Etsy Stock Sinks on Revenue Miss: What to Know
Etsy stock is notably lower Wednesday after the online retailer fell short of revenue expectations for the key holiday quarter.


Etsy (ETSY) stock plummeted out of the gate Wednesday after the online marketplace beat profit expectations but came up short of revenue estimates for its fourth quarter.
In the three months ending December 31, Etsy's revenue increased 1.2% year over year to $852.2 million. Its earnings per share (EPS) rose 66.1% from the year-ago period to $1.03.
Etsy also said gross merchandise sales (GMS) decreased 6.8% to $3.7 billion, active sellers decreased 10% to 8.13 million and active buyers decreased 1.1% to 95.46 million compared to the year-ago period.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"Despite facing significant gross merchandise sales headwinds in 2024, we are proud to have delivered year-over-year revenue growth and very strong profitability, while simultaneously investing in our future," said Etsy CEO Josh Silverman in a statement.
Silverman added that "foundational improvements" to Etsy's marketplace are "enhancing customer experiences," and he believes this "will further differentiate the Etsy experience, driving consideration and purchase frequency as we work to get back to GMS growth."
The company's headline results were mixed compared with analysts' expectations. Wall Street was anticipating revenue of $861.8 million and earnings of 93 cents per share, according to CNBC.
For its first quarter, Etsy said it expects GMS to decline at a rate similar to its performance in the fourth quarter.
"We see several factors that we believe should position the Etsy marketplace for improved GMS performance beyond the first quarter," said Chief Financial Officer Lanny Baker in a statement. "In addition, we're committed to maintaining a strong bottom line and generating healthy free cash flow, while also investing in the things which will further differentiate Etsy, build our opportunity, and drive our long-term growth."
Is ETSY stock a buy, sell or hold?
Etsy has lagged the broader market over the past 12 months, down 32% vs the S&P 500's 24% total return (price change plus dividends). And Wall Street remains on the sidelines when it comes to the consumer discretionary stock.
According to S&P Global Market Intelligence, the average analyst target price for ETSY is $62.86, representing implied upside of over 16% to current levels. This is likely the result of the share price falling faster than analysts' can keep up with vs expectations for a big rally. Meanwhile, the consensus recommendation on the mid-cap stock is a Hold.
Financial services firm Jefferies is one of those with a Hold rating on ETSY, along with a $54 price target.
"We could see gross merchandise sales growth accelerating in the second half of 2025 as a result of easier comparisons created by efforts to shift resources toward long-term improvements that have driven 'several points' of near-term headwinds to GMS, but could potentially yield benefits to frequency and buyer spend over time," says Jefferies analyst John Colantuoni.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Stock Market Winners and Losers of the 'Big, Beautiful' Bill
Defense, manufacturing and tech should prosper, while health care and green energy stocks face hurdles.
-
I'm a Financial Planner: Here's How to Invest Like the Wealthy, Even if You Don't Have Millions
Private market investments, once exclusive to the ultra-wealthy and institutions, have become more accessible to individual investors, thanks to regulatory changes and new investment structures.
-
Four Ways a Massive Emergency Fund Can Hurt You More Than It Helps
Saving too much could mean you're missing opportunities to put your money to work. Redirect some of that money toward paying off debt, building retirement funds, fulfilling a dream or investing in higher-growth options.
-
With Buffett Retiring, Should You Invest in a Berkshire Copycat?
Warren Buffett will step down at the end of this year. Should you explore one of a handful of Berkshire Hathaway clones or copycat funds?
-
I'm a Financial Planner: How to Dodge a Retirement Danger You May Not Have Heard About
Timing is everything, and sequence of returns risk can mean the difference between a retirement nest egg that's overflowing … or empty.
-
Caring for Aging Parents: An Expert Guide to Easing the Financial and Emotional Strain
Early conversations, financial planning and understanding the progression of care needs can help to mitigate stress and protect family relationships.
-
Dow Adds 238 Points as UNH, CAT Pop: Stock Market Today
The lack of a September jobs report didn't seem to worry market participants, with the data delayed due to the ongoing government shutdown.
-
I'm a Financial Adviser: The OBBB Is a Reminder for Older People to Have a Long-Term Plan
The new tax bill presents a good opportunity for retirees to revisit tax plans, look into doing some Roth conversions and consider plans for long-term care.