Etsy, Inc. Reports Fourth Quarter and Full Year 2025 Results

Core Insights - Etsy, Inc. reported a slight growth in Gross Merchandise Sales (GMS) for Q4 2025 and anticipates GMS growth for FY 2026, driven by strategic initiatives and improved customer engagement [1][2] Financial Performance - Etsy ended Q4 2025 with $1.8 billion in cash and cash equivalents, and repurchased approximately $133 million worth of its common stock during the quarter [1] - Non-GAAP Adjusted EBITDA was $222.5 million, with a margin of approximately 25.2% [1][2] - Net income for Q4 2025 was $110.7 million, down from $129.9 million year-over-year, reflecting a lack of comparable foreign exchange gains [1][2] - Revenue for Q4 2025 was $881.6 million, up 6.6% year-over-year when excluding Reverb's prior-year revenue [1][2] - GMS for Q4 2025 was $3,592.6 million, a 2.4% increase year-over-year, but down 3.8% when including Reverb's prior-year GMS [1][2] Marketplace Performance - Key initiatives included partnerships with Google and Microsoft for AI-powered shopping experiences and an expansion of the third-party shipping partner program into five new markets [1] - Depop, another marketplace owned by Etsy, saw active sellers increase by 41.1% year-over-year, with GMS growing 37.2% on a currency-neutral basis [1][2] Future Outlook - Etsy expects slight year-over-year GMS growth in FY 2026, with positive comparisons in each quarter [2] - The anticipated sale of Depop to eBay for $1.2 billion is expected to close in Q2 2026, with Depop's financial results classified as discontinued operations starting in Q1 2026 [2][3]