Etsy, Inc. · NYSE:ETSY
Etsy — Q3 2026 Earnings Presentation
20 slides from Etsy's earnings presentation, Oct 28, 2026
Slide 1: Third Quarter 2026 Shareholder Letter
Third Quarter 2026 Shareholder Letter Nicky, ‘WinkingCatClay’ shop on Etsy
Slide 2: Dear Shareholders
Dear Shareholders, 2026 has been a year of meaningful transformation for Etsy. We entered the year with a clear diagnosis of the business’ needs and a set of priorities designed to address them. At the same time, we developed more clarity and conviction in Etsy’s differentiation: our sellers’ creati
Slide 3: Growth Priorities are Driving Improved Marketplace Performance
Growth Priorities are Driving Improved Marketplace Performance Investing in Etsy’s Core Differentiation Creativity, craftsmanship, and connection are what set Etsy apart, and we’ve made meaningful progress bringing these characteristics to life more consistently in the buyer and seller experience. L
Slide 4: Strategic shifts in marketing have been a big part of our 2026 success
still much more to do to make discovery more inspiring and relevant, and our goal is simple: to make Etsy better for buyers every time they come back. Evolving approaches to support Seller and Buyer Loyalty Creative entrepreneurs come to Etsy to build businesses around their craft, and our ambition
Slide 5: Etsy matters more in an AI world
Reaching younger audiences in new ways: We’re showing up in more of the places and moments where younger audiences discover - from music festivals and cultural moments to holiday markets. These experiences bring Etsy’s humanity to life, while extending our reach and relevance across paid, owned, and
Slide 6: The Road Ahead
As we embrace these opportunities, we're equally focused on preserving the creativity, authenticity, and trust that make Etsy different. We're making our policies clearer, strengthening enforcement, and deploying product improvements to help ensure that AI supports human creativity rather than obscu
Slide 7: Q3 2026 Financial Results
Q3 2026 Financial Results Etsy’s results of operations are presented on a continuing operations basis, while Depop is presented as a discontinued operation for all periods presented through the closing date of July 30, 2026. The GMS drivers and key customer metrics presented below are for the Etsy m
Slide 8: Q3 2026 Revenue and Take Rate Performance
Q3 Merchandise Spotlight: Etsy continues to win for shopping occasions where our sellers offer differentiated merchandise Home and Living saw Wedding-related items Strong growth in ‘back to Our merchandising strong growth, largely delivered healthy GMS school’ items including the programs bring Etsy
Slide 9: Q3 2026 Operating Expenses
Digging in a bit on Etsy Ads, what distinguishes this service from other ecommerce advertising models is who we serve and the value we create for them. The majority of Etsy Ads revenue comes from sellers with less than $100,000 in annual GMS - solopreneurs and microbusinesses that are at the heart o
Slide 10: Strong Cash Flow Generation and Continued Accelerated Share Repurchases
Strong Cash Flow Generation and Continued Accelerated Share Repurchases As of September 30, 2026, Etsy held $2.5 billion in cash, cash equivalents and short- and long-term investments. Proceeds from the sale of Depop, which closed on July 30, 2026, contributed to our cash balance at quarter end. Sub
Slide 11: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements This shareholder letter contains or references forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include statements relating to our financial outlook for the fourth quarter and full year
Slide 12: Third Quarter 2026 Financial Summary
Third Quarter 2026 Financial Summary (in thousands, except percentages; unaudited) Our key operating and financial metrics for continuing operations (which excludes Depop’s results, as Depop is presented as discontinued operations through the Closing Date) are presented in the tables below. Due to t
Slide 13: Nine Months Ended September 30 Financial Summary
Nine Months Ended September 30, 2026 2025 % Growth / (Decline) % Growth Y/Y Etsy Y/Y for for the Etsy Continuing Continuing Marketplace Continuing Marketplace Operations Operations (Non-GAAP) Operations (Non-GAAP) (3) GMS (1) $ 7,689,975 $ 7,549,052 $ 7,167,704 1.9 % 7.3 % Revenue $ 1,992,059 $ 1,86
Slide 14: Condensed Consolidated Balance Sheets
Etsy, Inc. Condensed Consolidated Balance Sheets (in thousands; unaudited) As of As of September 30, December 31, 2026 2025 Assets Current assets: Cash and cash equivalents $ 2,065,658 $ 1,355,428 Short-term investments 245,043 224,088 Accounts receivable, net 8,947 8,690 Prepaid and other current a
Slide 15: Condensed Consolidated Statements of Operations
Etsy, Inc. Condensed Consolidated Statements of Operations (in thousands, except per share amounts; unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2026 2025 2026 2025 Revenue $ 692,469 $ 624,153 $ 1,992,059 $ 1,865,488 Cost of revenue 189,324 166,230 549,271 502,654 Gros
Slide 16: Condensed Consolidated Statements of Cash Flows
Etsy, Inc. Condensed Consolidated Statements of Cash Flows (in thousands; unaudited) Nine Months Ended September 30, 2026 2025 Cash flows from operating activities Net income $ 876,547 $ 52,247 Less: Net income (loss) from discontinued operations 543,909 (62,900) Net income from continuing operation
Slide 17: Currency-Neutral GMS
Currency-Neutral GMS We calculate currency-neutral GMS by translating current period GMS for goods sold that were listed in non- U.S. dollar currencies into U.S. dollars using prior year foreign currency exchange rates. As reported and currency-neutral GMS growth (decline) for the periods presented
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures Other Key Financial Metrics (in thousands, except percentages; unaudited) Given the sale of Depop on July 30, 2026, Etsy results are presented on a continuing operations basis, while Depop results are reported as discontinued operations across all periods presented throug
Slide 19: Reconciliation of Net Income (Loss) to Adjusted EBITDA and Adjusted EBITDA Margin
Reconciliation of Net Income (Loss) to Adjusted EBITDA and the Calculation of Adjusted EBITDA Margin (in thousands, except percentages; unaudited) Adjusted EBITDA represents our net income (loss) adjusted to exclude: stock-based compensation expense and related payroll taxes; depreciation and amorti
Slide 20: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
(1) Stock-based compensation expense included in continuing operations in the Condensed Consolidated Statements of Operations for the periods presented below is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2026 2025 2026 2025 Cost of revenue $ 3,970 $ 5,962 $ 14,532 $