Etsy Marketplace Shows Flat Growth in GMS in 4th Quarter of 2025

Etsy, the global online marketplace for unique and handmade goods, reported a modest 2.4% year-over-year increase in consolidated Gross Merchandise Sales (GMS) for the fourth quarter of 2025. This translates to a 1.3% growth when adjusted for foreign exchange neutrality. The reported GMS figure encompasses sales from both the Etsy marketplace and its subsidiary Depop. Notably, the GMS from Reverb, a musical instrument marketplace previously owned by Etsy, was excluded from the prior-year period’s comparison, as Etsy completed the sale of Reverb in 2025.

Consolidated revenue for the quarter saw a more robust increase of 6.6% year-over-year, also excluding Reverb’s contribution from the previous year. Etsy attributed this revenue growth primarily to the continued strong performance of its consolidated on-site advertising initiatives. The company’s consolidated take rate, which represents the percentage of GMS that Etsy retains as revenue, stood at 24.5%.

Delving deeper into the performance of its core platforms, Etsy provided specific metrics for the Etsy marketplace itself during the fourth quarter of 2025:

• Etsy Marketplace GMS: The Etsy marketplace alone experienced a 1.9% year-over-year increase in GMS, or 0.8% on a foreign exchange-neutral basis.
• Etsy Marketplace Revenue: Revenue generated exclusively by the Etsy marketplace grew by 7.7% year-over-year.
• Etsy Marketplace Take Rate: The take rate for the Etsy marketplace was reported at 25.8%.
• Etsy Marketplace Buyers: The number of active buyers on the Etsy marketplace saw a marginal increase of 0.5% year-over-year.
• Etsy Marketplace Number of Orders: The total number of orders placed on the Etsy marketplace decreased by 1.3% year-over-year.
• Etsy Marketplace Average Order Value (AOV): The average order value for the Etsy marketplace increased by 3.3% year-over-year.
• Etsy Marketplace Items Purchased: The number of items purchased on the Etsy marketplace declined by 2.6% year-over-year.

In addition to the Etsy marketplace, the company also provided performance data for Depop, its used-fashion marketplace, which Etsy has recently agreed to sell to eBay. For the fourth quarter of 2025, Depop reported the following:

• Depop GMS: Depop’s GMS saw a significant year-over-year increase of 15.5%, or 12.2% on a foreign exchange-neutral basis.
• Depop Revenue: Depop’s revenue grew by 3.2% year-over-year.
• Depop Take Rate: The take rate for Depop was 21.5%.
• Depop Buyers: The number of active buyers on Depop increased by 7% year-over-year.
• Depop Number of Orders: The number of orders on Depop grew by 10.3% year-over-year.
• Depop Average Order Value (AOV): The average order value for Depop decreased by 4.6% year-over-year.
• Depop Items Purchased: The number of items purchased on Depop increased by 16.1% year-over-year.

Etsy CEO Kruti Patel Goyal expressed optimism regarding the company’s strategic direction and execution in a statement accompanying the earnings release. "Our clear strategic focus and solid execution are driving progress on the journey to bring the Etsy marketplace back to sustained growth," Goyal stated. She emphasized Etsy’s unique value proposition, highlighting that "What sets Etsy apart is not just what we sell, but who we’re built for: buyers seeking something personal and sellers bringing creativity to life." Goyal further articulated the company’s vision, stating, "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."

The press release from Etsy, dated February 19th, provides comprehensive details on these financial results and can be accessed for further information. The reported figures indicate a period of stabilization and targeted growth efforts for Etsy, with a clear emphasis on revitalizing its core marketplace while managing the strategic divestiture of other platforms like Depop. The strong performance in on-site advertising is a key driver of Etsy’s revenue growth, suggesting a continued investment in and reliance on this area to support the platform’s overall financial health. The contrasting performance between the Etsy marketplace and Depop also highlights the different dynamics and challenges faced by each platform within Etsy’s broader portfolio.