Etsy (ETSY) Q1 2026 earnings summary

Executive summary

• Achieved Etsy marketplace GMS of $2.5B, up 5.5% year-over-year, with revenue of $631.3M and Adjusted EBITDA of $185M (29.3% margin).

• Net income from continuing operations was $104.7M, a turnaround from a net loss in Q1 2025, reflecting improved profitability and the absence of prior year impairment charges.

• Active buyers grew sequentially for the first time in two years; new buyers and active sellers also increased year-over-year.

• Mobile app GMS rose 11.2% year-over-year, now representing 47% of total GMS.

• Sale of Depop to eBay for $1.2B expected to close by Q3 2026; results now presented on a continuing operations basis.

Financial highlights

• Etsy marketplace GMS up 5.5% year-over-year, a 540 bps improvement from Q4 2025.

• Take rate reached 25.7%, up 180 bps year-over-year, driven by Reverb divestiture and Etsy Ads growth.

• Adjusted EBITDA margin at 29.3%; 50% of Adjusted EBITDA converted to free cash flow, more than double last year.

• Net cash from operating activities was $102.5M for the quarter; trailing twelve months net cash provided by operating activities was $725M.

• Repurchased $145M in stock, reducing share count by 2.7M; $828M remains authorized for repurchases.

Outlook and guidance

• Q2 2026 GMS expected between $2.48B and $2.53B, up 3%-5% year-over-year.

• Q2 take rate expected at 25.7%, Adjusted EBITDA margin 27%-29%.

• Full-year GMS growth anticipated in low single digits; full-year Adjusted EBITDA margin outlook of 28%-30% unchanged.

• Management expects to utilize Depop sale proceeds for share repurchases and investment in the Etsy marketplace.

• Year-over-year comparisons to become less favorable as 2026 progresses due to moderating FX tailwinds and lapping prior benefits.