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Etsy reported third-quarter 2026 continuing-operations revenue of $692.469 million, up 10.9% year over year, while Etsy marketplace gross merchandise sales (GMS) reached $2.646888 billion, up 8.8%. Total net income was $853.517 million, but that figure includes a large one-time gain from selling Depop; continuing-operations net income was $113.637 million.
The company’s official Q3 materials do not identify the often-cited $668 million analyst estimate, so Etsy’s result cannot be described as an independently verified beat against that figure. Etsy’s Q2 filing reports $668.313 million of actual Q2 revenue, which may explain the comparison appearing in some discussions.
What did Etsy report for Q3 2026?
Etsy’s marketplace business delivered faster growth in the September quarter, with both sales activity and recognized revenue improving. The headline net-income figure is not representative of recurring marketplace earnings because the Depop disposal was recorded in discontinued operations.
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1Clear out junk files and repair common Windows errors2Scan for outdated or missing drivers - takes under a minute3Repair Windows errors before they cause bigger problems| Measure | Q3 2026 | Year-over-year context |
|---|---|---|
| Continuing-operations revenue | $692.469 million | Up 10.9% |
| Etsy marketplace GMS | $2.646888 billion | Up 8.8% reported; 9.1% currency-neutral |
| Total net income | $853.517 million | Includes discontinued operations from Depop |
| Continuing-operations net income | $113.637 million | Profit from the ongoing Etsy marketplace |
| Adjusted EBITDA | $210 million | 30.4% margin; non-GAAP measure |
| Take rate | 26.2% | Up 50 basis points |
Etsy’s rounded key metrics are $692 million of revenue, $2.6 billion of GMS, $114 million of continuing-operations net income and a 30.4% adjusted EBITDA margin. The detailed GAAP figures above are the appropriate reference for exact financial reporting.
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Why did Etsy’s net income jump after selling Depop?
Etsy completed the Depop sale on July 30, 2026. Depop is therefore presented as a discontinued operation through the closing date, while the continuing-operations line represents the Etsy marketplace that remains with the company.
Discontinued operations contributed $739.880 million of net income in the quarter. That contribution included an $839.7 million gain on the sale before tax, making the $853.517 million total net-income figure unusually large relative to the $113.637 million earned by continuing operations. The disposal gain is a one-time accounting effect, not recurring operating profit or evidence that Etsy’s marketplace suddenly generated more than $850 million in normal quarterly earnings.
How did Etsy’s revenue and marketplace sales grow?
Revenue and GMS measure different parts of the business. GMS is the value of goods purchased through Etsy’s marketplace, whereas revenue is the portion Etsy recognizes from marketplace fees and services. GMS can therefore rise faster or slower than revenue without representing the same dollars.
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Marketplace and Services revenue
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|---|---|---|
| Marketplace revenue | $468.143 million | Up 9.1% |
| Services revenue | $224.326 million | Up 15.0% |
Services revenue grew faster than marketplace revenue, helping lift the overall take rate to 26.2%, 50 basis points higher than a year earlier. Etsy describes the take rate as a marketplace monetization measure; it should not be read as the percentage of each seller’s item price that Etsy keeps in every transaction.
Reported GMS growth was 8.8%. On a currency-neutral basis, which removes the effect of exchange-rate movements, growth was 9.1%. The distinction matters when comparing underlying marketplace demand across periods with different currency conditions.
Are Etsy’s active buyers growing again?
Yes. Trailing-twelve-month active buyers increased 1.0% to approximately 88 million, the first year-over-year increase in two years. GMS per buyer rose 3.9%, indicating that the improvement came not only from buyer count but also from spending by the buyer base.
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Growth was broad across U.S. and non-U.S. buyers and across income cohorts, according to Etsy. App GMS increased 10.4%, compared with 7.5% for non-App GMS, and mobile represented about 47% of GMS.
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Etsy attributed the stronger trajectory to product, search and marketing changes rather than to a single factor.
- Personalization improvements were estimated by management to contribute approximately two percentage points to the annualized year-over-year GMS growth rate.
- Search relevance and quality signals were refined to improve how buyers discover products.
- Seller tools and AI-assisted listing and communication features were expanded.
- Marketing efficiency improved, while Etsy Ads matching and budget-pacing changes helped sellers reach shoppers more effectively.
Chief executive officer Kruti Patel Goyal wrote in the October 28, 2026 shareholder letter: “After three consecutive quarters of accelerating growth this year, I’m increasingly confident that our business is now firmly in growth mode.”
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Was Etsy’s $692.5 million revenue above the $668 million estimate?
Etsy’s official Q3 2026 shareholder letter and earnings release support the $692.469 million result but do not identify a consensus estimate of $668 million. The company’s official Q2 2026 filing does report $668.313 million of actual revenue, so treating $668 million as an analyst estimate would conflate a prior-quarter result with an unavailable consensus figure.
Until an attributed estimates provider publishes that comparison, the defensible statement is that Etsy reported $692.469 million of Q3 continuing-operations revenue, up 10.9% year over year—not that it beat a confirmed $668 million estimate.
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What is Etsy’s Q4 2026 outlook?
Etsy guided fourth-quarter 2026 GMS to $3.46 billion–$3.52 billion, representing year-over-year growth of 5%–7%. For the full year, management expects approximately 7% GMS growth and roughly a 30% adjusted EBITDA margin.
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The guidance applies to the ongoing Etsy business after Depop’s disposal. Adjusted EBITDA is a non-GAAP measure, so it should be considered alongside GAAP operating income, net income and cash-flow information rather than as a replacement for them.
How should readers interpret the quarter?
The continuing business showed improving demand, stronger monetization and a modest recovery in active buyers. However, the very large total net-income number is dominated by the Depop sale and should not be used as a run-rate measure. For operating momentum, revenue, GMS, buyer trends and continuing-operations earnings provide the clearer picture.
Frequently Asked Questions
What does Etsy’s take rate measure?
It is a ratio of Etsy’s recognized marketplace revenue to marketplace GMS, used to track monetization of transactions. It does not equal a universal fee charged to every seller or order because Etsy’s revenue includes several fee and service components.
Why can a company’s total net income be much higher than continuing-operations income?
When a business is sold, accounting rules can place its prior-period results and disposal gain in discontinued operations. Total net income then combines the ongoing business with that transaction, while continuing operations isolates activities expected to remain.
What does currency-neutral growth mean for Etsy?
Currency-neutral growth recalculates the comparison using consistent exchange rates, removing translation effects from international sales. It is useful for judging demand trends, but it is not the reported GAAP growth rate.
Is adjusted EBITDA the same as Etsy’s cash profit?
No. Adjusted EBITDA is a management-defined non-GAAP performance measure that excludes specified items and does not capture all changes in working capital, capital spending or cash taxes. Cash-flow statements and GAAP results are needed to assess actual cash generation.
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