Etsy, Inc. Q1 2026 Earnings Recap

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.