Hi, everyone, and welcome to Etsy's fourth quarter and full year 2025 earnings conference call. I'm Deb Wasser, VP of Investor Relations. Today's prepared remarks have been pre-recorded. It's my pleasure to introduce Kruti Patel Goyal for her first call as CEO, and of course, to have our CFO, Lanny Baker, here as well. Once we are finished with the presentation, Kruti and Lanny will take questions from our publishing sell-side analysts on video. Please keep in mind that our remarks today include forward-looking statements related to our financial guidance, our business, and our operating results, as noted in the slide deck posted to our website for your reference. Our actual results may differ materially. Forward-looking statements involve risks and uncertainties, some of which are described in today's earnings release and our most recent Form 10-Q, and which will be updated in future periodic reports that we file with the SEC. Any forward-looking statements that we make on this call are based on our beliefs and assumptions today, and we disclaim any obligation to update them. Also, during the call, we'll present both GAAP and non-GAAP financial measures, which are reconciled to GAAP financial measures in today's earnings press release or slide deck posted on our website, along with the replay of this call. With that, I'll turn it over to Kruti. Thanks, Deb, and hello, everyone. I'm excited to be here with you today, 50 days into my role as Etsy's new CEO. This morning, I want to primarily focus on three things: what we're doing to improve the performance of our core marketplace, why I'm confident in these actions, and what you can expect as we go forward. But first, I'll take a few minutes to review yesterday's announcement of the definitive agreement we signed to sell Depop to eBay for $1.2 billion in cash. This transaction will allow us to focus exclusively on the compelling opportunity we see in front of us, to grow the Etsy marketplace in ways that matter most to our buyers and sellers. We believe it's a great outcome for Etsy shareholders and a positive next step for all involved. Of course, it's also a bittersweet moment for me personally, given my time as Depop's CEO. I am incredibly proud of what the Depop team has built, a truly differentiated brand and product, grounded in clear purpose and strong community. We've been proud to support Depop's evolution, helping it reach the next generation of shoppers and become the fastest-growing fashion resale marketplace in the U.S. And we believe that eBay's desire to invest in Depop will further strengthen its position in the circular economy. Lanny will cover more specifics on the transaction a bit later. Now, back to Etsy. When I returned last year as Chief Growth Officer, I conducted a deep diagnostic of the business to better understand the root causes of recent growth challenges and where our biggest opportunities are. I spent time speaking directly with buyers and sellers, listening closely to our teams, and pressure testing what I was hearing with customer research, data insights, and trend analysis. The number one takeaway for me was that Etsy's value proposition for buyers and sellers remains differentiated and deeply resonant. At the same time, the diagnostic made clear that we hadn't translated that strength consistently through our customer experience. For instance, we saw that buyer appreciation for what makes Etsy special remains high, but perceptions of differentiation have softened over time. As our sellers' inventory has grown significantly in both scale and breadth, we haven't reliably helped buyers understand what they're seeing, why it belongs on Etsy, or how to find the right item for their intent. That clarified a major opportunity. If we get better at how we match buyers to the right items and make the human story behind our sellers more visible, we can turn our scale back into an advantage and reassert what makes Etsy distinct. As another example, we've seen our buyer demographics aging, with older users growing faster than younger ones. Our research shows that's not an appeal problem, it's a presence gap, hence our work to improve our app and shift our marketing mix to more intentionally engage and acquire younger shoppers. We've been weighted toward lower-funnel moments, showing up once a buyer already has something specific in mind. The opportunity is to move earlier, and in some cases, before a mission even begins, using inspirational content to spark shopping journeys, not just respond to them, in the places and formats where discovery increasingly happens, especially for younger buyers. On top of that, frequency and retention, even among our most valuable buyers, have not been where we want them to be. We've become much more effective at closing a transaction, but underinvested in creating reasons to return. Optimizing for conversion alone isn't enough. Long-term growth requires making Etsy a destination for inspiration, discovery, and ongoing engagement. Finally, it was clear that as Etsy grew, a disproportionate share of our investment went toward improving core e-commerce table stakes, things like conversion, price competitiveness, reliability, and shipping. Those investments were necessary but not sufficient, and we didn't invest enough in the aspects of Etsy that make Etsy feel special and different. I believe that trade-off helped us compete more effectively on fundamentals, but it has also limited our ability to fully capture demand for unique, meaningful commerce and unlock more of the e-commerce TAM. These learnings directly shape the strategic priorities we introduced last spring, designed to turn Etsy's strengths into more durable, long-term growth. As a reminder, these four priorities are: showing up earlier in the shopping journey, increasingly meeting customers at the start of their missions, wherever they begin. Working to get much better at using machine learning to match buyers with the right items, marrying their interests and their intent, so we can turn the abundance of our marketplace into a clear advantage. Deepening loyalty with our most valuable customers, so they feel seen, appreciated, and genuinely valued. And leaning into the human connection that differentiates Etsy, so shoppers experience the stories, creativity, and passion that make every item and every purchase feel special.... Alongside these priorities, we've made important changes to how we operate to drive clearer focus and better execution. At a high level, we've reorganized the company around customer outcomes rather than functional silos. We consolidated product and engineering, so teams own end-to-end experiences and can move faster and with clearer accountability. We unified the teams responsible for trust and safety and customer support under one leader, protecting our community while delivering fast, thoughtful help when it matters most. And we realigned marketing from a channel-first model to a customer-first one, with teams anchored to outcomes