Etsy (ETSY) Q2 2026 earnings summary

Executive summary

• Q2 2026 saw accelerated GMS and revenue growth, with improved marketplace fundamentals and a positive outlook for the remainder of the year.

• Completed sale of Depop to eBay for $1.4 billion, with an estimated $840 million gain to be recognized in Q3 2026.

• Announced a restructuring plan with a 12% workforce reduction and $35 million in related charges, aiming to streamline operations.

• Strategic focus on discovery, personalization, and loyalty is driving engagement, especially among younger buyers and through the mobile app.

• Proceeds from Depop sale allocated to share repurchases and investments in core marketplace growth.

Financial highlights

• Etsy marketplace GMS reached $2.6 billion, up 7.5% year-over-year; revenue was $668.3 million, up 6.2% on continuing operations and 9.3% standalone.

• Adjusted EBITDA was $195 million, with a 29.2% margin; take rate rose to 25.9%, up 130 bps year-over-year.

• Net income from continuing operations was $114.3 million, up from $45.6 million in Q2 2025.

• Free cash flow (trailing twelve months) was $610.1 million; free cash flow conversion was 81% of adjusted EBITDA in Q2.

• Net loss including discontinued operations was $46.7 million, reflecting a $161 million loss from Depop.

Outlook and guidance

• Q3 2026 GMS expected between $2.53–$2.58 billion, up 4–6% year-over-year; take rate ~26%; adjusted EBITDA margin 28–30%.

• Full-year 2026 GMS growth anticipated in the mid-single digits; adjusted EBITDA margin outlook tightened to 29–30%.

• Restructuring expected to lower near-term operating costs and benefit full-year margin.

• Proceeds from Depop sale to be used for general corporate purposes, share repurchases, and marketplace investment.

• Macroeconomic uncertainty, inflation, and global trade barriers remain key risks to future performance.