Etsy, Inc.
E-commerce MarketplaceFounded 2005- Updated July 2025
Reviewed by Swet Parvadiya
Last reviewed: July 2025
CorpDigest
Etsy, Inc.
Financial Performance
Last reviewed: July 2025 · By Swet Parvadiya
Revenue
$2.88B
Market Cap
$6.5B
Net Income
$163M
Employees
2,375
Revenue grew from $2.75 billion in FY2023 to $2.88 billion in FY2025, a trajectory that understates the underlying take rate improvement. The 24.2% take rate — $0.24 captured per dollar of gross merchandise volume — is the financial expression of Etsy's seller dependency. When Etsy raised the transaction fee from 5% to 6.5% in 2022, sellers protested and then continued selling because they had no comparable alternative. Net income of $163 million in FY2025 reflects the cost of the portfolio rationalization: the Depop loss, integration expenses, and the structural overhead of managing multiple marketplace brands simultaneously. The $700 million in convertible senior notes issued in June 2025 at 1.0% adds to a net carrying value of $2.3 billion in convertible notes — a debt load that will need to be managed carefully against the company's $6.5 billion market capitalization. The board-approved $750 million stock repurchase program in December 2025 is a statement of confidence in the core marketplace's cash generation. At $6.5 billion in market capitalization, the company is buying back shares at a price that implies low expectations for the business that remains after Depop's departure. Q1 2026 guidance for the core Etsy marketplace called for $2.38-2.43 billion in GMS and 28-30% adjusted EBITDA margin — the highest margin level targeted since 2021. That combination, if achieved, would demonstrate that the focused core marketplace generates better financial returns than the diversified portfolio ever did.
Revenue Trend Analysis
YoY Change
+2.7%
2-Year CAGR
+2.4%
Peak Year
2025
Trend
Consistent Growth
Etsy, Inc. has reported revenue across 3 fiscal years, compounding at +2.4% annually over 2 years. The most recent year saw a 2.7% increase versus the prior year. Revenue peaked in 2025 at $2.9B. Out of 2 reported periods, 2 showed growth and 0 showed a decline.
| Fiscal Year | Revenue | Net Income | YoY Change |
|---|---|---|---|
| FY2025 | $2.9B | $163M | +2.7% |
| FY2024 | $2.8B | — | +2.2% |
| FY2023 | $2.7B | — | — |
Source: SEC EDGAR filings, annual earnings releases, and verified financial disclosures.
Click any row to see year details.
Etsy Inc.'s $163 million 2024 net income on $2.88 billion revenue represents 5.7% net margin reflecting continued marketplace business model economics with operating margins of approximately 10% across consolidated operations. The financial performance reflects continued post-pandemic moderation through 2022-2024 affecting various commercial dynamics, with continued operational discipline supporting various competitive positioning. Operating cash flow generation of approximately $600 million supports continued capital expenditure supporting various operational requirements, continued share buybacks ($1+ billion in cumulative buybacks across recent years supporting share count reduction), no current dividend payments (Etsy does not pay dividends supporting various capital deployment flexibility), continued debt service supporting modest debt levels, and various other capital deployment. Recent earnings reflect continued operational pressures through various competitive dynamics affecting consolidated business performance, with continued strategic execution supporting various operational improvements. Future profitability depends on continued operational execution through various competitive dynamics affecting marketplace industry evolution.
Etsy Inc. has executed substantial share buyback programs across recent years totaling $1+ billion in cumulative buybacks supporting substantial share count reduction (Etsy share count reduced from peak periods supporting various per-share metrics), with continued operational investment supporting various competitive priorities. Strategic capital allocation reflects continued cash generation supporting various capital return priorities alongside continued operational investment requirements. Recent capital deployment has emphasized substantial share buybacks during stock price weakness periods, with continued operational investment supporting various marketplace capability development, technology platform improvements, marketing investment supporting various commercial benefits, and various other operational priorities. Strategic challenges include continued capital deployment requirements supporting various priorities including operational investment versus capital return optimization, M&A integration costs affecting various commercial considerations, and various other operational considerations affecting consolidated business performance. Future capital allocation depends on continued operational performance through various competitive dynamics affecting marketplace industry evolution. The balanced capital deployment supports continued strategic flexibility.
Etsy Inc. has chosen not to pay dividends throughout public company history (since April 2015 IPO) supporting various capital deployment flexibility including substantial share buyback programs, continued operational reinvestment, M&A activity supporting various capability building, and various other strategic considerations. Strategic rationale includes continued growth opportunities supporting reinvestment versus distribution priorities, capital deployment flexibility through various market conditions including substantial buyback opportunities during stock price weakness, share count reduction supporting per-share earnings growth, growth-oriented company positioning versus mature dividend-paying alternatives, and various other strategic factors. Recent capital allocation has emphasized continued operational investment plus substantial share buybacks ($1+ billion cumulative supporting various capital return optimization through share count reduction). Future dividend evolution depends on continued operational performance through various competitive dynamics, eventual business model maturation supporting potential capital allocation evolution, and various other strategic considerations. The continued no-dividend approach reflects continued strategic priorities through ongoing marketplace industry dynamics.
Etsy Inc. faces substantial sensitivity to consumer discretionary spending across various commercial dynamics including continued substantial dependence on consumers' ability and willingness to purchase handmade and vintage items representing typically discretionary purchases versus essential merchandise, continued pandemic-era growth normalization affecting various commercial pressures through 2022-2024, inflation pressures affecting various consumer purchasing power, consumer behavior changes affecting various marketplace usage, and various other operational considerations. Recent consumer dynamics include continued post-pandemic spending normalization affecting various marketplace performance, continued inflation pressures affecting various discretionary spending, consumer shift toward various essential merchandise during economic uncertainty supporting various marketplace pressures, plus various other operational impacts. Strategic responses include continued operational efficiency supporting various competitive positioning during reduced discretionary spending periods, marketing investment supporting various consumer engagement, marketplace optimization supporting various commercial benefits, seller support supporting various commercial relationships, and various other operational responses. Future discretionary spending dynamics continue affecting various commercial considerations through ongoing economic and competitive dynamics.
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CorpDigest. "Etsy, Inc. Revenue & Financials." CorpDigest, https://corpdigest.com/company/etsy/financials.<div style="font-family:system-ui,sans-serif;font-size:14px;line-height:1.5;border:1px solid #e2e8f0;border-radius:8px;padding:12px 16px;max-width:520px"><strong>Etsy, Inc. reported $3B in revenue (FY2025).</strong><br>Source: <a href="https://corpdigest.com/company/etsy/financials" target="_blank" rel="noopener">CorpDigest — Etsy, Inc. financials</a></div>