like frequency, trust, and lifetime value, rather than optimizing individual channels in isolation. The result is an organization with clearer ownership of customer outcomes and fewer handoffs, built to move faster and execute more consistently against our priorities. That increased focus and execution is beginning to show up in our results. Our goal last year was to return our core marketplace to growth, and we achieved that in the fourth quarter. While we still have work ahead, the trajectory is clearly improving. From the first to the fourth quarter of last year, Etsy's marketplace GMS comparisons improved by 9 percentage points, and Q4 U.S. buyer GMS grew for the first time in four years. As Lanny will cover in more detail, our consolidated Q4 performance met or exceeded our expectations across the board. We delivered record revenue, and we did so while continuing to invest for growth at both Etsy and Depop, all while maintaining very healthy profitability. This performance reinforces our confidence that the changes we've made so far are working, and that we are headed in the right direction. For example, the work we've done on our app is making it our most personalized and engaging platform, with year-over-year GMS growth accelerating to 6.6% in Q4, and homepage clicks per visit increasing 14% year-over-year, and GMS share continuing to grow. Our personalized owned marketing programs are doing a better job engaging buyers, with push and email clicks up more than 25%, while message volume stayed disciplined. And satisfaction with our customer support is improving for both buyers and sellers, with particularly strong gains on the seller side, up 15.5% since last year. These are all indicators that we are on the right track, which is why we're doubling down on our priorities for 2026. We have a clear plan to drive more visits, better engagement, higher conversion and spend, and healthier retention. What matters now is continued discipline and execution quarter after quarter. When we do that well, we feel confident that those investments will compound into the kind of sustainable growth we all believe Etsy is capable of. Growth rooted in Etsy's differentiation and unique value to our customers. Etsy began with a simple belief: that technology should empower creative entrepreneurs, not replace them. Just over 20 years later, we're at an inflection point, one where the power of AI technology has the potential to make commerce on Etsy more human than ever, enhancing our differentiation and strengthening our unique customer value. On the seller side, AI is already helping to automate routine tasks, so sellers can spend more time on what only humans can do, creating, designing, and connecting with customers around the globe. On the buyer side, it's making discovery easier and more relevant, helping Etsy show up in more of the moments where inspiration begins. At the same time, AI-powered and agentic shopping presents meaningful opportunities for the unique items on Etsy to shine. These tools offer deeper insights into our listings, enabling our sellers' items to starkly stand out against the sea of impersonal, undifferentiated, mass-produced goods. So we're moving fast to stay at the forefront of this inflection point. Since our last call, we've expanded our agentic shopping partnerships, adding integrations with Microsoft Copilot and Google, as well as an agentic payments agreement with Stripe. While still a very small part of our overall traffic in GMS, agentic traffic to Etsy in Q4 was about 15x what it was last year, underscoring just how rapidly this channel is emerging. Early indicators support our hypothesis that agentic discovery can be additive to our ecosystem. Using ChatGPT as an example, we're seeing evidence that in addition to bringing new buyers to Etsy, a meaningful share of buyers engaging through ChatGPT have a prior relationship with us, including lapsed buyers, indicating that agentic shopping could be a great unlock for retention and better lifetime value. Orders originating from ChatGPT also tend to skew higher value compared to some of our more mature acquisition channels. In addition to instant checkout sales, we're seeing strong engagement with listings on Etsy, resulting from ChatGPT discovery. There's a lot on our AI and agentic commerce roadmap. With these important partnerships, as well as through the development of product experiences on Etsy, and we'll keep you informed of our progress. Wrapping up, I want to be clear about what you should expect from me. We have more work to do to return Etsy to sustained, durable growth. My intention is to earn your confidence over time with clear priorities and transparency about what we're learning along the way. At the same time, we'll continue to shape Etsy's longer term direction by leaning into what makes this marketplace truly distinctive: human creativity and meaningful connection. I've been a part of two significant Etsy turnarounds already. First, starting in 2018 as Chief Product Officer, when we began to significantly uplevel our shopping experiences that enabled tremendous growth. More recently, running Depop, where we identified and deepened the platform's core differentiation and value proposition through improved personalization and discovery. In both cases, the biggest unlock wasn't a single bold idea or strategic initiative... It was sharp focus and strong execution. Pinpointing what matters most to customers and building the operating discipline to deliver consistently, that's the muscle we've been strengthening to deliver another turnaround, one which propels Etsy to our next great chapter. With that, I'll turn it over to Lanny. Thank you, Kruti. We have a lot of ground to cover today, so I'll dive right in. As we review our results, please keep in mind that we completed the sale of Reverb on June 2nd. We've provided Reverb's GMS and revenue for Q4 2025, so you can separate the impact of that sale from the results of our ongoing business. Fourth quarter consolidated GMS was $3.6 billion, up 2.4% year-over-year, excluding Reverb. This was above the midpoint of our guidance range and up 1.3% year-over-year on a currency-neutral basis. Consolidated revenue was $882 million, up 6.6%, excluding Reverb, reaching a new quarterly record. Adjusted EBITDA was $222 million, representing a consolidated adjusted EBITDA margin of 25.2%. Our decision to accelerate brand marketing investment at Depop was the largest factor behind the year-to-year contraction in consolidated adjusted EBITDA margin. Etsy Marketplace adjusted EBITDA margin was slightly above 30% in the fourth quarter, our high point for the year, though slightly lower year-over-year, primarily due to higher cost of revenue as well as higher G&A expense. Etsy Marketplace GMS was up 0.1% year-over-year in the fourth quarter, our first positive comparison since Q3 2023. On a currency-neutral basis, Etsy GMS was down 1% year-over-year, which is a 220 basis point improvement from the third quarter's