Etsy NYC headquarters building in New York City.
Michael M. Santiago | Getty Images News | Getty Images
Etsy Chief Executive Officer Josh Silverman will step down from his role and transition to the role of executive chairman at the end of the year, the online marketplace announced Wednesday.
Kurti Patel Goyal, Etsy’s president and head of growth, who previously oversaw the Depop reseller app, will take the helm at Etsy starting January 1, 2026, the company announced.
Etsy stock fell more than 8% in afternoon trading following the news, which was announced alongside the company’s third-quarter earnings report. Although the company achieved increased sales and profits, total sales decreased compared to the same period last year.
For the third quarter, Etsy reported adjusted earnings per share of 63 cents on revenue of $678 million, which beat consensus estimates of 53 cents per share and $655.3 million, according to LSEG. Sales increased by 2.4% compared to the same period last year.
Total product sales, or the total amount of products sold on the platform, totaled $2.72 billion. This was down 6.5% from the same period last year, when GMS brought in $2.91 billion, but beat expectations of $2.68 billion, according to Street accounts.
The company reported net income of $75.5 million, or 63 cents per share, compared to net income of $57.4 million, or 45 cents per share, a year ago.
Etsy had 86.6 million active buyers, down 5% year over year, and 5.5 million total sellers on the platform during the quarter, down 10.9% year over year.
Depop, which Etsy acquired for $1.62 billion in 2021, was a bright spot in the results. Depop GMS’ sales increased 39.4% year-on-year to $292.1 million. Active sellers increased nearly 41% to 3 million, and active buyers increased nearly 40% to 6.6 million.
former silverman eBay The company executive has held the top spot for the past eight years, guiding the company through a surge in demand brought on by the coronavirus pandemic, which saw shoppers rush to venues to buy masks.
Etsy has struggled to grow its business since the pandemic-induced e-commerce boom, while still battling stiff competition. Amazon and Shopifyas well as China-related startups Temu, Shein, and TikTok Shop.
President Donald Trump’s changes in customs policy have also put a strain on business for some Etsy sellers, particularly with the removal of the “de minimis” exception in August, which effectively allowed packages under $800 to enter the country duty-free.
Etsy has worked to integrate artificial intelligence tools across its site to position itself as a “gifting destination,” while also drawing buyers and sellers back to the platform.
Last month, Etsy partnered with OpenAI to enable merchants to sell products directly on ChatGPT.
Mr. Silverman said in a statement that he felt it was “the right time to hand over the leadership baton” to Mr. Goyal, calling him “the right leader to take the business forward.”
“I remain confident in Etsy’s continued growth, not only because of our unique marketplace, but also because of the talented people behind it,” Silverman said.
Mr. Silverman will serve as Executive Chairman until the end of 2026.
The company also announced that venture capitalist Fred Wilson, who has served as Etsy’s chairman since 2017, will step down from his role. He will continue to serve on Etsy’s board.
Correction: This article has been updated to reflect that Kruti Patel Goyal is now the company’s president and chief growth officer and was previously Depop’s CEO.
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