Financial Data and Key Metrics Changes - Consolidated GMS for Q2 2025 was $2.8 billion, down 4.8% year over year, while excluding Reverb, it was approximately $2.7 billion, down 2.6% year over year [25][26] - Consolidated revenue increased by approximately 4% to $673 million, with adjusted EBITDA at $169 million, representing a 25.1% margin [26][32] - Trailing twelve month active buyers in the Etsy marketplace stood at 87.3 million, down 4.6% year over year [27] Business Line Data and Key Metrics Changes - Etsy Marketplace GMS was down 5.4% year over year, but this was an improvement from a 6.2% decline in Q1 2025 [25][27] - Depop reported GMS growth accelerating to 35% year over year, reaching an annualized run rate of $1 billion [5][26] - Services revenue grew 15.3% year over year, driven by strong growth in on-site ads revenue at both Etsy and Depop [31] Market Data and Key Metrics Changes - In the U.S., GMS for Depop grew 54% year over year, positioning it as the fastest growing player in the online fashion resale market [5] - Monthly GMS per buyer trends strengthened over the quarter, inflecting into positive year over year comparisons in May and June [28] - The proportion of Etsy GMS generated on the app increased to 44.8%, three percentage points higher than a year ago [29] Company Strategy and Development Direction - The company is focused on enhancing the customer experience through a strategic shift to make Etsy a more delightful place to shop, emphasizing a recommendation-driven approach [4][10] - Key priorities include improving customer discovery, enhancing machine learning for better inventory matching, and retaining valuable customers through loyalty programs [12][13][19] - The company plans to shift marketing investments from traditional media to digital platforms, increasing focus on OTT, audio, and social media [14][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recent performance and the potential for sustained growth, citing improvements in consumer spending and favorable competitive dynamics [5][27] - The company anticipates continued improvement in growth comparisons in the second half of the year, with Q3 consolidated GMS expected to be between $2.6 billion and $2.7 billion [38] - Management emphasized a disciplined approach to investments, focusing on ROI and long-term growth potential [51][49] Other Important Information - The company completed the sale of Reverb on June 2, which impacted the reported results for Q2 2025 [23][24] - The app's user experience has improved significantly, with increased satisfaction reported among users [7][9] - The company generated $90 million in free cash flow in the quarter, ending with $1.5 billion in cash and approximately $3 billion in convertible debt [36][37] Q&A Session Summary Question: What helped drive improved spending despite habitual buyers continuing to moderate? - Management noted that improved app experience, personalized marketing, and increased visibility in paid social contributed to the sequential improvement in GMS [44][46] Question: What is driving the margin compression in the core business? - Management clarified that they are managing to high twenties EBITDA margins while investing in app experience and marketing to drive long-term growth [48][49] Question: How should we think about the app's growth and its impact on GMS? - Management indicated that app adoption leads to higher lifetime value for buyers, and they are focusing on making the app a central part of the customer experience [57][62] Question: What is the demand profile across different household income cohorts? - Management observed slightly healthier consumer spending across all cohorts, with higher income households showing stronger resilience [67] Question: Can you elaborate on the personalized communication and its impact on conversion? - Management highlighted that personalized push and email notifications have shown positive results, with plans to enhance personalization further using LLMs [76][78]

Core Insights - Etsy reported quarterly earnings of $0.25 per share, missing the Zacks Consensus Estimate of $0.54 per share, and down from $0.41 per share a year ago, representing an earnings surprise of -53.70% [1] - The company posted revenues of $672.66 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.80%, and up from $647.81 million year-over-year [2] - Etsy has outperformed the S&P 500, gaining about 14% since the beginning of the year compared to the S&P 500's gain of 8.3% [3] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.63 on revenues of $645.56 million, and for the current fiscal year, it is $1.80 on revenues of $2.79 billion [7] - The estimate revisions trend for Etsy was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Internet - Commerce industry, to which Etsy belongs, is currently in the bottom 41% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of Etsy's stock may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Core Insights - Etsy reported a 3.8% year-over-year revenue growth in Q2, reaching $670 million, surpassing analyst expectations of $647 million [1] - The company's net profit for the quarter was $28.8 million, translating to earnings of $0.25 per share, down from $53 million and $0.41 per share in the same period last year [1] - Active buyer count decreased by 4.6% to 87.3 million, while total gross merchandise sales fell by 4.8% to $2.8 billion [1]

