Etsy CEO Josh Silverman will be replaced by the company's current president and chief growth officer. ...

Etsy said longtime Chief Executive Josh Silverman is stepping down, to be succeeded by President and Chief Growth Officer Kruti Patel Goyal. ...

Financial Performance - Revenue for Q3 2025 reached $678,026,000, a 2.5% increase from $662,410,000 in Q3 2024[24]. - Gross profit for Q3 2025 was $483,381,000, compared to $476,770,000 in Q3 2024, reflecting a slight increase[24]. - Net income for Q3 2025 was $75,503,000, up 31.6% from $57,366,000 in Q3 2024[26]. - Basic net income per share increased to $0.76 in Q3 2025 from $0.50 in Q3 2024, representing a 52% rise[24]. - Total operating expenses for Q3 2025 were $400,670,000, a 2.2% increase from $389,953,000 in Q3 2024[24]. - Marketing expenses rose to $207,841,000 in Q3 2025, up from $196,526,000 in Q3 2024, indicating a 5.7% increase[24]. - Comprehensive income for Q3 2025 was $69,333,000, down from $100,636,000 in Q3 2024[26]. - For the nine months ended September 30, 2025, the company reported a net income of $52.247 million, a decrease from $173.375 million in the same period of 2024[32]. - Revenue for the three months ended September 30, 2025, was $678.0 million, compared to $662.4 million for the same period in 2024, indicating a growth of 2.6%[64]. - Marketplace revenue for the nine months ended September 30, 2025, was $1.394722 billion, slightly down from $1.413434 billion in 2024, representing a decrease of 1.4%[46]. - Services revenue increased to $607.143 million for the nine months ended September 30, 2025, up from $542.736 million in 2024, marking a growth of 11.9%[46]. Assets and Liabilities - As of September 30, 2025, total assets increased to $2,652,811,000 from $2,417,782,000 as of December 31, 2024, representing a growth of approximately 9.7%[23]. - Cash and cash equivalents rose to $1,248,940,000, up from $811,178,000, indicating a significant increase of about 54%[23]. - Total current liabilities decreased to $565,072,000 from $665,113,000, reflecting a reduction of approximately 15%[23]. - Long-term debt increased to $2,980,605,000 from $2,288,083,000, marking an increase of about 30.3%[23]. - The accumulated deficit grew to $(2,380,707,000) from $(1,784,037,000), indicating a worsening of approximately 33.4%[23]. - The company reported a decrease in accounts payable from $25,979,000 to $9,215,000, a reduction of about 64.6%[23]. - Goodwill decreased significantly from $137,089,000 to $38,060,000, a decline of approximately 72.2%[23]. - As of September 30, 2025, the total tangible long-lived assets amounted to $158,408,000, a decrease from $168,698,000 as of December 31, 2024[65]. - The total accrued expenses as of September 30, 2025, were $309,348,000, down from $374,947,000 as of December 31, 2024[73]. Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2025, was $376.290 million, down from $437.510 million in 2024, a decrease of 13.9%[32]. - The company repurchased stock totaling $643.670 million during the nine months ended September 30, 2025, compared to $464.314 million in 2024, an increase of 38.7%[32]. - Cash paid for income taxes, net of refunds, was $47.496 million for the nine months ended September 30, 2025, down from $58.838 million in 2024[33]. - The company's cash equivalents and investments primarily consist of available-for-sale debt securities, with a fair value of $1,015,899,000 as of September 30, 2025[68]. - The company's total investments in short-term and long-term instruments included $663,105,000 in money market funds as of September 30, 2025[68]. Stock and Compensation - The Company repurchased approximately 2.5 million shares of its common stock for $150.0 million in June 2025 under the October 2024 Stock Repurchase Program[100]. - The remaining amount available for repurchase under the October 2024 Stock Repurchase Program as of September 30, 2025, is $356.5 million[96]. - The average price paid per share for repurchases in the three months ended September 30, 2025, was $58.28, with a cumulative total of 12,132 thousand shares repurchased[99]. - The total unrecognized compensation expense related to unvested RSUs is $461.4 million, to be recognized over an estimated weighted-average amortization period of 2.35 years[104]. - Stock-based compensation expense for the three months ended September 30, 2025, totaled $60.772 million, compared to $69.292 million for the same period in 2024, reflecting a decrease of approximately 7.3%[105]. - For the nine months ended September 30, 2025, stock-based compensation expense was $181.390 million, down from $214.692 million in 2024, indicating a decrease of about 15.5%[105]. - The Company granted 5,090 thousand RSUs during the nine months ended September 30, 2025, with a weighted-average grant date fair value of $50.09[104]. Leadership and Strategy - The company has plans to invest in artificial intelligence as part of its growth strategies, aiming to enhance product offerings and market reach[8]. - The company emphasizes the importance of maintaining trustworthy marketplaces to attract and retain active buyers and sellers, which is critical for financial performance[18]. - Future growth strategies include expanding beyond top geographies and addressing barriers to international trade, which may impact overall business growth[18]. - The leadership transition announced on October 29, 2025, will see Josh Silverman step down as CEO effective January 1, 2026, with Kruti Patel Goyal appointed as the new CEO[106]. - The Company adjusted the mix of long-term compensation for certain employees, granting LTC awards to better align employee interests with stockholder goals[102]. Tax and Regulatory - The effective income tax rate for the nine months ended September 30, 2025, was 52.5%, impacted by non-deductible goodwill impairment and other factors[49]. - The company expects certain provisions of the One Big Beautiful Bill Act to favorably change the timing of cash tax payments but does not anticipate a material impact on the provision for income taxes[54]. - The amount of unrecognized tax benefits increased by $2.6 million from $56.8 million as of December 31, 2024, to $59.4 million as of September 30, 2025[52]. - For the nine months ended September 30, 2025, the company recorded interest and penalties of $4.9 million, increasing the cumulative balance from $6.2 million as of December 31, 2024, to $11.1 million as of September 30, 2025[53]. Debt and Financing - The carrying value of the 2025 Notes was $689,323,000, with an estimated fair value of $765,240,000 as of September 30, 2025[72]. - The Company issued $700.0 million of 2025 Notes in June 2025, with net proceeds of $689.5 million after deducting expenses[75]. - Interest expense related to the Notes was $4.4 million for the three months ended September 30, 2025, compared to $2.1 million for the same period in 2024[85]. - The 2023 Credit Agreement provides a $400.0 million senior secured revolving credit facility, maturing in March 2028, with a letter of credit sublimit of $60.0 million[89]. - As of September 30, 2025, the Company had no outstanding borrowings under the 2023 Credit Agreement and was in compliance with all financial covenants[91].

