Etsy(ETSY) - 2025 Q2 - Quarterly Report

General Information Cover Page Information 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] - The registrant is a Large Accelerated Filer[4] 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 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] - Actual results may differ materially due to risks described in Part II, Item 1A, 'Risk Factors' and other uncertainties[9] - The company disclaims any obligation to update forward-looking statements[12] Summary Risk Factors 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][17][19][20] - 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][21] - Investors should review Part II, Item 1A, 'Risk Factors' for a more complete discussion[15] Part I - Financial Information Item 1. Condensed Consolidated Financial Statements (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 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 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 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 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 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