currency-neutral comparison and extends the positive momentum established earlier in 2025. While several factors have contributed to that sequential improvement, including easier comparisons, FX tailwinds, and beneficial competitive dynamics in the U.S. PLA auctions, we believe that progress on the four priorities Kruti described earlier is also contributing to better marketplace results. Notably, our trailing 12-month active buyer count in the United States increased slightly from Q3 to Q4, and U.S. buyer GMS grew 0.3% year-over-year, marking the first quarter of positive growth in four years. In the details of Q4, we see further validation of the notion that when Etsy leans into its strongest points of differentiation, we win. With GMS strength concentrated in areas where we already stand apart, Etsy buyer engagement skewed toward personalized and sentiment-driven items, with personalized gifts, artisanal finds, and milestone categories resonating the most with buyers. Home and living, our largest category, returned to positive year-over-year GMS growth, led by strength in high average order value subcategories, where Etsy has high-quality, differentiated items, such as vintage home decor, rugs, and lighting. Mobile app downloads grew 4% year-over-year, and app GMS growth continued to accelerate in Q4. App users consistently visit more often, engage more deeply, and convert at higher rates than non-app users on average, and the app's contribution to total GMS reached 46% in Q4. That's 5 percentage points higher than at the end of 2023. Importantly, as Kruti discussed, our app strategy is central to showing up earlier in the shopping journey, particularly with younger buyers. More broadly, Etsy Marketplace customer metrics are also beginning to move in a healthier direction. The year-over-year rate of decline in active buyers improved for the first time in over a year, with active buyers largely flat sequentially at 86.5 million. Our active buyer base benefited from improved acquisition and reactivation. We added 6.8 million new buyers and reactivated 10.4 million lapsed buyers, for a combined total of 17.2 million gross additions, which is up 2.7% year-over-year and growing again for the first time in over two years. We had 5.9 million habitual buyers, down 8.6% year-over-year, though the sequential quarter-over-quarter decline was a more modest 1.4%. Trailing 12-month GMS per active buyer was $121, marking the third consecutive quarter of stable to improving trends and moving above the trough that we hit in the first quarter of 2025. The stabilization in GMS per buyer continues to be driven by higher average order value, while purchase frequency remains slightly lower than a year ago. On the seller side, we've begun to see healthier trends as well. We ended the period with 5.6 million active sellers, up 1.5% sequentially, reflecting an increase in both U.S. and international sellers. Additionally, the retention of active sellers improved throughout the year. Turning to Depop, we delivered another quarter of excellent growth, with Q4 2025 GMS up nearly 38% year-over-year to a new record of $300 million. In the U.S., which is Depop's largest market, GMS grew 60% year-over-year. We saw initial wins from our surge marketing investment, including Depop's Taste Recognizes Taste campaign, with U.S. brand awareness accelerating even at this early stage of investment. I'll take a couple minutes to provide additional information about our agreement to sell Depop to eBay. The sale is currently expected to close in the second quarter of 2026, subject to regulatory approval and certain closing conditions. The cash consideration to Etsy is to be paid at closing, and in keeping with our capital allocation approach, we plan to use the proceeds of the transaction for general corporate purposes, continued share repurchases, and investment in the Etsy marketplace. Etsy will continue to own and operate Depop through the completion of the transaction. However, Depop will be classified as a discontinued operation, and its results will be separated from those of Etsy's continuing operations in our future financial statements. For historical reference, we've provided Etsy standalone GMS and revenue in the appendix to today's slides. For the full year 2025, Depop generated $1.1 billion in GMS and $187 million in revenue. Depop's lower take rate and negative adjusted EBITDA margins represented a drag of 80 basis points on our consolidated take rate and 350 basis points to consolidated adjusted EBITDA margins in 2025. With the excellent offer presented to us by eBay, and in light of the significant opportunity we see at Etsy, we made the decision to sell Depop and fully prioritize our core marketplace. We believe that obtaining a strong value for Depop now and focusing on Etsy, where we believe we can achieve a higher rate of return on invested capital, will best enable us to maximize shareholder value in the long term. Circling back to fourth quarter consolidated financial performance, services revenue grew 9.9% year-over-year, while marketplace revenue grew 0.8%. Consolidated fourth quarter take rate was 24.5%, in line with our guidance. Compared to one year ago, take rate expanded by 170 basis points. As outlined on the slide, the year-over-year consolidated take rate expansion reflects a step up from the Reverb divestiture, continued momentum in on-site advertising across Etsy and Depop, and broader gains at Depop overall. Turning to fourth quarter operating expenses, I'll start with product development, where spend was largely flat as a percentage of revenue. Higher employee costs were offset by leverage in other areas. In marketing, the increase in brand spending at Depop shows up as a key driver of the deleverage you see in our consolidated marketing line. At the same time, the Etsy marketplace delivered meaningful year-over-year leverage on the marketing front. That improvement is reflective of targeted shifts in portfolio mix and efficiency, cornerstones of our priorities. We leaned into favorable paid search dynamics, shifted linear TV spending toward OTT, YouTube, and TikTok, and targeted our paid social spend to new and lapsed buyers to drive incrementality and higher returns. Our investment into TikTok has been very effective, both from an ROI perspective and also in targeting younger consumers. Last, and definitely not least, we continue to drive stronger retention and engagement via our highly personalized owned marketing channels, which delivered meaningful incremental GMS and reinforced the effectiveness of these levers when used alongside paid channels. We plan to further these efforts with an expansion of new marketing channels in 2026. As of December 31st, Etsy held $1.8 billion in cash, cash equivalents, and short and long-term investments. In 2025, we generated $735 million in adjusted EBITDA, converting approximately 87% of that to free cash flow and returning more than 100% of free cash flow to shareholders through