Financial Performance - Consolidated GMS was $2.8 billion, a decrease of 4.8% year-over-year, or 5.8% on a currency-neutral basis[7] - Consolidated revenue reached $673 million, representing a 3.8% year-over-year increase[7] - Adjusted EBITDA amounted to $169 million, resulting in a 25.1% adjusted EBITDA margin[7] - Excluding Reverb, Q2 2025 Consolidated GMS was $2.7 billion, down 2.6% Y/Y on the same basis[7] Marketplace Dynamics - Etsy marketplace GMS decreased by 5.4% year-over-year, or 6.3% on a currency-neutral basis, totaling $2.4 billion[11] - Depop marketplace GMS increased by 35.3% year-over-year, or 34.7% on a currency-neutral basis, reaching $250 million[11] - Etsy app GMS grew year-over-year and accounted for approximately 45% of total GMS[12, 59] Buyer & Seller Metrics - Etsy marketplace had 87.3 million active buyers, a decrease of 4.6% year-over-year[55] - New buyers totaled 4.8 million, a decrease of 14.5% year-over-year[82] - GMS per active buyer was $120, a decrease of 2.9% year-over-year[57, 82] Strategic Initiatives & Investments - Approximately 40% of marketing messages are now personalized, an increase from approximately 27% in Q4 2024[16] - Share repurchases during Q2 2025 amounted to approximately $335 million[75] - The company is aiming for near-total personalization of marketing messages by year-end[16]

