Etsy’s Third-Quarter Revenue Reaches $692.5 Million, Net Income $853.5 Million
Key Facts
Etsy reported revenue of $692.5 million in the third quarter of 2026, up 10.9% from the same period last year, according to figures cited by Quiver Quantitative. Net income totaled $853.5 million, but that figure includes $739.9 million from discontinued operations related to the sale of Depop. Net income from continuing operations was $113.6 million. The breakdown puts the apparent jump in net income in the context of the Depop sale, rather than attributing it solely to the performance of the continuing business. The company had said it would release its quarterly results before the market opened on October 28, with a results discussion call scheduled for 8:30 a.m. U.S. Eastern time.
At the marketplace level, gross merchandise sales through Etsy’s marketplace rose 8.8% to $2.6 billion during the quarter. Active buyers increased 1.0% year over year to about 88 million. That compares with the second quarter, when gross merchandise sales were $2.6 billion and grew 7.5% year over year, while active buyers totaled about 87 million. The company had said the number of buyers rose by about 350,000 sequentially in the second quarter and returned to roughly stable levels year over year. These figures show sales growth and a change in the buyer base, without establishing that the increase in buyers caused net income to rise.
In its second-quarter shareholder letter, Etsy said gross merchandise sales growth, excluding the impact of foreign exchange, accelerated by about 360 basis points compared with the first quarter. It added that the second quarter marked the fifth consecutive quarter of sequential improvement in the metric. In the third quarter, the company recorded year-over-year growth of 8.8% in merchandise sales through its marketplace, according to figures cited by Quiver Quantitative. Revenue also rose at an annual rate of 10.9%. These indicators provide a comparison of marketplace momentum in the second and third quarters, alongside revenue growth in the latest quarter.
Adjusted earnings before interest, taxes, depreciation and amortization were $210.4 million in the third quarter, with an adjusted margin of 30.4%, according to Quiver Quantitative. These figures provide a separate measure from net income, which was affected by the discontinued-operations item related to Depop. Etsy completed the sale of Depop to eBay on July 30, 2026, and received about $1.4 billion in cash upon completion of the deal. Income from discontinued operations related to the sale was $739.9 million in the third quarter. The distinction between continuing-operations results and the deal-related impact therefore remains central to reading the profitability figures.
In August, Etsy announced a plan to cut about 220 jobs, equivalent to roughly 12% of its workforce, and expected its headcount to be about 1,600 after the restructuring. That same month, the company was authorized to launch a new share repurchase program worth up to $2 billion. For the fourth quarter of 2026, Etsy expects gross merchandise sales of between $3.46 billion and $3.52 billion and an adjusted earnings before interest, taxes, depreciation and amortization margin of about 30%. These forecasts set out the activity and margin measures markets will track in the coming quarter. The available evidence did not include a documented share price after the results announcement.