Etsy(US:ETSY)2025-10-29 11:02Financial Performance - Consolidated GMS for Q3 2025 was $2.7 billion, up 0.9% year-over-year excluding Reverb, while including Reverb, it was down 6.5% year-over-year[6]. - Revenue for Q3 2025 reached $678 million, a 6.1% increase year-over-year excluding Reverb, and a 2.4% increase including Reverb[7]. - Adjusted EBITDA for Q3 2025 was $172 million, with a consolidated margin of 25.4%[6]. - Revenue for Q3 2025 was $678,026 thousand, a 2.5% increase from $662,410 thousand in Q3 2024[19]. - Gross profit for Q3 2025 was $483,381 thousand, compared to $476,770 thousand in Q3 2024, reflecting a slight increase[19]. - Net income for Q3 2025 was $75,503 thousand, up from $57,366 thousand in Q3 2024, representing a 31.6% increase[19]. - Operating expenses for Q3 2025 totaled $400,670 thousand, an increase from $389,953 thousand in Q3 2024[19]. - Basic net income per share for Q3 2025 was $0.76, compared to $0.50 in Q3 2024, indicating a significant improvement[19]. - Net income for the nine months ended September 30, 2025, was $52,247,000, a decrease from $173,375,000 in the same period of 2024[20]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $512,050,000, compared to $530,897,000 in 2024, reflecting a margin of 25.6%[22]. - The company reported a net cash provided by operating activities of $376,290,000 for the nine months ended September 30, 2025, compared to $437,510,000 in 2024[20]. User Metrics - Active sellers totaled 5.5 million, a 10.9% year-over-year decrease, while active buyers were 86.6 million, down 5.0% year-over-year[7]. - GMS per active buyer on a trailing twelve-month basis was $121, down 1.6% year-over-year[7]. - Depop's GMS was $292.1 million, up 39.4% year-over-year, driven by new user growth and improved buyer conversion[7]. Stock and Cash Management - The company repurchased approximately $120 million worth of its common stock during Q3 2025[7]. - The company repurchased stock totaling $643,670,000 during the nine months ended September 30, 2025, compared to $464,314,000 in 2024[20]. - Cash and cash equivalents as of September 30, 2025, were $1,248,940 thousand, compared to $811,178 thousand as of December 31, 2024[18]. - Cash and cash equivalents at the end of the period increased to $1,250,902,000 from $818,939,000 year-over-year[20]. Liabilities and Deficits - Total liabilities as of September 30, 2025, were $3,765,395 thousand, up from $3,176,648 thousand as of December 31, 2024[18]. - Total stockholders' deficit increased to $(1,112,584) thousand as of September 30, 2025, from $(758,866) thousand as of December 31, 2024[18]. - Total current liabilities decreased to $565,072 thousand as of September 30, 2025, from $665,113 thousand as of December 31, 2024[18]. Deferred Revenue and Expenses - The company reported a deferred revenue of $25,612 thousand for Q3 2025, up from $19,213 thousand in Q3 2024[19]. - Stock-based compensation expense for the nine months ended September 30, 2025, was $181,390,000, down from $214,692,000 in 2024[22]. - The company experienced a provision for expected credit losses of $7,100,000 for the nine months ended September 30, 2025, down from $10,141,000 in 2024[20]. - The company reported a loss on the sale of business amounting to $5,097,000 during the nine months ended September 30, 2025[22]. Future Guidance and Partnerships - Fourth quarter 2025 GMS guidance is set between $3.5 billion and $3.65 billion, with an expected take rate of approximately 24.5%[10]. - Etsy signed a partnership with OpenAI to allow U.S. ChatGPT users to discover and purchase items directly from sellers[7]. - Depop launched its largest-ever brand campaign in September, aimed at increasing awareness in the U.S.[7]. Currency Impact - Currency-neutral Gross Merchandise Sales (GMS) declined by 7.2% for the quarter ended September 30, 2025, compared to a decline of 4.4% in the same quarter of 2024[21]. - The effect of exchange rate changes on cash resulted in an increase of $36,487,000 for the nine months ended September 30, 2025[20].