Etsy, Inc. Revenue & Financials

Etsy reported consolidated revenue of $2,883.5 million for FY2025, a 2.7% increase from $2,808.3 million in FY2024, marking the slowest annual growth rate in the company's history as a public company. The growth was driven entirely by Services revenue, which rose 11.3% to $876.3 million, while Marketplace revenue declined 0.7% to $2,007.2 million. Gross profit was $2,065.7 million, yielding a gross margin of 71.6%, up from 72.4% in FY2024 as services revenue (which carries higher margins) grew faster than marketplace revenue. Operating income fell 30.0% to $266.2 million from $380.2 million in FY2024, as operating expenses increased 8.8% to $1,799.5 million. The largest expense increase was in marketing, which rose 6.8% to $914.8 million and consumed 31.7% of revenue. Net income plummeted 46.3% to $163.0 million from $303.3 million in FY2024, driven by $101.7 million in asset impairment charges (related to the Depop sale agreement) and higher marketing spend. Diluted earnings per share fell to $1.39 from $2.35. Adjusted EBITDA, the metric management emphasizes, was $734.5 million with a margin of 25.5%, down from $781.5 million and 27.8% in FY2024. Free cash flow was $638.8 million in FY2025, down 9.9% from $709.0 million in FY2024. The company generated $693.4 million in operating cash flow and spent $54.7 million on capital expenditures and website development. Etsy's balance sheet shows $1.6 billion in cash and equivalents plus short-term investments, but total liabilities of $3.9 billion against total assets of $2.8 billion, resulting in a stockholders' deficit of $1.1 billion. Total debt stands at $2.98 billion, including $649 million in short-term debt and $2.33 billion in long-term convertible notes. The company has a $400 million revolving credit facility available. In FY2025, Etsy repurchased $777 million of its stock, reducing shares outstanding from 108.5 million to 97.0 million. The board approved an additional $750 million for repurchases in December 2025, with $973.2 million remaining available. The company's return on assets is 10.15% and profit margin is 9.81%, reflecting solid but declining profitability. The P/E ratio (TTM) is 26.37, and the forward P/E is 12.47, suggesting the market expects earnings recovery.