Etsy Inc. (NASDAQ:ETSY) Reports Mixed Q2 2025 Results with Revenue Beat but EPS Shortfall

Etsy, Inc. (NASDAQ:ETSY) Reports Mixed Q2 2025 Results as Revenue Beats but EPS Disappoints

Etsy’s second-quarter earnings for 2025 presented a mixed picture, with revenue surpassing analyst expectations but earnings per share (EPS) falling significantly short. The company reported revenue of $672.7 million, up 3.8% year-over-year and above the consensus estimate of $660.2 million. However, GAAP EPS came in at $0.25, a sharp 49.3% below the estimated $0.49.

Key Takeaways from the Earnings Report

• Revenue Growth: The 3.8% year-over-year increase in sales suggests resilience in Etsy’s marketplace activity despite broader economic headwinds. The outperformance relative to estimates indicates stronger-than-expected buyer engagement or seller performance.
• Profitability Concerns: The steep miss on EPS highlights rising costs, potentially tied to marketing, operational expenses, or investments in platform improvements. This could raise questions about margin sustainability moving forward.
• Active Buyers Decline: While not quantified in the press release, external reports note a drop in active buyers—a critical metric for marketplace platforms. This could signal challenges in customer retention or acquisition.

Market Reaction

The stock’s pre-market performance showed a notable gain of approximately 5.2%, suggesting investor optimism around the revenue beat. However, the broader performance over the past month (+20.2%) and two weeks (+8.3%) indicates that expectations may have already been priced in ahead of earnings. The slight decline over the past week (-0.05%) could reflect some caution as traders digested preliminary earnings whispers.

Forward-Looking Estimates

Analysts project Q3 2025 revenue at $657.3 million, slightly below the Q2 figure, with full-year sales estimated at $2.83 billion. The company did not provide explicit guidance in the press release, leaving investors to rely on external estimates. The discrepancy between revenue strength and EPS weakness will likely remain a focal point in upcoming quarters, particularly if cost pressures persist.

For a deeper dive into Etsy’s earnings estimates and historical performance, visit the Etsy earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult a financial advisor before making decisions.