$ETSY · ETSY INC
Etsy reported Q3 2026 results with GMS of $2.6B (+8.8% YoY), marking the third straight quarter of accelerating growth. Revenue rose 10.9% to $692.5M with take rate expanding 50 bps to 26.2%. Continuing operations net income was $114M, while total net income of $854M included an $840M gain from the Depop sale. Adjusted EBITDA reached $210M (30.4% margin). Separately, CFO Lanny Baker announced his departure, expected to remain through March 1, 2027.
- GMS hit $2.6B, +8.8% YoY — third consecutive quarter of accelerating growth.
- Revenue reached $692.5M (+10.9% YoY) with take rate expanding 50 bps to 26.2%.
- Active buyers grew YoY for the first time in two years; active seller base grew at fastest rate in two years.
- Adjusted EBITDA margin was 30.4% on $210M Adj. EBITDA; continuing ops net income $114M.
- CFO Lanny Baker will depart; expected to stay through March 1, 2027; executive search underway.
Extended-hours trading shows ETSY at $92.49, +5.51% vs the $87.66 regular close, suggesting the market is rewarding accelerating GMS growth and margin discipline despite the CFO departure. The $8.05B market cap stock had already gained +2.61% during the regular session.
Etsy's third consecutive quarter of accelerating GMS growth plus first active-buyer increase in two years signals a potential turnaround — but the CFO exit adds uncertainty.
Etsy's accelerating GMS and active buyer growth contrast with broader e-commerce deceleration fears. The 30.4% Adj. EBITDA margin demonstrates marketplace-model operating leverage as personalization investments begin contributing measurable GMS uplift (~2 percentage points of annualized growth).
CFO departure creates near-term financial leadership uncertainty; successor search is underway with no named replacement. Depop sale closed July 30, 2026, removing a diversification asset — continuing operations now represent Etsy marketplace only.