Etsy reported FY 2025 results with gross merchandise sales $(GMS)$ of USD 11.92 billion (down 5.3% Y/Y) and revenue of USD 2.88 billion (up 2.7% Y/Y), with a revenue take rate of 24.2% (up 190 bps Y/Y). Net income was USD 162.98 million (down 46.3% Y/Y), while Adjusted EBITDA was USD 734.51 million (down 6.0% Y/Y) and Adjusted EBITDA margin was 25.5% (down 230 bps Y/Y). Free cash flow was USD 638.75 million (down 9.9% Y/Y) and net cash provided by operating activities was USD 693.41 million (down 7.8% Y/Y). Marketplace revenue was USD 2.01 billion (down 0.7% Y/Y) and services revenue was USD 876.34 million (up 11.3% Y/Y), with services growth driven by a USD 62.2 million increase in advertising revenue, largely from higher average price per click on Etsy Ads. Etsy said GMS declines reflected Reverb’s sale on June 2, 2025 and lower Etsy marketplace GMS amid pressure on consumer discretionary spending, partly offset by higher Depop GMS; it also recorded a USD 101.70 million asset impairment charge related to Reverb goodwill. Etsy noted it entered an agreement on Feb. 15, 2026 for eBay to buy Depop for USD 1.20 billion in cash, expected to close in Q2 2026 subject to approvals, and said it plans to use proceeds for general corporate purposes, continued share repurchases, and investment in the Etsy marketplace.

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