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SEC filingQ1 revenue declined 3.1% year-over-year to $631.3M due to the Reverb divestiture, while profitability swung sharply positive with operating income of $119.8M versus a prior-year loss, driven by disciplined cost management and improved operations.
The standout story was the profitability turnaround. Operating income reached $119.8 million, or 19.0% operating margin, versus a $22.3 million loss last year—a 636.8% swing. This reflects disciplined expense management amid the simplified portfolio post-divestitures, enabling better leverage on revenue. Net income followed suit at $69.7 million, or $0.60 diluted EPS, reversing a $52.1 million loss and -0.49 EPS, up 233.8% on an adjusted basis. Investors benefit from this shift to consistent earnings power as one-off drags fade.
Looking ahead, macroeconomic conditions and factors like reduced consumer demand or seller trade barriers could influence results, as noted in risk factors. The proposed Depop sale carries execution risks that may disrupt operations or affect stockholder value if not completed as planned. Overall, Etsy's focus on core marketplace strength and cash discipline supports resilience.