Core Insights - Etsy has signed a definitive agreement to sell Depop to eBay for $1.2 billion in cash, allowing Etsy to focus on its core marketplace [3][7] - The sale is expected to close in Q2 2026, subject to regulatory approval, and until then, Depop will be classified as a discontinued operation [2][7] - Etsy's fourth-quarter results showed record consolidated revenue of $882 million and consolidated GMS of $3.6 billion, with a year-over-year growth of 2.4% excluding Reverb [6][8] Financial Performance - For full-year 2025, Depop generated $1.1 billion in GMS and $187 million in revenue, negatively impacting Etsy's consolidated take rate and adjusted EBITDA margins [1][7] - Etsy's adjusted EBITDA margin for Q4 was 25.2%, with a consolidated adjusted EBITDA of $222 million [6][8] - Etsy ended 2025 with $1.8 billion in cash and cash equivalents, generating $735 million in adjusted EBITDA and returning over 100% of free cash flow to shareholders through share repurchases [19] Strategic Focus - Etsy is prioritizing four strategic areas for 2026, including improving customer experience and enhancing operational execution [11] - The company is accelerating AI and "agentic" shopping initiatives, with agentic traffic increasing approximately 15 times year-over-year, although it still represents less than 1% of total traffic [5][15] - Etsy aims to improve buyer engagement and retention, with active buyers remaining flat at 86.5 million but showing signs of stabilization [12][14] Market Outlook - For Q1 2026, Etsy expects GMS of $2.38 billion to $2.43 billion, indicating a growth of approximately 2% to 4% year-over-year [17] - The company anticipates a take rate of about 25.5% and an adjusted EBITDA margin of 28% to 30% for Q1 2026 [17] - Etsy's strategy includes enhancing machine learning for better item matching and deepening loyalty with valuable customers [18]

Summary of Etsy Conference Call - December 09, 2025 Company Overview - **Company**: Etsy (NasdaqGS:ETSY) - **Industry**: Digital Commerce, E-commerce Marketplace - **Focus**: Unique and handmade goods Key Points and Arguments Leadership Transition - Josh Silverman, CEO since 2017, will transition to Executive Chair at the end of the year, with Kruti Patel Goyal taking over as CEO in January 2026 [6][7] - The board unanimously believes Kruti is the right candidate for CEO, having demonstrated strong performance and leadership [6][7] Historical Performance and Growth - In 2017, Etsy had $2.5 billion in gross merchandise sales (GMS) and $200 million in revenue, operating at break-even [9] - Under Josh's leadership, Etsy's GMS grew to $10 billion, with revenue increasing significantly and achieving approximately $750 million in free cash flow last year [10] - The pandemic accelerated growth, but the company has faced challenges in maintaining that growth post-pandemic [12] Future Growth Strategies - Kruti emphasized the need to adapt to changing consumer expectations, focusing on a more engaging shopping experience rather than just efficient transactions [14][15] - Key priorities for growth include being present where shoppers discover products, ensuring relevance in inventory, fostering customer loyalty, and highlighting the human aspect of Etsy's marketplace [16][18] Technology and Personalization - Etsy is investing in machine learning and large language models (LLMs) to enhance search and recommendation systems, improving user engagement and conversion rates [19][20] - Personalized content in marketing channels has increased to 80%, leading to significant improvements in GMS [23] Agentic Shopping and AI Integration - Josh highlighted the potential of agentic shopping, which could enhance Etsy's visibility and drive incremental visits and commerce [24][25] - Etsy aims to leverage its unique inventory to differentiate itself from competitors in the agentic shopping landscape [32][33] Depop Acquisition and Market Position - Depop, a secondhand apparel marketplace, is experiencing rapid growth, with a 60% year-over-year increase in GMS [45] - Etsy is investing in marketing to increase awareness of Depop, viewing it as a potential significant growth driver [39] Conclusion - The leadership transition and strategic focus on enhancing user experience, leveraging technology, and expanding market presence are critical for Etsy's future growth [46]

OCTOBER 29, 2025 Q3 2025 Financial Results Forward-looking Statements 2 This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include but are not limited to statements relating to: our financial guidance for the fourth quarter of 2025 and underlying assumptions; the impact of AI, ML, and LLMs; the impact of agentic search and our partnership with OpenAI; our product development investments, strategic priorities, and marketing init ...