share repurchases. During the fourth quarter, Etsy repurchased a total of $133 million in stock, bringing total share repurchases for the year to $777 million, which reduced the outstanding share count by approximately 14.4 million shares over the course of the year. Now, for our outlook. As we've described, we believe that the priorities we've been executing against are beginning to turn the Etsy marketplace in the right direction. As we enter 2026, we have a focused set of product and marketing initiatives in flight and several early indicators of progress. However, we expect that the full impact of these efforts will take time to translate into stronger, sustainable growth, and all of this is reflected in the outlook we are providing today. With the anticipated sale of Depop and its classification as discontinued operations in our financials as of January 1st, 2026, the guidance we're providing today relates only to continuing operations, or in other words, the core Etsy marketplace. We currently anticipate that first quarter 2026 GMS will be in the range of $2.38 billion-$2.43 billion, representing year-over-year growth of approximately 2%-4% for the quarter. The anticipated step-up in Etsy GMS growth in Q1 2026 reflects the contribution of our four priority areas, as well as the effect of strong FX tailwinds and comparing against a particularly weak start to 2025. We expect the first quarter 2026 take rate to be approximately 25.5% and adjusted EBITDA margin between 28%-30%. Looking beyond the first quarter, with a singular focus on the Etsy business, growing confidence in our operating priorities, and ongoing stabilization in customer metrics, we feel more comfortable to provide high-level commentary for the year. We've improved the Etsy marketplace's annual GMS performance from down 6% in 2024 to down 4% last year, and we expect to further improve our performance this year, achieving slight growth for 2026, with positive year-over-year GMS comparisons in each quarter of the year. We currently anticipate that Q1 2026 GMS growth may be the strongest of the year, due to currency tailwinds that are likely to moderate and comparisons that get less favorable beyond the first quarter. We expect that full-year take rate and adjusted EBITDA margin will be roughly consistent with the first quarter view. We've assumed that macroeconomic conditions, particularly those impacting consumer discretionary spending, remain stable relative to where they are at present. Thank you all for your time today. We'll now take your questions. Thank you. At this time, if you would like to ask a question, please click on the Raise Hand button, which can be found on the black bar at the bottom of your screen. You may remove yourself from the queue at any time by lowering your hand. When it is your turn, you will receive a message on your screen inviting you to become a panelist. Please accept, and once you've been promoted, you will hear your name called, and you may unmute your video and audio and ask your question. As a reminder, we are allowing analysts one question. We will wait one moment to allow the queue to form. Okay, our first question will come from Trevor Young with Barclays. You may now turn on your video and audio and ask your question. Great. Thanks so much. I guess starting with the improvement in gross buyer adds, the reactivated buyers accelerating, and the declines in new buyers kind of improving meaningfully, appreciate some of that as comparison dynamics, but could you maybe unpack a little bit what changed in Q4? And similarly, some of the actions that you alluded to here in Q1 that are driving an improvement, and just relatedly, like, how durable will this improvement be? Sure. Thanks for the question. You know, remember that the trailing 12-month buyer count is a trailing 12-month buyer view, so part of what we're looking at is trends from 12 and even 24 months ago in those comparisons. But over that period of time, we have been investing in the product experience. We've been investing in driving our app usage. We've been investing in our personalized marketing. We've been investing in the social media channel. And I think what you're seeing in those comparisons gradually getting better is the cumulative effect of all of those, all of those investments, all those product moves and marketing moves that we made. And so in our outlook and sort of where we are today, we think that those trends are sustainable. They've been building gradually over time. I think on the specifics with your questions around reactivated buyers, we found the social media channels to be particularly effective for us in reactivating, reaching back out to buyers who have had great experiences with Etsy in the past, haven't had Etsy top of mind for consideration as much as we want them to be, and using social media to get them at that moment where they're just starting their journeys and reactivate them and bring them back in. Then we try to follow up with bringing them into our app experience, where we really get that strongly personalized opportunity to reach out to them through our own media channels and keep in front of them with product suggestions, with shopping mission recommendations that are really what, in the long term, we believe can help drive frequency and retention. Your next question will come from Bryan Smilek with JP Morgan. Great. Thanks for taking the questions. You know, good to see the GMS improvements. Can you just talk about the key drivers of sustaining GMS growth, you know, each quarter through 2026? And I think, like, more importantly, too, how are you, you know, driving better marketplace dynamics more across sellers and buyers as well into 2026? And conversely, Lanny, I know you mentioned positive growth each quarter in 2026, Q1 could be the high point. Can you just elaborate a bit more on when we'll start to see some of these product and marketing flywheels start to impact GMS growth, deeper, you know, throughout beyond Q1? Thank you. Sure. There's a lot to go through there. There's a lot. Yeah. Let me start with the drivers of durable GMS growth. What you heard us say in the prepared remarks is that our entire strategy, the four strategic priorities that we shared, are designed to work as a system to really improve the entire ecosystem, to do exactly that, to drive durable growth. So we're focused on discovery, matching, loyalty, and differentiation to drive visits or engagement, conversion, and retention. And so I would really urge everybody to think about these priorities as a system that works together rather than, you know, one thing that's going to work, one thing that's gonna contribute, you know, more than any other. Then when you dig into that, as Lanny was saying, where we've been seeing the most traction and impact so far, has been really in these first two priorities around discovery and matching. And the places that there's so, you know, showing up where shoppers discover, making Etsy a place, a destination for