10:32 AM EDT, 10/29/2025 (MT Newswires) -- Etsy ( ETSY ) on Wednesday reported an unexpected year-over-year increase in its third-quarter revenue, while the e-commerce platform promoted its chief growth officer Kruti Patel Goyal to the top role at the company.

Revenue rose 2.4% annually to $678 million for the quarter ended Sept. 30, defying the consensus on FactSet that called for a decline to $657.5 million.

Excluding musical instrument marketplace Reverb's sales from the prior-year quarter, revenue improved 6.1% annually. Etsy ( ETSY ) sold Reverb in June.

Separately, Etsy ( ETSY ) said it appointed Goyal as its new chief executive, effective Jan. 1, succeeding Josh Silverman, who will step down at the end of December. Silverman will serve as the company's executive chair through Dec. 31, 2026.

Etsy's ( ETSY ) shares plunged 10% in Wednesday trade, but have gained 27% so far this year.

"Over the past year, Kruti has evolved and led Etsy's ( ETSY ) strategic growth initiatives, which has led to improving top-line performance," Silverman said in the statement. "She'll bring deep experience, a strong understanding of our customers, and a clear, forward-looking vision for Etsy's ( ETSY ) future as our next CEO."

Additionally, Fred Wilson, who has served as chairman since 2017, will leave that role but continue to serve on Etsy's ( ETSY ) board, the company said.

Net income advanced to $0.63 a share in the third quarter from $0.45 the year before, surpassing the Street's view for $0.52.

Gross merchandise sales, or GMS, which measures the total dollar amount of items sold on the platform, excluding shipping fees and net of refunds, fell 6.5% to $2.72 billion in the third quarter. Excluding Reverb from the prior-year period, GMS edged up 0.9%, the company said. Active buyers fell 5% and 0.8% on annual and sequential bases, respectively.

Etsy ( ETSY ) marketplace GMS decreased 2.4% to $2.43 billion, but "improved sequentially, reflecting growing traction in our customer-centric priorities," Silverman said in the earnings release. Fashion resale marketplace Depop "also continued to accelerate GMS growth," according to Silverman.

For the ongoing three-month period, Etsy ( ETSY ) expects consolidated GMS to be in between $3.5 billion and $3.65 billion, "which at the midpoint would represent further quarter over quarter improvement in the apples to apples growth rate," Chief Financial Officer Lanny Baker said during an earnings call, according to a FactSet transcript.

However, Baker acknowledged "higher than normal degree" of uncertainty related to consumer spending ahead of the holiday season, both in the US and overseas.

Adjusted earnings before interest, taxes, depreciation and amortization margin is pegged at about 24% for the fourth quarter, "reflecting stable strong profitability for the Etsy ( ETSY ) marketplace," according to Baker. The metric came in at 25.4% in the previous quarter.

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