10-Q · April 29, 2026
Etsy's Q1 2026 reported earnings showed a revenue of $631 million, growing 7.6% year-over-year and surpassing expectations of $617 million. Earnings per share (EPS) matched estimates at $0.62, marking a significant…
Earnings analysis · 10-Q
ETSY earnings analysis
Filed October 28, 2026 · Our reading of the company's report
The latest report
Etsy delivered a strong third quarter, with $692.469 million of revenue and $1.00 of diluted EPS versus consensus estimates of $667.821 million and $0.76, respectively. Marketplace GMS increased 8.8%, adjusted EBITDA…
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Etsy delivered a strong third quarter, with $692.469 million of revenue and $1.00 of diluted EPS versus consensus estimates of $667.821 million and $0.76, respectively. Marketplace GMS increased 8.8%, adjusted EBITDA margin reached 30.4%, and free cash flow rose to $236.369 million from $39 million in Q2 2026. The main offsets are the absence of updated revenue or EPS guidance, increasing cross-border trade and regulatory burdens, restructuring execution risk, and significant convertible debt obligations.
Reported figures
- Earnings per share
- $1.0
What stood out
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Revenue beat consensus and prior periods
Revenue was $692.469 million, up approximately 3.7% from $667.821 million in Q2 2026 and 2.1% from $678 million in Q3 2025; it exceeded the $667.821 million consensus estimate by $24.648 million.
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EPS materially exceeded consensus
Diluted EPS from continuing operations was $1.00 versus $(0.36) in Q2 2026 and $0.63 in Q3 2025, exceeding the $0.76 consensus estimate by $0.24.
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Marketplace momentum accelerated
Marketplace GMS grew 8.8% year over year, while adjusted EBITDA margin expanded to 30.4%, supporting stronger operating leverage.
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Free cash flow rebounded sharply
Quarterly free cash flow was $236.369 million, up from $39 million in Q2 2026 and $215 million in Q3 2025, an increase of $197.369 million sequentially and $21.369 million year over year.
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Share repurchases continued
Etsy repurchased 5.178 million shares during the quarter. The August 2026 authorization added up to $2 billion of repurchase capacity, with approximately $2 billion remaining as of September 30, 2026.
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FY2026 GMS and margin outlook
Management’s FY2026 outlook targets approximately 7% GMS growth, a 25.8% take rate, and approximately 30% adjusted EBITDA margin, indicating continued focus on monetization and profitability.
What to watch
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Cross-border trade costs are rising
The filing states that the U.S. global de minimis exemption for commercial goods is eliminated beginning in July 2027, while the E.U. eliminated its exemption effective July 1, 2026. These changes may increase costs and compliance burdens for lower-value cross-border orders and could reduce seller participation.
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Restructuring execution risk
Etsy announced a restructuring plan in August 2026 to simplify its organization, but the filing cautions that the plan may not yield its intended results. Restructuring execution and related costs could affect operating results, particularly while the company is also reallocating resources toward artificial intelligence and machine learning.
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Convertible debt and refinancing exposure
Etsy has significant convertible debt, including the 2020 Notes, 2021 Notes, and 2025 Notes, and the 2019 Notes matured on October 1, 2026. The filing warns that insufficient operating cash flow or tighter credit markets could require refinancing, asset sales, or additional equity capital on unfavorable or dilutive terms.
Management's outlook
No comparable numeric revenue or EPS guidance was provided. Management’s FY2026 outlook calls for approximately 7% Marketplace GMS growth, a take rate of approximately 25.8%, and an adjusted EBITDA margin of approximately 30%.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.