Etsy (NYSE:ETSY) Posts Earnings Results, Beats Estimates By $6.55 EPS

Etsy (NYSE:ETSY) released its quarterly earnings data on Wednesday. The company reported $7.31 EPS for the quarter, topping analysts’ consensus estimates of $0.76 by $6.55, FiscalAI reports. The business had revenue of $692.47 million for the quarter, compared to the consensus estimate of $668.06 million. During the same period in the previous year, the business posted $0.63 earnings per share. Etsy’s revenue was up 10.9% on a year-over-year basis.

Here are the key takeaways from Etsy’s conference call:

• Marketplace momentum improved: Etsy marketplace GMS rose 8.8% year over year to $2.6 billion, while active buyers returned to growth for the first time in two years and active sellers grew at their fastest rate in two years.
• Personalization, improved search relevance, and more efficient marketing are increasingly driving results; management estimates personalization contributed roughly 2 percentage points to annualized year-over-year GMS growth, while marketing ROI improved.
• Financial performance was strong, with revenue up 10.9% to $692 million, adjusted EBITDA up 14.6% to $210 million, and a 30.4% margin. Etsy also repurchased approximately $395 million of stock in the quarter and expects to continue buybacks with $2.2 billion of authorization remaining.
• Etsy projected fourth-quarter marketplace GMS of $3.46 billion to $3.52 billion, implying 5%–7% growth as comparisons become more difficult; full-year GMS growth is expected to be approximately 7% with an adjusted EBITDA margin near 30%.
• Buyer purchase frequency remains modestly down year over year despite better engagement indicators, and CFO Lanny Baker announced he will leave in early March, creating a leadership transition that could introduce near-term uncertainty.

Etsy Stock Performance

Shares of NYSE ETSY traded up $4.16 during mid-day trading on Wednesday, hitting $91.82. 2,754,817 shares of the stock were exchanged, compared to its average volume of 3,237,457. Etsy has a twelve month low of $44.00 and a twelve month high of $94.49. The stock’s fifty day simple moving average is $78.11 and its two-hundred day simple moving average is $67.76.

Wall Street Analyst Weigh In

ETSY has been the subject of a number of analyst reports. The Goldman Sachs Group assumed coverage on shares of Etsy in a research note on Monday, August 17th. They set a “neutral” rating and a $89.00 price target for the company. UBS Group upped their price objective on Etsy from $74.00 to $86.00 and gave the company a “neutral” rating in a research note on Friday, August 7th. BTIG Research raised Etsy from a “neutral” rating to a “buy” rating and set a $90.00 target price for the company in a report on Friday, September 18th. Argus boosted their price target on Etsy from $67.00 to $89.00 and gave the company a “buy” rating in a research note on Tuesday, September 8th. Finally, Truist Financial upped their price target on Etsy from $85.00 to $90.00 and gave the company a “buy” rating in a research report on Wednesday, July 22nd. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, eighteen have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Etsy has an average rating of “Hold” and an average price target of $86.21.

Key Headlines Impacting Etsy

Here are the key news stories impacting Etsy this week:

• Positive Sentiment: Etsy reported third-quarter revenue of $692.47 million, above expectations, and earnings of $7.31 per share versus $0.63 a year earlier. Adjusted earnings were also reported above the Zacks consensus estimate at $1.55 per share versus $1.34 expected. Etsy Third Quarter 2026 Results
• Positive Sentiment: The number of active buyers increased, helping drive higher sales and signaling that Etsy’s efforts to improve marketplace engagement may be gaining traction. Etsy Sales Rise as Active Buyers Increase
• Positive Sentiment: Earlier expectations called for gross merchandise sales growth of 4% to 6%, with improving advertising monetization and AI-supported engagement viewed as potential growth drivers. The better-than-expected quarter reduces some near-term execution concerns. Etsy Q3 Earnings Preview
• Neutral Sentiment: Etsy is tightening its AI policy, including expectations for transparent use of AI and unedited product photos. The move could improve buyer trust and marketplace quality, although enforcement may increase costs and restrict some seller activity. Etsy AI Content Policy
• Negative Sentiment: Chief Financial Officer Lanny Baker will leave Etsy on March 1, 2027, creating a leadership transition. He is expected to remain as an adviser through July, which should support continuity but still introduces execution risk. Etsy Leadership Transition

Insiders Place Their Bets

In other Etsy news, insider Josh Silverman sold 41,108 shares of Etsy stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $83.11, for a total value of $3,416,485.88. Following the completion of the transaction, the insider owned 171,932 shares in the company, valued at approximately $14,289,268.52. The trade was a 19.30% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Frederick R. Wilson sold 20,000 shares of the business’s stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $81.86, for a total value of $1,637,200.00. Following the completion of the transaction, the director directly owned 401,329 shares in the company, valued at approximately $32,852,791.94. This represents a 4.75% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 133,251 shares of company stock worth $10,966,499 over the last ninety days. 2.50% of the stock is owned by insiders.

Etsy Company Profile

Etsy, Inc operates an online marketplace that connects independent sellers with consumers seeking unique and creative goods. Its marketplace features products such as handmade items, personalized gifts, vintage merchandise, home décor, jewelry, clothing, craft supplies and other goods made, designed, selected or sourced by individual sellers and small businesses.

The company provides tools and services that support marketplace activity, including seller storefronts, search and discovery features, payment processing, advertising, shipping assistance and customer support.