The Etsy NYC headquarters building is seen in New York City.
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Etsy CEO Josh Silverman will step down from his position and move to the role of executive chairman at the end of the year, the online marketplace said Wednesday.
Kruti Patel Goyal, Etsy’s president and chief of growth who previously oversaw its Depop resale app, will take the helm at Etsy effective Jan. 1, 2026, the company said.
Etsy shares fell more than 6% in morning trading following the news, which was announced alongside its third-quarter earnings report. The company reported a beat on the top and bottom lines, but gross merchandise sales were down year over year.
For the third quarter, Etsy reported adjusted earnings per share of 63 cents on revenue of $678 million, which exceeded consensus estimates of 53 cents per share and $655.3 million, according to LSEG. Sales increased 2.4% from a year ago.
Gross merchandise sales, or the total volume of goods sold on the platform, came in at $2.72 billion. That’s a 6.5% decline from the same period a year ago, when GMS was $2.91 billion, but higher than expectations for $2.68 billion, according to StreetAccount.
The company reported net income of $75.5 million, or 63 cents per share, compared with a profit of $57.4 million, or 45 cents per share, a year ago.
Active buyers on Etsy slid 5% year over year to 86.6 million, while sellers on the platform totaled 5.5 million during the quarter, a decrease of 10.9% from the same period a year ago.
Depop, which Etsy acquired for $1.62 billion in 2021, was a brighter spot in the results. Depop GMS soared 39.4% year over year to $292.1 million. Active sellers jumped nearly 41% to 3 million, while active buyers were up nearly 40% to 6.6 million.
Silverman, a former eBay executive, held the top job for the last eight years and guided the company through a demand surge brought on by the Covid-19 pandemic, when shoppers flocked to the site to buy up face masks.
Etsy has struggled to grow its business since the pandemic e-commerce boom, while it continues to contend with stiff competition from Amazon and Shopify, as well as China-linked upstarts Temu, Shein and TikTok Shop.
President Donald Trump’s shifting tariff policies have also strained some Etsy sellers’ businesses, particularly the removal of the “de minimis” exception in August, a provision where shipments under $800 were allowed to enter the country virtually duty-free.
Etsy has sought to integrate artificial intelligence tools across its site to keep buyers and sellers returning to the platform, while working to establish itself as a “gifting destination.”
Last month, Etsy partnered with OpenAI to allow its merchants to sell their products directly in ChatGPT.
Silverman said in a statement that he felt it was the “right time to hand over the leadership baton” to Goyal, who he said is the “right leader to guide the business forward.”
“I remain confident in Etsy’s continued growth — not only because of our unique marketplace, but because of the talented people behind it,” Silverman said.
Silverman will remain executive chair through the end of 2026.
The company also announced that venture capitalist Fred Wilson, Etsy’s chairman since 2017, will step down from the role. He’ll continue to serve 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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