Etsy (3E2) Q3 2026 Earnings Report
DE:3E2 Q3 2026 EPS Results
- Actual EPS
- EUR 0.89
- Consensus EPS
- EUR 0.68
- Beat/Miss
- Beat by +EUR 0.21
- One Year Ago EPS
- EUR 0.56
DE:3E2 Q3 2026 Revenue Results
- Actual Revenue
- EUR 617.96M
- Expected Revenue
- EUR 597.05M
- Beat/Miss
- Beat by +EUR 20.91M
- YoY Revenue Growth
- +2.13%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/28/2026
- Time
- Before Open
- Conference Call
- Wednesday, October 28, 2026
DE:3E2 Upcoming Earnings
Etsy's next earnings date is estimated for February 25, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
DE:3E2 Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly constructive. Etsy reported accelerating GMS, revenue, adjusted EBITDA, active-buyer growth, seller growth, improved marketing efficiency, strong cash generation, debt reduction, and increased shareholder returns. Management also highlighted measurable contributions from personalization and continued progress in search, discovery, AI, and marketplace quality. The main challenges were modestly declining purchase frequency, expected fourth-quarter growth moderation, foreign-currency headwinds, tougher comparisons, holiday uncertainty, and upcoming executive transitions. Overall, the breadth and magnitude of the positive developments significantly outweighed the explicitly stated challenges.
Company Guidance
For the fourth quarter, Etsy anticipates marketplace GMS will be between $3.46 billion and $3.52 billion, representing year-over-year growth of approximately 5%-7%, with take rate approximately 25.6% and adjusted EBITDA margin approximately 30%; for the full year, it anticipates GMS growth of approximately 7%, take rate about 25.8%, and adjusted EBITDA margin roughly 30%. The outlook assumes overall macroeconomic factors remain relatively consistent, foreign currency is a modest growth headwind, and prior year comparisons become less favorable in the fourth quarter; marketing spending will be guided by the gains in efficiency made year-to-date and an ROI target.
- Marketplace GMS Growth AcceleratedEtsy marketplace GMS reached $2.6 billion in the third quarter, increasing 8.8% year-over-year. The company said this marked three consecutive quarters of accelerating growth and that the business is now firmly in growth mode.
- Strong Revenue and Adjusted EBITDA PerformanceRevenue was $692 million, up 10.9% year-over-year, with marketplace revenue increasing 9.1% and services revenue increasing 15%. Adjusted EBITDA was $210 million, up 14.6%, representing a 30.4% margin. Adjusted EBITDA grew faster than revenue for the second consecutive quarter.
- Active Buyers Returned to GrowthTrailing 12-month active buyers increased 1% year-over-year to approximately 88 million, returning to year-over-year growth for the first time in two years. Active buyers also increased by approximately 540,000 sequentially from the second quarter.
- Buyer Acquisition and Reactivation ImprovedThird-quarter gross buyer additions grew 6.2% year-over-year, supported by strong new-buyer acquisition and reactivation. Social media helped reactivate prior buyers, while increased spending toward younger audiences, including TikTok, supported new-buyer acquisition.
- GMS per Buyer Continued to IncreaseTrailing 12-month GMS per buyer increased 3.9% year-over-year, marking the third consecutive quarter of growth and accelerating sequentially. The company attributed the trend to personalization, improved search relevance, stronger quality signals, better matching of physical and digital items to buyer intent, and emphasis on special occasions.
- Active Seller Growth and Seller Engagement StrengthenedThe active seller base grew at its fastest rate in two years, with improving retention. Etsy also reported seller growth and GMS per seller growth in the quarter, which management said reflected increasing value for sellers from improved tools, support, trust and safety, and data-driven seller experiences.
- Personalization Contributed Approximately 2 Percentage Points to GMS GrowthBy the third quarter, Etsy estimated that personalization improvements alone contributed approximately 2 percentage points to its annualized year-over-year GMS growth rate. The company expanded personalization learnings from the app across web and other parts of the shopping experience.
- Search, Discovery, and Inventory Relevance ImprovedEtsy said its search and discovery work is surfacing higher-quality and more relevant inventory. Improvements included richer buyer profiles, stronger quality signals in search and recommendations, better physical-versus-digital item prominence based on buyer intent, and improved matching and ranking models.
- Etsy Ads and Marketing Efficiency ImprovedTake rate increased 50 basis points year-over-year to 26.2%, primarily due to enhancements to Etsy Ads and, to a lesser extent, Offsite Ads. Improved ad relevance, click-through rates, conversion rates, and budget pacing helped sellers direct spending toward more valuable opportunities. In the third quarter, marketing spending increased year-over-year, but GMS from marketing grew faster, and marketing ROI improved year-over-year.
