Key Takeaways Etsy is embedding loyalty into personalization, support and Etsy Insider to deepen repeat buying.App users deliver 40% higher lifetime value, while mobile GMS rose 11.2% in first-quarter 2026.AI-driven profiles, feeds and recommendations improved add-to-cart activity, conversion and engagement. Etsy, Inc.’s (ETSY - Free Report) focus on retaining and rewarding its most valuable customers centers on deepening engagement across the buyer experience. Rather than relying on a standalone loyalty program, the marketplace is weaving loyalty efforts into personalized recommendations, targeted offers, customer support and programs such as the Etsy Insider beta.
The mobile app is central to that effort. Etsy said app users have 40% higher lifetime value than non-app users because they visit more often, engage more deeply and convert at higher rates. The company is investing in AI-generated buyer profiles, personalized home feeds, smarter recommendations and more targeted push communications to better reflect individual interests. Early testing has produced improvements in add-to-cart activity, conversion and overall engagement.
In the first quarter of 2026, mobile app Gross Merchandise Sales (“GMS”) rose 11.2% year over year, accelerating from 6.6% growth in the preceding quarter. The app accounted for approximately 47% of total GMS, up about 240 basis points year over year. Gross buyer additions increased 4.8% to 11.9 million, including 5 million new buyers and 6.9 million reactivated buyers. GMS per active buyer reached $122, rising 1.5% year over year and 1.1% sequentially.
Etsy is also making targeted structural updates, including enhanced Purchase Protection and dedicated customer support resolution for top buyers. By sharing loyalty initiatives across product, engineering and operational teams, the platform focuses on systematically turning initial consumer engagement into durable, long-term repeat purchase behavior.
How eBay & Shopify Compare With EtsyeBay Inc. (EBAY - Free Report) is also strengthening customer lifetime value by deepening buyer engagement. eBay continues to invest in trusted shopping experiences through features such as Guaranteed Fit, Authenticity Guarantee, AI-powered discovery and eBay Live, all aimed at improving conversion and encouraging repeat purchases. Management also highlighted that AI-powered search refinements are driving higher engagement and double-digit increases in purchase behavior, reinforcing eBay’s strategy of building long-term buyer loyalty through differentiated experiences.
Shopify Inc. (SHOP - Free Report) is pursuing a similar objective by expanding its buyer ecosystem and improving merchant conversion. Shopify highlighted that Shop Pay, the Shop app and AI-powered commerce tools are helping merchants attract new shoppers while increasing repeat purchases. Shopify also noted that AI-driven traffic, personalized product discovery and its growing buyer network are strengthening customer engagement, supporting a flywheel that enhances buyer lifetime value while enabling merchants to build lasting customer relationships.
What the Latest Metrics Say About EtsyEtsy has seen its shares jump 24.2% over the past three months against the industry’s 6.2% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, Etsy's forward 12-month price-to-earnings ratio stands at 13.71, lower than the industry’s ratio of 21.63. ETSY is also trading below its 12-month median level of 20.01.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Etsy's earnings per share has been revised upward. The consensus estimate for the current fiscal year has risen from $5.41 to $5.44, while the estimate for the next fiscal year has jumped from $6.29 to 6.37 over the past seven days.
Image Source: Zacks Investment Research
Etsy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Etsy (ETSY - Free Report) . This company, which is in the Zacks Internet - Commerce industry, shows potential for another earnings beat.
This online crafts marketplace has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 24.05%.
For the most recent quarter, Etsy was expected to post earnings of $0.62 per share, but it reported $0.89 per share instead, representing a surprise of 43.55%. For the previous quarter, the consensus estimate was $0.88 per share, while it actually produced $0.92 per share, a surprise of 4.55%.
Price and EPS Surprise
For Etsy, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Etsy currently has an Earnings ESP of +4.83%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on August 5, 2026.
When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Director Melissa Reiff sold shares of Etsy, Inc. (ETSY 2.87%) on July 15, 2026, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueShares sold3,855Transaction value$328,000Post-transaction shares (directly held)17,613Post-transaction value$1.51 millionTransaction value based on SEC Form 4 weighted average sale price ($85.00); post-transaction value based on July 15, 2026 market close ($85.74).
Key questionsWhat was the primary driver of this transaction?
The transaction was non-discretionary and followed a pre-arranged Rule 10b5-1 trading plan established on August 4, 2025. This mechanism allowed the director to exercise fully vested options and liquidate the resulting shares at a predetermined execution price of $85.00 per share.What is the insider's remaining exposure to the company?
Following this sale, Reiff retains a direct ownership position of 17,613 shares. This equity stake is valued at $1.51 million based on the market close of $85.74 on July 15, 2026.How does this sale align with recent stock performance?
The sale was executed as Etsy shares reflected a 54% one-year return as of the July 15, 2026 transaction date. As of the July 16, 2026 market close, the stock was priced at $83.48, which is slightly below the weighted-average price achieved in the transaction.What is the director's total ownership stake in the firm?
Reiff holds a 0.0186% ownership interest in the $8.0 billion specialty retail company, which operates online marketplaces including its primary handcrafted goods platform and the Depop apparel resale division.Company OverviewMetricValueShare Price (as of market close 2026-07-16)$83.48Market Capitalization$7.9 billionRevenue (TTM)$2.9 billionNet Income (TTM)$302.7 millionCompany SnapshotEtsy operates global online marketplaces connecting independent merchants with consumers, featuring a primary platform dedicated to unique and handcrafted items, complemented by the Depop division specializing in apparel resale, with revenue derived from marketplace fees including listing, transaction, and payment processing charges, as well as advertising services and optional seller utilities.The company generates revenue through a diversified fee-based model that monetizes both buyer and seller activity across its platforms, including transaction fees, listing fees, payment processing fees, advertising placements, and premium seller tools such as shipping label services.Etsy's customer base comprises independent merchants and artisans seeking to reach a global audience of consumers interested in distinctive, handcrafted, and vintage merchandise, as well as fashion-conscious buyers utilizing the Depop platform for pre-owned apparel transactions.Etsy, Inc. operates as a leading specialty retail platform with a $7.9 billion market capitalization and TTM revenue of $2.9 billion, demonstrating strong profitability with TTM net income of $302.7 million. The company's differentiated business model leverages network effects by aggregating independent sellers and buyers on curated marketplaces, with competitive advantages rooted in brand recognition, community engagement, and diversified revenue streams that extend beyond transaction fees to include advertising and value-added seller services.
What this transaction means for investorsReiff’s sale is one of the uncommon occasions where investors do not have to wonder about why an insider sold.
