Core Insights - Etsy's renewed focus on its app has positively impacted its performance, with sales increasing by 3.8% for the quarter and 2.3% for the half-year [2] - The app's gross merchandise sales (GMS) have outpaced non-app GMS, accounting for nearly 45% of total GMS in the quarter [3] - The company is leveraging a hybrid approach to artificial intelligence for product curation, combining human expertise with machine learning algorithms [5][6] Financial Performance - Quarterly earnings showed a sales increase of 3.8% and a half-year increase of 2.3% [2] - The consumer landscape appears slightly healthier, with improved spending across different income cohorts [4] User Experience and Engagement - Improved user experience has led to higher lifetime value for app users, indicating a causal relationship between app adoption and consumer spending [3] - The company aims to engage users during idle moments, encouraging them to use the app more frequently [3] Product Curation Strategy - Etsy employs a strategy called "algotorial curation," which combines staff recommendations with machine learning to enhance product visibility [5] - The curation process expands from approximately 50 human-curated listings to about 1,000 using machine learning, ensuring aesthetic cohesion and quality [6]

Company Overview - Proactive is a provider of fast, accessible, informative, and actionable business and finance news content aimed at a global investment audience [2] - The company operates with a team of experienced and qualified news journalists across key finance and investing hubs including London, New York, Toronto, Vancouver, Sydney, and Perth [2] Market Focus - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The content delivered by the team includes insights across various sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Adoption - Proactive is recognized for its forward-looking approach and enthusiastic adoption of technology to enhance workflows [4] - The company utilizes automation and software tools, including generative AI, while ensuring that all published content is edited and authored by humans [5]

Core Insights - Etsy reported revenue of $672.66 million for the quarter ended June 2025, marking a year-over-year increase of 3.8% and exceeding the Zacks Consensus Estimate of $648.01 million by 3.8% [1] - The earnings per share (EPS) for the same period was $0.25, a decline from $0.41 a year ago, resulting in an EPS surprise of -53.7% compared to the consensus estimate of $0.54 [1] Financial Performance Metrics - Total Gross Merchandise Sales (GMS) reached $2.81 million, surpassing the average estimate of $2.77 million from 10 analysts [4] - Active buyers totaled 93,334, slightly below the estimated 94,648 from seven analysts [4] - Active sellers numbered 8,118, compared to the average estimate of 8,155 from three analysts [4] - Revenue from services was $204.49 million, exceeding the estimated $189.56 million from eight analysts, representing a year-over-year increase of 15.3% [4] - Marketplace revenue was $468.17 million, slightly above the average estimate of $459.65 million, but reflecting a year-over-year decline of 0.5% [4] Stock Performance - Over the past month, Etsy's shares have returned +17.4%, outperforming the Zacks S&P 500 composite's +3.4% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Financial Data and Key Metrics Changes - Consolidated GMS for Q2 2025 was $2.8 billion, down 4.8% year over year, with a 2.6% decline when excluding Reverb [25][26] - Consolidated revenue increased by approximately 4% to $673 million, with adjusted EBITDA at $169 million, representing a 25.1% margin [26][27] - Etsy Marketplace GMS was down 5.4% year over year, showing a notable improvement from the previous quarter's 6.2% decline [27][28] Business Line Data and Key Metrics Changes - Etsy Marketplace revenue decreased by 0.5% year over year, while Services revenue grew by 15.3% year over year, driven by strong growth in on-site ads revenue [31][32] - The take rate expanded by 200 basis points to 24%, aided by the divestiture of Reverb, which had a lower take rate [32][33] - The app GMS grew year over year, accounting for 44.8% of total GMS, up three percentage points from the previous year [29][30] Market Data and Key Metrics Changes - Trailing twelve-month active buyers in the Etsy marketplace stood at 87.3 million, down 4.6% year over year [27] - The number of reactivated buyers increased by 2.8% year over year, with 4.8 million new buyers added in the quarter [28] - GMS per buyer showed signs of stabilization, holding steady sequentially at $120, while monthly GMS per buyer trends improved in May and June [28] Company Strategy and Development Direction - The company is focusing on enhancing the customer experience through improved app features and personalized marketing [5][10] - A strategic shift was made to prioritize customer engagement and retention, with a focus on machine learning for better inventory matching [13][17] - The company aims to position itself as a leader in agentic shopping, leveraging unique inventory and personalized experiences [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recent performance and the potential for sustained growth, citing favorable competitive dynamics and stable consumer spending [6][24] - The outlook for Q3 includes expected consolidated GMS between $2.6 billion and $2.7 billion, indicating continued improvement [38] - Management emphasized a disciplined approach to investments, focusing on ROI and long-term growth potential [50][53] Other Important Information - The company completed the sale of Reverb on June 2, impacting year-over-year comparisons [24] - The app's user experience has significantly improved, leading to higher satisfaction and engagement metrics [9][10] - The company generated $90 million in free cash flow during the quarter, ending with $1.5 billion in cash [36][37] Q&A Session Summary Question: What drove the sequential improvement in Etsy's GMS trajectory? - Management highlighted four key drivers: increased app usage, personalized marketing efforts, enhanced paid social strategies, and improved performance in Google PLA auctions [42][46] Question: What is the outlook for Etsy's EBITDA margins? - Management indicated that they are managing to high twenties EBITDA margins, with expectations for a step-up in margins in Q3 due to ongoing investments [43][50] Question: How is the app contributing to growth? - The app is seen as a critical component for increasing customer engagement and lifetime value, with efforts to drive more users to adopt the app [59][61] Question: How is consumer demand across different income cohorts? - Management noted a slight improvement in consumer spending across all income cohorts, with higher income households showing a bit more resilience [70][71] Question: Can you elaborate on personalized communication efforts? - Management discussed the importance of personalized content in push and email notifications, aiming to enhance user engagement and conversion rates [76][80] Question: How is marketing spend allocated between Etsy and Depop? - The marketing spend in Q2 was more normalized between Etsy and Depop, with expectations for increased investment in Depop moving forward [89][91]

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 ...