# ETSY INC (ETSY)

Informational only - not investment advice.

CIK: 0001370637
SIC: 7389 Services-Business Services, NEC
SIC breadcrumb: [Services](/division/I/) > [Business Services](/major-group/73/) > [SIC 7389 Services-Business Services, NEC](/industry/7389/)
Latest 10-K filed: 2026-02-19
SEC page: https://www.sec.gov/edgar/browse/?CIK=1370637
Filing source: https://www.sec.gov/Archives/edgar/data/1370637/000137063726000019/etsy-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-19 · accession 0001370637-26-000019 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001370637.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 2,883,501,000 USD | 2025 | verified |
| Net income | 162,982,000 USD | 2025 | verified |
| Assets | 2,827,254,000 USD | 2025 | verified |
| Free cash flow | 678,028,000 USD | 2025 | computed |
| Net margin | 5.65% | 2025 | computed |
| Operating margin | 9.23% | 2025 | computed |
| Revenue YoY | +2.68% | 2025 | computed |

Stockholders' equity was not positive at FY2025 year-end (-1,098,095,000 USD, as filed); ROE and liabilities / equity are omitted rather than computed.

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only).

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | ETSY | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 5.7% | 5.8% | 48 | 59 |
| Operating margin | 9.2% | 9.2% | 51 | 56 |
| Revenue growth | 2.7% | 8.4% | 25 | 58 |
| FCF margin | 23.5% | 14.2% | 77 | 58 |
| ROA | 5.8% | 2.9% | 64 | 59 |
| Current ratio | 1.44 | 1.34 | 59 | 57 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 7389 Services-Business Services, NEC, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 2883501000 | USD | 2025 | 2026-02-19 |
| Net income | 162982000 | USD | 2025 | 2026-02-19 |
| Assets | 2827254000 | USD | 2025 | 2026-02-19 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-19. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001370637.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 364,967,000 | 441,231,000 | 603,693,000 | 818,379,000 | 1,725,625,000 | 2,329,114,000 | 2,566,111,000 | 2,748,377,000 | 2,808,332,000 | 2,883,501,000 |
| Net income | -29,901,000 | 81,800,000 | 77,491,000 | 95,894,000 | 349,246,000 | 493,507,000 | -694,288,000 | 307,568,000 | 303,281,000 | 162,982,000 |
| Operating income | 17,577,000 | 11,896,000 | 74,786,000 | 88,761,000 | 424,009,000 | 465,732,000 | -658,560,000 | 279,841,000 | 380,208,000 | 266,210,000 |
| Gross profit | 241,639,000 | 290,245,000 | 412,931,000 | 547,343,000 | 1,260,880,000 | 1,674,602,000 | 1,821,519,000 | 1,919,702,000 | 2,033,778,000 | 2,065,701,000 |
| Diluted EPS | -0.26 | 0.68 | 0.61 | 0.76 | 2.69 | 3.40 | -5.48 | 2.24 | 2.35 | 1.39 |
| Operating cash flow | 47,964,000 | 69,101,000 | 198,925,000 | 206,920,000 | 678,956,000 | 651,551,000 | 683,612,000 | 705,513,000 | 752,469,000 | 693,414,000 |
| Capital expenditures | 35,981,000 | 3,948,000 | 1,019,000 | 7,528,000 | 1,445,000 | 11,248,000 | 10,237,000 | 12,950,000 | 14,208,000 | 15,386,000 |
| Share buybacks | 0.00 | 10,301,000 | 134,647,000 | 176,985,000 | 268,653,000 | 302,774,000 | 425,727,000 | 576,968,000 | 723,899,000 | 776,899,000 |
| Assets | 581,193,000 | 605,583,000 | 901,851,000 | 1,542,352,000 | 2,404,489,000 | 3,831,809,000 | 2,634,961,000 | 2,685,400,000 | 2,417,782,000 | 2,827,254,000 |
| Liabilities | 236,436,000 | 208,689,000 | 500,953,000 | 1,135,718,000 | 1,662,065,000 | 3,203,190,000 | 3,182,235,000 | 3,229,115,000 | 3,176,648,000 | 3,925,349,000 |
| Stockholders' equity | 344,757,000 | 396,894,000 | 400,898,000 | 406,634,000 | 742,424,000 | 628,619,000 | -547,274,000 | -543,715,000 | -758,866,000 | -1,098,095,000 |
| Cash and cash equivalents | 181,592,000 | 315,442,000 | 366,985,000 | 443,293,000 | 1,244,099,000 | 780,196,000 | 921,278,000 | 914,323,000 | 811,178,000 | 1,395,836,000 |
| Free cash flow | 11,983,000 | 65,153,000 | 197,906,000 | 199,392,000 | 677,511,000 | 640,303,000 | 673,375,000 | 692,563,000 | 738,261,000 | 678,028,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | -8.19% | 18.54% | 12.84% | 11.72% | 20.24% | 21.19% | -27.06% | 11.19% | 10.80% | 5.65% |
| Operating margin | 4.82% | 2.70% | 12.39% | 10.85% | 24.57% | 20.00% | -25.66% | 10.18% | 13.54% | 9.23% |
| Return on assets | -5.14% | 13.51% | 8.59% | 6.22% | 14.52% | 12.88% | -26.35% | 11.45% | 12.54% | 5.76% |
| Current ratio | 4.42 | 4.29 | 6.07 | 4.89 | 4.17 | 2.18 | 2.40 | 2.21 | 2.00 | 1.44 |