Reiff scheduled this transaction up to nearly one year in advance under Rule 10b5-1. Since this was an options exercise, this sale most likely pertains to her compensation plan with Etsy rather than anything going on with its stock.
However, rather than emphasizing the 18% of the consumer discretionary stock that she sold, investors are likely better served by focusing on the 82% of her Etsy holdings that she kept.
Although the stock is still far below its pandemic highs, it now trades at its highest level in over 2.5 years as its performance makes noticeable improvement.
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In the first quarter of 2026, revenue rose 8% yearly, well above the 3% revenue increase for all of 2025. Also, gross merchandise sales rose 6% annually in Q1 after having fallen in 2025.
This indicates shoppers are returning to the site in increasing numbers, which could mean that investors should consider buying despite the insider sale.
Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Etsy. The Motley Fool has a disclosure policy.
Key Takeaways Etsy is using agentic commerce to drive incremental traffic, buyer discovery and high-intent engagement.Partnerships with OpenAI, Microsoft and Google are expanding Etsy's reach across agentic search channels.Etsy's buyer and seller agents aim to simplify discovery, improve decisions and reduce operational friction. Etsy, Inc. (ETSY - Free Report) is actively positioning itself at the forefront of the artificial intelligence shift by embracing agentic commerce as a potential driver of incremental traffic and buyer discovery. The marketplace has high brand awareness but has historically lacked consideration for diverse purchase occasions. To bridge this gap, the company is leaning heavily into strategic partnerships with major technology players, including OpenAI, Microsoft, and Google. Early data indicates promising growth in traffic and high-intent engagement from users arriving via agentic search channels.
A notable milestone in this initiative is Etsy’s development of an application in ChatGPT. The move aligns with the broader shift in agentic shopping toward retailer-run applications. Beyond its off-site partnerships, Etsy is also testing conversational AI features directly on its marketplace. The company has built two on-platform agents. The buyer-facing agent functions as a gift assistant designed to simplify product discovery, while the seller-facing agent brings together platform insights to help sellers make better decisions, access relevant resources and reduce operational friction.
Leveraging these advanced modeling capabilities has significantly accelerated the company's internal development cycles. Iterating on these artificial intelligence features now takes weeks rather than months. While these partnerships and features remain in their earliest stages within a rapidly evolving ecosystem, the early engagement signals validate the company's approach. By embedding these integrated experiences both on and off the platform, the marketplace aims to capture early intent and transform agentic search into a meaningful long-term discovery catalyst.
How eBay & Shopify Compare With EtsyeBay Inc. (EBAY - Free Report) is also embedding artificial intelligence deeper into its marketplace, but its strategy is centered on enhancing buyer engagement and seller productivity within its own ecosystem. eBay has introduced Agentic Search, expanded AI-powered listing tools and strengthened personalized discovery experiences, with early testing showing higher search engagement and stronger purchase behavior. Rather than focusing on external agentic commerce partnerships, eBay is using AI to reduce marketplace friction, improve listing creation and deepen engagement, positioning eBay to drive incremental growth through a more intelligent shopping experience.
Shopify Inc. (SHOP - Free Report) is arguably taking the most aggressive approach toward agentic commerce among e-commerce platforms. Shopify is enabling merchants to sell seamlessly across AI-powered channels such as ChatGPT, Microsoft Copilot and Google while advancing the Universal Commerce Protocol to support open agentic commerce. Early results are encouraging, with AI-driven traffic and orders rising sharply as merchants benefit from structured product data and unified commerce infrastructure. By positioning Shopify as the commerce backbone for AI agents, Shopify is aiming to capture long-term growth as conversational shopping becomes increasingly mainstream.
What the Latest Metrics Say About EtsyEtsy has seen its shares jump 41.5% over the past three months against the industry’s flat performance.
Image Source: Zacks Investment Research
From a valuation standpoint, Etsy's forward 12-month price-to-earnings ratio stands at 14.27, lower than the industry’s ratio of 21.92. ETSY is also trading below its 12-month median level of 20.07.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Etsy's earnings per share has seen a downward revision. The consensus estimate for the current fiscal year has fallen from $5.55 to $5.41, while the estimate for the next fiscal year has declined from $6.40 to 6.29 over the past 30 days.
Image Source: Zacks Investment Research
Etsy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The disposition involved 22,881 shares valued at ~$1.9 million, based on a weighted-average execution price of $84.00 on July 15, 2026. This transaction reduced direct holdings by 14%, representing 6% of the executive's total equity position, including shares from the concurrent option exercise.
, /PRNewswire/ -- Etsy, Inc. (NYSE: ETSY), which operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers around the world, plans to release its second quarter financial results after the close of the market on Wednesday, August 5, 2026. At that time, our second quarter 2026 Shareholder Letter will be accessible on the Etsy Investor Relations website (investors.etsy.com).
Etsy will host a webcast conference call to discuss those results at 8:30 a.m. Eastern Time on the next day, Thursday August 6, 2026, which will be live-streamed via the Company's Investor Relations website (investors.etsy.com) under the events section. Publishing research analysts will be provided an opportunity to ask company management live questions on the call. A replay of the webcast will be available through the same link following the conference call starting at 12:00 p.m. Eastern Time that day, for at least three months thereafter.
About Etsy
Etsy, Inc. operates two-sided online marketplaces that connect millions of creative entrepreneurs with buyers around the world. These marketplaces share a mission to "Keep Commerce Human," and we're committed to using the power of business and technology to strengthen communities and empower people. Our primary marketplace, Etsy.com, is the global destination for unique and creative goods. Buyers come to Etsy to be inspired and delighted by items that are crafted and curated by creative entrepreneurs. For sellers, we offer a range of tools and services that address key business needs.
Etsy, Inc. also owns fashion resale marketplace Depop. Our marketplaces operate independently, while benefiting from shared expertise in product, marketing, technology, and customer support. On February 15, 2026, Etsy entered an agreement to sell Depop to eBay, subject to regulatory approval and certain other closing conditions as set forth in the Sale and Purchase Agreement. This transaction is now expected to close on July 30, 2026.
Etsy was founded in 2005 and is headquartered in Brooklyn, New York.
Etsy has used, and intends to continue using, its Investor Relations website and the Etsy News Blog (etsy.com/news) to disclose material non-public information and to comply with its disclosure obligations under Regulation FD. Accordingly, you should monitor our investor relations website and the Etsy News Blog in addition to following our press releases, SEC filings, and public conference calls and webcasts.
