Observed Signal · Oct 28, 2026 · Earnings Report · Source: Retail-News · Impact: 3/5 · Sentiment: Positive
Etsy Q3 2026 Revenue Up 10.9%, Active Buyers Grow
Etsy reported Q3 2026 revenue of $692.5 million, a 10.9% increase year-over-year. Gross merchandise sales (GMS) reached $2.65 billion, up 8.8% (9.1% constant currency). Active buyers rose 1% to approximately 88 million, marking the first year-over-year growth in two years. Net income from continuing operations was $113.6 million, and adjusted EBITDA was $210.4 million with a margin improvement to 30.4%. The business is benefiting from enhanced personalization and AI-driven product recommendations, contributing about two percentage points to annual GMS growth. Etsy Ads saw 15% growth, and marketplace services revenue increased 9.1%. The take rate improved to 26.2%. During the quarter, Etsy repurchased $394.6 million in shares and completed the sale of Depop on July 30, 2026. For Q4 2026, Etsy forecasts GMS between $3.46 billion and $3.52 billion, representing 5-7% growth.
While Etsy is not a core AdTech platform, its earnings provide insights into e-commerce trends and retail media growth (Etsy Ads up 15%), relevant for advertisers and media planners.
Track Etsy Signals & Market Shifts in Real-Time
Polaris7 autonomous intelligence agents track regulatory filings, primary sources, executive changes, and deal flow 24/7. Create your Polaris7 workspace to monitor these entities.
Key Takeaways & Evidence Grounding
- Etsy Q3 2026 revenue up 10.9% to $692.5 million.
- Gross merchandise sales (GMS) grew 8.8% to $2.65 billion.
- Active buyers increased 1% to approximately 88 million, first YoY growth in two years.
- Etsy Ads revenue grew 15%; take rate improved to 26.2%.
- Etsy repurchased $394.6 million in shares and completed sale of Depop on July 30, 2026.
Connected Companies & Entities
2 Entities mapped“Etsy reported Q3 2026 revenue of $692.5 million, up 10.9%.”
“Depop was sold and completed on July 30, 2026.”
Ontology Mapping & Concepts
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
10-Q Financial Filing Analysis for Etsy (2026-10-28)
Etsy, Inc. reported its third-quarter 2026 financial results, highlighted by the closing of the sale of Depop to eBay on July 30, 2026, for $1.4 billion in cash, resulting in a pre-tax gain on sale of $839.7 million recorded within discontinued operations. For continuing operations (the core Etsy marketplace), consolidated revenue grew 10.9% year-over-year to $692.5 million, supported by an 8.8% increase in GMS to $2.65 billion and a 50 bps expansion in take rate to 26.2%. Income from operations reached $111.4 million, while total net income surged to $853.5 million ($7.31 diluted EPS) due to discontinued operations gains. During Q3 2026, Etsy enacted a workforce restructuring plan reducing headcount by approximately 12% (~220 employees) to streamline operational agility, incurring $33.9 million in restructuring charges. The company continued aggressive capital return initiatives, repurchasing 5.18 million shares for $398.0 million during the quarter and securing an additional $2.0 billion share repurchase authorization in August 2026, leaving $2.2 billion in remaining buyback capacity at quarter-end alongside $2.31 billion in cash and short-term investments.
eBay Posts Strong Q2 2026 Revenue and Profit Growth
eBay reported a strong second quarter 2026 with double-digit growth across revenue, gross merchandise volume (GMV) and profits. Revenue rose to $3.1 billion (+15% year-over-year) while GMV increased 15% to $22.4 billion. Net income improved to $552 million with GAAP earnings per share of $1.21 and adjusted EPS of $1.60. The company cited improved operating margins, stronger cash flow and continued shareholder returns via buybacks and dividends. eBay highlighted investments in AI-driven seller tools (automated listings, image scans), expansion in categories such as collectibles and luxury, growth of its live-shopping format (eBay Live), and the completed acquisition of Depop to strengthen second-hand fashion. Management raised its outlook for the year, expecting continued revenue and GMV growth in Q3.
Etsy Soars on Depop Sale Despite Mixed Earnings Report
Etsy said it will sell fashion resale app Depop to eBay for about $1.2 billion in cash, a move that sent Etsy shares up roughly 9% and eBay shares up about 3%. The announcement accompanied mixed fourth-quarter results: adjusted EPS of $0.92 beat analysts' $0.84 estimate, while revenue of $882 million narrowly missed the $885 million consensus. Gross merchandise sales fell 3.8% year-over-year to $3.59 billion, a decline Etsy attributed in part to last year’s sale of Reverb. Net income declined 14.8% to $110.7 million. Active sellers rose 7.7% to 8.76 million while active buyers declined 2% to 93.54 million. Etsy guided first-quarter GMS between $2.38 billion and $2.43 billion, below prior-year levels.
Receive all future signals for Etsy & competitors in your briefing
Never miss material M&A deals, leadership changes, account wins, or product rollouts. Polaris7 monitors 20,000+ primary sources 24/7, delivering verified telemetry directly into your executive briefing.