Etsy Expands AI Tools While Tightening Listing Rules; Q3 GMS Rises 8.8% to $2.6 Billion

Etsy CEO Kruti Patel Goyal said Wednesday the company is embedding AI across its marketplace while preserving the human craftsmanship that differentiates it, as the company reported third-quarter results and rolled out new listing restrictions on AI-generated content. GMS rose 8.8% year over year to $2.6 billion, and revenue increased nearly 11% to $692.5 million. Active buyers grew 1% to about 88 million on a trailing 12-month basis — the first increase in two years. Etsy last week banned AI-generated functional guides, such as patterns, recipes and instructions, and now requires at least one real product image per listing. It also beta-launched a seller assistant and is expanding its gifting tool. The company expects full-year GMS growth of about 7%, up from prior "mid-single-digit range" guidance, and projects Q4 GMS growth of 5% to 7%.