How Etsy makes money

Period

FY2025

How does Etsy make money? This Sankey traces every dollar of revenue through the income statement — into cost of revenue, R&D, SG&A, and taxes — and shows what's left as profit. Pick any fiscal year, recent quarter, or the trailing twelve months. Straight from SEC filings.

Etsy Inc. · FY2025 · year ended 2025-12-31

Revenue$2.9BGross profit$2.1B · 72%Cost of revenue$818M · 28%Operating income$266M · 9%Operating expenses$1.8B · 62%R&D$450M · 16%SG&A$333M · 12%Selling & marketing$915M · 32%Other opex$102M · 4%Pre-tax income$247M · 9%Other expense$20M · 1%Net income$163M · 6%Income tax$84M · 3%Marketplace Revenue$2.0B · 70%Services Revenue$876M · 30%

Each fiscal year from SEC filings. Percentages are share of revenue, so the green profit nodes read directly as gross / operating / net margin. Line items a company doesn't break out are derived from their siblings so the flows balance; small residuals show as “Other.” For informational purposes only.