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Dec 31, 2025
Etsy Q4 2025 Earnings Report
Etsy reported its fourth quarter and full year 2025 results, with consolidated GMS returning to slight growth and revenue increasing year-over-year.
Key Takeaways
Etsy, Inc. announced solid financial results for the fourth quarter and full year ended December 31, 2025, with consolidated GMS up 2.4% year-over-year (excluding Reverb from the prior-year period) and revenue increasing by 6.6% (excluding Reverb). The company saw stabilization and some improvement in key customer metrics, including moderation in active buyer declines and sequential growth in active sellers.
Consolidated GMS was $3,592.6 million, up 2.4% year-over-year excluding Reverb, but down 3.8% on an as-reported basis.
Revenue reached $881.6 million, an increase of 6.6% year-over-year excluding Reverb, and up 3.5% on an as-reported basis.
Net income for the quarter was $110.7 million, a decrease of 14.8% year-over-year, primarily due to a non-cash foreign exchange gain in the prior year.
Adjusted EBITDA was $222.5 million, with a consolidated Adjusted EBITDA margin of 25.2%.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For Q1 2026, Etsy expects GMS between $2.38 billion and $2.43 billion, a take rate of approximately 25.5%, and an Adjusted EBITDA margin of 28-30%. For the full year 2026, the company anticipates slight year-over-year GMS growth with positive comparisons each quarter, and Adjusted EBITDA margin roughly consistent with Q1 2026 guidance.
Positive Outlook
- Expected slight year-over-year GMS growth for FY 2026, with positive comparisons in every quarter.
- Growing confidence in operating priorities and ongoing stabilization in customer metrics.
- Focused product and marketing initiatives are in flight, with early indicators of progress.
- Anticipated Adjusted EBITDA margin of 28-30% for Q1 2026, roughly consistent for the full year.
- Singular focus on the Etsy business following the anticipated sale of Depop.
Challenges Ahead
- The full impact of product and marketing initiatives will take time to translate into long-term sustainable growth.
- Guidance assumes currency exchange rates remain unchanged at current levels, which could introduce volatility.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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