TLDR
- Etsy Q1 revenue came in at $631.3M, beating the $621M analyst estimate
- Gross merchandise sales grew 5.5% YoY to $2.5B â first growth in over two years
- Diluted EPS from continuing operations hit $0.89, well above the $0.62 estimate
- Active buyers grew sequentially for the first time in two years
- ETSY stock jumped roughly 11% following the results
Etsy posted Q1 2026 revenue of $631.3 million, clearing the analyst consensus of around $621 million. The beat was driven by a return to growth in gross merchandise sales, which rose 5.5% year-over-year to $2.5 billion on the Etsy marketplace.
$ETSY Q1â26 EARNINGS HIGHLIGHTS
đš Revenue: $631.28M (Est. $621.09M) đ˘; +3.1% YoY
đš EPS: $0.60 (Est. $0.61) đĄ
đš GMS: $2.46B; -3.9% YoY
đš Etsy Marketplace GMS: +5.5% YoY
đš Adj. EBITDA: $184.7M; 29.3% Margin
đš Take Rate: 25.7%; +180 bps YoYQ2 Guide:
đš GMS: $2.48B-$2.53B⌠pic.twitter.com/BcIkyZ2B34— Wall St Engine (@wallstengine) April 29, 2026
That GMS figure matters because it snaps a streak of declines. The prior quarter saw a 0.5% drop, making this the first positive year-over-year GMS reading in over two years.
Diluted earnings per share from continuing operations came in at $0.89, well above the $0.62 estimate. Net income from continuing operations hit $104.7 million, a sharp turnaround from a net loss of $35.1 million in Q1 2025, which had been weighed down by a $101.7 million asset impairment charge.
Adjusted EBITDA from continuing operations was $184.7 million, representing a margin of 29.3%. The company also bought back roughly $145 million in stock during the quarter, trimming its outstanding count by about 2.7 million.
CEO Kruti Patel Goyal said the quarter showed “encouraging signals” that growth priorities are taking hold, adding she has “even more conviction” in the company’s ability to turn recent momentum into durable growth.
Buyer Trends Improve
Active buyers grew sequentially for the first time in two years. GMS per active buyer reached $122 on a trailing twelve-month basis â up year-over-year for the first time since late 2022 and the fourth straight quarter of sequential improvement.
Mobile app GMS grew 11.2% year-over-year, with app transactions making up roughly 47% of total GMS.
CFO Lanny Baker told Reuters that demand on Etsy has stayed stable across income levels, even with inflation and tariff uncertainty weighing on household budgets. He also noted that direct tariff exposure is limited, since around 90% of what sellers use to make goods is sourced domestically.
AI-driven traffic is growing on the platform, though Baker flagged it still accounts for only a low single-digit share of total activity, so the financial contribution remains modest for now.
Outlook and Depop Sale
For Q2 2026, Etsy guided for marketplace GMS of $2.48 billion to $2.53 billion, representing 3% to 5% year-over-year growth. The company expects a take rate of approximately 25.7% and an adjusted EBITDA margin of 27% to 29%.
For the full year, Etsy now expects low single-digit GMS growth for the Etsy marketplace â an improvement from prior commentary â and maintained its full-year adjusted EBITDA margin outlook of 28% to 30%.
The company said it expects year-over-year GMS growth in each quarter of 2026.
Etsy closed Q1 with $1.6 billion in cash, cash equivalents, and investments.
The results exclude Depop, which Etsy agreed to sell to eBay for $1.2 billion in February. That deal is expected to close by the end of Q3 2026.
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