Etsy (ETSY) Q4 2025 earnings summary

Executive summary

• Announced definitive agreement to sell Depop to eBay for $1.2 billion in cash, expected to close in Q2 2026, allowing exclusive focus on the core marketplace.

• Q4 2025 results met or exceeded expectations, with record consolidated revenue and healthy profitability for both the quarter and full year.

• Etsy Marketplace saw its first U.S. buyer GMS growth in four years, and customer metrics are stabilizing or improving.

• Strategic priorities include earlier presence in the shopping journey, improved buyer-item matching, deepened loyalty, and human connection.

• Organizational restructuring around customer outcomes, with consolidated product, engineering, and unified trust/support teams.

Financial highlights

• Q4 2025 consolidated GMS: $3.6 billion, up 2.4% year-over-year (excluding Reverb); revenue: $881.6 million, up 6.6% year-over-year (excluding Reverb), a new quarterly record.

• Adjusted EBITDA for Q4 2025: $222 million, with a margin of 25.2%.

• Q4 consolidated take rate: 24.5%, up 170 basis points year-over-year.

• Q4 net income: $110.7 million, with diluted EPS of $0.92 and net income margin of 12.6%.

• Free cash flow for the year was $638.8 million, converting ~87% of Adjusted EBITDA.

Outlook and guidance

• Q1 2026 GMS expected at $2.38–$2.43 billion, up 2–4% year-over-year; take rate expected at ~25.5%; adjusted EBITDA margin between 28–30%.

• Full-year 2026: slight GMS growth expected, with positive year-over-year GMS in each quarter.

• Guidance reflects continuing operations only, as Depop will be classified as discontinued operations from Q1 2026.

• Full-year take rate and adjusted EBITDA margin expected to be consistent with Q1 outlook.

• Guidance assumes stable macroeconomic and consumer discretionary conditions.