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Mar 31
Etsy Q1 2025 Earnings Report
Etsy's first quarter 2025 financial results were aligned with expectations, with solid adjusted EBITDA performance despite pressure on the top line.
Key Takeaways
Etsy, Inc. reported first quarter 2025 results with consolidated revenue of $651.2 million, up 0.8% year-over-year, and a consolidated net loss of $52.1 million. Consolidated GMS was $2.8 billion, down 6.5% year-over-year. Adjusted EBITDA was $171.1 million.
Consolidated GMS was $2.8 billion, down 6.5% year-over-year and down 5.7% on a currency-neutral basis.
Consolidated revenue was $651.2 million, up 0.8% versus the first quarter of 2024, with a take rate of 23.3%.
Consolidated net loss was $52.1 million, reflecting an impairment charge of $101.7 million to the goodwill of Reverb.
Consolidated non-GAAP Adjusted EBITDA was $171.1 million, with a margin of approximately 26.3%.
Etsy
Etsy
Etsy Revenue by Segment
Etsy Revenue by Geographic Location
Revenue by Segment
Marketplace Revenue
CapyFin.comServices Revenue
CapyFin.comRevenue by Geographic Location
Consolidated Revenue
CapyFin.com Forward Guidance
For Q2 2025, Etsy anticipates consolidated GMS to decline at a rate similar to, or potentially slightly better than, the Q1 2025 performance. The take rate is expected to be similar to Q1 2025, and Adjusted EBITDA Margin is projected to be around 25%.
Positive Outlook
- Consolidated GMS decline rate potentially slightly better than Q1 2025.
- Take Rate expected to be similar to Q1 2025, indicating stable revenue capture.
- Adjusted EBITDA Margin projected at ~25%, maintaining healthy profitability.
- Guidance assumes currency exchange rates remain unchanged at current levels.
- The company has a rich portfolio of investments planned to support GMS improvement.
Challenges Ahead
- Consolidated GMS is expected to decline year-over-year.
- Guidance does not include the impact from the planned sale of the Reverb marketplace.
- Reconciliation of Adjusted EBITDA margin guidance to GAAP measure is not available without unreasonable efforts due to high variability and complexity.
- Excludes various charges from Adjusted EBITDA, including stock-based compensation, payroll taxes, foreign exchange, and acquisition-related expenses.
- The company operates in a very competitive and rapidly changing environment, with new risks emerging from time to time.
Revenue & Expenses
Visualization of income flow from segment revenue to net income