The transaction involved 39,161 shares with a total value of ~$3.1 million based on a weighted average execution price of $79.00 on July 10, 2026. This disposition accounted for 10% of the insider's total equity holdings and 22% of their direct ownership in the company.
Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.
Considering buying ETSY stock? Here’s what analysts think:
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Britain's competition regulator on Wednesday cleared eBay's planned takeover of fashion resale platform Depop, concluding an initial probe and removing a potential hurdle for the U.S.-based company in closing the deal.
Key Takeaways Etsy app GMS rose 11.2% in Q1 2026 and reached about 47% of total marketplace GMS.AI-powered profiles, feeds and recommendations improved add-to-cart activity, conversion and engagement.App users deliver about 40% higher lifetime value by visiting more often and converting at higher rates. Etsy, Inc.’s (ETSY - Free Report) mobile app is emerging as the centerpiece of the company’s marketplace transformation, with management increasingly positioning it as the primary platform to improve buyer engagement and shopping frequency. Rather than serving as just another purchase channel, the app is becoming the primary destination where Etsy is deploying personalization, machine learning and direct customer engagement to strengthen marketplace activity.
The momentum is already becoming visible. During the first quarter of 2026, mobile app Gross Merchandise Sales (“GMS”) rose 11.2% year over year, accelerating from 6.6% growth in the preceding quarter. The app now accounts for about 47% of total marketplace GMS, an increase of 240 basis points from the prior year, with app GMS continuing to outperform non-app growth. Management believes this reflects improving buyer engagement as users interact more frequently with personalized experiences.
The company is investing heavily in features that make the app more relevant for each shopper. AI-powered buyer profiles, personalized home feeds, smarter recommendations and more targeted push notifications are designed to move beyond displaying popular products and instead surface listings that align with individual tastes while encouraging exploration across new shopping occasions. Early testing has produced improvements in add-to-cart activity, conversion and overall engagement.
Management also highlighted that app users deliver approximately 40% higher lifetime value than non-app users because they visit more often, engage more deeply and convert at higher rates. While purchase frequency has not yet meaningfully accelerated, Etsy believes stronger app engagement is an important leading indicator that can gradually translate into more frequent shopping over time as the broader marketplace strategy continues to evolve.
DoorDash & Shopify: App Innovation Drives User EngagementDoorDash, Inc. (DASH - Free Report) is strengthening app engagement through AI-powered shopping enhancements and a richer end-to-end user experience. DoorDash plans to introduce agentic ordering, smarter search, personalized discovery and improved customer support to make shopping faster and more intuitive. Management also highlighted record DashPass engagement and growing membership adoption, reinforcing DoorDash’s strategy of increasing user retention and purchase frequency through a superior app experience.
Shopify Inc. (SHOP - Free Report) is also accelerating app-driven engagement by expanding AI-powered discovery and commerce capabilities. The Shopify Shop App delivered 70% GMV growth and more than 40% growth in monthly active users in the first quarter of 2026, while unique buyers increased more than 50% year over year. Shopify is further enhancing engagement through AI-powered search, personalized recommendations and Sidekick, helping merchants attract shoppers and improve conversion.
What the Latest Metrics Say About EtsyEtsy has seen its shares jump 44.8% over the past three months against the industry’s 2.4% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, Etsy's forward 12-month price-to-earnings ratio stands at 13.79, lower than the industry’s ratio of 21.85. ETSY is also trading below its 12-month median level of 20.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Etsy's earnings per share has seen a downward revision. The consensus estimate for the current fiscal year has fallen from $5.55 to $5.41, while the estimate for the next fiscal year has declined from $6.40 to 6.29 over the past 30 days.
Image Source: Zacks Investment Research
Etsy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Etsy's 40.5% rally reflects improving marketplace momentum and AI gains. However, active buyer declines and fading order-value tailwinds call for patience.
Key Takeaways Etsy is expanding AI listing assistance and shop tools to automate tasks and improve seller decisions.Active sellers rose 3.3% year over year to 5.6 million in the first quarter.Etsy shares jumped 39.1% in three months, outpacing the industry's 5.1% rise. Etsy, Inc. (ETSY - Free Report) is placing renewed emphasis on improving the seller experience, recognizing that marketplace growth depends in part on helping merchants spend less time on manual tasks and more time creating products that attract buyers. After several years of limited investment in seller-facing capabilities, management is shifting more focus toward tools that simplify listing creation and shop management. The objective is straightforward. Reduce friction for sellers so they can spend more time creating and connecting with buyers, and improving the quality of inventory on the platform.
Etsy is expanding AI-powered listing assistance and introducing shop management tools that help sellers make better decisions, access relevant resources and automate routine tasks. During the first quarter of 2026, the company also developed a seller-focused AI Shop Assistant designed to provide actionable insights while reducing operational complexity. Management noted that these tools are intended to remove time-consuming activities that add little value, allowing sellers to devote greater attention to product innovation and customer relationships.
The early impact is beginning to appear in marketplace metrics. Active sellers increased year over year for the first time since Etsy introduced its seller setup fee, while management highlighted improving seller retention and healthier seller quality as more merchants completed sales and remained active on the platform. Active sellers grew 3.3% year over year to 5.6 million during the first quarter.
Management believes better seller tools will reinforce this trend by making it easier to operate successful shops and consistently introduce fresh inventory. This matters because Etsy’s growth depends on the quality and freshness of what sellers bring to the platform. If new tools help sellers list products faster and manage shops with less friction, Etsy could improve its inventory depth without relying solely on buyer-side initiatives.
How eBay & Shopify Compare With EtsyeBay Inc. (EBAY - Free Report) is also investing heavily in seller productivity, but with a stronger emphasis on reducing selling friction to expand supply. During the first quarter of 2026, eBay highlighted that its latest AI-powered magical listing experience significantly simplified listing creation by automatically generating titles, categories, pricing guidance and item specifics. eBay said the rollout increased new listing creation, improved seller retention, and lifted sold items and GMV per lister. Beyond AI, eBay continues to streamline consumer selling experiences and remove friction across key markets, reinforcing its seller-to-buyer flywheel and supporting long-term marketplace growth.
Shopify Inc. (SHOP - Free Report) is approaching the same opportunity through merchant enablement rather than marketplace optimization. Shopify expanded AI capabilities with Sidekick, which helps merchants automate tasks, create custom apps, generate workflows and proactively recommends actions through Pulse. Shopify also emphasized that AI-powered commerce tools, its structured product catalog and growing discovery channels are designed to help merchants operate more efficiently while reaching more buyers. As Shopify continues investing in merchant-facing AI and automation, it aims to strengthen merchant success and support durable platform growth over time.
