Etsy, Inc. reported its Q2 2025 financial results, showing a revenue increase of 3.8% year-over-year to $672.7 million, driven by on-site ads and payment services. However, net income decreased to $28.8 million due to a non-cash foreign exchange loss. The company completed the sale of Reverb, contributing $17.6 million to revenue. Gross Merchandise Sales (GMS) were $2.8 billion, down 4.8% year-over-year. Etsy's CEO highlighted progress in key investment areas, particularly in enhancing the shopping experience through AI technologies. The company raised $700 million through convertible notes and repurchased $335 million in stock. Etsy ended the quarter with $1.5 billion in cash and investments. The company aims to reignite GMS growth through strategic initiatives and expects continued strong free cash flow generation.