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Etsy
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Updated Oct 28, 2026
Etsy Q3 2026: GMS accelerates to +8.8% with active buyers returning to growth for first time in two years, full-year outlook raised.
Etsy's Q3 2026 results mark a structural inflection: active buyers returned to year-over-year growth for the first time in two years, GMS reached $2.6 billion (+8.8% YoY), and personalization initiatives alone contributed an estimated 2 percentage points to annualized GMS growth. Adjusted EBITDA margin of 30.4% expanded as marketing ROI improved and restructuring actions took effect, with EBITDA growing faster than revenue for the second consecutive quarter. Management raised the full-year GMS growth outlook to approximately 7% and full-year adjusted EBITDA margin to roughly 30%, signaling confidence that internal initiatives — not external tailwinds — are now the primary growth driver.
Tone: bullishRevenue
$2.9B
ETSY 10-K · FY 2025
Employees
2,375
Revenue FY2024
$2.8B
EBITDA margin
30.4%
Profile
ETSY 10-K Item 1 · Feb 19, 2026Etsy, Inc. operates two-sided online marketplaces connecting independent creative sellers with buyers globally. Its primary marketplace focuses on unique, handcrafted, and vintage goods, while its Depop subsidiary is a fashion resale marketplace. The company generates revenue through transaction fees, payment processing fees, listing fees, and optional seller services such as on-site advertising and shipping labels.
Read filing description ↓ Collapse description ↑
Etsy operates two-sided online marketplaces that connect millions of creative entrepreneurs with buyers around the world. The Etsy marketplace is the global destination for unique, creative goods from independent sellers, connecting artisans with thoughtful consumers seeking items that reflect their tastes and values. We also operate Depop Limited ('Depop'), a leading fashion resale marketplace acquired in 2021. Total consolidated Gross Merchandise Sales ('GMS') in 2025 was $11,916.9 million. Of this, Etsy marketplace GMS was $10,460.7 million or 87.8% of the total and Depop generated $1,074.9 million (or 9.0% of the total) of GMS. Because we do not hold physical inventory, we have the ability to lean into our flexible, asset-light operating model and adjust our investments in response to evolving consumer interests and market dynamics. We generate revenue primarily from marketplace activities, including transaction fees (inclusive of offsite advertising), payments processing fees, and listing fees, as well as from optional seller services such as on-site advertising and shipping labels. Our revenue streams and efficient operating model support strong free cash flow generation. In 2025, our business generated $693.4 million of cash from operating activities and $638.8 million in consolidated free cash flow, providing financial strength and flexibility to support our mission and our marketplaces.
Primary products
- Transaction Fee (inclusive of Offsite Advertising Fee)
- Payments Processing Fee
- Listing Fee
- On-site Advertising
- Shipping Labels
- Etsy Insider loyalty program
Business segments
End markets
Geographies
“We are able to compete for buyers based on the breadth and quality of items that sellers list in our marketplaces, the ease of finding items, the value and awareness of our brands, the person-to-person commerce experience, customer service, our reputation for trustworthiness, the effectiveness of our mobile apps, the availability of timely, fair, and free shipping offered by sellers to buyers, ease of payment, localization, and experiences targeted based on regional preferences, and the availability and reliability of our platforms.” Competitive position, as stated in the filing
Revenue commentary · FY 2025
Revenue grew 2.7% year-over-year in 2025 despite a 5.3% decline in GMS, driven primarily by improvements to the Etsy Ads product that lifted the revenue take rate by 190 basis points to 24.2%.
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