discovery, through greater personalization, driven by machine learning- driven matching. And there, I think it's really critical to understand that we're really leveraging the capabilities, new capabilities of AI and the advancement in LLMs, to really do things that were very, very much harder to do in the past. Really deeply understand our inventory, which is incredibly unique and broad-based. Much more deeply understand our buyers, their interests, and their taste, and match that with, you know, a stronger understanding more quickly of their intent, to deliver a much more personalized content, really, at every touch point, off Etsy and on Etsy. So where we're seeing that show up the most right now is in our app and in our owned marketing channels, right? In our app, what you've seen us do is really make the home screen experience much more discovery focused. We've really redesigned that experience to give you more windows and doorways into Etsy based on what we know about you, and create an entire discovery feed that is much more personalized to your interests and tastes. We're seeing that work really well with, you know, app home screen clicks up over 14% year-over-year. In our owned marketing channels, what you've seen is we've made the recommendations that get you to come back to Etsy much more personalized. And not only have we, you know, have we done that, we've increased the coverage of those personalized recommendations so that our push notifications and emails have gone from less than a quarter of them being personalized, to now over three quarters of them being personalized. And all of that is driven by the advancements and investments that we've made in our machine learning- driven models. And so these are really durable sources of growth that we expect to continue to invest in and build on. Now, loyalty and human connection are two areas that we're earlier on in our journey with, and they're, they're areas where we're starting to see encouraging signs, but I would expect those to build more over time. And particularly, you asked about the seller and buyer ecosystem. Loyalty is a really great place to think about that. We talk about recognizing, retaining, and rewarding our very best customers, and that really is about, for the first time for us, focusing on both the buyers and sellers who disproportionately contribute to our marketplace and our marketplace growth. And so, you know, that's something that's new for us, and we're earlier on in the journey, but we're really, we're really encouraged by it, and we're really excited about. I think as you take those four priorities, and Kruti talked about connecting them to engagement, and conversion, and retention, yeah, I think you could also then think about where they come into our financial model. The financial model is really, it's the number of buyers, the average order value, and the purchase frequency. And as you had a question about, like, the longer term, durable kind of growth, we've, I think, stabilized the number of buyers. You've seen U.S. buyers grow sequentially, quarter-over-quarter. The grand total is down about 100,000 quarter-over-quarter. We're still down year-over-year by 3%+, so there's some way to go to get to the total buyer count growing year-over-year, but we're stable. Average order value has been stronger. Average order value has been up with inflation, with probably some tariff input. Certainly, FX input has lifted the average order value. And on frequency, we're also stable. Still down a little bit year-over-year, but all the things that Kruti just described are the efforts that we're undertaking to start to turn that frequency lever as well. So where the growth formula really comes together is when there is growth across each of those. We've gone from shrinkage across each of those to stability across two and growth on one, and, you know, we're working for the other. Thank you. Our next question will come from Michael Morton with MoffettNathanson. Good morning. Good morning. Thank you for the question. A lot of really exciting things about the fundamentals this quarter. I wanted to ask Kruti about the traffic coming from the AI platforms, and how these consumers are behaving, what it means for Etsy's relationship with these consumers. And it's the number one investor question regarding marketplaces, and it's what does it mean for on-site ads? And on-site ads are sold on a cost per click basis, and as consumers get smarter or better answers faster, there's the view it could lead to compression in the funnel. And Etsy is really leading everybody in your adoption of working with these platforms. You're pretty much first for everything. I know it's early, but we would love to learn what you're seeing with this consumer behavior, and then are we wrong in thinking that it could be risk to the on-site ads business? If so, maybe some levers to offset any type of headwinds to on-site ads would be great. Thank you. Yeah, it's a great question. You're right. It's the one that lots of people are talking about. And we are really excited to be proactive early movers in this space. The first thing I would say, touching on a point that you made, is that it, that it is still very, very early days in agentic platforms as they relate to commerce. I will say that we are seeing really encouraging signs that support our hypothesis that agentic can be a really valuable and incremental discovery channel for a business like Etsy. So, you know, while it's early days, we're seeing really significant increases growth in agentic traffic. We're seeing 15x what we saw last year at this time, but it's still very, very, very small, so less than 1% of our total traffic. So, you know, what that tells us is that consumers are interested and engaging, and, and find some value in this platform. Second, we're seeing that or find some value in agentic search. The second thing that we're seeing is, you know, early signals that these are really valuable customers. So, higher intent, higher average order value. We're seeing engagement across both new and existing buyers, which tells us it can be both an acquisition channel and a re-engagement and retention channel for us. But most importantly, what we're seeing is a lot of great flow-through. And what I mean by that is that we see a lot of that traffic, that's where people are discovering Etsy items on agentic platforms flowing through to Etsy, where they continue to look more, and then, and then transact. And this makes sense to us, right? Because shopping doesn't happen in all one flavor. When you're looking to buy something, and you've got a very simple set of criteria around purchasing it, it's just about price or just about speed, and the items are, you know, largely replaceable. Giving, you know, giving the ability to purchase that to a third party is really easy to see how you do that. But the items on Etsy are higher consideration, higher value in terms of meaning. And what that means is that you tend to want