General Information [Cover Page Information](index=1&type=section&id=Cover%20Page%20Information) This section provides administrative details of the Form 10-Q filing, including the registrant's name, address, securities registered, and filer status as a large accelerated filer - Etsy, Inc. is filing a Quarterly Report on Form 10-Q for the period ended June 30, 2025[2](index=2&type=chunk) - The registrant is a **Large Accelerated Filer**[4](index=4&type=chunk) Registered Securities | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :--- | :--- | :--- | | Common Stock, $0.001 par value per share | ETSY | The Nasdaq Global Select Market | [Note Regarding Forward-Looking Statements](index=3&type=section&id=Note%20Regarding%20Forward-Looking%20Statements) This section provides a cautionary statement regarding forward-looking statements in the report, highlighting that they involve known and unknown risks and uncertainties that could cause actual results to differ materially - **Forward-looking statements** relate to **growth potential**, **impact of strategies** (including **AI investments**), ability to attract/retain buyers/sellers, **profitability**, **strategic investments**, **marketplace trustworthiness**, and effects of **macroeconomic/geopolitical uncertainty**[8](index=8&type=chunk) - Actual results may differ materially due to **risks** described in Part II, Item 1A, '**Risk Factors**' and other uncertainties[9](index=9&type=chunk) - The company disclaims any obligation to update **forward-looking statements**[12](index=12&type=chunk) [Summary Risk Factors](index=4&type=section&id=Summary%20Risk%20Factors) This section provides a high-level overview of the key risks facing the company, categorized into financial performance and operational, strategic, regulatory, compliance, legal, and other risks - **Risks** are categorized into **Financial Performance** and **Operational**, **Strategic**, **Regulatory**, **Compliance**, and **Legal**, and **Other Risks**[16](index=16&type=chunk)[17](index=17&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk) - **Key risks** include **fluctuating operating results** due to **macroeconomic conditions**, failure to meet **guidance**, importance of **marketplace trustworthiness**, **technology disruptions**, **intense competition**, and **compliance with evolving regulations**[17](index=17&type=chunk)[21](index=21&type=chunk) - Investors should review Part II, Item 1A, '**Risk Factors**' for a more complete discussion[15](index=15&type=chunk) Part I - Financial Information [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements, including the Balance Sheets, Statements of Operations, Comprehensive Income, Changes in Stockholders' Deficit, and Cash Flows for the reported periods [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) This section presents the company's financial position, detailing assets, liabilities, and stockholders' deficit for the reported periods Consolidated Balance Sheets (Unaudited) (In thousands) | ASSETS | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,183,357 | $811,178 | | Short-term investments | $228,979 | $228,322 | | Total current assets | $1,647,999 | $1,327,691 | | Goodwill | $38,072 | $137,089 | | Total assets | $2,557,149 | $2,417,782 | | LIABILITIES AND STOCKHOLDERS' DEFICIT | | | | Total current liabilities | $486,362 | $665,113 | | Long-term debt, net | $2,978,971 | $2,288,083 | | Total liabilities | $3,681,719 | $3,176,648 | | Total stockholders' deficit | $(1,124,570) | $(758,866) | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) This section details the company's revenues, expenses, and net income (loss) for the reported periods Consolidated Statements of Operations (Unaudited) (In thousands, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $672,663 | $647,806 | $1,323,839 | $1,293,760 | | Gross profit | $479,115 | $463,716 | $938,230 | $922,537 | | Income from operations | $76,429 | $70,169 | $54,102 | $138,259 | | Net income (loss) | $28,840 | $53,005 | $(23,256) | $116,009 | | Basic EPS | $0.28 | $0.46 | $(0.22) | $0.99 | | Diluted EPS | $0.25 | $0.41 | $(0.22) | $0.89 | [Consolidated Statements of Comprehensive Income](index=8&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) This section presents the company's comprehensive income, including net income and other comprehensive income (loss), for the reported periods Consolidated Statements of Comprehensive Income (Unaudited) (In thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) | $28,840 | $53,005 | $(23,256) | $116,009 | | Total other comprehensive income (loss) | $48,486 | $(4,176) | $77,766 | $(18,293) | | Comprehensive income | $77,326 | $48,829 | $54,510 | $97,716 | [Consolidated Statements of Changes in Stockholders' Deficit](index=9&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Deficit) This section outlines changes in the company's equity, including stock-based compensation, repurchases, and net income (loss), for the reported periods Changes in Stockholders' Deficit (Unaudited) (In thousands) - Six Months Ended June 30, 2025 | Item | Shares | Common Stock Amount | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Balance as of Dec 31, 2024 | 108,540 | $109 | $1,322,809 | $(1,784,037) | $(297,747) | $(758,866) | | Stock-based compensation | — | — | $131,643 | — | — | $131,643 | | Stock repurchase | (10,076) | $(10) | — | $(528,550) | — | $(528,560) | | Net loss | — | — | — | $(23,256) | — | $(23,256) | | Balance as of June 30, 2025 | 99,608 | $100 | $1,431,154 | $(2,335,843) | $(219,981) | $(1,124,570) | Changes in Stockholders' Deficit (Unaudited) (In thousands) - Six Months Ended June 30, 2024 | Item | Shares | Common Stock Amount | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Balance as of Dec 31, 2023 | 119,069 | $119 | $1,081,026 | $(1,357,390) | $(267,470) | $(543,715) | | Stock-based compensation | 9 | — | $152,551 | — | — | $152,551 | | Stock repurchase | (4,577) | $(5) | — | $(311,261) | — | $(311,266) | | Net income | — | — | — | $116,009 | — | $116,009 | | Balance as of June 30, 2024 | 115,315 | $115 | $1,203,294 | $(1,552,642) | $(285,763) | $(634,996) | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section reports the company's cash inflows and outflows from operating, investing, and financing activities for the reported periods Condensed Consolidated Statements of Cash Flows (Unaud

Etsy, Inc. Reports Second Quarter 2025 Results Brooklyn, NY - July 30, 2025 - Etsy, Inc. (NASDAQ: ETSY), which operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers around the world, today announced results for its second quarter ended June 30, 2025. "We are encouraged by our second quarter performance, which reflects tangible progress in our key investment areas," said Josh Silverman, Etsy, Inc. Chief Executive Officer. "These efforts are designed to str ...