## As-reported value updates

3 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/ETSY/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001370637.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | -7.62 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 0.53 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 0.45 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 636,302,000 | 87,850,000 | 0.64 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 842,322,000 | 83,266,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 645,954,000 | 63,004,000 | 0.48 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 647,806,000 | 53,005,000 | 0.41 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 662,410,000 | 57,366,000 | 0.45 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 852,162,000 | 129,906,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 651,176,000 | -52,096,000 | -0.49 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 672,663,000 | 28,840,000 | 0.25 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 678,026,000 | 75,503,000 | 0.63 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 881,636,000 | 110,735,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 631,277,000 | 69,680,000 | 0.60 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 668,313,000 | -46,650,000 | -0.36 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from ETSY's latest 10-K: [/company/ETSY/business/](/company/ETSY/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from ETSY's latest 10-K: [/company/ETSY/risk-factors/](/company/ETSY/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1370637/000137063726000080/etsy-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-08-05
Report date: 2026-06-30

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

You should read the following discussion and analysis of our financial condition and results of operations together with our condensed consolidated financial statements and related notes and other financial information included elsewhere in this Quarterly Report on Form 10-Q (“Quarterly Report”) and with the audited consolidated financial statements included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 19, 2026 (the “Annual Report”). This discussion, particularly information with respect to our outlook, key trends and uncertainties, our plans and strategy for our business, and our performance and future success, includes forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those discussed below. Factors that could cause or contribute to these differences include those discussed below and elsewhere in this Quarterly Report, particularly in Part II, Item 1A, “Risk Factors.” We also believe that our performance and future success depend on a number of factors that present significant opportunities for us, as discussed in Part I, Item 1, “Business,” in our Annual Report, which we incorporate by reference.

Overview

Business

Etsy operates a two-sided online marketplace that connects millions of creative entrepreneurs with buyers around the world.

The Etsy marketplace is the global destination for unique, creative goods from independent sellers, connecting artisans with thoughtful consumers seeking items that reflect their tastes and values.

On February 15, 2026, we executed a Sale and Purchase Agreement (the “Original Purchase Agreement”) to sell all of the outstanding equity interests of Depop Limited (“Depop”), our fashion resale marketplace, to eBay Inc. (“eBay”) for a base purchase price of $1.2 billion in cash, subject to certain purchase price adjustments as set forth in the Purchase Agreement. The Original Purchase Agreement, as supplemented May 21, 2026 (the “First Amendment”) and as amended July 12, 2026 (the “Second Amendment”), is referred to herein collectively as the “Purchase Agreement.” The sale closed on July 30, 2026 (the “Closing Date”). See Part I, Item 1, “Note 2—Discontinued Operations” for further discussion of the executed Purchase Agreement. We continued to own and operate Depop through the date of sale, with Depop’s assets and liabilities, results of operations, and related cash flows presented as discontinued operations in the Consolidated Balance Sheets, Consolidated Statements of Operations, and Condensed Consolidated Statements of Cash Flows, respectively, for all periods presented. Unless otherwise noted, all financial results and other metrics discussed in this report are for continuing operations only. In keeping with our current capital allocation approach, we plan to utilize the proceeds from this transaction for general corporate purposes, continued share repurchases, and investment in the Etsy marketplace.

