ETSY INCETSY
ETSY INC Segments Disclosure
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 Chief Operating Decision Maker (“CODM”), the Company’s Chief Executive Officer, 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 loss (gain); asset impairment charges; 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 uses Adjusted EBITDA at the segment level to evaluate our operating performance and trends, allocate internal resources, prepare and approve our annual budget, develop short- and long-term operating plans, determine incentive compensation, and assess the health of our business. As our Adjusted EBITDA increases, we are able to invest more in our
platforms. Adjusted EBITDA is also used by the CODM to perform competitive analyses by benchmarking to Etsy's competitors. 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):
| Year Ended December 31, | |||||||||||
| 2025 | 2024 | 2023 | |||||||||
| Adjusted EBITDA | $ | 734,511 | $ | 781,538 | $ | 754,311 | |||||
| Reconciliation to income before income taxes | |||||||||||
| Stock-based compensation expense and related payroll taxes (1) | (252,986) | (282,847) | (284,558) | ||||||||
| Depreciation and amortization | (101,845) | (108,074) | (91,323) | ||||||||
| Interest and other non-operating income, net | 23,940 | 17,176 | 21,957 | ||||||||
| Foreign exchange (loss) gain | (40,428) | 13,391 | (6,348) | ||||||||
| Asset impairment charges | (101,703) | — | (68,091) | ||||||||
| Acquisition, divestiture, and corporate structure-related expenses | (7,156) | (1,478) | (3,921) | ||||||||
| Loss on sale of business | (5,097) | — | (2,630) | ||||||||
| Restructuring and other exit costs | (2,571) | (2,807) | (26,577) | ||||||||
| Retroactive non-income tax expense | — | (6,124) | — | ||||||||
| Total reconciling items | (487,846) | (370,763) | (461,491) | ||||||||
| Income before income taxes | $ | 246,665 | $ | 410,775 | $ | 292,820 | |||||
(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 2024 and 2023 payroll tax expense related to stock-based compensation was $6.0 million and $8.8 million, respectively.
Revenue by country is based on the billing address of the seller. The following table summarizes revenue by geographic area (in thousands):
| Year Ended December 31, | |||||||||||
| 2025 | 2024 | 2023 | |||||||||
| United States | $ | 1,465,922 | $ | 1,467,715 | $ | 1,472,677 | |||||
| United Kingdom | 296,159 | 320,893 | 347,889 | ||||||||
| All Other | 1,121,420 | 1,019,724 | 927,811 | ||||||||
| Revenue | $ | 2,883,501 | $ | 2,808,332 | $ | 2,748,377 | |||||
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 December 31, | ||||||||
| 2025 | 2024 | |||||||
| United States | $ | 130,718 | $ | 146,410 | ||||
| All Other | 22,939 | 22,288 | ||||||
| Long-lived assets | $ | 153,657 | $ | 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.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Feb 28, 2017 | |
| 2015 | Mar 1, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.