v3.25.3
Segment and Geographic Information
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Segment and Geographic Information
Note 7—Segment and Geographic Information
Following the sale of Reverb in the second quarter of 2025, the Company determined it has two operating segments, Etsy and Depop, which each have separate operating results that are reviewed by the CODM to assess performance and allocate resources at the segment level. As such, Etsy’s operating segments are not managed on a consolidated basis. The two operating segments qualify for aggregation as one reportable segment as each meets the quantitative and qualitative aggregation criteria prescribed within Accounting Standards Codification 280, Segment Reporting.
Etsy considers Adjusted EBITDA to be its reported measure of segment profit or loss. Adjusted EBITDA represents our net income adjusted to exclude: stock-based compensation expense and related payroll taxes; depreciation and amortization; provision for income taxes; interest and other non-operating income, net; foreign exchange (gain) loss; asset impairment charge; acquisition, divestiture, and corporate structure-related expenses; loss on sale of business; restructuring and other exit costs; and retroactive non-income tax expense. The CODM does not review segment assets at a different asset level or category as compared to that presented in the Consolidated Balance Sheets.
The significant segment expenses that are regularly provided on a quarterly basis to the CODM are cost of revenue, marketing, product development, and general and administrative, which are presented on the face of the Consolidated Statements of Operations and included within net income. Etsy's other segment items are limited to those adjustments to Etsy’s significant segment expenses included within operating income, including stock-based compensation expense and related payroll taxes, depreciation and amortization, acquisition, divestiture, and corporate structure-related expenses, restructuring and other exit costs, and retroactive non-income tax expense.
The following table reconciles the reported measure of segment profit or loss, Adjusted EBITDA, to Income before income taxes (in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2025202420252024
Adjusted EBITDA$171,928 $183,587 $512,050 $530,897 
Reconciliation to income before income taxes
Stock-based compensation expense and related payroll taxes (1)(62,172)(69,292)(186,719)(214,692)
Depreciation and amortization(24,263)(27,739)(76,951)(81,672)
Interest and other non-operating income, net7,680 3,808 17,521 13,065 
Foreign exchange gain (loss)777 (16,815)(40,561)(5,699)
Asset impairment charge— — (101,703)— 
Acquisition, divestiture, and corporate structure-related expenses18 697 (7,148)(1,435)
Loss on sale of business— — (5,097)— 
Restructuring and other exit costs(1,883)(1,556)(1,480)(1,898)
Retroactive non-income tax expense— 1,120 — (6,124)
Total reconciling items(79,843)(109,777)(402,138)(298,455)
Income before income taxes$92,085 $73,810 $109,912 $232,442 
(1)Beginning in the first quarter of 2025, the Company is excluding payroll tax expense related to stock-based compensation from Adjusted EBITDA because these taxes are directly related to stock-based compensation expense which is excluded from Adjusted EBITDA. The Company did not retrospectively apply this change to prior periods as the impact was immaterial to such periods. In the three and nine months ended September 30, 2024 payroll tax expense related to stock-based compensation was $0.7 million and $4.8 million, respectively.
Revenue by country is based on the billing address of the seller. The following table summarizes revenue by geographic area (in thousands):
Three Months Ended
September 30, 		Nine Months Ended
September 30,
2025202420252024
United States$343,542 $346,192 $1,019,729 $1,031,516 
United Kingdom67,662 73,250 202,422 223,455 
All Other266,822 242,968 779,714 701,199 
Revenue$678,026 $662,410 $2,001,865 $1,956,170 
With the exception of the United States and United Kingdom, no individual country’s revenue exceeded 10% of total revenue.
The following table summarizes tangible long-lived assets by geographic area (in thousands):
As of September 30,
2025		As of December 31,
2024
United States$133,823 $146,410 
All Other24,585 22,288 
Long-lived assets$158,408 $168,698 
With the exception of the United States, no individual country’s tangible long-lived assets exceeded 10% of total tangible long-lived assets.