Etsy Marketplace Shows Modest Growth in Gross Merchandise Sales in the Fourth Quarter of 2025, Driven by Advertising Performance

Etsy has reported a modest increase in consolidated Gross Merchandise Sales (GMS) for the fourth quarter of 2025, with a year-over-year growth of 2.4%. This figure, which translates to 1.3% when adjusted for foreign exchange fluctuations, encompasses the GMS generated by both Etsy and its subsidiary Depop. It is important to note that GMS from Reverb, which was sold by Etsy in 2025, has been excluded from the prior-year period’s comparison to ensure an apples-to-apples analysis of ongoing operations.

Consolidated revenue for the quarter also saw an upward trend, growing by 6.6% year-over-year, again excluding the contribution of Reverb from the comparative period. The company highlighted that its consolidated take rate stood at 24.5%. Etsy attributed the revenue growth primarily to the "continued strong consolidated on-site ads performance." This suggests that Etsy’s advertising initiatives have been a significant driver of its financial results, effectively converting marketplace activity into revenue.

Delving deeper into the performance of its core marketplace, Etsy reported specific statistics for the Etsy marketplace itself during the fourth quarter of 2025. While the provided text indicates that there were statistics listed for the Etsy marketplace, the actual data points for this section appear to be missing from the original article’s formatting. To provide a comprehensive report, these specific figures detailing the Etsy marketplace’s performance would be crucial.

Similarly, the article outlines that statistics were provided for Depop, Etsy’s used-fashion marketplace, which the company has recently agreed to sell to eBay. However, as with the Etsy marketplace data, the specific figures for Depop’s performance in the fourth quarter of 2025 are not present in the provided text. These would typically include metrics such as GMS, revenue, and potentially other key performance indicators relevant to the fashion resale market.

In a statement accompanying the financial results, Etsy CEO Kruti Patel Goyal expressed her perspective on the company’s trajectory. "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 the unique value proposition of Etsy, 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 Etsy’s vision for future growth, 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." This indicates a strategic emphasis on enhancing the user experience, improving the discoverability of items, and fostering deeper connections between buyers and sellers to drive sustained expansion and shareholder value.

The full details of Etsy’s fourth-quarter and full-year 2025 results are available in the company’s press release dated February 19th. This press release, which can be accessed via the provided link, is expected to contain the comprehensive financial data and strategic commentary that underpin these reported figures. Investors and interested parties are encouraged to consult this official source for a complete understanding of Etsy’s performance and outlook.

The divestiture of Reverb, a marketplace for musical instruments, marks a strategic shift for Etsy, allowing the company to concentrate its resources and efforts on its core handmade and vintage marketplace and its burgeoning used-fashion platform, Depop. The sale of Depop to eBay, as mentioned, signals another significant strategic decision, suggesting a potential refocusing of Etsy’s portfolio. The reported growth in GMS and revenue, even if modest, indicates that the company is navigating these strategic transitions while striving for operational improvements and market expansion. The reliance on advertising performance as a key revenue driver underscores the evolving digital advertising landscape and Etsy’s ability to leverage it. The CEO’s remarks suggest a long-term strategy focused on personalization, creativity, and stakeholder value, aiming to re-establish a trajectory of consistent growth for the Etsy platform.