On August 3, 2026, the Audit Committee of the Board of Directors approved a Restructuring Plan intended to better align the organization with Etsy's long-term strategic priorities, including by simplifying Etsy’s structure to improve coordination and speed of decision-making (the “Restructuring Plan”). The Restructuring Plan includes an approximate 12% net reduction of the Etsy marketplace workforce, which is approximately 220 employees. Charges of approximately $35 million related to restructuring and other exit costs are expected to be incurred in the third quarter of 2026, and the execution of the Restructuring Plan is expected to be substantially complete by the end of the third quarter of 2026. While we expect the reorganization to lower operating costs in the near term, we will also continue to invest to build the organization necessary to execute our strategy and drive Etsy’s long-term growth.

On June 2, 2025, we completed the sale of Reverb Holdings, Inc. (“Reverb”), our musical instrument marketplace. The results of Reverb, until its sale on June 2, 2025, are included in all financial results and other metrics discussed in this report, unless otherwise noted.

We generate revenue primarily from marketplace activities, including transaction fees (inclusive of offsite advertising), payments processing fees, and listing fees, as well as from optional seller services, which include on-site advertising and shipping labels.

30

Table of Contents

Key Operating and Financial Metrics

We collect and analyze operating and financial data to evaluate the health and performance of our business and allocate our resources (such as capital, people, and technology investments). Our key operating and financial metrics are presented on a continuing operations basis in the table below for all periods presented, since Depop is presented as a discontinued operation due to its pending sale as of June 30, 2026. The sale closed on July 30, 2026. See Part I, Item 1, “Note 2—Discontinued Operations” for further discussion of the executed Purchase Agreement. Due to the sale of Reverb on June 2, 2025, continuing operations for the three and six months ended June 30, 2025 includes Etsy marketplace and Reverb marketplace through the date of sale, but the three and six months ended June 30, 2026 reflects the Etsy marketplace only. This makes year-over-year continuing operations results not directly comparable. To provide investors with a meaningful basis for comparing our results year-over-year, we have presented Etsy marketplace results for the three and six months ended June 30, 2025. Our calculation of trailing twelve months free cash flow includes activity for combined continuing and discontinued operations. See “Non-GAAP Financial Measures” for more information regarding our use of Etsy marketplace financial metrics, Adjusted EBITDA, Adjusted EBITDA margin, and free cash flow, and reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure.

Our key operating and financial metrics are (in thousands, except percentages):

[[GREPCENT_TABLE]]
[["","Three Months Ended June 30,","% Growth (Decline) Y/Y for Continuing Operations","% Growth (Decline) Y/Y for the Etsy Marketplace (Non-GAAP) (1)"],["","2026","2025"],["","Continuing Operations","Continuing Operations","","Etsy Marketplace (Non-GAAP)"],["GMS (2)","$","2,582,892","","$","2,556,644","","","$","2,403,655","","1.0","%","7.5","%"],["Revenue","$","668,313","","$","629,131","","","$","611,542","","6.2","%","9.3","%"],["Revenue take rate (3)","25.9","%","24.6","%","","25.4","%","130","bps","50","bps"],["Marketplace revenue","$","456,074","","$","435,026","","","$","420,717","","4.8","%","8.4","%"],["Services revenue","$","212,239","","$","194,105","","","$","190,825","","9.3","%","11.2","%"],["Gross profit","$","484,045","","$","460,508","","","$","450,946","","5.1","%","7.3","%"],["Operating expenses","$","358,777","","$","366,408","","","$","355,542","","(2.1)","%","0.9","%"],["Net income","$","114,339","","$","45,638","","","$","47,306","","150.5","%","141.7","%"],["Net income margin","17.1","%","7.3","%","","7.7","%","980","bps","940","bps"],["Adjusted EBITDA (Non-GAAP)","$","195,358","","$","170,299","","","$","167,592","","14.7","%","16.6","%"],["Adjusted EBITDA margin (Non-GAAP)","29.2","%","27.1","%","","27.4","%","210","bps","180","bps"],["Active sellers (4)","5,706","","5,388","","","5,388","","5.9","%","5.9","%"],["Active buyers (5)","86,969","","87,340","","","87,340","","(0.4)","%","(0.4)","%"]]
[[/GREPCENT_TABLE]]

