Etsy, Inc. (NYSE: ETSY) — research brief (BMC #082 on gallery, queue id 81)

Prepared 2026-10-11 (America/Chicago). Labels: FACT = stated by the company in its Form 10-K for fiscal 2025 (filed 19 Feb 2026, audited) or its Form 10-Q for the quarter ended 30 Jun 2026 (filed 5 Aug 2026, unaudited). SECONDARY = none used for figures. INFERENCE = ratios or sums computed by this project from company numbers.

Sources (accessed 2026-10-11)

Form 10-K FY2025: https://www.sec.gov/Archives/edgar/data/1370637/000137063726000019/etsy-20251231.htm
Form 10-Q, quarter ended 30 Jun 2026: https://www.sec.gov/Archives/edgar/data/1370637/000137063726000080/etsy-20260630.htm
Company site: https://www.etsy.com
Logo: project monogram ("E" on an orange tile), not Etsy's official mark. Trademark of its owner; identification only.

Teaching arc

Own no inventory: let millions of small sellers list unique goods, take a quarter of every GMS dollar through listing, transaction, payments and ad fees, and keep growing revenue by raising the take rate while GMS is flat — then sell off Reverb and Depop to focus on the core marketplace and buy back stock.

Key numbers (FACT unless noted)

FY2025 (consolidated, includes Depop; Reverb until sold Jun 2, 2025)

Revenue $2,883.5M (2024 $2,808.3M, +2.7%; 2023 $2,748.4M). Marketplace $2,007.2M (-0.7%, 69.6%); services $876.3M (+11.3%, 30.4%). Services growth driven by $62.2M more advertising revenue (higher average price per click on Etsy Ads).
GMS $11,916.9M (2024 $12,587.0M, -5.3%): Etsy marketplace $10,460.7M (-4%), Depop $1,074.9M (+36.3%), Reverb $381.3M. Revenue take rate 24.2% (2024 22.3%).
Gross profit $2,065.7M; cost of revenue $817.8M (28.4%); marketing $914.8M (31.7%); product development $450.2M (15.6%); G&A $332.8M (11.5%); Reverb goodwill impairment $101.7M. Gross margin 71.6% is an INFERENCE.
Income from operations $266.2M (2024 $380.2M); net income $163.0M (2024 $303.3M, -46.3%); adjusted EBITDA (non-GAAP) $734.5M, 25.5% margin.
Operating cash flow $693.4M; free cash flow (company-defined, non-GAAP) $638.8M; repurchased 14.4M shares for $777.1M; issued $700M convertible notes; cash about $1.4B ($1,355.4M).
Etsy marketplace: 86.5M active buyers (-3%), 5.6M active sellers, GMS per active buyer $121, 74% of GMS from U.S. buyers, 45% via the app, 100M+ items, top six categories about $8.9B (85%), custom/made-to-order about 30% of GMS, paid GMS 24%.
Buyer mix: habitual 5.9M (about 7% of buyers, about 40% of GMS), repeat 34.6M, reactivated 30.0M, new 21.2M.
Fees (Revenue Recognition note): $0.20 listing fee; 6.5% transaction fee incl. shipping; Offsite Ads 12% or 15%; payments processing typically 3.0%–6.5% of the sale plus a flat fee per order; shipping labels recorded net.
2,375 employees incl. about 475 at Depop. CEO Kruti Patel Goyal from Jan 1, 2026; Josh Silverman Executive Chair through Dec 31, 2026.

H1 / Q2 2026 (10-Q, continuing operations = Etsy marketplace only; Depop in discontinued operations)

Revenue H1 $1,299.6M vs $1,241.3M (+4.7%); marketplace $888.8M, services $410.7M (+8.6%). Q2 $668.3M (+6.2%).
GMS H1 $5,043.1M (-1.4%; Etsy marketplace alone +6.5%); take rate 25.8%. Etsy marketplace GMS per active buyer $124 (+2.8%).
Income from operations H1 $245.1M (vs $90.2M); net income from continuing operations $219.0M (vs $10.6M); net loss from discontinued operations $196.0M; total net income $23.0M. Adjusted EBITDA $380.1M, 29.2% margin.
Active buyers 86.97M, active sellers 5.71M (Jun 30, 2026).
Depop sold to eBay: signed Feb 15, 2026 at $1.2B; closed Jul 30, 2026 for about $1.4B cash; estimated Q3 2026 gain about $840M. H1 repurchases $394.9M; new $2B authorization approved Aug 3, 2026.
Jun 30, 2026: cash $901.3M, short-term investments $221.0M; short-term debt $649.6M and long-term debt $2,335.9M (sum about $2.99B is an INFERENCE).

Cautions

FY2025 consolidated figures include Depop and Reverb; H1 2026 figures exclude Depop (discontinued operations) and are not like-for-like with FY2025.
GMS and take rate are company-defined; GMS excludes shipping and is net of refunds.
Etsy buyer and seller surveys and the 2024 Seller Census (Ipsos) are Etsy-reported and not independently verified.