Core Insights - Etsy, Inc. reported its second quarter results for 2025, highlighting a focus on strengthening customer relationships and enhancing buyer engagement through improved shopping experiences and personalized marketing [2][3][5] Financial Performance - Gross Merchandise Sales (GMS) for Q2 2025 was $2.8 billion, a decrease of 4.8% year-over-year, while revenue increased by 3.8% to $672.7 million [6][7] - The take rate improved to 24.0%, up from 22.0% in the previous year, driven by enhanced Etsy Ads revenue [6][7] - Net income for the quarter was $28.8 million, down from $53.0 million year-over-year, primarily due to a non-cash foreign exchange loss [6][7] - Adjusted EBITDA was $169.0 million, with a margin of 25.1%, reflecting a decline from the previous year [6][7][25] Strategic Initiatives - The company is prioritizing GMS growth through four strategic initiatives: enhancing shopper discovery, improving machine learning for content matching, retaining valuable customers, and amplifying the unique human connection of Etsy [10] - Etsy completed the sale of Reverb on June 2, 2025, which contributed $153.0 million to GMS and $17.6 million to revenue for the first two months of Q2 2025 [3][6] Market Trends - Depop, another marketplace owned by Etsy, reported a GMS of $249.6 million for Q2 2025, marking a 35.3% year-over-year growth [5] - Active buyers decreased by 4.6% year-over-year to 87.3 million, although the company reactivated 6.5 million buyers during the quarter [6][7] Cash Position and Investments - Etsy ended Q2 2025 with $1.5 billion in cash and cash equivalents, following a successful convertible notes offering that raised approximately $700 million [6][7] - The company repurchased approximately $335 million of its stock during the quarter, reflecting confidence in long-term growth opportunities [6][7] Future Guidance - For Q3 2025, Etsy expects GMS to be between $2.6 billion and $2.7 billion, with a take rate of approximately 24.5% and an adjusted EBITDA margin around 25% [9][10]

Group 1 - Etsy, Inc. is set to release its fourth-quarter earnings results on July 30, with analysts expecting earnings of 49 cents per share, an increase from 41 cents per share in the same period last year [1] - Projected quarterly revenue for Etsy is $647.63 million, slightly down from $647.81 million a year earlier [1] - On June 12, Etsy announced a $650 million offering of convertible senior notes [1] Group 2 - Etsy shares experienced a decline of 3.9%, closing at $60.30 [2] - Analysts have provided various ratings and price target adjustments for Etsy, with Stifel maintaining a Hold rating and raising the price target from $45 to $66 [4] - Canaccord Genuity maintained a Buy rating and increased the price target from $62 to $68, while Raymond James raised its Outperform rating target from $50 to $70 [4] - Deutsche Bank maintained a Hold rating with a price target increase from $40 to $47, and UBS raised its Neutral rating target from $45 to $62 [4]

Core Viewpoint - Analysts forecast Etsy (ETSY) will report quarterly earnings of $0.54 per share, reflecting a year-over-year increase of 31.7%, with revenues expected to be $648.01 million, showing no change from the previous year [1]. Earnings Estimates - Over the last 30 days, there has been a 0.7% upward revision in the consensus EPS estimate for the quarter, indicating analysts' reassessment of their initial forecasts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock price performance [3]. Revenue Projections - Analysts project 'Revenue- Services' to reach $189.56 million, representing a year-over-year increase of 6.8% [4]. - The estimated 'Revenue- Marketplace' is $459.65 million, indicating a year-over-year decline of 2.3% [5]. - Total Gross Merchandise Sales (GMS) are expected to be $2.77 million, down from $2.95 million in the same quarter last year [5]. Active User Metrics - Analysts estimate 'Active buyers' will total 94,648, a decrease from 96,610 reported in the same quarter of the previous year [5]. - The consensus for 'Active sellers' is 8,155, down from 8,801 in the same quarter last year [6]. Stock Performance - Shares of Etsy have increased by 23.3% over the past month, outperforming the Zacks S&P 500 composite, which rose by 4.9% [6].

Core Insights - Coupang, Inc. (CPNG) has shown strong year-to-date performance, returning approximately 37.6%, significantly outperforming the average gain of 6.9% in the Retail-Wholesale sector [4] - The Zacks Rank for Coupang, Inc. is 2 (Buy), indicating a favorable outlook based on earnings estimate revisions and improving earnings outlooks [3] - Coupang, Inc. belongs to the Internet - Commerce industry, which has an average gain of 11.4% this year, further highlighting CPNG's superior performance [6] Retail-Wholesale Sector Overview - The Retail-Wholesale sector consists of 204 individual stocks and is currently ranked 13 in the Zacks Sector Rank [2] - The Zacks Consensus Estimate for Coupang's full-year earnings has increased by 2.3% over the past three months, reflecting improved analyst sentiment [4] Comparison with Peers - Etsy (ETSY) is another stock in the Retail-Wholesale sector that has outperformed, with a year-to-date return of 18.1% and a Zacks Rank of 2 (Buy) [5] - Both Coupang, Inc. and Etsy are part of the Internet - Commerce industry, which includes 36 individual stocks [6]