31

Table of Contents

[[GREPCENT_TABLE]]
[["","Six Months Ended June 30,","% (Decline) Growth Y/Y for Continuing Operations","% Growth (Decline) Y/Y for the Etsy Marketplace (Non-GAAP) (1)"],["","2026","2025"],["","Continuing Operations","Continuing Operations","","Etsy Marketplace (Non-GAAP)"],["GMS (2)","$","5,043,087","","$","5,116,465","","","$","4,735,117","","(1.4)","%","6.5","%"],["Revenue","$","1,299,590","","$","1,241,335","","","$","1,198,099","","4.7","%","8.5","%"],["Revenue take rate (3)","25.8","%","24.3","%","","25.3","%","150","bps","50","bps"],["Marketplace revenue","$","888,847","","$","863,262","","","$","827,682","","3.0","%","7.4","%"],["Services revenue","$","410,743","","$","378,073","","","$","370,417","","8.6","%","10.9","%"],["Gross profit","$","939,643","","$","904,911","","","$","883,114","","3.8","%","6.4","%"],["Operating expenses","$","694,529","","$","814,684","","","$","684,557","","(14.7)","%","1.5","%"],["Net income","$","219,001","","$","10,551","","","$","118,797","","1,975.6","%","84.3","%"],["Net income margin","16.9","%","0.8","%","","9.9","%","1,610","bps","700","bps"],["Adjusted EBITDA (Non-GAAP)","$","380,069","","$","343,820","","","$","338,241","","10.5","%","12.4","%"],["Adjusted EBITDA margin (Non-GAAP)","29.2","%","27.7","%","","28.2","%","150","bps","100","bps"],["Active sellers (4)","5,706","","5,388","","","5,388","","5.9","%","5.9","%"],["Active buyers (5)","86,969","","87,340","","","87,340","","(0.4)","%","(0.4)","%"]]
[[/GREPCENT_TABLE]]

(1)% growth (decline) Y/Y for the Etsy marketplace is the change in continuing operations for the three and six months ended June 30, 2026, which represents activity for the Etsy marketplace only, compared to the Etsy marketplace excluding Reverb for the three and six months ended June 30, 2025, as Reverb was sold in the second quarter of 2025.

(2)Excluded from the tables above is gross merchandise sales (“GMS”) for Depop, which was $455.7 million and $249.6 million for the three months ended June 30, 2026 and 2025, respectively, and $804.6 million and $483.1 million for the six months ended June 30, 2026 and 2025, respectively. GMS is the dollar value of items sold in our marketplaces, excluding shipping fees and net of refunds, within the applicable period. GMS does not represent revenue earned by us.

(3)Revenue take rate is revenue divided by GMS.

(4)Active sellers for the three and six months ended June 30, 2026 and 2025 represent the Etsy marketplace only as Reverb was sold on June 2, 2025 and Depop is presented as discontinued operations. An active seller is a seller who has had a charge or sale in the last 12 months. A seller is separately identified in each of our marketplaces by a unique e-mail address; a single person can have multiple seller accounts and can count as a distinct active seller in each of our marketplaces. As part of our commitment to integrity and transparency, we continuously monitor, and from time to time adjust, the criteria for disqualifying a seller as an active seller.

(5)Active buyers for the three and six months ended June 30, 2026 and 2025 represent the Etsy marketplace only as Reverb was sold on June 2, 2025 and Depop is presented as discontinued operations. An active buyer is a buyer who has made at least one purchase in the last 12 months. A buyer is separately identified in each of our marketplaces by a unique e-mail address; a single person can have multiple buyer accounts and can count as a distinct active buyer in each of our marketplaces.

