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10h ago

Etsy Elevates Kruti Patel Goyal to CEO as Q3 GMS Falls, Shares Drop 9%

A revenue beat was overshadowed by sliding GMS, prompting a renewed emphasis on AI-driven matching to reaccelerate growth.

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An Etsy marketplace is set up in Times Square outside the NASDAQ to commemorate the Etsy initial public offering which debuted to the public on Thursday, April 16, 2015. Shares of Etsy dropped up to 9.1% after investors who bought shares during the IPO dumped them on the first day they were allowed to.(�� Richard B. Levine) (Photo by Richard Levine/Corbis via Getty Images)
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Overview

  • Etsy said Goyal will take over as CEO on Jan. 1, 2026 and join the board, with Josh Silverman becoming executive chair through the end of 2026.
  • Third-quarter GMS fell to $2.72 billion from $2.92 billion a year earlier, while revenue rose to $678 million and topped expectations as the take rate increased to 24.9%.
  • Marketplace health weakened as active buyers declined 5% to 86.6 million and active sellers fell 10.9% to 5.5 million.
  • Management guided fourth-quarter GMS to $3.50 billion–$3.65 billion, below last year’s $3.74 billion, and forecast roughly a 24% adjusted EBITDA margin.
  • The stock dropped about 9% after the announcements, with executives highlighting AI-led search and matching and noting tariff policy changes as pressures on transactions.