Etsy Marketplace GMS Growth Accelerates for Sixth Straight Quarter

The Tip Desk · November 2, 2026 · 3 min read

Etsy (ETSY) reported third-quarter marketplace GMS of $2.6 billion, up 8.8% year-over-year, as revenue reached $692.5 million and adjusted EBITDA hit $210.4 million.

Etsy (ETSY) reported Etsy marketplace GMS of $2.6 billion in the third quarter, up 8.8% year-over-year, or 9.1% on a currency-neutral basis. Excluding foreign exchange, growth accelerated by about 190 basis points from the second quarter, the sixth consecutive quarter of sequential improvement in GMS growth.

The online handmade-and-vintage marketplace said growth was broad-based across U.S. and non-U.S. buyers and across U.S. household income cohorts. App GMS rose 10.4% year-over-year and Non-App GMS rose 7.5%; mobile GMS share was about 47%, stable with the first half of the year.

Trailing-twelve-month active buyers increased 1.0% to about 88 million, returning to year-over-year growth for the first time in two years. Sequential active buyers rose about 540,000 versus the second quarter. Third-quarter gross buyer additions grew 6.2% year-over-year, and trailing-twelve-month retention among existing buyers began to improve. GMS per buyer increased 3.9% year-over-year on a trailing-twelve-month basis and accelerated sequentially; purchase frequency remained modestly down year-over-year.

The company said personalization improvements alone contributed approximately two percentage points to the annualized year-over-year GMS growth rate by the third quarter. It also listed search relevance, quality signals in recommendations, physical-versus-digital prominence, and special-occasion merchandising among the internal initiatives driving marketplace trends.

Total revenue reached $692.5 million, up 10.9% year-over-year on the Etsy marketplace. Marketplace revenue rose 9.1% and Services revenue rose 15.0%. Take rate was 26.2%, up 50 basis points year-over-year, primarily from Etsy Ads enhancements and, to a lesser extent, Offsite Ads. Net income was $114 million, up $9 million year-over-year on the Etsy marketplace.

Adjusted EBITDA was $210.4 million, up 14.6% year-over-year, for a 30.4% adjusted EBITDA margin. Adjusted EBITDA grew faster than revenue for the second consecutive quarter. The company said strong revenue growth and an August restructuring translated into that result, with marketing still an important investment area and Product Development expense consistent as a percentage of revenue as restructuring charges were offset by lower stock-based compensation and lower employee-related expense.

On July 30, 2026, Etsy completed the sale of Depop. Results of operations for all periods presented are on a continuing operations basis, with Depop as a discontinued operation; continuing operations for the three months ended September 30, 2026 and 2025 represent the Etsy marketplace only.

Net cash provided by operating activities of continuing operations was $242.9 million for the three months ended September 30, 2026, converting 112% of adjusted EBITDA to free cash flow. Cash, cash equivalents and short- and long-term investments were $2.5 billion as of September 30, 2026, including proceeds from the Depop sale. On October 1, 2026, Etsy paid $648.6 million to settle the remaining principal of its 2019 Notes.

Etsy repurchased about $394.6 million of stock in the third quarter, reducing the outstanding share count by about 5.2 million shares. It said it currently has $2.2 billion in authorized capacity and anticipates continuing to repurchase at an accelerated rate.

For fourth-quarter 2026 continuing operations, Etsy expects GMS of $3.46 billion to $3.52 billion, or 5% to 7% year-over-year, take rate of about 25.6%, and adjusted EBITDA margin of about 30%. Full-year 2026 outlook is GMS of about 7%, take rate of about 25.8%, and adjusted EBITDA margin of about 30%. The company said it assumes macroeconomic factors remain relatively consistent, foreign currency is a modest growth headwind, and prior-year comparisons become less favorable.