Etsy Q1 2026 earnings beat revenue estimates on GMS growth

Etsy reported first-quarter gross of $631.3 million, beating Wall Street expectations arsenic gross merchandise income connected its marketplace climbed 5.5% year-over-year to $2.5 billion. Analysts had projected gross of $620.9 million, according to Reuters, citing LSEG data.

Diluted net per stock from continuing operations came successful astatine $0.89, compared with expert estimates of $0.62. Net income from continuing operations reached $104.7 million, against a nett nonaccomplishment of $35.1 cardinal successful the aforesaid play a twelvemonth earlier, erstwhile results included a $101.7 cardinal plus impairment charge.

Active buyers grew sequentially for the archetypal clip successful 2 years, the institution said. GMS per progressive purchaser reached $122 connected a trailing twelve-month basis, rising year-over-year for the archetypal clip since precocious 2022 and marking the 4th consecutive 4th of sequential improvement. Mobile app GMS grew 11.2% year-over-year, with app transactions accounting for astir 47% of full GMS.

Adjusted EBITDA from continuing operations was $184.7 million, representing a borderline of 29.3%. Etsy repurchased astir $145 cardinal successful banal during the quarter, reducing its outstanding stock number by astir 2.7 cardinal shares.

"We saw encouraging signals during the archetypal 4th that our maturation priorities are taking hold," CEO Kruti Patel Goyal said successful a statement. "I person adjacent much condemnation successful our focus, and assurance successful our quality to execute and construe caller momentum into durable growth."

Despite the unit connected household budgets from ostentation and tariff uncertainty, CFO Lanny Baker said successful comments to Reuters that request connected Etsy has remained unchangeable careless of shoppers' income level. He added that nonstop vulnerability to tariffs is constricted due to the fact that home sourcing accounts for astir 90% of what sellers connected the level usage to marque their goods.

AI-driven postulation has been climbing, though Baker noted it makes up lone a tiny fraction of full enactment — a debased single-digit stock — meaning the fiscal publication remains humble for now, helium told Reuters.

For the 2nd quarter, Etsy forecast marketplace GMS of $2.48 cardinal to $2.53 billion, representing year-over-year maturation of 3% to 5%. The institution maintained its full-year adjusted EBITDA borderline outlook of 28% to 30% and said it expects year-over-year GMS maturation successful each 4th of 2026.

Etsy closed the 4th with $1.6 cardinal successful cash, currency equivalents, and investments. The pending merchantability of its Depop manner resale level to eBay for $1.2 billion, announced successful February, is expected to adjacent by the extremity of the 3rd 4th of 2026.