Etsy(US:ETSY)2025-07-30 11:01Financial Performance - Etsy's second quarter 2025 GMS was $2.8 billion, down 4.8% year-over-year, with a currency-neutral decline of 5.8%[7] - Revenue for the second quarter 2025 was $672.7 million, representing a 3.8% increase compared to the same quarter in 2024, driven by on-site ads performance[7] - The take rate improved to 24.0%, up 200 basis points year-over-year, primarily due to enhanced Etsy Ads revenue[7] - Non-GAAP Adjusted EBITDA for the quarter was $169.0 million, with an Adjusted EBITDA margin of approximately 25.1%[7] - Revenue for Q2 2025 was $672.7 million, a 3.1% increase from $647.8 million in Q2 2024[19] - Gross profit for Q2 2025 reached $479.1 million, compared to $463.7 million in Q2 2024, reflecting a gross margin improvement[19] - Adjusted EBITDA for Q2 2025 was $169.0 million, with an adjusted EBITDA margin of 25.1%, compared to 27.7% in Q2 2024[22] - Total operating expenses for Q2 2025 were $402.7 million, slightly up from $393.5 million in Q2 2024[19] Buyer Activity - Active buyers decreased by 4.6% year-over-year to 87.3 million, while 6.5 million buyers were reactivated during the quarter[7] Cash and Debt Management - Etsy completed a private placement of convertible notes, raising approximately $700 million in cash during the quarter[7] - The company repurchased approximately $335 million of its common stock, reflecting confidence in long-term opportunities[6] - The company repurchased $523.9 million in stock during the six months ended June 30, 2025[20] - Long-term debt rose significantly to $2,978,971,000 from $2,288,083,000, indicating an increase of approximately 30.2%[18] - Cash and cash equivalents stood at $1,183,357,000, up from $811,178,000, marking an increase of about 45.5%[18] - Cash and cash equivalents at the end of Q2 2025 were $1.18 billion, an increase from $759.2 million at the end of Q2 2024[20] Asset and Liability Changes - Total assets increased to $2,557,149,000 from $2,417,782,000, representing a growth of approximately 5.8% year-over-year[18] - Current liabilities decreased to $486,362,000 from $665,113,000, a reduction of about 26.9%[18] - Total current assets amounted to $1,647,999,000, compared to $1,327,691,000, an increase of about 24.2%[18] - Accounts receivable, net, was reported at $647,448,000, compared to $702,970,000, showing a decrease of approximately 7.9%[18] - Total stockholders' deficit widened to $(1,124,570,000) from $(758,866,000), reflecting a decline in equity[18] - Deferred revenue increased to $23,598,000 from $19,213,000, a rise of approximately 22.4%[18] Strategic Initiatives - Key initiatives include improving machine learning for better content matching and enhancing customer retention strategies[11] - Depop achieved a $1 billion annualized GMS run rate, with plans to accelerate marketing investments to expand its U.S. audience[11] Risks and Management Focus - The company highlighted ongoing risks related to macroeconomic factors and cybersecurity threats that could impact future performance[17] - The management emphasized the importance of enhancing current offerings and developing new products to meet changing market demands[17] Income and Impairment - Net income for the six months ended June 30, 2025, was a loss of $23.3 million, down from a net income of $116.0 million in the same period of 2024[20] - The company incurred an asset impairment charge of $101.7 million for the six months ended June 30, 2025[20]