Etsy’s third-quarter financial performance exceeded expectations, with gross merchandise sales and total revenue both increasing compared to the same period last year. For the quarter ended 30 September 2026, gross merchandise sales rose by 8.8% to $2.65 billion, while total revenue climbed 10.9% to $692.5 million. The company credited this growth to a higher number of active buyers and improved advertising monetisation, following the sale of its Depop platform earlier in the year.
Revenue from the marketplace segment, the core of Etsy’s business, grew 9.1% to $468.1 million, while services revenue, including advertising and promotions, increased 15.0% to $224.3 million. Net income from continuing operations reached $113.6 million, an 8.6% increase from the third quarter of 2025. However, total net income included a $739.9 million gain from discontinued operations, largely due to a $839.7 million pre-tax profit from the Depop sale.
Operating income held steady at $111.4 million, nearly matching the same period in 2025, while operating expenses increased 12.9% to $391.7 million. Adjusted EBITDA, a key measure of profitability, rose 14.6% to $210.4 million. Mobile app sales were a major driver, with GMS from the app up 10.4% year-over-year, compared to a 7.5% increase in non-app transactions. Mobile now represents nearly 47% of total GMS.
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The company’s active buyer base grew by 1%, reaching 87.5 million, with an additional 540,000 buyers added sequentially from the second quarter. For the fourth quarter, Etsy projects marketplace GMS between $3.46 billion and $3.52 billion, a 5% to 7% increase. The company also expects a 25.6% quarterly take rate and an adjusted EBITDA margin near 30%.
CEO Kruti Patel Goyal said: “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.” At the same time, Etsy announced that CFO Lanny Baker will leave the company on 1 March 2027, to explore other opportunities. He will stay on as an adviser until 1 July 2027, while the company searches for a replacement based in New York.
