Etsy (NYSE:ETSY) Issues Quarterly Earnings Results

Key Points

• Etsy's Q1 results showed a mixed beat: $631M revenue topped estimates while EPS of $0.60 slightly missed, with GMS $2.5B (+5.5% YoY) and adjusted EBITDA of $185M (29.3% margin), and app GMS and active buyers accelerating — signaling early marketplace improvement.
• The company agreed to sell Depop to eBay for $1.2 billion and has repurchased $145M of stock with $828M remaining on its buyback authorization, pointing to accelerated capital returns.
• Management set modest near-term targets — Q2 marketplace GMS of $2.48–$2.53B and full-year low single-digit GMS growth with an adjusted EBITDA margin of 28%–30% — but warned that purchase frequency and repeat-buyer metrics remain below prior-year and require multi-quarter execution on personalization and loyalty initiatives.

Etsy (NYSE:ETSY - Get Free Report) posted its quarterly earnings results on Wednesday. The company reported $0.60 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.62 by ($0.02), FiscalAI reports. Etsy had a net margin of 5.65% and a negative return on equity of 24.94%. The business had revenue of $631.28 million for the quarter, compared to analysts' expectations of $622.38 million. During the same quarter in the previous year, the company earned ($0.49) earnings per share. The business's quarterly revenue was up 3.1% on a year-over-year basis.

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

• Q1 results surprised to the upside with GMS of $2.5 billion (+5.5% YoY), revenue of $631 million and adjusted EBITDA of $185 million (29.3% margin), while active buyers grew sequentially and app GMS accelerated to ~47% of total (app GMS +11.2% YoY), signaling early marketplace health improvements.
• Etsy agreed to sell Depop to eBay for $1.2 billion (expected close by end of Q3 2026), and management has already repurchased $145 million of stock with $828 million remaining on the buyback authorization—proceeds are expected to accelerate capital returns.
• Guidance assumes modest near-term momentum: Q2 Etsy marketplace GMS of $2.48–$2.53 billion (≈3–5% YoY) and a full-year view of low single-digit GMS growth with adjusted EBITDA margin of 28%–30%.
• Management cautioned that purchase frequency and repeat/habitual buyer metrics remain below prior-year levels and have not yet meaningfully inflected, so sustained growth depends on multi-quarter execution of personalization, app adoption and loyalty initiatives.

Etsy Trading Up 10.1%

Shares of ETSY stock opened at $69.58 on Thursday. Etsy has a fifty-two week low of $41.51 and a fifty-two week high of $76.51. The company has a market cap of $6.60 billion, a price-to-earnings ratio of 53.11, a P/E/G ratio of 9.90 and a beta of 1.77. The stock has a 50 day simple moving average of $55.16.

Trending Headlines about Etsy

Here are the key news stories impacting Etsy this week:

• Positive Sentiment: Etsy reported Q1 revenue and marketplace strength that outpaced expectations — management flagged improving gross merchandise sales and buyer activity, which markets interpreted as a return to growth. Read More.
• Positive Sentiment: Market reaction also reflected headline Q1 coverage noting revenue and EPS beats on an adjusted basis and an improved outlook from management; that drove an early intraday pop. Read More.
• Positive Sentiment: BTIG raised its price target to $78 and reiterated a Buy rating, giving analysts’ endorsement that supported the rally. Read More.
• Positive Sentiment: Other sell‑side support preceded the print (UBS nudged its target higher), adding to upward momentum as analysts re‑price shares on signs of recovery. Read More.
• Positive Sentiment: Management highlighted product work — including AI features to improve discovery and bring back shoppers — which investors view as a practical lever to sustain marketplace momentum. Read More.
• Neutral Sentiment: Earnings call transcript and summaries are available for deeper reads on metrics and guidance; these are useful for investors who want to parse GMV, take‑rates, marketing spend and margin trajectory. Read More.
• Negative Sentiment: There are mixed accounting signals: some outlets report adjusted EPS beat while GAAP EPS and certain consensus comparisons were weaker or below some estimates, and investors should watch margin and return‑on‑equity metrics as the company reaccelerates growth. Read More.

Analysts Set New Price Targets

A number of research firms have recently weighed in on ETSY. Jefferies Financial Group lowered their target price on Etsy from $62.00 to $55.00 and set a "hold" rating for the company in a research note on Thursday, February 12th. Canaccord Genuity Group reduced their price target on Etsy from $80.00 to $72.00 and set a "buy" rating on the stock in a research report on Friday, February 20th. Zacks Research cut shares of Etsy from a "strong-buy" rating to a "hold" rating in a report on Monday, April 20th. B. Riley Financial decreased their target price on shares of Etsy from $78.00 to $70.00 and set a "buy" rating on the stock in a research note on Friday, February 20th. Finally, Evercore set a $72.00 price target on shares of Etsy in a report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, eighteen have assigned a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $63.33.

Insider Activity at Etsy

In other Etsy news, Director Charles Andrew Ballard sold 1,790 shares of the business's stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $55.74, for a total transaction of $99,774.60. Following the transaction, the director directly owned 4,006 shares of the company's stock, valued at approximately $223,294.44. The trade was a 30.88% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Merilee Buckley sold 1,993 shares of the company's stock in a transaction on Monday, April 6th. The stock was sold at an average price of $52.92, for a total transaction of $105,469.56. Following the completion of the transaction, the chief accounting officer owned 809 shares of the company's stock, valued at $42,812.28. This trade represents a 71.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 168,636 shares of company stock worth $10,253,702 over the last quarter. 2.80% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Etsy

Hedge funds and other institutional investors have recently modified their holdings of the stock. EFG International AG bought a new stake in Etsy during the 4th quarter valued at approximately $33,000. Danske Bank A S bought a new position in shares of Etsy in the 3rd quarter worth approximately $66,000. Federation des caisses Desjardins du Quebec raised its position in shares of Etsy by 22.8% in the 4th quarter. Federation des caisses Desjardins du Quebec now owns 1,210 shares of the company's stock worth $67,000 after acquiring an additional 225 shares in the last quarter. Smartleaf Asset Management LLC lifted its stake in shares of Etsy by 10.0% in the 2nd quarter. Smartleaf Asset Management LLC now owns 1,734 shares of the company's stock valued at $88,000 after purchasing an additional 158 shares during the period. Finally, McMillan Office Inc. purchased a new position in shares of Etsy in the 4th quarter valued at approximately $89,000. Hedge funds and other institutional investors own 99.53% of the company's stock.

Etsy Company Profile

Etsy, Inc operates two-sided online marketplaces that connect buyers and sellers primarily in the United States, the United Kingdom, Germany, Canada, Australia, France, and India. Its primary marketplace is Etsy.com that connects artisans and entrepreneurs with various consumers. The company also offers Reverb, a musical instrument marketplace; Depop, a fashion resale marketplace; and Elo7, a Brazil-based marketplace for handmade and unique items. In addition, it offers various seller services, including Etsy Payments, a payment processing service; Etsy Ads, an advertising platform; and Shipping Labels, which allows sellers in the United States, Canada, the United Kingdom, Australia, and India to purchase discounted shipping labels.