What the Latest Metrics Say About EtsyEtsy has seen its shares jump 39.1% over the past three months compared with the industry’s 5.1% rise.
Image Source: Zacks Investment Research
From a valuation standpoint, Etsy's forward 12-month price-to-earnings ratio stands at 12.81, lower than the industry’s ratio of 21.40. ETSY is also trading below its 12-month median level of 20.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Etsy's earnings per share has seen a downward revision. The consensus estimate for the current fiscal year has fallen from $5.55 to $5.41, while the estimate for the next fiscal year has declined from $6.40 to 6.29 over the past seven days.
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Etsy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Etsy's active buyers rose 0.1% sequentially to 86.6M, the first increase in two years.Gross buyer additions climbed 4.8% to 11.9M, led by new and reactivated buyers.App GMS rose 11.2% and made up about 47% of total GMS as users engaged more deeply. Etsy, Inc.’s (ETSY - Free Report) latest buyer metrics suggest a recovery is beginning, though the evidence remains early rather than decisive. First-quarter 2026 operating metrics paint a mixed but healthier picture of buyer engagement. For the first time in two years, active buyers grew 0.1% sequentially to 86.6 million. This marks a directional shift, even though active buyers remain down 2.1% year over year.
The more encouraging part of the story was buyer additions. Gross buyer additions rose 4.8% year over year to 11.9 million, driven by 5 million new buyers and 6.9 million reactivated buyers. New buyers increased 2.3%, while reactivated buyers rose 6.6%, suggesting Etsy is gaining traction both in attracting fresh shoppers and bringing back lapsed users.
Spending behavior also improved. Gross merchandise sales (GMS) per active buyer reached $122, up 1.5% year over year and 1.1% sequentially, marking the first year-over-year increase since late 2022 and the fourth straight quarter of sequential improvement. Still, purchase frequency remained modestly lower than the prior year. Repeat buyers and habitual buyers fell 3.2% and 5.7% year over year, respectively, though management noted moderation in sequential declines.
Etsy’s app momentum adds another positive signal. App GMS rose 11.2% year over year and represented about 47% of total GMS. With app users visiting more often, engaging more deeply and converting at higher rates, Etsy’s buyer turnaround appears to be gaining early momentum.
The company is using personalized search, home feed recommendations, AI-generated buyer profiles, targeted offers, and more relevant email and push messaging to improve discovery, strengthen loyalty and deepen direct relationships with buyers. The operating metrics support the view that buyer recovery is arriving sooner than expected, though stronger purchase frequency is still needed to confirm durability.
How eBay & Shopify Compare With EtsyeBay Inc. (EBAY - Free Report) reported that trailing 12-month active buyers increased 1% year over year to nearly 136 million, with U.S. buyer growth accelerating to nearly 6% during the first quarter of 2026. The company is improving discovery and engagement through AI-powered Agentic Search, enhanced eBay Live experiences, better event discovery within its app and partnerships that expand the reach of its marketplace. eBay believes these AI-native experiences and community-driven initiatives are making shopping more relevant while supporting higher buyer engagement.
Shopify Inc. (SHOP - Free Report) is expanding personalized discovery across multiple channels, including AI chats, the Shop App and marketplaces, while using Shop Pay and its buyer network to improve conversion and encourage repeat purchases. Shopify also highlighted that traffic from Catalog-powered AI searches converted at more than twice the rate of general AI search traffic, reinforcing its AI-driven commerce strategy. These initiatives position Shopify to strengthen buyer experiences by helping merchants drive more relevant discovery and higher conversion.
What the Latest Metrics Say About EtsyEtsy has seen its shares jump 42.7% over the past three months compared with the industry’s 8.1% rise.
Image Source: Zacks Investment Research
From a valuation standpoint, Etsy's forward 12-month price-to-earnings ratio stands at 13.14, lower than the industry’s ratio of 21.27. ETSY is also trading below its 12-month median level of 20.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Etsy's earnings per share has seen a downward revision. The consensus estimate for the current fiscal year has fallen from $5.55 to $5.41, while the estimate for the next fiscal year has declined from $6.40 to 6.29 over the past seven days.
Image Source: Zacks Investment Research
Etsy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Etsy's marketplace GMS rose 5.5% year over year to $2.5B, improving 540 basis points from Q4.Active buyers grew sequentially for the first time in two years, with GMS per buyer rising to $122.Etsy expects marketplace GMS to grow every quarter of 2026 and full-year growth in the low single digits. Etsy, Inc. (ETSY - Free Report) entered 2026 with renewed momentum, but the bigger question is whether its marketplace gross merchandise sales (GMS) growth can remain sustainable through the rest of the year. The first quarter offered encouraging evidence that the company is rebuilding the marketplace on stronger operating fundamentals rather than relying solely on temporary tailwinds.
Marketplace GMS increased 5.5% year over year to $2.5 billion, with the growth rate improving 540 basis points from the fourth quarter. Management said progress in product development and marketing is translating into improvements across marketplace fundamentals, while foreign exchange tailwinds and a softer prior-year comparison also supported the performance.
What makes the current recovery more meaningful is the shift in customer behavior. Active buyers posted sequential growth for the first time in two years, new buyers and active sellers increased year over year, while GMS per active buyer rose for the first time since late 2022, reaching $122 on a trailing 12-month basis. Etsy's mobile app continues to play a central role, with app GMS increasing 11.2% year over year and accounting for roughly 47% of marketplace GMS. Management said the momentum reflects continued investments in machine learning, personalization and improved product discovery.
Management expects some first-quarter benefits, including foreign exchange tailwinds and tariff-related average order value increases, to moderate as the year progresses. Even so, it expects continued progress in product discovery, personalization and customer engagement initiatives to further strengthen marketplace fundamentals through the remainder of 2026.
During the earnings call, management reiterated its expectation for year-over-year marketplace GMS growth in every quarter of 2026 and forecast full-year growth in the low single digits. ETSY guided second-quarter marketplace GMS to be between $2.48 billion and $2.53 billion, implying 3% to 5% year-over-year growth.
How eBay & Shopify Compare With Etsy on Marketplace GrowtheBay Inc. (EBAY - Free Report) also delivered a strong marketplace performance in the first quarter of 2026, with gross merchandise volume (GMV) rising 14% year over year to $22.2 billion. eBay said growth was broad-based across major categories, supported by faster momentum in collectibles, motors, electronics and fashion, while AI-powered seller tools, Live commerce and consumer-to-consumer initiatives continued to improve marketplace engagement. Management expects eBay's GMV growth to moderate in the second quarter as some category-specific tailwinds ease, but reaffirmed confidence in sustained marketplace momentum through the remainder of 2026.
