Etsy's stock saw a significant boost in premarket trading after the company announced its first-quarter 2025 financial results, which outperformed analyst expectations. The company's earnings per share reached $0.53, surpassing the projected $0.48, as reported by Nasdaq. Additionally, Etsy achieved a revenue of $640.88 million, beating the anticipated $626.9 million, according to TipRanks.
Despite a 4.6% decline in gross merchandise sales, totaling $3.1 billion, Etsy reported positive momentum with a 1% increase in active buyers to 89.9 million — the first growth since Q4 2021, TipRanks noted. The company also maintained a stable adjusted EBITDA margin at 26%, underscoring its continued profitability.
Etsy's performance has evidently bolstered investor sentiment, contributing to the rising stock price. As reported by market sources, the company's shares currently trade at $46.13, reflecting an increase of $0.27 from the previous close. This development highlights investor confidence in Etsy's strategic directions and financial health.