Etsy (ETSY) Q3 2026 earnings summary

Executive summary

• Marketplace momentum strengthened for a third consecutive quarter, with product, personalization and marketing initiatives increasingly driving growth.

• Active buyers returned to YoY growth, active sellers grew at their fastest rate in two years, and GMS per buyer rose for a third consecutive quarter.

• Strategic priorities include personalized discovery, higher-quality inventory, seller support, and making craftsmanship and human connection more visible.

Financial highlights

• Q3 revenue was $692.5M, up 10.9% YoY; marketplace revenue rose 9.1% to $468.1M and services revenue rose 15.0% to $224.3M.

• Marketplace GMS was $2.6B, up 8.8% YoY; continuing-operations net income was $113.6M (+8.6%) and diluted EPS was $1.00, versus $0.86.

• Adjusted EBITDA was $210.4M, up 14.6% YoY, with a 30.4% margin, up 100 bps; growth exceeded revenue growth for a second consecutive quarter.

• Total net income was $853.5M, including $739.9M from discontinued operations and the $839.7M Depop sale gain.

• Gross profit was $503.1M; operating expenses were $391.7M and operating income was $111.4M, versus $111.0M a year earlier.

Outlook and guidance

• Q4 marketplace GMS guidance: $3.46B–$3.52B, or ~5%–7% YoY growth; take rate ~25.6% and Adjusted EBITDA margin ~30%.

• FY 2026 outlook: GMS growth ~7%, take rate ~25.8%, and Adjusted EBITDA margin ~30%.

• Outlook assumes relatively consistent macro conditions, modest FX headwinds and less favorable Q4 comparisons; holiday demand and timing of product benefits drive the guidance range.

• Marketing investment will be set against ROI targets, reflecting efficiency, competitive conditions and expected returns.

• Cash, investments and operating cash generation are expected to cover anticipated operating cash needs for at least 12 months; macroeconomic conditions remain a source of uncertainty for liquidity needs.