Etsy Reports $1.3 Billion Revenue and Significant Net Income Growth for Six Months Ended June 30, 2026

Etsy, Inc. reported its financial results for the six months ended June 30, 2026, revealing a total revenue of $1.3 billion, a 4.7% increase from $1.24 billion in the same period of 2025. The company's marketplace revenue rose to $888.8 million, up 3.0% year-over-year, while services revenue increased by 8.6% to $410.7 million. The net income from continuing operations was $219 million, a significant rise from $10.6 million in the prior year, reflecting a net income margin of 16.9%. The company attributed this growth to increased transaction fees and payments revenue, driven by higher gross merchandise sales (GMS) in its core marketplace.

Etsy's operational metrics showed a mixed performance, with active sellers increasing by 5.9% to 5.7 million, while active buyers slightly decreased by 0.4% to 87 million. The GMS for the three months ended June 30, 2026, was $2.58 billion, marking a 1.0% increase compared to the previous year. However, for the six months, GMS declined by 1.4% to $5.04 billion, primarily due to the impact of the sale of Reverb, which was completed in June 2025. The company noted that the Etsy marketplace's GMS growth, excluding Reverb, was 7.5% for the three months and 6.5% for the six months.

Strategically, Etsy completed the sale of its fashion resale marketplace, Depop, to eBay for approximately $1.4 billion in cash on July 30, 2026. This divestiture is part of Etsy's focus on enhancing its core marketplace operations. The company expects to recognize an estimated gain of $840 million from this sale in the third quarter of 2026. Additionally, Etsy announced a restructuring plan on August 3, 2026, which includes a workforce reduction of approximately 220 employees, or 12% of its workforce, aimed at aligning the organization with long-term strategic priorities.

Etsy's cash and cash equivalents totaled $901.3 million as of June 30, 2026, down from $1.15 billion a year earlier. The company also reported $7.7 million in restricted cash and $130.3 million in cash from discontinued operations. The total cash, cash equivalents, and restricted cash amounted to $1.04 billion, a decrease from $1.18 billion in the previous year. The company anticipates that its existing cash reserves, along with cash generated from operations, will be sufficient to meet its operating cash needs for at least the next 12 months.

Looking ahead, Etsy's management expressed optimism about the company's growth trajectory, driven by ongoing investments in the Etsy marketplace and the anticipated benefits from the recent divestitures. However, they acknowledged the potential impact of macroeconomic conditions, including inflation and geopolitical uncertainties, on consumer demand and discretionary spending. The company remains focused on enhancing its marketplace offerings and improving the overall buyer and seller experience to drive future growth.