Online marketplace Etsy, which recently announced the sale of Depop to Ebay, has seen a lift in revenue across the 2025 financial year.
Recording full-year gross merchandise sales (GMS) of $3.5 billion, a 2.4 per cent year-on-year increase, Etsy saw its own app become a growing trend among customers.
App sales rose by 6.6 per cent throughout the year. Now accounting for 46 per cent of GMS, this trend contrasted with a declining number of customers.
The number of active buyers using Etsy fell by 3.4 per cent to 86.5 million, while the number of active sellers fell by 1.5 per cent to 5.6 million. Etsy’s leadership said the focus is on strengthening the company’s marketplace.
“Our clear strategic focus and solid execution are driving progress on the journey to bring the Etsy marketplace back to sustained growth,” said Kruti Patel Goyal, president and CEO of Etsy.
“By strengthening how we connect the right people with the right items at the right moments, we see a meaningful opportunity to grow relevance, engagement, and market share over time, while continuing to deliver long-term value to all of our stakeholders.”
Lanny Baker, CFO, said the results were in line with, or better than, expectations.
“We saw stabilization and some improvement in our key customer metrics, including moderation in active buyer declines, sequential stabilization in trailing 12-month GMS per active buyer, growth in total gross buyer additions, and sequential growth alongside higher retention of active sellers.”
In the fourth quarter, adjusted EBITDA was $222 million, representing an adjusted margin of 25.2 per cent. Net income between Q4 2024 and Q4 2025 fell by 14.8 per cent, contributing to a full-year decline of 46.8 per cent.
“As we enter 2026, we have a focused set of product and marketing initiatives in flight and several early indicators of progress, and we expect that the full impact of these will take time to translate into long-term sustainable growth,” Baker added.
“We’ve improved the Etsy marketplace’s annual GMS performance over the last two years, and we expect to further improve our performance this year – achieving slight growth for the full year, with positive year-over-year comparisons in every quarter.”
