Etsy, Inc. Announces Leadership Transition and Q3 2025 Financial Results

Etsy, Inc. (“Etsy”) today announced two major developments: the appointment of Kruti Patel Goyal as Chief Executive Officer (effective January 1, 2026) and the release of its Q3 2025 financial results for the period ended September 30, 2025. The dual announcement underscores both a shift in leadership and the company’s performance amid a challenging marketplace backdrop.

Etsy has named its current President and Chief Growth Officer, Kruti Patel Goyal, to become CEO and join the Board of Directors effective January 1, 2026. Her predecessor, Josh Silverman, will step down as CEO on December 31, 2025, and will serve as Executive Chair through December 31, 2026.

“After over 8 years as Etsy’s CEO, I’ve decided that this is the right time for me to hand over the leadership baton to the next generation. … Kruti is fabulously talented, and is the right leader to guide the business forward. … I remain confident in Etsy’s continued growth—not only because of our unique marketplace, but because of the talented people behind it,” commented Silverman.

“I’m honored and excited to step into the CEO role at Etsy at such a pivotal time. As customer needs continue to evolve, Etsy will too — but we’ll do it in a way that stays true to who we are, leaning into what makes us different: human connection, our sellers’ creativity, and a distinctly personal shopping experience,” quoted Goyal.

The transition comes as the company emphasises continuity and a deeper focus on strategic growth, particularly as it integrates its resale business, Depop, and invests in AI-enabled discovery.

Q3 2025 Financial Highlights

From the official earnings release:

• Gross Merchandise Sales (GMS) for the quarter reached US $2,724.7 million, representing a +0.9% year-over-year increase, excluding prior-year comparison to the divested Reverb business. On an “as reported” basis, GMS declined 6.5% year-over-year due to the prior-year inclusion of Reverb.
• Revenue was US $678.0 million, up 6.1% year-over-year (6.1% excluding Reverb) and up 2.4% on an “as reported” basis.
• Take rate reached 24.9%.
• Net income stood at US $75.5 million, up approximately 32% year-over-year; diluted earnings per share were US $0.63.
• Active buyers were 86.6 million, down 5.0% year-over-year; active sellers stood at 5.5 million, down 10.9% year-over-year.
• The Etsy marketplace alone recorded GMS of US $2,432.6 million, down 2.4% year-over-year.
• The resale business Depop continues to accelerate, with GMS of US $292.1 million, up 39.4% year-over-year.
• Etsy ended the quarter with approximately US $1.6 billion in cash and investments, and repurchased about US $120 million of common stock (around 2.1 million shares) under its stock repurchase programme.
• On Etsy’s commentary:

“Etsy’s third quarter consolidated results surpassed expectations across all three of our key financial metrics — and GMS for Etsy and Depop combined returned to year-over-year growth,” said Josh Silverman.

“Better than expected performance at both Etsy and Depop enabled us to exceed the top end of our consolidated GMS guidance range,” said Lanny Baker, CFO.

What This Means for Sellers and Stakeholders

• The leadership change signals a renewed focus on growth, with Goyal’s experience driving resale (Depop) and growth initiatives seen as pivotal to unlocking next-phase momentum.
• While revenues and profitability improved, the underlying Etsy marketplace continues to face softness in buyer and seller metrics and GMS contraction — reflecting broader macro pressures (consumer spending, platform competition, tariff changes).
• Sellers should note that Etsy emphasised investments in: AI-powered search and matching, app enhancements, and tools for sellers such as writing assistants and discovery features — indicating opportunities to engage more aggressively with marketplace-enabled growth levers.

Additional Considerations

• The announcement comes alongside projections for GMS in the upcoming quarter between US $3.50 billion and US $3.65 billion, roughly lower than the prior-year comparable.
• The leadership plan was described as “planned succession” rather than abrupt change; the Board emphasised continuity by retaining Silverman as Executive Chair and promoting from within.
• Despite the beat on revenue and profit, Etsy’s stock price reacted negatively (down ≈9% in pre-market trading) due to concerns around GMS decline and leadership timing.

CedCommerce Takeaway

For Etsy sellers, this leadership shift signals new opportunities to grow. With Etsy doubling down on AI-powered discovery, app-based shopping, and Depop’s resale momentum, the focus is clearly on smarter, more personalized buyer experiences.

To stay ahead, sellers should strengthen how they manage listings, pricing, and inventory across channels. Tools like the Etsy Integration – CedCommerce can help automate syncing, improve visibility, and align your store with Etsy’s evolving ecosystem, so you’re ready to scale faster under the platform’s new direction.

Source: Etsy Investor Relations