to, first—when you're buying a gift for your mom for Mother's Day, you're more likely to want to dig in and see more about that item, understand the story behind it before you make that purchase. And so that flow-through that we're seeing, I think is a really good indication that that hypothesis is true. Now, you mentioned being early movers, and we think this is really, really important. The world is moving quickly, and we don't think you win by sitting on the sidelines. Being an early participant in this means a couple of things. We're able to really, in partnership with these platforms, help shape the experience in ways that we think is really helpful to shoppers being able to understand what differentiates the products that they're going to be seeing on different platforms. We think that really plays to Etsy's strengths because of the differentiation of our inventory, the fact that the, you know, everything has a story behind it, comes from a real person. And second, it allows us to be in there really early, observing and learning from shopper behavior, and this is what I think is so critically important. One of the priorities that I stated, the strategic priorities for the long term that we have, is showing up where shoppers discover. So as we see this new emerging discovery platform, it is really critical for us to be there with these shoppers, learning and evolving with them as their behavior evolves. Yeah, and it's, I think to the question about, yeah, sort of the last part of your question is about what do we do with Etsy Ads while this sort of transition and learning period is going on? At first, I'd go back to something we've said many times, which is right now we are recognizing only a very small portion of what our sellers have said they would be willing to spend on advertising to win incremental GMS. And it's on Etsy, and our machine learning, and our match, and our ad system to do a better job of delivering customers to those folks who are willing to advertise, to be at the top of the stack in the search results. So there's more opportunity for us to continue to optimize the Etsy Ads performance internally. Secondly, as Kruti indicated, the behavior that we're seeing in the agentic shopping world is a combination of sometimes, hey, this convenience of being able to check out right in the midst of the agentic experience, that's wonderful. Other times, like Kruti just said, "Hey, that's a great idea. I hadn't really thought of that. Let me go to that source and learn more about that high considered purchase." And that's bringing them on to the Etsy product surfaces, where our ads model is designed to help them navigate that journey to what arguably will be the best fit in products for them. The third thing I would say is that it's really interesting to see at a relatively early stage of the development of the agentic world, the people who operate those models starting to include advertising and trying to figure out how to bring advertising into their ecosystem. And I think that, you know, as we think about the paid search world, the sort of inclusion of a advertising-driven component of the search world has been really favorable for Etsy over time. So I think, I think, you know, there are, there are on-site things that we can do, there are interface things that we can do, and then there's sort of structural ecosystem things that are evolving right now. It's very early days, but, we feel, we feel like we're about a, a very defensible position with Etsy advertising product. You know, there's one other thing that I just want to add on here, which is, you know, a lot of the focus is on agentic commerce, like commerce that's happening on those platforms. What we're talking about, in addition to the commerce, is agentic discovery. And then the third piece that we're not talking about here is agentic capabilities, and those capabilities are not proprietary or owned by those platforms. They're capabilities that any company can use. And so I think, you know, a lot of what we're thinking about, where we're spending our energy today, is on applying those advancements and capabilities to the experience on Etsy across the platform. So we've talked a lot about how we're, you know, using ML to power much more personalized, user-aware recommendations. We're also using that to make our selling experience much better, much more efficient, so that our sellers can spend their time doing what only they can do, and really enhancing and amplifying the differentiation of Etsy, and using it behind the scenes to make how we operate more effective, to make our, you know, support and trust and safety better, to make how we all operate day-to-day much more effective and efficient. I think that's a really big part of the agentic story and maybe one that we should be talking about more. Great. Thank you, guys. Exciting topic. Next question. Our next question will come from Rick Patel with Raymond James. ... Thank you. Good morning, and congrats on the progress. A couple questions around buyer acquisition. First, can you talk about the commentary around acquiring younger buyers? Which channels do you see as having the biggest opportunity, and what are you going to do differently in 2026 to capture that? As a follow-up, how much room do you see to re-engage lapsed buyers? You touched on social being an effective tool there, but just curious how big that opportunity is. Thank you. Sure. On the, on the second point, on lapsed buyers, I think there are over 100 million lapsed buyers of Etsy. And remember that about 50% of our buyers buy one time a year. And so the opportunity to bring people back two times a year, you know, that really starts to feed into not just the frequency numbers, but that actually will feed quickly into the buyer count numbers. So, those are some levers that we're pulling there. You had a really specific question about where we're getting younger, how we're getting going after younger audiences. Kruti, in her prepared remarks, talked about the importance of the mobile app for, for engaging with them. You know, the demographics of Depop are quite a bit younger, and the GMS mix of Depop is 90% mobile app. And so we know from firsthand experience that the mobile app really is where that customer base is. So the mobile is really key to this, but there are also the social channels that we're using much. You know, we're really working to use the social channels to introduce Etsy more frequently to that younger buyer demographic. This quarter, frankly, we doubled the amount of spending that we do on TikTok to go after that audience from last quarter, and what was terrific about that is we were able to double the spending while keeping the return on spending as good or, you know, in line with where it was last quarter. It's hard to, sometimes it's hard to take a channel like that and spend that much more into it and not have, for at least for a short run, your efficiency, lose some efficiency. That's tell-- and the, and the buyers that are coming through that channel are younger. That's true of Pinterest, that's true of some of the other social platforms. I think social will be, along with the app, are probably the two biggest levers. On, you know, agentic is, the numbers are so small that it doesn't make a difference today in terms of shifting the demographics, but those are the places in particular where we're focused, and we'll do more there in 2026. Yeah. I'm also going to just add to that and zooming out for a second. Talked about how this isn't an appeal gap, it's a presence gap, and so the channels that we show up on really matters. The other thing that I would add is, I think there's an opportunity to really leverage our sellers and leverage influencers to really speak more directly to those younger buyers. And the content matters as well. So this is where focusing on more discovery-oriented content also really matters. So I just wanted to add on that it's both where we're present and what we're showing, and making sure that it's more personalized and relevant to this audience, but we're really excited about all these efforts. Thank you. Next question. Your next question will come from Ken Gawrelski with Wells Fargo. Thank you so much for the opportunity. Appreciate it. Could you talk, maybe two, please, if I may. First, on maybe reframing the agentic discussion, it seems to me that maybe this is a race for search and discovery, on-site versus in the, in the agent, right? You have unstructured data, unstructured listings. How do you make sure that the on-site or on-app experience for search and discovery is ultimately better than the off-site? Meaning, the agent or search can externally find the item faster or better than you can. And then one second one, too, and I realize that there's only maybe so much you can say about this, but cash uses. I mean, $1.2 billion relative to your market cap is very substantial. You are already well capitalized. How should we think about the opportunities to effectively use that cash that's coming in? And is there any kind of time, any kind of timeframe you can give us as to when you might maybe give us a little bit more color on cash uses? Thank you. Thanks for the question, Ken. I'll take the first one- Sure. And then, Lanny, you can take the second. I think this is exactly the right question. You know, the insight and the data that we have should enable us to always offer a much richer and better experience when you know that you want something that Etsy can offer. And this is exactly one of the reasons that I think agentic can be a really great discovery platform. But what makes it such a, you know, such an appealing platform right now is they've really tapped into this conversational interface that allows us to get much deeper and richer insight into intent. And so when you look at what we're doing at Etsy, our first step is leveraging AI capabilities to pull that deeper understanding of our buyers' interests and of our inventory, and to get signals of intent. But then the next step is to bring that same kind of interface to be able to capture even richer understanding of intent. And as we do that, as we progress there, we should be able to do that much more effectively 'cause we have more data points. I think for people who don't know what they're looking for or don't know that they're looking for something that is available on Etsy, these third-party platforms are great to understand the world of what, you know, the world of your options. That's where us providing really rich insight into our inventory and what buyers care about in that inventory is really important in the near term. It's a great question, and I think the right one. ... And from a capital allocation standpoint, I think we start out with the thought that we have $1.8 billion in cash, and $3 billion of debt, and $650 million of free cash flow per year. And those are like the raw materials of how we think about returning cash to shareholders and managing what's on our balance sheet. Now, with the addition of proceeds from Depop, that will refactor that whole equation. What you've seen over the last couple of years is Etsy say we can invest in the business through the P&L and where there aren't big acquisitions that we have thought of, there aren't big sort of capital outlays that we have been making. And so with the excess cash that we have relative to the future needs that we see from the balance sheet perspective, we've been returning that really aggressively to shareholders. I think the amount by which the share count has come down over the last one, two, or three years is pretty striking. And that speaks to the sort of inherent profitability, scalability, and capital light nature of the core Etsy business, and that those things all remain. So as we're looking forward, I think you should expect us to run that same set of analysis, look at the cash we hold, look at the right amount of leverage on the business, looking at returning excess cash to shareholders. And, you know, if there were to become a attractive investment opportunity that we looked at and said, "Hey, that is gonna be a really high return on capital," we'd be open to that. But right now, the best returns that we see are investing internally in the Etsy business, and we'll continue to do that. It generates a lot of cash, and where there's excess cash, we'll return that. Great! Next question. Your next question will come from Jason Helfstein with Oppenheimer. Thanks for taking the question. So now that you don't have to decide between allocating marketing between Depop and the core marketplace, how does that impact your strategy and outlook for 2026 and beyond? And maybe kind of connect that back to the prior question around customer, new customer acquisition, reactivation, and investment in technology, LLMs, et cetera. Thank you. You know, Let me start and say, I think it's really important to point out that, while similar in nature, the conditions around Depop and the conditions around Etsy are quite different. Depop had and has a tremendous product experience, the best in the business. It did not have the level of awareness across all the different audience opportunities that we saw that we thought it needed and we thought it could benefit from. And so when you want to drive awareness, the brand activity, and it is exactly what I think we believe one should do, and the early results from that are really encouraging. We are expanding the awareness of that product. Etsy situation is quite different. Awareness of Etsy is very, very high. Most people have heard of Etsy. Most people have bought on Etsy. The product experience you've heard us talk about is not where we think it should be in terms of personalization, in terms of retention, in terms of rewards for loyalty, in terms of discovery, all of those things. And so, on the comparison, is Etsy. The investment need is more on the product side. Now, we spent over $400 million last year in product development, improving