# Etsy, Inc. (NYSE: ETSY) — research brief (BMC #082 on gallery, queue id 81) Prepared 2026-10-11 (America/Chicago). Labels: **FACT** = stated by the company in its Form 10-K for fiscal 2025 (filed 19 Feb 2026, audited) or its Form 10-Q for the quarter ended 30 Jun 2026 (filed 5 Aug 2026, unaudited). **SECONDARY** = none used for figures. **INFERENCE** = ratios or sums computed by this project from company numbers. ## Sources (accessed 2026-10-11) - Form 10-K FY2025: https://www.sec.gov/Archives/edgar/data/1370637/000137063726000019/etsy-20251231.htm - Form 10-Q, quarter ended 30 Jun 2026: https://www.sec.gov/Archives/edgar/data/1370637/000137063726000080/etsy-20260630.htm - Company site: https://www.etsy.com - Logo: project monogram ("E" on an orange tile), **not** Etsy's official mark. Trademark of its owner; identification only. ## Teaching arc **Own no inventory: let millions of small sellers list unique goods, take a quarter of every GMS dollar through listing, transaction, payments and ad fees, and keep growing revenue by raising the take rate while GMS is flat — then sell off Reverb and Depop to focus on the core marketplace and buy back stock.** ## Key numbers (FACT unless noted) **FY2025 (consolidated, includes Depop; Reverb until sold Jun 2, 2025)** - Revenue $2,883.5M (2024 $2,808.3M, +2.7%; 2023 $2,748.4M). Marketplace $2,007.2M (-0.7%, 69.6%); services $876.3M (+11.3%, 30.4%). Services growth driven by $62.2M more advertising revenue (higher average price per click on Etsy Ads). - GMS $11,916.9M (2024 $12,587.0M, -5.3%): Etsy marketplace $10,460.7M (-4%), Depop $1,074.9M (+36.3%), Reverb $381.3M. Revenue take rate 24.2% (2024 22.3%). - Gross profit $2,065.7M; cost of revenue $817.8M (28.4%); marketing $914.8M (31.7%); product development $450.2M (15.6%); G&A $332.8M (11.5%); Reverb goodwill impairment $101.7M. Gross margin 71.6% is an **INFERENCE**. - Income from operations $266.2M (2024 $380.2M); net income $163.0M (2024 $303.3M, -46.3%); adjusted EBITDA (non-GAAP) $734.5M, 25.5% margin. - Operating cash flow $693.4M; free cash flow (company-defined, non-GAAP) $638.8M; repurchased 14.4M shares for $777.1M; issued $700M convertible notes; cash about $1.4B ($1,355.4M). - Etsy marketplace: 86.5M active buyers (-3%), 5.6M active sellers, GMS per active buyer $121, 74% of GMS from U.S. buyers, 45% via the app, 100M+ items, top six categories about $8.9B (85%), custom/made-to-order about 30% of GMS, paid GMS 24%. - Buyer mix: habitual 5.9M (about 7% of buyers, about 40% of GMS), repeat 34.6M, reactivated 30.0M, new 21.2M. - Fees (Revenue Recognition note): $0.20 listing fee; 6.5% transaction fee incl. shipping; Offsite Ads 12% or 15%; payments processing typically 3.0%–6.5% of the sale plus a flat fee per order; shipping labels recorded net. - 2,375 employees incl. about 475 at Depop. CEO Kruti Patel Goyal from Jan 1, 2026; Josh Silverman Executive Chair through Dec 31, 2026. **H1 / Q2 2026 (10-Q, continuing operations = Etsy marketplace only; Depop in discontinued operations)** - Revenue H1 $1,299.6M vs $1,241.3M (+4.7%); marketplace $888.8M, services $410.7M (+8.6%). Q2 $668.3M (+6.2%). - GMS H1 $5,043.1M (-1.4%; Etsy marketplace alone +6.5%); take rate 25.8%. Etsy marketplace GMS per active buyer $124 (+2.8%). - Income from operations H1 $245.1M (vs $90.2M); net income from continuing operations $219.0M (vs $10.6M); net loss from discontinued operations $196.0M; total net income $23.0M. Adjusted EBITDA $380.1M, 29.2% margin. - Active buyers 86.97M, active sellers 5.71M (Jun 30, 2026). - Depop sold to eBay: signed Feb 15, 2026 at $1.2B; closed Jul 30, 2026 for about $1.4B cash; estimated Q3 2026 gain about $840M. H1 repurchases $394.9M; new $2B authorization approved Aug 3, 2026. - Jun 30, 2026: cash $901.3M, short-term investments $221.0M; short-term debt $649.6M and long-term debt $2,335.9M (sum about $2.99B is an **INFERENCE**). ## Cautions - FY2025 consolidated figures include Depop and Reverb; H1 2026 figures exclude Depop (discontinued operations) and are not like-for-like with FY2025. - GMS and take rate are company-defined; GMS excludes shipping and is net of refunds. - Etsy buyer and seller surveys and the 2024 Seller Census (Ipsos) are Etsy-reported and not independently verified.