The Etsy NYC headquarters building is seen in New York City.
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Etsy CEO Josh Silverman is set to transition to the role of executive chairman at the close of the year, the company announced Wednesday. This leadership shift comes as the online marketplace navigates a complex landscape of fluctuating consumer demand and increased competition.
Taking over as CEO on January 1, 2026, will be Kruti Patel Goyal, Etsy’s current president and chief of growth. Goyal’s prior experience overseeing Depop, Etsy’s resale app subsidiary, positions her well to address the evolving dynamics of the online retail sector, particularly among younger, environmentally conscious consumers.
The announcement coincided with Etsy’s third-quarter earnings report, triggering a 12% drop in company shares. While the company surpassed revenue and earnings expectations, a decline in gross merchandise sales (GMS) raised concerns among investors about Etsy’s growth trajectory.
Etsy reported adjusted earnings per share of 63 cents on revenue of $678 million, exceeding LSEG consensus estimates of 53 cents per share and $655.3 million. Revenue increased 2.4% year-over-year. However, GMS, a critical indicator of platform health, totaled $2.72 billion, a 6.5% decrease from the $2.91 billion reported in the same period last year, though exceeding StreetAccount projections of $2.68 billion.
Net income reached $75.5 million, or 63 cents per share, compared to $57.4 million, or 45 cents per share, in the previous year, demonstrating improved profitability despite sales headwinds. The number of active buyers on Etsy decreased by 5% year-over-year to 86.6 million, while the number of sellers on the platform experienced a more significant decline of 10.9% to 5.5 million sellers.
A bright spot in the report was Depop, acquired by Etsy in 2021 for $1.62 billion. Depop GMS surged 39.4% year-over-year to $292.1 million, while active sellers increased by nearly 41% to 3 million and active buyers rose by almost 40% to 6.6 million, illustrating the strength of the resale market.
Silverman, who previously served as an eBay executive, has led Etsy for the past eight years, guiding the company through a period of rapid growth fueled by the surge in demand for face masks and artisan goods during the Covid-19 pandemic. However, Etsy has since struggled to maintain its momentum, facing increased competition from established e-commerce giants like Amazon and Shopify, as well as emerging players like Temu, Shein, and TikTok Shop.
The shift in leadership comes at a crucial juncture for Etsy, as it grapples with evolving consumer preferences, increased competition, and macroeconomic uncertainties. The company has been proactively integrating AI tools to improve customer engagement and solidify its position as a premier gifting marketplace. A recent partnership with OpenAI allows merchants to sell their products directly through ChatGPT, signaling a move towards leveraging conversational commerce.
Silverman expressed his confidence in Goyal’s ability to lead Etsy forward, citing her extensive experience and leadership qualities. He will remain executive chair through the end of 2026, providing guidance and support during the transition period.
In another change, venture capitalist Fred Wilson, Etsy’s chairman since 2017, will step down from the role while remaining on Etsy’s board.
Correction: This story has been updated to reflect that Kruti Patel Goyal is currently the company’s president and chief growth officer and was previously CEO of Depop.
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