Etsy (ETSY) Q2 Earnings Miss Estimates

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]