Etsy (ETSY) Q3 2026 Earnings
Diluted EPS from continuing operations of $1.00. Total diluted EPS of $7.31 includes net income from discontinued operations of $739.9 million, which contains a $839.7 million gain on the sale of Depop. Continuing operations include restructuring charges from the August restructuring.
How Did ETSY Stock React to Q3 2026 Earnings?
Did ETSY Beat Earnings? Q3 2026 Results
Yes. Etsy reported Q3 2026 earnings of $1.00 a share on Oct 28, 2026, beating the $0.76 consensus estimate by 32.3%. Revenue was $692.5M against a $668.3M estimate.
Etsy delivered a strong third quarter, beating Wall Street estimates on both the top and bottom lines as improving marketplace fundamentals and a completed divestiture reshaped its financial profile. GAAP diluted EPS came in at $1.00 for continuing operations, ahead of the $0.76 consensus by 32.26%, though the total reported figure of $7.31 per diluted share includes $739.9 million in net income from discontinued operations, driven by an $839.7 million gain on the July 30 sale of Depop. Revenue from the now-standalone Etsy marketplace rose 2.1% year over year to $692.47 million, beating the $668.32 million consensus by 3.61%, with gross merchandise sales climbing 8.8% to $2.60 billion and active buyers returning to year-over-year growth at roughly 88 million. Adjusted EBITDA expanded to $210.40 million, a 30.4% margin, as personalization-driven search improvements and stronger Etsy Ads monetization lifted the take rate 50 basis points to 26.2%. Looking ahead, management guided Q4 GMS of $3.46 billion to $3.52 billion, implying 5-7% growth, with a full-year adjusted EBITDA margin target of approximately 30%.
- Etsy marketplace GMS of $2.6B, up 8.8% Y/Y (9.1% currency-neutral), with FX-neutral growth accelerating ~190 bps from Q2
- Revenue up 10.9% Y/Y; Marketplace revenue up 9.1% and Services revenue up 15.0%
- Take rate of 26.2%, up 50 bps Y/Y, driven by Etsy Ads enhancements and Offsite Ads
- Active buyers up 1.0% Y/Y to ~88 million, up ~540,000 sequentially; gross buyer additions up 6.2%
- GMS per active buyer up 3.9% Y/Y on a trailing-twelve-month basis
- App GMS up 10.4% and non-App GMS up 7.5% Y/Y; mobile GMS share about 47%
- Personalization improvements estimated to contribute ~2 percentage points to annualized GMS growth
- Adjusted EBITDA of $210.4M, up 14.6%, at a 30.4% margin, helped by the August restructuring
- Strong growth in Home and Living, wedding-related items and back-to-school items
- Paid marketing efficiency gains from product listing ad (PLA) segmentation; return on marketing spend increased meaningfully
“After three consecutive quarters of accelerating growth this year, I'm increasingly confident that our business is now firmly in growth mode. We have sustainable momentum, and clear evidence that the changes we've made to how we operate and invest are strengthening our business and driving more durable performance.”
Etsy CEO, on the earnings call
What Is Etsy's Outlook?
Outlook covers continuing operations (the Etsy marketplace) only. **Q4 2026** - GMS of $3.46B to $3.52B, up 5-7% year over year. - Take rate of ~25.6%. - Adjusted EBITDA margin of ~30%. **Full year 2026** - GMS growth of ~7%. - Take rate of ~25.8%. - Adjusted EBITDA margin of ~30%. **Assumptions** - Macroeconomic factors remain relatively consistent. - Foreign currency is a modest growth headwind, with exchange rates held at current spot levels. - Prior-year comparisons become less favorable. **Other expectations** - Etsy expects to sustain healthy adjusted EBITDA profitability while gradually adding product and engineering headcount. - It expects to continue repurchasing shares at an accelerated rate.
ETSY YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $692.5M | $678.0M | +2.1% |
| Gross Profit | $503.1M | $483.4M | +4.1% |
| Operating Income | $111.4M | $82.7M | +34.7% |
| Net Income | $853.5M | $75.5M | +1,030.4% |
ETSY Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.