Etsy, Inc. Earnings Recaps
Etsy shares closed up 1.8% following first quarter 2026 results, as key performance indicators landed at or ahead of expectations and early signs of customer engagement improvement emerged. The market reaction suggests a neutral-to-modestly positive read, with investors weighing healthy GMS growth and a sequential increase in active buyers against the company’s ongoing transformation plan.
Key takeaways
- Gross merchandise sales (GMS) reached $2.5 billion, up 5.5% year-over-year for the Etsy Marketplace.
- Revenue totaled $631 million on a take rate of 25.7%; adjusted EBITDA was $185 million for a 29.3% margin.
- Active buyers grew sequentially for the first time in two years, and both new buyer and active seller counts increased year-over-year.
- GMS per active buyer returned to year-over-year growth for the first time since 2022, and app GMS expanded 240 basis points to 47% of total GMS, with app GMS up 11.2% year-over-year.
- Management highlights early positive signals from personalization and AI investments but acknowledges these are initial steps toward rebuilding buyer frequency and marketplace health.
Etsy's Q3 2025 earnings exceeded expectations with notable improvements in gross merchandise sales (GMS), revenue, and adjusted EBITDA as the company transitions leadership to Kruti Patel Goyal.
Key takeaways
- Combined GMS for Etsy and Depop showed year-over-year growth, achieving $2.43 billion despite a 2.4% decline year-over-year for Etsy alone.
- Depop's GMS surged 39.4% year-over-year to $292 million, bolstered by new user acquisition and improved buyer conversion rates.
- The transition in leadership from Josh Silverman to Kruti Patel Goyal is positioned as a strategic move to leverage AI and enhance customer experience.
- Key strategic priorities focus on personalized shopper experiences and deepening community loyalty, setting a positive tone for future growth.
Etsy's Q2 2025 results exceeded expectations, fueled by a strategic focus on enhancing customer experience and app engagement, despite a year-over-year decline in gross merchandise sales (GMS).
Key takeaways
- Adjusted EBITDA margin aligned with guidance, reflecting effective cost management amid competitive pressures.
- GMS declined 5.4% year-over-year, but showed significant improvement from the previous quarter, indicating a potential turnaround.
- The Etsy app's GMS growth outpaced non-app GMS, now constituting nearly 45% of total GMS, driven by improved user experience and increased personalization in marketing.
- Depop delivered an impressive 35% year-over-year GMS growth, showcasing strong momentum in the online fashion resale market.
- Strategic marketing investments in Q3 aim to expand brand awareness and customer engagement further.