TLDR
- eBay is acquiring Depop from Etsy for $1.2 billion in cash, with the deal expected to close in Q2 2026.
- Depop generated $1 billion in gross merchandise sales in 2025, with nearly 60% U.S. growth year-over-year.
- eBay stock rose around 6.7% and Etsy stock jumped roughly 16.9% following the announcement.
- eBay also beat Q4 earnings, posting adjusted EPS of $1.41 vs. the $1.35 estimate, with revenue of $2.96 billion vs. $2.88 billion expected.
- Etsy originally bought Depop for $1.62 billion in 2021, meaning it’s selling at a loss, but the deal lets Etsy refocus on its core marketplace.
eBay is buying Depop from Etsy for $1.2 billion in cash. The deal sent both stocks sharply higher in after-hours trading Wednesday.
Shares of EBay rose in extended trading after the company reported quarterly sales and profit that exceeded estimates and announced it’s acquiring Depop from Etsy in a cash deal worth approximately $1.2 billion https://t.co/MV0kbwdk0V
— Bloomberg (@business) February 18, 2026
eBay shares climbed around 6.7%, while Etsy stock surged roughly 16.9% on the news. Both companies’ boards unanimously approved the transaction.
Depop is a London-based secondhand fashion platform popular with younger shoppers. Nearly 90% of its 7 million active buyers are under 34.
The platform posted around $1 billion in gross merchandise sales in 2025, including close to 60% growth in the U.S. compared to the prior year. It has more than 3 million active sellers and 56.3 million registered users.
For eBay, the deal is about getting younger. CEO Jamie Iannone said Depop gives eBay a foothold with Gen Z and Millennials, and fits into what he called an expanding “recommerce landscape.” eBay sees it as a fast-growing category that complements its existing platform.
Etsy, on the other hand, is letting it go. The company originally paid $1.62 billion for Depop back in 2021, so this deal represents a loss on that investment. CEO Kruti Patel Goyal called it “a great outcome for Etsy’s shareholders” and said it allows Etsy to put full focus back on its core marketplace.
eBay’s Q4 Earnings Add to the Good News
The Depop announcement wasn’t the only reason eBay investors were smiling Wednesday. The company also dropped a strong Q4 earnings report.
eBay posted adjusted earnings of $1.41 per share, topping the $1.35 analyst estimate. Revenue came in at $2.96 billion, ahead of the $2.88 billion forecast — a 15% increase year-over-year.
Looking ahead, eBay guided for Q1 adjusted EPS of $1.53 to $1.59 and revenue of $3 billion to $3.05 billion, both above what Wall Street had expected.
Etsy Trims Its “House of Brands”
Depop wasn’t the first acquisition Etsy has walked away from. The company previously sold off Elo7 and Reverb as it struggled to maintain momentum after the pandemic e-commerce boom faded.
Etsy has faced rising competition from Amazon, Shopify, and low-cost rivals like Temu and TikTok Shop, making the case for a leaner, more focused strategy.
Etsy is set to report its Q4 2025 earnings Thursday morning, with analysts expecting EPS of $0.84 — an 18.4% decline from the same period last year.
Wall Street currently has a Hold consensus on Etsy stock, with an average price target of $61.58, implying around 40% upside from recent levels.
The Depop deal is subject to regulatory approval and standard closing conditions, with both companies targeting a Q2 2026 close.
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