[[GREPCENT_TABLE]]
[["","As of June 30,","% Decline Y/Y"],["","2026","2025"],["","Continuing and Discontinued Operations","Continuing and Discontinued Operations"],["Net cash provided by operating activities - trailing twelve months","$","657,391","","$","689,695","","(4.7)","%"],["Free cash flow - trailing twelve months (Non-GAAP)","$","610,141","","$","634,622","","(3.9)","%"]]
[[/GREPCENT_TABLE]]

We disclose key operating metrics because they provide meaningful insight into the performance and health of our business. GMS, active sellers, and active buyers each reflect core drivers of our business—seller success, buyer engagement, and the overall scale of our platforms. We believe these measures help investors and management evaluate our growth

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1370637/000137063726000019/etsy-20251231.htm
Complete FY 2025 MD&A: /company/ETSY/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-02-19
Report date: 2025-12-31

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

You should read the following discussion and analysis of our financial condition and results of operations together with our Consolidated Financial Statements and related notes and other financial information included elsewhere in this Annual Report. This discussion, particularly information with respect to our outlook, key trends and uncertainties, and our plans and strategy for our business, performance, and future success, includes forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those discussed below. Factors that could cause or contribute to these differences include those discussed below and elsewhere in this Annual Report, particularly in Part I, Item 1A, “Risk Factors.” We have omitted discussion of 2023 results and year-to-year comparisons of 2024 and 2023 where it would be redundant to the discussion previously included in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024.

Overview

Business

Etsy operates two-sided online marketplaces that connect millions of creative entrepreneurs with buyers around the world.

The Etsy marketplace is the global destination for unique, creative goods from independent sellers, connecting artisans with thoughtful consumers seeking items that reflect their tastes and values. We also operate Depop Limited (“Depop”), a leading fashion resale marketplace acquired in 2021.

On February 15, 2026 Etsy and eBay Inc. (“eBay”) entered into a Sale and Purchase Agreement (the “Purchase Agreement”) for eBay to purchase Depop, for $1.2 billion in cash, subject to certain adjustments as set forth in the Purchase Agreement. The sale is currently expected to close in the second quarter of 2026, subject to regulatory approval and certain other closing conditions as set forth in the Purchase Agreement. Etsy will continue to own and operate Depop through such time as the transaction is completed, with Depop’s financial results classified as discontinued operations on Etsy’s consolidated financial statements for both current and prior periods beginning in the first quarter of fiscal year 2026. In keeping with our current capital allocation approach, Etsy plans to utilize the proceeds from this transaction for general corporate purposes, continued share repurchases, and investment in the Etsy marketplace.

On June 2, 2025, we completed the sale of Reverb Holdings, Inc. (“Reverb”), our musical instrument marketplace, and on August 10, 2023, we completed the sale of the parent holding company of Elo7 Serviços de Informática S.A. (“Elo7”), a Brazil-based marketplace for handmade and unique items. The results of Reverb, until its sale on June 2, 2025, and Elo7, through its sale on August 10, 2023, are included in all financial results and other metrics discussed in this report, unless otherwise noted.

We generate revenue primarily from marketplace activities, including transaction fees (inclusive of offsite advertising), payments processing fees, and listing fees, as well as from optional seller services, which primarily include on-site advertising and shipping labels.

Key Operating and Financial Metrics

We collect and analyze operating and financial data to evaluate the health and performance of our business and allocate our resources (such as capital, people, and technology investments). We provide Etsy marketplace standalone information in certain instances where particularly relevant. See “Non-GAAP Financial Measures” for more information regarding our use of Adjusted EBITDA, Adjusted EBITDA margin, and free cash flow, and reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure.

52

Table of Contents

Our financial measures and key operating metrics are (in thousands, except percentages):