Core Insights - Etsy CEO Josh Silverman will step down and transition to the role of executive chairman at the end of the year [1] - Kruti Patel Goyal, currently the CEO of Etsy-owned Depop, will assume the CEO position at Etsy starting January 1, 2026 [1]

Online marketplace Etsy will elevate Chief Growth Officer Kruti Patel Goyal to the CEO job, entrusting the company veteran with navigating the AI era https://t.co/gwBm4H8XPe ...

Online marketplace Etsy named insider Kruti Goyal as its new chief executive officer, effective January 1, replacing Josh Silverman after eight years in the role. ...

Financial 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].

Core Insights - Etsy's third quarter consolidated results exceeded expectations across key financial metrics, with Gross Merchandise Sales (GMS) for Etsy and Depop showing year-over-year growth [2][5] - The Etsy marketplace's GMS improved sequentially, driven by customer-centric strategies and enhanced AI-powered features [2][5] - Depop continued to gain traction in the U.S. resale clothing market, contributing to overall GMS growth [2][5] Financial Performance - Third quarter consolidated GMS was $2.7 billion, up 0.9% year-over-year excluding Reverb, with Etsy marketplace GMS improving approximately 300 basis points sequentially [5][7] - Revenue for the third quarter was $678 million, reflecting a 2.4% increase year-over-year, while the revenue take rate increased to 24.9% [6][7] - Adjusted EBITDA was $172 million, representing a consolidated margin of 25.4%, with Etsy marketplace margin just shy of 30% [5][7] 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][8] - GMS per active buyer on a trailing twelve-month basis was $121, down 1.6% year-over-year, but improved sequentially [7][8] - Depop saw significant growth with active sellers increasing by 40.8% year-over-year to 3.0 million and active buyers up 38.8% to 6.6 million [7][8] Strategic Initiatives - Etsy signed a partnership with OpenAI to allow U.S. ChatGPT users to discover and purchase items directly from Etsy sellers [7] - Key initiatives included improving search ranking models, launching new seller tools, and enhancing the Etsy App for a more personalized shopping experience [7][8] - Depop launched its largest brand campaign in September and introduced a new in-app styling feature [7][8] Fourth Quarter Guidance - For the fourth quarter of 2025, Etsy expects GMS to be between $3.5 billion and $3.65 billion, with an adjusted EBITDA margin around 24% [10][11] - The guidance reflects stable profitability for the Etsy marketplace and increased brand marketing investment at Depop [10][11]

Leadership Transition - Etsy, Inc. announced a leadership transition plan where Kruti Patel Goyal will become the new CEO effective January 1, 2026, succeeding Josh Silverman who will step down on December 31, 2025 [1][2] - Josh Silverman will serve as Executive Chair until December 31, 2026, to ensure continuity during the transition [1] - Fred Wilson, the current Chair of Etsy's Board since 2017, will step down as Chairman but will remain on the Board [1] Performance and Growth - Under Josh Silverman's leadership, Etsy has seen significant growth: the number of shoppers has more than tripled, Gross Merchandise Sales (GMS) has grown fourfold, revenue has increased nearly eightfold, and the share price has appreciated by more than seven times [2] - Kruti Patel Goyal has been instrumental in leading Etsy's strategic growth initiatives over the past year, which have improved top-line performance [2] Kruti Patel Goyal's Background - Kruti Patel Goyal has extensive experience, having served as Etsy's President and Chief Growth Officer, overseeing various departments including Product, Engineering, and Marketing [3] - Prior to her role at Etsy, she was the CEO of Depop, where she nearly doubled gross merchandise sales and buyer base, making it the fastest-growing online apparel resale marketplace in the U.S. [4] - Kruti has over 10 years of experience at Etsy in various leadership roles, including Chief Product Officer and head of Marketplace Integrity and Trust & Safety [5]

Core Insights - Jefferies analyst John Colantuoni has set a price target of $70 for Etsy, with the current stock price slightly above at $71.16 [1][4] - Etsy is scheduled to release its third-quarter 2025 financial results on October 29, 2025, followed by a video webcast conference call [2][3] - The company's market capitalization stands at approximately $7.05 billion, with a trading volume of 2,164,573 shares, indicating significant investor interest and market liquidity [2][5] Stock Performance - Currently, Etsy's stock is trading at $71.16, marking a slight decrease of 0.41% or $0.30, with a trading session low of $69.63 and a high of $71.70 [4] - Over the past year, Etsy's stock has experienced volatility, with a peak of $76.52 and a trough of $40.05 [4] Upcoming Events - The forthcoming financial results and the accompanying conference call are poised to provide analysts and investors with a deeper understanding of Etsy's financial health and strategic direction [5] - The live-streamed event will facilitate direct interaction between research analysts and the company's management, fostering greater transparency and communication within the investment community [5]