However, the e-commerce player reported a net loss of $52.1 million during the quarter compared to a profit of $63 million in the same quarter a year ago, reflecting an impairment charge of $101.7 million to the goodwill of Reverb.

E-commerce player Etsy’s stock traded in the green in Wednesday’s pre-market after the company’s first-quarter revenue topped Wall Street estimates.

Etsy, which operates two-sided online marketplaces connecting millions of buyers and sellers worldwide, also highlighted that it is staying agile in light of the uncertainty surrounding tariff policies.

“We are keeping a clear eye on Etsy’s long-term opportunities, while also staying nimble in the face of uncertainty given recent tariff announcements and the fluid state of consumer confidence in our core markets,” said CFO Lanny Baker.

During the first quarter (Q1), revenue rose 0.8% year-over-year (YoY) to $651.18 million, surpassing a Street estimate of $641.68 million.

Etsy stated that the increase was driven primarily by significant growth in on-site advertising revenue for both Etsy and Depop, as well as a full quarter's impact of the seller setup fee, and continued benefits from the expansion of Payments.

However, the company reported a net loss of $52.1 million during the quarter compared to a profit of $63 million in the same quarter a year ago. The loss reflected an impairment charge of $101.7 million to the goodwill of Reverb, the company stated.

Gross merchandise sales (GMS) fell 6.5% to $2.8 billion during the quarter. Etsy marketplace GMS stood at $2.3 billion.

CEO Josh Silverman stated that Q1 2025 results were in line with the firm’s expectations, with solid adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) performance despite pressure on the top line.

Adjusted EBITDA rose 1.9% YoY to $171.10 million during the quarter, while adjusted EBITDA margin improved 30 basis points to 26.3%.

For the second quarter, Etsy expects consolidated GMS to decline at a rate similar to or slightly better than the year-over-year performance reported for Q1. Adjusted EBITDA margin is expected to be approximately 25%.

Etsy shares have declined 13% in 2025 and over 32% in the past 12 months.

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