Shopify Inc. (SHOP - Free Report) also continued to deliver healthy marketplace expansion, with first-quarter 2026 GMV increasing 35% year over year to $101 billion. Shopify attributed the performance to balanced growth across merchant sizes, geographies and sales channels, while AI capabilities such as Sidekick and integrations with ChatGPT, Microsoft Copilot and Google continued to support merchant growth. Management highlighted accelerating online, offline and B2B commerce trends and expects Shopify to maintain strong momentum, supported by continued investments. The consistent GMV growth underscores Shopify's ability to scale merchant sales despite an evolving commerce landscape.
What the Latest Metrics Say About EtsyEtsy has seen its shares jump 45.9% over the past three months compared with the industry’s 7.9% rise.
Image Source: Zacks Investment Research
From a valuation standpoint, Etsy's forward 12-month price-to-earnings ratio stands at 12.35, lower than the industry’s ratio of 21.21. ETSY is also trading below its 12-month median level of 20.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Etsy's earnings per share has seen an upward revision. The consensus estimate for the current fiscal year has risen from $3.76 to $3.82, while the estimate for the next fiscal year has increased from $4.30 to $4.59 over the past 60 days.
Image Source: Zacks Investment Research
Etsy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Etsy (ETSY - Free Report) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Retail-Wholesale peers, we might be able to answer that question.
Etsy is one of 189 individual stocks in the Retail-Wholesale sector. Collectively, these companies sit at #13 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Etsy is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for ETSY's full-year earnings has moved 21.2% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that ETSY has returned about 30.2% since the start of the calendar year. At the same time, Retail-Wholesale stocks have gained an average of 1.7%. This shows that Etsy is outperforming its peers so far this year.
Sonic Automotive (SAH - Free Report) is another Retail-Wholesale stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 35.3%.
Over the past three months, Sonic Automotive's consensus EPS estimate for the current year has increased 2.2%. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Etsy belongs to the Internet - Commerce industry, a group that includes 33 individual companies and currently sits at #109 in the Zacks Industry Rank. On average, stocks in this group have lost 1.2% this year, meaning that ETSY is performing better in terms of year-to-date returns.
In contrast, Sonic Automotive falls under the Automotive - Retail and Whole Sales industry. Currently, this industry has 9 stocks and is ranked #167. Since the beginning of the year, the industry has moved +2.3%.
Investors with an interest in Retail-Wholesale stocks should continue to track Etsy and Sonic Automotive. These stocks will be looking to continue their solid performance.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +24% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Etsy (ETSY - Free Report) Etsy operates as a leading e-commerce service provider, managing a two-sided marketplace platform at Etsy.com that connects creative entrepreneurs with buyers seeking unique, handmade, and vintage items. The company has established a strong international presence, with core operations spanning the United States, United Kingdom, Canada, Germany, Australia, and France.
ETSY is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Retail-Wholesale stock. ETSY has a Momentum Style Score of B, and shares are up 22.7% over the past four weeks.
Six analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $2.24 to $5.65 per share. ETSY also boasts an average earnings surprise of +3.9%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, ETSY should be on investors' short list.
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Etsy (ETSY - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Etsy currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if ETSY is a promising momentum pick, let's examine some Momentum Style elements to see if this online crafts marketplace holds up.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For ETSY, shares are up 0.61% over the past week while the Zacks Internet - Commerce industry is flat over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 22.33% compares favorably with the industry's 5.58% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of Etsy have increased 9.25% over the past quarter, and have gained 42.6% in the last year. In comparison, the S&P 500 has only moved 4.43% and 30.47%, respectively.
Investors should also take note of ETSY's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now ETSY is averaging 3,282,847 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with ETSY.
Over the past two months, 7 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost ETSY's consensus estimate, increasing from $3.43 to $3.71 in the past 60 days. Looking at the next fiscal year, 6 estimates have moved upwards while there have been 1 downward revision in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that ETSY is a #1 (Strong Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Etsy on your short list.
Etsy is upgraded to a "Buy" as core marketplace sales accelerate and profit margins improve despite a challenging macro environment. Divestitures of Depop and Reverb signal a strategic return to Etsy's artisan-focused roots, enhancing operational focus and cost efficiency. Opex efficiencies are materializing, with general and administrative costs declining as a percentage of revenue, supporting healthier margins.
Etsy announced Tuesday the launch of its native app within ChatGPT, opening up a new way for shoppers to explore its catalog of over 100 million listings.
The new experience is designed to move beyond the limitations of traditional keyword queries. Instead of typing something like “wooden coffee table,” then scrolling and adjusting filters, users can now express what they’re looking for in natural language. For instance, “Help me find a Mother’s Day gift under $100 for my mom who loves gardening.”
Now live in beta, the feature allows users to tag @Etsy directly within a prompt. From there, the Etsy app in ChatGPT surfaces relevant product listings that users can browse, compare, and click through to Etsy for additional details or purchase.
This isn’t Etsy’s first experiment inside ChatGPT. Back in September, Etsy became an early partner in ChatGPT’s Instant Checkout integration, which let users buy products directly inside the chat interface. However, the initiative ended in March, suggesting it didn’t perform as OpenAI had hoped. It was reported that Etsy didn’t see a large volume of sales from the integration, leading Etsy to start building a native app within ChatGPT instead.
Alongside this launch, Etsy also revealed it’s testing a beta conversational search experience within its platform, specifically geared toward helping users find gifts. The gift assistant acts as a personal shopper, offering a guided, conversational way to discover ideas, narrow down preferences, and surface relevant products.
Image Credits:Etsy This builds on Etsy’s broader AI push, which includes an AI-powered discovery experience featuring curated collections and a suite of seller tools, including a tool that helps generate product titles and descriptions, as well as a writing assistant to help draft messages to buyers. In 2024, Etsy introduced a new “Designed” label to identify AI content, part of an effort to increase transparency as AI-generated artwork becomes more prevalent on the platform.
The news of a ChatGPT integration comes a week after Etsy reported its Q1 2026 earnings, surpassing revenue expectations with $631 million, and marketplace gross merchandise sales were up 6% year over year. Notably, active buyers increased for the first time in two years to 86.6 million. Etsy also touted 5.6 million active sellers on the platform.
In February, the company announced it was selling Depop to eBay for $1.2 billion in cash, a move aimed at doubling down on its core marketplace.
Etsy joins a growing list of companies building native apps within ChatGPT, including Angi, SeatGeek, Tubi, and Wix. Developers have been able to build apps within the chatbot since October.
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Etsy is working to offer conversational search both in OpenAI’s ChatGPT and on its own platform.
The company said in a Tuesday (May 5) blog post that the Etsy app in ChatGPT is now live in beta and that it is testing a beta conversational search experience on Etsy.
“Our approach will evolve based on what we learn,” Etsy Chief Product and Technology Officer Rafe Colburn wrote in the post. “We’re showing up in these channels to test, iterate and understand how to help sellers reach shoppers looking for the meaningful items they offer.”
The Etsy app in ChatGPT allows users to search and compare Etsy items directly in the conversation, according to the post. Users tag @Etsy, type a prompt, see relevant listings provided by the app, and click to go to Etsy and learn more.
With this app in ChatGPT, users get relevant listings by typing prompts such as, “@Etsy Help me find a Mother’s Day gift under $100 for my mom who loves gardening.”
Etsy learned from its experience as the first live integration partner for ChatGPT Instant Checkout that ChatGPT “works well as a discovery channel. Shoppers often chose to come to Etsy from their chats to learn more before making a purchase,” Colburn wrote.
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The company’s other project, the beta conversational search experience on Etsy, is still in its early stages, according to the post. This experience will be designed to help users find a gift.
Colburn wrote in the post that large language models and conversational search are well suited to the challenge of helping shoppers find items among the millions listed by Etsy sellers.
“It gives shoppers a way to say what they mean, whether they have something specific in mind or just a starting point,” Colburn wrote.
PYMNTS reported Wednesday (April 29) that Etsy is deploying AI to build a system that can surface the right product to the right buyer at the right moment.
The company is also building into the agentic commerce channel through integrations with OpenAI, Microsoft and Google. Etsy described early agentic traffic as high intent but still a fraction of a percent of total visits.
Etsy's current foray into ChatGPT may be less about making money and more about learning how to develop its own AI tools.
Anna Gragert (she/her/hers) was previously the lifestyle editor at HelloGiggles, the deputy editor at So Yummy and the senior lifestyle editor at Hunker. Over the past 12 years, Anna has also written for the LA Times, Elle, Bust Magazine, Dazed, Apartment Therapy, Well+Good and more. At CNET, she's a senior editor on the Healthy Home team, and her coverage includes health, wellness tech, meal kits and home and kitchen tech with a focus on the technology that aims to help us live our healthiest, happiest lives.
Expertise Health and wellness tech, meal kits, home and kitchen tech, food, mental health
3 min read
Etsy is known for its marketplace of handcrafted goods, but despite that human touch, the company wants its shoppers to adopt AI.
On Tuesday, Etsy launched a beta version of its app in the OpenAI-owned ChatGPT. Once connected to the ChatGPT Etsy app, all you have to do is tag @Etsy and provide a prompt for it to generate results that can be compared or opened on the Etsy website.
In an Etsy News blog post, Chief Product and Technology Officer Rafe Colburn wrote that the ChatGPT app "offers shoppers a deeper view into sellers' items" and can help when nuance matters.
"At the same time, the Etsy app in ChatGPT is poised to give us earlier insight into the moments Etsy is relevant in a shopper's journey, opening the door to understanding how and when shoppers choose to use conversational search," Colburn wrote.
In other words, while the ChatGPT Etsy app helps customers locate specific items, it also provides Etsy with information about when people choose to use both ChatGPT and Etsy while shopping.
I took ChatGPT's Etsy app for a test runAfter connecting the Etsy app, I told @Etsy that I'm looking for a handmade birdhouse under $50. It responded with five listings showing the item name, price, seller name, rating and whether there's free shipping. There were also buttons above the listings I could click to filter by handmade, personalized, under $25 and free shipping.
I found it interesting that I could filter by "handmade," even though that was a keyword in my prompt. When I selected the filter, only one result disappeared: a PDF for a DIY birdhouse.
What it looks like when you use the Etsy app on ChatGPT to find a handmade, under-$50 birdhouse.
ChatGPT/Screenshot by CNETHowever, I received these same filter options with different prompts -- a birthday gift for a cat-loving friend and a Mother's Day gift under $100 -- so they seem to be there by default. One exception: For the Mother's Day gift under $100, the filter for "under $25" changed to "under $50," meaning it will increase as your budget increases.
When I clicked "view details" under a listing, I was, as promised, taken to the item's page on Etsy.
Under the ChatGPT results, it noted that some birdhouses are merely decorative and not functional for birds, and that shipping can push the total cost to over $50. It also listed the two results most practical for birds, along with their prices and shipping costs.
To narrow down my options or find sturdy, weatherproof birdhouses, ChatGPT said I could tell it more about the birds I want to attract and whether I want a birdhouse for decoration or actual nesting.
On the other hand, the Etsy website allows me to filter by physical items, those that ship from the US, different birdhouse materials and styles, specific bird species, features such as weatherproof and squirrel-proof and more.
This isn't Etsy's first ChatGPT rodeoWhen ChatGPT launched Instant Checkout in September to allow people in the US to purchase products through ChatGPT, Etsy was the first partner. Six months later, in March, Modern Retail, a media brand covering the retail industry, reported that both OpenAI and its retail collaborators had pulled back on the feature.
An Etsy spokesperson told Modern Retail that while the Instant Checkout integration did get potential buyers to see Etsy products and drove referral traffic, Etsy did not see "a large volume of sales."
When asked why it launched the ChatGPT app after the previous Instant Checkout integration failed to drive sales, a representative for Etsy didn't immediately respond.
Etsy's AI futureAs Etsy continues testing its ChatGPT beta app, it's using what it learns to design a similar conversational experience on Etsy. "It's still early, but we're iterating quickly and learning from real usage what's actually valuable to shoppers," Colburn wrote.
In a photo shared within the blog post, an AI chatbot called Gifting Assistant is shown helping someone find a Mother's Day gift under $150.
A sneak peek at Etsy's Gifting Assistant in beta.
EtsyWith this context, it would seem that Etsy's ChatGPT app is less about driving sales and more about the company figuring out how to design its own AI tools.
(Disclosure: Ziff Davis, CNET's parent company, filed a lawsuit against OpenAI in 2025, alleging it infringed Ziff Davis copyrights in training and operating its AI systems.)
ANNA GRAGERT
Senior Editor, Health and Home
Anna Gragert (she/her/hers) was previously the lifestyle editor at HelloGiggles, the deputy editor at So Yummy and the senior lifestyle editor at Hunker. Over the past 12 years, Anna has also written for the LA Times, Elle, Bust Magazine, Dazed, Apartment Therapy, Well+Good and more. At CNET, she's a senior editor on the Healthy Home team, and her coverage includes health, wellness tech, meal kits and home and kitchen tech with a focus on the technology that aims to help us live our healthiest, happiest lives. See full bio
Picture a flea market the size of a small country. Every stall is run by a different person. Every item is one of a kind. Now imagine walking in and knowing, within seconds, exactly where to go. That is what Etsy is building. And the business case for getting it right is enormous.
Etsy’s buyers now number roughly 90 million. Most of what they are looking for is handmade, vintage or customizable and therefore unlike anything a standard search engine was built to retrieve. Etsy’s engineering team said the old discovery infrastructure was not breaking down slowly. It had already broken.
Using Google Cloud’s Gemini models, Vertex AI and BigQuery, Etsy rebuilt its search and recommendation system to read every listing’s images, text and contextual signals simultaneously. The platform now categorizes more than 130 million items from over 5 million sellers dynamically, personalizes each buyer’s home feed in real time and tracks cultural trends as they emerge on social media before they peak.
The early results are measurable: Etsy recorded its first sequential gain in active buyers in eight quarters, PYMNTS reported.
When the Catalog Became the Problem Search and recommendation systems built for standardized retail shelves struggle when every item is one of a kind. A shopper looking for a “rustic anniversary gift with a botanical feel” cannot generate a clean keyword. A static merchandising team cannot manually categorize 130 million listings at the rate sellers add them.
Etsy told Google Cloud that the company needed generative artificial intelligence (AI) to do what was not economically or logistically possible before large language models existed.
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The Algotorial Curation Model Etsy calls its hybrid approach algotorial curation. Human merchandising experts create seed collections built around themes and styles. Generative AI then scales those seeds across the full catalog, finding semantically similar listings the team never would have reached manually. Listings per theme increased roughly 80 times, Google Cloud reported. Improved alt text generation using Gemini lifted SEO-driven visits 5% and boosted seller conversions 3%.
The system also reorders what each buyer sees. Which trends appear on a shopper’s home feed, and in what sequence, is specific to that individual’s profile. Past behavior, favorited items and browsing patterns feed a model that continuously adjusts the experience in real time.
Buyer Behavior Is Starting to Move The business signal came in Q1 2026. Active buyers reached 86.6 million, down year over year but up sequentially for the first time in eight quarters, PYMNTS reported. Mobile app sales, where the new personalization model runs most thoroughly, grew 11.2% year over year, up from 6.6% the prior quarter.
Etsy is also expanding into conversational search. An Etsy app in ChatGPT is now live in beta, letting users type prompts and receive relevant listings directly inside the conversation, PYMNTS reported. The company described early agentic traffic as high-intent. It remains a fraction of total visits for now. Etsy’s bet is that it will not stay that way.
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American consumers are rerouting their spending rather than pulling back. With University of Michigan sentiment at 48.2, the savings rate down to 3.6% from 5.1% in early 2025, and energy prices up 14.4% year-over-year, households are making rational adjustments: buying private label at Costco, hunting TJX racks for branded apparel, fixing the old Hyundai instead of financing a new one, and listing the kids’ outgrown clothes on eBay. Consumers who are highly deliberate about what they buy (the selective shopper) and those who care about sustainability (the circular economy) share the same core behaviors and are responding sensibly to a higher-cost world.
That shift is structural. Six ETFs sit closest to the money flow:
SPDR S&P Retail ETF (NYSEARCA: XRT) ProShares Online Retail ETF (NYSEARCA: ONLN) Invesco S&P SmallCap Consumer Discretionary ETF (NASDAQ: PSCD) Global X E-commerce ETF (NASDAQ: EBIZ) Consumer Staples Select Sector SPDR Fund (NYSEARCA: XLP) VanEck Retail ETF (NASDAQ: RTH). They split cleanly into two camps: the resale and off-price plays (XRT, ONLN, EBIZ, PSCD) and the trade-down beneficiaries (XLP, RTH).
The Macro Setup Behind the Behavior Shift Wages are rising. Average hourly earnings reached $37.41 in April 2026, up from $36.12 a year earlier. But the consumer price index climbed from 320.8 to 333.0 over the same span, with goods inflation running 3.8% and core personal consumption expenditures at 3.2%. Real purchasing power is eroding faster than nominal pay can patch it. The behavioral response is visible in retail sales hitting a record $757.1 billion in April 2026: the spending is happening, just not where it used to.
XRT: The Cleanest Selective-Shopper Trade XRT is the rare retail fund built around equal weighting as a deliberate design choice. Off-price names like TJX, Ross, Burlington, and Ollie’s sit alongside resale platforms eBay at roughly the same portfolio weight as Amazon would carry in a cap-weighted peer. That structure gives the fund outsized exposure to exactly the names benefiting from trade-down and secondhand migration.
The catch shows up in performance: XRT is down over 8% year to date to near $17 a share, with broader specialty retail weighing on the basket even as the off-price subset gains share. Investors who want pure exposure to the selective shopper without mega-cap dilution accept that volatility. It is the best vehicle in the lineup for the resale and off-price thesis specifically, but it will not move like staples on bad sentiment days.
ONLN: The Digital Resale Channel ONLN concentrates in online retailers with meaningful weight in eBay, Etsy, and Amazon, plus international marketplace operator MercadoLibre. The thesis is that secondhand commerce is migrating to digital faster than it is leaving brick-and-mortar thrift, and the platforms taking listing fees and transaction cuts win regardless of which seller moves the sweater.
The fund is concentrated. A handful of names drive most of the return, which means a soft Amazon quarter can swing the whole portfolio. Shares are about $55 apiece, down 7.0% year to date but up 14.9% over the trailing year. The tradeoff is single-stock risk dressed up as a thematic basket.
PSCD: The Overlooked Small-Cap Angle PSCD is the contrarian pick on this list. It holds smaller specialty retailers, auto parts and repair names, and value-oriented discretionary businesses that screens dominated by Amazon and Tesla will never surface. The repair economy lives here: when motor vehicle PCE drops year-over-year, from $808.4 billion to $780.9 billion, the parts and service aftermarket gets the wallet share.
Small caps have been punished. PSCD is down 5.0% year to date and trades near $100, well below its prior highs. That is exactly why it belongs on this list. It is the long tail of the trend at a depressed entry, with operating leverage to a consumer who keeps repairing instead of replacing.
