Etsy Tops Revenue Forecasts as Buyers Keep Spending

Etsy delivered stronger-than-expected first-quarter revenue, helped by steady activity on its marketplace and a rise in spending per buyer. The results suggest the platform is still attracting shoppers despite pressure on household budgets from inflation and tariff-related concerns.

Affordable Products Help Etsy Stay Resilient

The marketplace has benefited from demand for lower-priced items, while its seller model has helped limit exposure to direct tariff pressure. According to the company, most Etsy sellers source their supplies domestically, reducing the impact of cross-border trade disruption on the platform.

Gross merchandise sales on Etsy’s core marketplace increased 5.5% from a year earlier to $2.5 billion. Spending per buyer also rose 2%, pointing to a customer base that remains engaged even as wider consumer sentiment remains cautious.

AI Traffic Is Growing but Still Small

Etsy said traffic coming from AI tools is increasing quickly, although it still represents only a small share of overall activity. The company plans to keep investing in AI as competition across ecommerce intensifies, especially from larger players such as Amazon.

The core Etsy marketplace generated $631 million in first-quarter revenue, ahead of analyst expectations of $620.9 million. Looking ahead, Etsy expects second-quarter gross merchandise sales to land between $2.48 billion and $2.53 billion.