- Marketing Reach Expanded to Younger and New AudiencesEtsy expanded paid social activity on channels including TikTok and YouTube, reaching younger audiences and new buyers. Approximately half of TikTok impressions reached people aged 18 to 29, a demographic the company said it was not meaningfully spending toward six months earlier. An Olivia Rodrigo in-real-life activation generated approximately 90 million views.
- Free Cash Flow and Balance Sheet StrengthenedEtsy held $2.5 billion in cash equivalents and short- and long-term investments as of September 30, 2026, including proceeds from the Depop sale. Net cash provided by operating activities from continuing operations was $243 million, and the company converted 112% of adjusted EBITDA into free cash flow during the quarter.
- Debt Reduction and Share Repurchases AcceleratedOn October 1, 2026, Etsy paid $649 million in cash to settle the remaining aggregate principal amount of its outstanding 2019 Notes. During the third quarter, the company repurchased approximately $395 million of stock and reduced its outstanding share count by approximately 5.2 million shares. Etsy had $2.2 billion of authorized capacity for future repurchases and anticipated continuing to repurchase shares at an accelerated rate.
- Full-Year Adjusted EBITDA Margin Outlook IncreasedEtsy raised its full-year adjusted EBITDA margin outlook to roughly 30%. The company maintained a full-year GMS growth outlook of approximately 7% and a take-rate outlook of about 25.8%.
- AI Listing Policy Reinforced Marketplace DifferentiationEtsy clarified that sellers must include at least one unaltered photo of the item with a real background and prohibited AI-generated functional guides such as patterns and recipes. The company is also investing in stronger enforcement and said it does not expect any material near-term GMS impact from the policy changes.
- Broad-Based Consumer and Marketplace MomentumManagement said spending was growing across all household-income cohorts, although growth was relatively stronger at the high end. The company also reported growth in repeat and habitual buyers for a couple of consecutive quarters and said its most valuable buyers had grown sequentially for the second quarter in a row.
- Buyer and Seller Experience Investments ExpandedEtsy continued investing in seller listing creation and management, product customization, shared shop access, financial insights, appeals, Etsy Ads management, and an AI-powered seller assistant in beta. For buyers, Etsy tested loyalty rewards, expanded premium support for top buyers ahead of the holiday season, and increased general support availability.
- Human Connection Increased Buyer TrustAndroid testing and supporting research indicated that highlighting seller stories, creative processes, craftsmanship details, and seller information builds buyer trust, confidence, perceived value, and engagement. Etsy is expanding these concepts across platforms and throughout the shopping experience.
- AI-Powered Shopping and Seller Tools AdvancedEtsy's Gifting Assistant provided an initial shopping-agent experience and helped shoppers narrow broader, more complex queries. The company plans to expand its use cases and access points. Etsy is also using AI and machine learning for personalization, discovery, seller insights, and shop management.
- Gifting and Occasion-Based Shopping Remained ImportantApproximately 30% of Etsy GMS comes from gifting. Management said home and living, jewelry, and vintage were strong categories during the last three to six months, while weddings, back-to-school, and Halloween also performed well. The company described improvement as broad-based across categories, geographies, and household-income cohorts.
DE:3E2 Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 25, 2027 | 2026 (Q4) | 1.23- | 0.82 | ― | ― |
| Oct 28, 2026 | 2026 (Q3) | 0.680.89 | 0.56 | 58.73% (+0.33) | |
| Aug 05, 2026 | 2026 (Q2) | 0.670.87 | 0.22 | 292.00% (+0.65) | |
| Apr 29, 2026 | 2026 (Q1) | 0.550.79 | -0.44 | 281.63% (+1.23) | |
| Feb 19, 2026 | 2025 (Q4) | 0.750.82 | 0.92 | -10.68% (-0.10) | |
| Oct 29, 2025 | 2025 (Q3) | 0.470.56 | 0.4 | 40.00% (+0.16) | |
| Jul 30, 2025 | 2025 (Q2) | 0.430.22 | 0.37 | -39.02% (-0.14) | |
| Apr 30, 2025 | 2025 (Q1) | 0.42-0.44 | 0.43 | -202.08% (-0.87) | |
| Feb 19, 2025 | 2024 (Q4) | 0.830.92 | 0.55 | 66.13% (+0.37) | |
| Oct 30, 2024 | 2024 (Q3) | 0.470.40 | 0.57 | -29.69% (-0.17) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed