Etsy, Inc. announced that Kruti Patel Goyal will become CEO on January 1, 2026. She succeeds Josh Silverman, who will transition to Executive Chair through the end of 2026.
The leadership change occurs at a moment when Etsy’s core marketplace shows signs of slowing. In the third quarter, the company reported gross merchandise sales of about US $2.72 billion, down from around US $2.92 billion a year earlier. Active buyers fell approximately 5% to 86.6M, and active sellers dropped roughly 11% to 5.5M.
At the same time, Etsy delivered revenue of US $678 million in the quarter, exceeding expectations.
The leadership design
Etsy’s board framed the change as deliberate rather than reactive. Silverman has served as CEO since 2017 and guided the company through rapid growth phases. Goyal has built her credentials within Etsy and its subsidiary Depop, where she led marketplace growth and will bring that experience into the next leadership era.
By positioning Silverman to remain as Executive Chair through 2026, Etsy preserves institutional memory while enabling Goyal to assume full operational responsibility. The transition also gives the board time to monitor execution under new leadership without interruption to governance.
Marketplace challenge meets leadership momentum
Etsy’s marketplace faces a dual challenge: participation from sellers and engagement from buyers. The decline in seller count implies pressure on the supply side of the two-sided model. The drop in buyer activity implies that consumption is shifting or being constrained. Together they signal that growth will require more than incremental optimization.
For Goyal, the mandate is clear: restore momentum in the marketplace while maintaining the distinct identity that has differentiated Etsy, connecting users to unique goods and creative sellers. That means focusing on seller onboarding, product discovery, commerce conversion and retention, and perhaps international expansion or new formats.
The backdrop of regulatory headwinds (for example, changes in duty-free treatment for cross-border e-commerce) and competitive pressure may amplify near-term challenges.
The governance and strategic anatomy
Etsy’s decision reflects a governance philosophy where succession is considered an integral part of the business model. The system established under Silverman must endure beyond his tenure through a repeatable leadership structure. The board’s proactive involvement and structured handover emphasize this perspective. The next CEO will lead while inheriting stability rather than turmoil. However, inheriting stability does not mean inheriting ease. The marketplace is mature, competition has increased, and growth now depends on strategic shifts rather than early momentum.
Key metrics to watch
- Seller reactivation and new-seller growth rates.
- Buyer retention and repeat purchase rates.
- Fourth quarter gross merchandise sales guidance and performance relative to the prior year (~US $3.74 billion in Q4 of the prior period).
- Clarity on operating roles between the CEO and the Executive Chair during 2026.
- Any announcements on marketplace expansion, format innovation, or monetization enhancements?
Closing reflection
Etsy’s next chapter will be defined by how the organisation adapts its marketplace model when the two-sided engine shows signs of strain. Goyal’s elevation marks the end of one era and the beginning of another, an era where leadership is built into the system rather than borrowed from outside. The company’s ability to translate its creative identity into renewed growth will determine whether this transition is a milestone or simply another change of guard.