[[GREPCENT_TABLE]]
[["","","Year Ended December 31,","","% (Decline) / Growth Y/Y"],["","","2025","","2024"],["GMS (1)(2)","","$","11,916,900","","","$","12,586,952","","","(5.3)","%"],["Revenue","","$","2,883,501","","","$","2,808,332","","","2.7","%"],["Revenue take rate (3)","","24.2","%","","22.3","%","","190","bps"],["Marketplace revenue","","$","2,007,164","","","$","2,020,744","","","(0.7)","%"],["Services revenue","","$","876,337","","","$","787,588","","","11.3","%"],["Gross profit","","$","2,065,701","","","$","2,033,778","","","1.6","%"],["Operating expenses","","$","1,799,491","","","$","1,653,570","","","8.8","%"],["Net income","","$","162,982","","","$","303,281","","","(46.3)","%"],["Net income margin","","5.7","%","","10.8","%","","(510)","bps"],["Adjusted EBITDA (Non-GAAP)","","$","734,511","","","$","781,538","","","(6.0)","%"],["Adjusted EBITDA margin (Non-GAAP)","","25.5","%","","27.8","%","","(230)","bps"],["Net cash provided by operating activities","","$","693,414","","","$","752,469","","","(7.8)","%"],["Free cash flow (Non-GAAP) (1)","","$","638,750","","","$","708,971","","","(9.9)","%"],["Active sellers (1)(4)","","8,762","","","8,134","","","7.7","%"],["Active buyers (1)(5)","","93,539","","","95,459","","","(2.0)","%"]]
[[/GREPCENT_TABLE]]

(1)Unaudited.

(2)Gross merchandise sales (“GMS”) for 2025 includes Etsy marketplace GMS of $10,460.7 million, Depop GMS of $1,074.9 million, and Reverb GMS of $381.3 million. GMS is the dollar value of items sold in our marketplaces, excluding shipping fees and net of refunds, within the applicable period. GMS does not represent revenue earned by us.

(3)Revenue take rate is revenue divided by GMS.

(4)Active sellers includes Etsy marketplace active sellers of 5.6 million as of December 31, 2025. Reverb active sellers are reflected in 2024 and excluded from 2025 following the completion of its sale. An active seller is a seller who has had a charge or sale in the last 12 months. A seller is separately identified in each of our marketplaces by a unique e-mail address; a single person can have multiple seller accounts and can count as a distinct active seller in each of our marketplaces. As part of our commitment to integrity and transparency, we continuously monitor, and from time to time adjust, the criteria for disqualifying a seller as an active seller.

(5)Active buyers includes Etsy marketplace active buyers of 86.5 million as of December 31, 2025. Reverb active buyers are reflected in 2024 and excluded from 2025 following the completion of its sale. An active buyer is a buyer who has made at least one purchase in the last 12 months. A buyer is separately identified in each of our marketplaces by a unique e-mail address; a single person can have multiple buyer accounts and can count as a distinct active buyer in each of our marketplaces.

We disclose key operating metrics because they provide meaningful insight into the performance and health of our business. GMS, active sellers, and active buyers each reflect core drivers of our business—seller success, buyer engagement, and the overall scale of our platforms. We believe these measures help investors and management evaluate our growth potential and the underlying strength of our marketplace.

GMS

GMS decreased $670.1 million to $11,916.9 million in 2025 compared to $12,587.0 million in 2024. The approximately 5% decline in GMS compared to 2024 was primarily driven by the sale of Reverb on June 2, 2025 and a decrease in Etsy marketplace GMS, partially offset by an increase in GMS for the Depop marketplace. Etsy marketplace GMS declined year-over-year, reflecting a dynamic macroeconomic environment, including ongoing pressure on consumer discretionary spending and evolving buyer behavior. While these headwinds persisted, improvements across our customer experience and marketing initiatives supported better momentum in the second half of the year, with quarterly year-over-year comparisons improving sequentially and the fourth quarter returning to slight growth year-over-year. The Etsy marketplace GMS per active buyer on a trailing twelve month basis declined 0.5% year-over-year to $121, along with a year-over-year decline of 3.4% for active buyers on the Etsy marketplace, to 86.5 million.

53

Table of Contents

U.S. buyer GMS is GMS from transactions in which the shipping address entered by the buyer at the time of sale is in the U.S., net of refunds. GMS from transactions in which the shipping address entered by the buyer at the time of sale is not in the U.S., net of refunds is referred to as non-U.S. buyer GMS. Percent U.S. buyer GMS for the periods presented below are as follows:

[[GREPCENT_TABLE]]
[["","Year Ended December 31,"],["","2025","","2024"],["Percent U.S. Buyer GMS - Consolidated","75","%","","74","%"],["Percent U.S. Buyer GMS - Etsy marketplace","74","%","","74","%"]]
[[/GREPCENT_TABLE]]

There is considerable uncertainty regarding the evolving tariff landscape, how recent changes to de minimis exemptions may play out, and the impact higher tariffs might have on consumer demand and discretionary wallet share. Any circumstances that reduce consumer demand or hinder our sellers' cross-border trade may adversely affect our business. See Part I, Item 1A, “Risk Factors - Growing the Etsy marketplace globally is part of our strategy, and our business could be harmed by the continued imposition of barriers to international trade.” for further detail.

