E-commerce platform Etsy reported third-quarter growth in gross merchandise sales (GMS) and revenue, driven by active buyer growth and improved advertising monetisation.
For the quarter ended 30 September 2026, GMS rose 8.8% year-on-year (YoY) to $2.65bn, while revenue increased 10.9% to $692.5m.
Results were presented on a continuing operations basis following the sale of Depop.
Consolidated marketplace revenue increased 9.1% YoY to $468.1m, while services revenue grew 15.0% to $224.3m.
Net income from continuing operations rose 8.6% to $113.6m.
Total net income was $853.5m, including a $739.9m contribution from discontinued operations.
This included an $839.7m pre-tax gain on the sale of Depop.
Operating income was $111.4m, compared with $111m in the third quarter of 2025.
Operating expenses increased 12.9% to $391.7m. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) reached $210.4m, up 14.6% YoY.
Marketplace GMS increased 9.1% on a currency-neutral basis. Mobile app GMS rose 10.4% YoY, compared with 7.5% growth in non-app GMS.
Mobile represented approximately 47% of total GMS.
Active buyers increased 1% YoY to 87.5m, with 540,000 added sequentially from the second quarter of 2026.
For the fourth quarter, Etsy expects marketplace GMS to grow by 5% to 7%, reaching between $3.46bn and $3.52bn.
It projects a 25.6% quarterly take rate and an adjusted EBITDA margin of roughly 30%.
Etsy 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.”
Alongside its financial update, Etsy announced that CFO Lanny Baker will leave the company on 1 March 2027 to pursue opportunities outside Etsy.
He is expected to remain as an adviser through 1 July 2027 to support the transition while Etsy searches for his successor, who is expected to be based in New York, US.
