From The Motley Fool · Motley Fool Transcribing · · 2m
Etsy Q3 2026 Earnings Report Highlights
Etsy reports 8.8% year-over-year growth in marketplace GMS with AI-driven personalization boosting revenue.
In brief
Etsy reports 8.8% year-over-year growth in marketplace GMS with AI-driven personalization boosting revenue. Etsy's Q3 2026 results show $2.6 billion marketplace GMS up 8.8% year-over-year, driven by AI personalization and 26.2% take rate. Originally reported by The Motley Fool.
Q3 2026 Results
Etsy reported third quarter results with marketplace GMS of $2.6 billion, up 8.8% year-over-year.
Revenue Growth
Total revenue reached $692.5 million, up 10.9% year-over-year due to higher marketplace and services volume.
Take Rate Increase
Take rate rose to 26.2%, an increase of 50 basis points year-over-year primarily driven by Etsy Ads and Offsite Ads.
Adjusted EBITDA
Adjusted EBITDA grew to $210.4 million, up 14.6% year-over-year with a 30.4% margin.
Active Buyers
Active buyers increased to 88 million, marking the first year-over-year growth in two years.
Gifting Strategy
Gifting accounts for 30% of total GMS as Etsy focuses on differentiated purchases for special occasions.
Mobile GMS Share
Mobile GMS represents 47% of total GMS, remaining stable with the first half of the year.
Cash and Debt
Cash and investments reached $2.5 billion as of Sept. 30, 2026, after selling Depop and settling debt.
Stock Repurchases
Company repurchased $394.6 million worth of shares, reducing the outstanding count by 5.2 million shares.
Q4 Guidance
Q4 GMS guidance is $3.46 billion to $3.52 billion, representing 5% to 7% year-over-year growth.
AI Personalization
AI-powered seller assistant provides personalized insights based on shops' unique data and actionable ideas.
Gifting Assistant
Gifting Assistant is Etsy's first AI shopping agent for complex queries and special occasions.
Depop Sale
Etsy sold Depop in July 2026, contributing to cash reserves and debt settlement.
CFO Transition
Lanny Baker will leave Etsy in early March 2027, with a search for a new CFO underway.
Marketplace Health
Active buyers returned to year-over-year growth after two years of decline.
Q4 Outlook
Etsy expects Q4 GMS growth of 5% to 7% with stable take rate at 25.8%.
What matters most
Etsy's Q3 2026 results show $2.6 billion marketplace GMS up 8.8% year-over-year, driven by AI personalization and 26.2% take rate.
