers also saw a 1.5% decrease. - Growth in the quarter was significantly driven by Etsy's subsidiary Depop, a fashion resale marketplace, which saw its GMS surge by 37.2% year-over-year. Depop also increased its active sellers by 41.1% and active buyers by 37.7%. - Following the sale of Reverb, Etsy announced a definitive agreement to sell Depop to eBay for $1.2 billion in cash, with the deal expected to close in the second quarter of 2026. - The company's revenue for Q4 2025 was $881.6 million, a 6.6% increase from the prior year, excluding Reverb's results. This growth was primarily attributed to strong on-site advertising performance. - For the full year of 2025, Etsy's revenue reached $2.88 billion, a 2.7% increase from 2024. However, full-year net income saw a significant decrease to $163 million from $303.3 million in 2024. - The company repurchased approximately $133 million of its common stock during the fourth quarter. - Looking ahead, Etsy has provided first-quarter 2026 guidance for its core marketplace, projecting GMS between $2.38 billion and $2.43 billion.