Currency-Neutral GMS

We calculate currency-neutral GMS by translating current period GMS for goods sold that were listed in non-U.S. dollar currencies into U.S. dollars using prior year foreign currency exchange rates.

As reported and currency-neutral GMS decline for the periods presented below are as follows:

[[GREPCENT_TABLE]]
[["Year-to-Date Period Ended","","As Reported","","Currency-Neutral","","FX Impact"],["December 31, 2025","","(5.3)","%","","(5.8)","%","","0.5","%"],["December 31, 2024","","(4.4)","%","","(4.5)","%","","0.1","%"]]
[[/GREPCENT_TABLE]]

Results of Operations

Comparison of 2025 and 2024

Revenue

Our revenue is diversified and generated from a mix of marketplace activities and other optional services we provide primarily to sellers to help them generate more sales and scale their businesses. Marketplace revenue is primarily comprised of the fees a seller pays for marketplace activities, including transaction fees (inclusive of offsite advertising), payments processing fees, and listing fees. Services revenue is primarily comprised of the fees a marketplace seller pays us for our optional services, including on-site advertising and shipping labels.

[[GREPCENT_TABLE]]
[["","Year Ended December 31,","Change Y/Y"],["(in thousands, except percentages)","2025","2024","$","%"],["Revenue:"],["Marketplace","$","2,007,164","","$","2,020,744","","$","(13,580)","","(0.7)","%"],["Percentage of total revenue","69.6","%","72.0","%"],["Services","$","876,337","","$","787,588","","$","88,749","","11.3","%"],["Percentage of total revenue","30.4","%","28.0","%"],["Total revenue","$","2,883,501","","$","2,808,332","","$","75,169","","2.7","%"]]
[[/GREPCENT_TABLE]]
Total revenue increased primarily due to an increase in services revenue, partially offset by a decrease in marketplace revenue.

Services revenue increased primarily due to a $62.2 million increase in advertising revenue, largely driven by an increase in average price per click on Etsy Ads.

Marketplace revenue decreased primarily due to a $47.1 million decrease related to the sale of the Reverb marketplace on June 2, 2025 and a decrease of $16.8 million in transaction fee revenue, which was driven by a decline in Etsy marketplace GMS partially offset by an increase in Depop GMS. These decreases were partially offset by an increase in payments revenue of $27.0 million, primarily related to an increase in Depop GMS and a $18.4 million increase in Etsy marketplace seller set-up fee revenue.

54

Table of Contents

Costs and Operating Expenses

We include employee compens

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/ETSY/mda/fy2025/
All MD&A years: /company/ETSY/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/ETSY/mda/fy2024/): filed 2025-02-19; accession 0001370637-25-000017 (https://www.sec.gov/Archives/edgar/data/1370637/000137063725000017/etsy-20241231.htm)
- [FY 2023 MD&A](/company/ETSY/mda/fy2023/): filed 2024-02-22; accession 0001370637-24-000013 (https://www.sec.gov/Archives/edgar/data/1370637/000137063724000013/etsy-20231231.htm)
- [FY 2022 MD&A](/company/ETSY/mda/fy2022/): filed 2023-02-23; accession 0001370637-23-000017 (https://www.sec.gov/Archives/edgar/data/1370637/000137063723000017/etsy-20221231.htm)
- [FY 2021 MD&A](/company/ETSY/mda/fy2021/): filed 2022-02-25; accession 0001370637-22-000024 (https://www.sec.gov/Archives/edgar/data/1370637/000137063722000024/etsy-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 7389 Services-Business Services, NEC) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity

Macro-to-micro threads including this sector: [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/ETSY.md · JSON record: /company/ETSY.json · verified financials: /company/ETSY/financials.json / /company/ETSY/financials.csv · machine TOC for the whole site: /llms.txt