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5d ago

Etsy Reports Revenue Beat but Posts Net Loss from Reverb Impairment

The company navigates tariff pressures, competitive challenges, and a 6.5% drop in gross merchandise sales as it refocuses on core marketplaces.

Etsy logo is seen in this illustration taken, February 11, 2025. REUTERS/Dado Ruvic/Illustration
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Overview

  • Etsy's Q1 2025 revenue reached $651.2 million, exceeding Wall Street expectations of $643 million.
  • The company reported a net loss of $52.1 million, driven by a $101.7 million impairment charge from the planned sale of Reverb.
  • Gross merchandise sales declined 6.5% year over year to $2.79 billion, with similar or slightly improved declines forecasted for Q2.
  • Etsy established a tariff-focused task force and emphasized domestic sourcing, with 90% of sellers sourcing products locally, to mitigate trade policy impacts.
  • The company continues to face competitive pressures from Amazon, Temu, and Shein while working to bolster its core marketplace and Depop platform.