Highlights

  • Third quarter 2026 revenue from continuing operations was $692,469 thousand, and gross merchandise sales were $2,646,888 thousand.
  • Etsy closed the sale of Depop to eBay on July 30, 2026 for cash consideration of $1.4 billion.
  • The August 3, 2026 restructuring plan reduced the marketplace workforce by approximately 12%, with $33.9 million of charges in the third quarter.
  • Management said it expects fourth quarter marketplace gross merchandise sales between $3.46 billion and $3.52 billion.

Etsy, Inc. (NYSE:ETSY) shares were trading at USD 91.28 on October 28, 2026, up 4.13%, with a relative volume at time of 3.15. The online marketplace operator closed the Depop sale on July 30, approved a restructuring plan on August 3 and reported third quarter 2026 results on October 28.

Etsy is incorporated in Delaware and lists its principal executive offices in Brooklyn, New York. The company operates a two-sided online marketplace connecting creative entrepreneurs with buyers around the world. It earns revenue from marketplace activities, including transaction fees, payments processing fees and listing fees, and from optional seller services such as on-site advertising and shipping labels. Depop is presented as a discontinued operation, and Reverb was sold on June 2, 2025. Etsy's fiscal year ends December 31.

Third Quarter Results

For the three months ended September 30, 2026, continuing operations revenue was $692,469 thousand, an increase of 10.9% from $624,153 thousand. Marketplace revenue was $468,143 thousand and services revenue was $224,326 thousand. Gross merchandise sales (GMS) were $2,646,888 thousand, up 8.8%, and the revenue take rate was 26.2%.

Gross profit was $503,145 thousand, and operating expenses were $391,712 thousand. Net income from continuing operations was $113,637 thousand, compared with $104,596 thousand. Adjusted EBITDA, a non-GAAP measure, was $210,364 thousand, compared with $183,607 thousand. Active sellers were 5,836 thousand and active buyers were 87,506 thousand.

Total net income was $853,517 thousand, compared with $75,503 thousand, and included net income from discontinued operations of $739,880 thousand. Total diluted net income per share was $7.31, compared with $0.63, and diluted net income from continuing operations per share was $1.00, compared with $0.86. The company recognized a gain on the sale of Depop of $839.7 million.

Restructuring, Cash and Capital

The restructuring plan included an approximately 12% reduction of the Etsy marketplace workforce, or approximately 220 employees. The company said execution was largely complete by the end of the third quarter.

Cash and cash equivalents were $2,065,658 thousand at September 30, 2026, compared with $1,355,428 thousand at December 31, 2025. Long-term debt, net, was $1,688,345 thousand. On October 1, 2026, the company paid cash to settle convertible note conversion notices and to settle remaining 2019 Notes.

Stock repurchases in the third quarter were $397,975 thousand. In August 2026, the Audit Committee approved a program to repurchase up to an additional $2 billion of common stock, and $2.2 billion remained available under the December 2025 and August 2026 programs at September 30, 2026. Net cash provided by operating activities for the nine months was $280,986 thousand.

Nine Months and Operating Metrics

For the nine months ended September 30, 2026, continuing operations revenue was $1,992,059 thousand and GMS were $7,689,975 thousand. Net income was $876,547 thousand, or $7.36 per diluted share. The company noted that Reverb results are included in the 2025 period until its sale, so the nine-month periods are not directly comparable.

Fourth Quarter and 2026 Outlook

The quarterly report does not provide numerical guidance. On the earnings call, management said it expects fourth quarter Etsy marketplace GMS between $3.46 billion and $3.52 billion, representing approximately 5% to 7% growth. It expects a fourth quarter take rate of approximately 25.6% and adjusted EBITDA margin of approximately 30%.

For the full year, management said it anticipates GMS growth of approximately 7%, a take rate of about 25.8% and an adjusted EBITDA margin of roughly 30%. Management also said foreign currency is a modest growth headwind and that prior year comparisons are a factor in the fourth quarter.