that. We have some early indications of the progress and the fruits of that investment, and we will continue... That's a lot of money to invest in that product experience. We will continue to invest in that, and we think we will continue to make progress on that product experience. I don't think it's currently an accurate idea to say: Well, because they spent money on Depop marketing, now they're gonna spend money on Etsy marketing. That just doesn't really follow. And I think, you know, the Etsy business is a position where we're making really strong product investments that are starting to bear fruit. This whole opportunity around agentic and our internal use of ML is a whole new frontier for us to continue to move investments into that area, and right now we feel like we're able to do that within the margin outlook that we gave to you, and be able to deliver this sort of combination of improving sustainable, durable growth with healthy EBITDA margins as we do that. Your next question will come from Deepak Mathivanan with Cantor. Great, thanks for taking the question. Just wanted to ask a follow-up to Ken's question. Kruti, can you talk about the learnings from the traffic you're seeing from agents, as it pertains to potentially building the experience on Etsy with native and conversational experiences? What signals are you watching to integrate AI native experiences in the platform? And also, broadly, how should we think about Etsy's technical approach here, using own models built on top of open source to power the business logic, or perhaps using others, you know, like Gemini and GPT models? Thank you so much. You know, some of the early signals that we're, that we're seeing, like I said, are really related to these channels as, as strong discovery channels, so higher intent, higher order value, really good engagement, really good flow through. And so those are the biggest learnings that we're seeing, that there is interest and excitement about the differentiation of our inventory as people discover it in the context of other inventory. So that's where the greatest learnings are, which I think a little bit of a different category than the learnings are, that more generally from these AI platforms around the value of conversational interfaces to really more deeply understand intent. Those are things that we're playing with across all parts of the experience, and really, the deepest learnings are coming from those on-site experiences rather than off-site experiences. Well, I would just add, one, one thing we're learning with our partners is that, the consumers who engage with agentic shopping come back and do more agentic shopping. So there's some... there's, like, implicit satisfaction in that I think these sources are delivering. The implicit part is that their increased usage, after they try it once, they come back a second time. After they do it two times, they keep coming back. The early indications are also that this is an experience that is working really well for customers. That's one of the reasons why when we see that from our partners, we're also really convinced that we can use agentic on Etsy to improve our experiences. As we bring those, those things that Kruti's been talking to light, it'll help us with retention and help us with, with our own product experience. Question? Your next question will come from John Colantuoni with Jefferies. Okay, great. Thanks for taking my question. I wanted to ask about channel trends. With the app up nearly 7%, it implies GMS on the website was down around 5%, and I'm curious if you see an opportunity to accelerate growth on the website, and how a normalization in competition across performance marketing channels in a year ago periods could impact your approach to driving this potential acceleration? Thanks. Maybe I'll start- Yeah ... and then you continue. Okay. Look, our app is our most valuable platform. We see that app users have a 40% higher LTV than non-app users, and that's because, as Lanny was saying before, you know, when users engage with the app, they visit more, they engage more deeply, and they convert more. And we think that it's really attractive to a younger audience. As we have grown app share of GMS, we have continued to see the higher level of value and engagement. So we think that there is a lot of runway to continuing to both invest in making the app more personalized, more discovery-oriented, more engaging, and leveraging our own channels to drive more people to the app, and, you know, to invest in all of the channels and opportunities that we have to drive more people to the app. Remember, only, you know, 46% of our GMS comes through the app right now, and as Lanny mentioned, we know of another marketplace that has almost 90% of their GMS coming through the app. So we just think that there's a lot of headroom there to grow. Great. We'll take one more question, try here before the bell rings. Your final question will come from Shweta Khajuria with Wolfe Research. Okay, thanks for taking my questions. I've got two, please. One is, both are on the longer term side. On agentic commerce, a follow-up. Much of the drawdown that we've seen in internet stocks year to date is in part because of this concern that some of these business models could be disrupted with the AI agents and what they can do. So for anyone who is wondering or debating about Etsy's value proposition as we think longer term, how do you think about the risk that maybe an AI agent could disrupt take rates, or perhaps a seller could go directly to an AI agent, pressuring your take rates or your business model? Outside of advertising, this is a transaction that can happen on an AI agent's platform versus on Etsy. So that's question one. And then second is, how do you think about the durability or where frequency can go as you make more improvements around your app and the product and marketing investments that you do? Is there any structural reason why Etsy's frequency cannot be higher than what we have seen in the past? So how do you think that, of that trend line? Thank you. I'll take the first one. So, Shweta, like you said, we're in very early days in agentic. And what I would say is that early indicators that we're seeing are really encouraging in terms of supporting our hypothesis. This can be an incremental and powerful discovery channel, and because it's so early, no one knows at this moment in time what aspect of, you know, how things are going to evolve or what aspect of the businesses might come under pressure. What I do know is that being in there early, we have proven that as the world changes, we have been really capable and effective at adjusting, really, you know, adjusting to things that are unknown and unexpected that come our way. So we're really confident that as the world evolves, we will evolve with it. But it's impossible to predict right now, you know, for every one of those situations, what might happen. Good. All right, that's it for today. Thank you all for joining.