Etsy(US:ETSY)2026-02-19 14:30Financial Data and Key Metrics Changes - Consolidated GMS for Q4 2025 was $3.6 billion, up 2.4% year-over-year, excluding Reverb, and up 1.3% year-over-year on a currency-neutral basis [19] - Consolidated revenue reached $882 million, up 6.6% year-over-year, marking a new quarterly record [19] - Adjusted EBITDA was $222 million, with a consolidated adjusted EBITDA margin of 25.2% [19] - Etsy Marketplace adjusted EBITDA margin was slightly above 30% in Q4, though lower year-over-year due to higher costs [20] Business Line Data and Key Metrics Changes - Etsy Marketplace GMS was up 0.1% year-over-year in Q4, marking the first positive comparison since Q3 2023 [20] - U.S. buyer GMS grew 0.3% year-over-year, the first quarter of positive growth in four years [21] - Home and living category returned to positive year-over-year GMS growth, driven by high average order value subcategories [22] - Mobile app contributed 46% to total GMS in Q4, with app GMS growth accelerating [22] Market Data and Key Metrics Changes - Trailing twelve-month active buyer count in the U.S. increased slightly from Q3 to Q4, with active buyers largely flat sequentially at 86.5 million [24] - 6.8 million new buyers and 10.4 million reactivated buyers were added, totaling 17.2 million gross additions, up 2.7% year-over-year [24] - Active sellers increased to 5.6 million, up 1.5% sequentially, reflecting growth in both U.S. and international sellers [25] Company Strategy and Development Direction - The company signed a definitive agreement to sell Depop to eBay for $1.2 billion, allowing a focus on growing the Etsy marketplace [3] - Strategic priorities include improving buyer-seller matching, enhancing customer loyalty, and leveraging human connection to differentiate Etsy [9] - The company aims to optimize for inspiration and ongoing engagement rather than just conversion [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the changes made, noting that the trajectory is improving with a return to growth in the core marketplace [11] - The company anticipates Q1 2026 GMS to be in the range of $2.38 billion to $2.43 billion, representing year-over-year growth of approximately 2%-4% [33] - Management highlighted the importance of AI technology in enhancing the shopping experience and driving growth [13] Other Important Information - The company plans to use proceeds from the Depop sale for general corporate purposes, share repurchases, and investment in the Etsy marketplace [26] - Etsy's cash position as of December 31 was $1.8 billion, with $735 million in adjusted EBITDA generated in 2025 [31] Q&A Session Summary Question: What changed in Q4 regarding buyer acquisition and reactivation? - Management noted that cumulative investments in product experience, app usage, and personalized marketing contributed to improved buyer metrics, indicating sustainable trends [38][39] Question: What are the key drivers of sustaining GMS growth through 2026? - The company emphasized a system of strategic priorities focused on discovery, matching, loyalty, and differentiation to drive durable growth [44] Question: How is the company addressing the competition from agentic platforms? - Management acknowledged the early days of agentic platforms but expressed optimism about their potential as a valuable discovery channel, highlighting the importance of understanding buyer intent [56][58]