Etsy(NYSE) ETSY

Etsy, Inc. runs online stores where people buy and sell special items. It helps independent artists sell handmade or vintage goods to customers globally. The company makes it easy for shoppers to find one-of-a-kind products.

A Global Marketplace for Creativity

• Marketplace revenue: Includes fees for product listings, transaction processing, and payments; accounted for 68.2% of total revenue in the three months ended June 30, 2026.
• Services revenue: Consists of optional tools for sellers such as on-site advertising and shipping labels; generated 31.8% of total revenue in the three months ended June 30, 2026.
• Etsy Ads: An advertising service that helps sellers get more views; contributed to an $18.1 million increase in services revenue for the quarter ended June 30, 2026.
• Global Reach: Transactions from buyers outside the U.S. represented 25% of total marketplace sales in the three months ended June 30, 2026.

Moving Toward a Leaner Business

• Sold the Depop fashion resale marketplace to eBay for $1.2 billion in cash on July 30, 2026.
• Approved a restructuring plan on Aug. 3, 2026, to reduce the marketplace workforce by about 12%.
• Completed the sale of the Reverb musical instrument marketplace on June 2, 2025.
• Shifted marketing investments to specific channels with higher returns to drive growth in 2026.

Connecting Creators with Shoppers

Etsy connects 5.7 million active sellers with 87.0 million active buyers as of June 30, 2026. The platform focuses on non-mass-produced goods, creating a specific niche in the global retail market.

Key Financial Performance

• Revenue grew 6.2% year over year to $668.3 million in the three months ended June 30, 2026.
• Net income rose 150.5% to $114.3 million in the three-month period ended June 30, 2026.
• Adjusted EBITDA, a non-GAAP profit measure, was $195.4 million in the three months ended June 30, 2026.
• The company held $1.1 billion in cash and short-term investments as of June 30, 2026.
• Free cash flow, a non-GAAP measure, was $610.1 million for the 12 months ended June 30, 2026.

Bottom Line

Etsy has shifted from owning multiple platforms to focusing on its core creative marketplace. This evolution aims to improve efficiency and speed up decision-making for long-term growth.