Etsy (ETSY) Q2 2026 earnings summary

Executive summary

• Q2 2026 saw accelerated GMS and revenue growth, with improved marketplace fundamentals and a positive outlook for the remainder of the year.

• Strategic focus on discovery, personalization, and loyalty is driving buyer engagement and marketplace health.

• Workforce restructuring aims to streamline operations and deepen machine learning capabilities, not as a cost-cutting measure but to enhance execution; 12% workforce reduction and $35 million in charges announced.

• Completed sale of Depop to eBay for $1.4 billion, with an estimated $840 million gain to be recognized in Q3 2026.

• A new $2 billion share repurchase program was authorized, reflecting confidence in long-term growth.

Financial highlights

• Etsy marketplace GMS reached $2.6 billion, up 7.5% year-over-year; revenue was $668.3 million, with a 25.9% take rate.

• Adjusted EBITDA was $195 million, representing a 29.2% margin, up from 27.1% year-over-year.

• Net income from continuing operations was $114.3 million, up from $45.6 million in Q2 2025.

• Free cash flow (trailing twelve months) was $610.1 million.

• $1.3 billion in cash and investments as of June 30, 2026; $1.4 billion in proceeds from Depop sale.

Outlook and guidance

• Q3 2026 GMS expected between $2.53–$2.58 billion, up 4–6% year-over-year; take rate around 26%, adjusted EBITDA margin 28–30%.

• Full-year 2026 GMS growth anticipated in the mid-single digits, with adjusted EBITDA margin outlook tightened to 29–30%.

• Restructuring expected to lower operating costs and benefit full-year margin while continuing to invest in long-term growth.

• Proceeds from Depop sale to be used for general corporate purposes, share repurchases, and marketplace investment.

• Macroeconomic uncertainty, inflation, and global trade barriers remain key risks to future performance.