Etsy reported its highest-ever quarterly revenue in the fourth quarter of 2024, despite ongoing challenges in consumer discretionary spending and a competitive retail environment. The company achieved consolidated revenue of $852.2 million, up 1.2% year-over-year, driven primarily by growth in services revenue, particularly Etsy Ads.

Consolidated gross merchandise sales (GMS) were $3.7 billion, down 6.8% from the previous year. The Etsy marketplace GMS fell 8.6% to $3.3 billion due to a shorter holiday season, category mix shifts, and a highly promotional retail landscape. Active buyers declined by 2.6% to 89.6 million, but reactivated lapsed buyers reached a record 9.8 million, a 1.3% increase from the previous year. Depop, Etsy’s resale marketplace, recorded its highest GMS since being acquired in 2021, contributing to a full-year growth rate of 31.6%.

Net income for the quarter rose 56.0% to $129.9 million, reflecting restructuring-related cost reductions from the previous year. The net income margin improved by 530 basis points to 15.2%, with diluted earnings per share at $1.03. Adjusted EBITDA reached a record $250.6 million, with an adjusted EBITDA margin of 29.4%. Etsy ended the year with $1.2 billion in cash and investments and repurchased approximately $260 million worth of shares during the quarter.