Etsy

ETSY Q1 2026 Earnings

Reported Apr 29, 2026 at 7:06 AM ET · SEC Source

Q1 26 EPS

$N/A

Q1 26 Revenue

$631.0M

BEAT +2.22%

Est. $617.3M

vs S&P Since Q1 26

+22.5%

BEATING MARKET

ETSY +25.5% vs S&P +3.0%

Market Reaction

Did ETSY Beat Earnings? Q1 2026 Results

Etsy delivered a stronger-than-expected first quarter under incoming CEO Kruti Patel Goyal, posting revenue of $631.00 million against a consensus estimate of $617.31 million, a beat of 2.22%, though total revenue still fell 3.1% year-over-year on a … Read more Etsy delivered a stronger-than-expected first quarter under incoming CEO Kruti Patel Goyal, posting revenue of $631.00 million against a consensus estimate of $617.31 million, a beat of 2.22%, though total revenue still fell 3.1% year-over-year on a reported basis. The key driver behind the upside was a meaningful recovery in Etsy marketplace gross merchandise sales, which reached $2.50 billion, growing 5.5% year-over-year and marking a second consecutive quarter of GMS expansion, a notable shift after an extended period of contraction. Adjusted EBITDA came in at $185.00 million with a 29.3% margin, while net income from continuing operations reached $105.00 million, improving $33.00 million year-over-year. Active buyers grew sequentially for the first time in two years, and GMS per active buyer rose on a trailing twelve-month basis, adding further momentum to the story. Management, which had faced bearish expectations from analysts heading into the print, now anticipates low single-digit GMS growth for full-year 2026, with year-over-year gains expected in each remaining quarter, though currency tailwinds and favorable order value dynamics are seen moderating as the year progresses.

Key Takeaways

  • Etsy marketplace GMS grew 5.5% YoY, a 540 bps improvement vs Q4 2025
  • Mobile app GMS growth accelerated to 11.2% YoY, reaching ~47% of total GMS
  • GMS per active buyer increased YoY for first time since late 2022, reaching $122 TTM
  • Active buyers grew sequentially for the first time in two years
  • New buyers and active sellers both grew year-over-year
  • Take rate expanded to 25.7%, up 180 bps YoY, led by Etsy Ads ML improvements
  • Higher AOV driven by FX tailwinds, de minimis tariff exemption expiration, and seller price increases
  • Paid search delivered strong returns with improved PLA segmentation and data feeds
  • SEO improvements strengthened search visibility and ranking
  • Free cash flow conversion rate of 50% of Adjusted EBITDA, more than double YoY
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ETSY YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

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ETSY Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“Etsy's path back to long-term growth is grounded in a focused plan: expanding how and where buyers discover us, connecting them with items that feel personal and relevant, and building relationships that go beyond transactions.”

— Kruti Patel Goyal, Q1 2026 Earnings Press Release