EBIZ: Global E-commerce and Marketplaces EBIZ extends the marketplace thesis internationally, with weight in MercadoLibre, Shopify, and other global platforms where resale and C2C commerce are growing faster than U.S. peers. The structural argument is that emerging-market consumers adopted secondhand commerce digitally without ever building the suburban thrift-store infrastructure that defined the U.S. resale economy.
The price has not cooperated. At over $27 a share, EBIZ is down 16.2% year to date and 10.3% over the trailing year, the worst performer in this lineup. For an investor who already owns ONLN, EBIZ is duplicative. For one who wants international marketplace exposure without buying MercadoLibre directly, it is the most efficient option available.
XLP: The Trade-Down Anchor on Staples XLP is the standout performer in this group and the clearest beneficiary on the staples side. It is up 10.1% year to date to almost $86, with Walmart at 12.1% and Costco at 9.5% of the portfolio. Those two names alone capture the bulk of the trade-down in groceries and household goods, and Target adds another 3.8%.
The fund carries an eight-basis-point expense ratio and a 2.6% dividend yield, making it one of the cheapest ways to own this exposure. The tradeoff is that XLP is also heavy in tobacco (Philip Morris, Altria) and beverages (Coca-Cola, PepsiCo), which dilute the pure discount-retail thesis. Investors who want trade-down exposure with defensive income should start here. Those who want concentrated discount retail need RTH.
RTH: Mega-Cap Winners Take the Share RTH is cap-weighted and top-heavy in Amazon, Walmart, Home Depot, Costco, and Lowe’s. That structure is a feature for this theme. When consumers tighten, the giants gain share, and the home-improvement names capture the repair-rather-than-renovate household that is fixing the existing roof instead of trading up.
At about $263, RTH is up 4.7% year to date and 10.4% over the trailing year, the second-best performer behind XLP. The tradeoff is concentration: a bad Amazon quarter moves the fund meaningfully. For investors who believe the trade-down winners are already obvious and want to own them in size, this is the most direct vehicle.
How to Choose The decision turns on which side of the consumer behavior shift you want to own. XLP and RTH are the defensive trade-down plays, already showing positive returns and built around the dominant winners. They suit investors who want the thesis with lower volatility and a clear income or mega-cap profile. XRT, ONLN, EBIZ, and PSCD are the offensive resale and off-price plays, currently in drawdown but holding the names with the most operating leverage if circular-economy adoption accelerates. XRT is the cleanest single fund for that side. PSCD is the most overlooked. Pairing one from each camp captures the full behavior shift without doubling up on Amazon and Walmart through three different tickers.
, /PRNewswire/ -- Etsy, Inc. (NYSE: ETSY), which operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers around the world, today announced that its executives will participate in the Bernstein's 42nd Annual Strategic Decisions Conference in New York. There will be a webcast fireside chat on May 27, 2026 at 1:30 p.m. ET, which investors can listen to on our investor relations website at investors.etsy.com.
About Etsy
Etsy, Inc. operates two-sided online marketplaces that connect millions of creative entrepreneurs with buyers around the world. These marketplaces share a mission to "Keep Commerce Human," and we're committed to using the power of business and technology to strengthen communities and empower people. Our primary marketplace, Etsy.com, is the global destination for unique and creative goods. Buyers come to Etsy to be inspired and delighted by items that are crafted and curated by creative entrepreneurs. For sellers, we offer a range of tools and services that address key business needs.
Etsy, Inc. also owns fashion resale marketplace Depop. Our marketplaces operate independently, while benefiting from shared expertise in product, marketing, technology, and customer support. On February 15, 2026, Etsy entered an agreement to sell Depop to eBay, subject to regulatory approval and certain other closing conditions as set forth in the Sale and Purchase Agreement.
Etsy was founded in 2005 and is headquartered in Brooklyn, New York.
Etsy has used, and intends to continue using, its Investor Relations website and the Etsy News Blog (etsy.com/news) to disclose material non-public information and to comply with its disclosure obligations under Regulation FD. Accordingly, you should monitor our investor relations website and the Etsy News Blog in addition to following our press releases, SEC filings, and public conference calls and webcasts.
On May 20, 2026, Etsy Inc ETSY shares rose 5.7% today, bringing the current price to $60.89. The stock has experienced a 52-week range of $44.00 to $76.52, indicating some volatility over the past year.
GF Value™ verdict: Current price is $60.89, which is 1.2% undervalued compared to the GF Value™ of $61.62.GF Score™: 84/100, indicating a strong overall assessment.Notable signal: Insiders sold $18.1M worth of shares in the last three months, with no buying activity reported. Is ETSY Overvalued or Undervalued? Etsy Inc's current share price of $60.89 is slightly below the GF Value™ estimate of $61.62, reflecting a 1.2% margin of safety. This suggests that the stock is undervalued relative to its intrinsic value, providing a potential opportunity for investors. However, the GF Valuation label of "Fairly Valued" indicates that while the stock could be seen as a bargain, caution is warranted due to other factors at play, including recent insider selling. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
The marginal undervaluation of Etsy's stock could represent a buying opportunity for those who believe in the company’s growth potential. However, the recent trend of insiders selling shares may raise some concerns regarding the company's short-term outlook. Investors should weigh these elements carefully before making any decisions.
How Does ETSY's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 25.4x 34.1x Forward P/E 22.1x - Currently, Etsy's P/E (TTM) of 25.4x is significantly below its 5-year median P/E of 34.1x, indicating that the stock is trading at a lower valuation compared to its historical norms. The forward P/E of 22.1x further supports this notion of relative undervaluation. This P/E analysis aligns with the GF Value™ verdict, reinforcing the idea that Etsy may offer a favorable entry point for prospective investors.
What Does ETSY's GF Score™ Tell Us? Metric Rating GF Score™ 84 Financial Strength 5/10 Profitability 8/10 Growth 6/10 Valuation 9/10 Momentum 8/10 The GF Score™ of 84/100 indicates a strong overall assessment of Etsy's stock, with particular strengths in Profitability (8/10) and Valuation (9/10). However, the Financial Strength rating of 5/10 suggests that there may be some weaknesses in the company's balance sheet or cash flow management. Overall, the strong Valuation and Profitability scores imply that Etsy is performing well financially, while the average Financial Strength score signifies a need for caution.
What Are Insiders Doing with ETSY Stock? In recent months, insiders at Etsy have sold a total of $18.1 million in shares, with no buying activity reported. This pattern of selling could be interpreted as a sign of caution regarding the company's performance or outlook. While insider selling does not always predict future stock performance, it can indicate that those closest to the company may have reservations about its near-term prospects. Therefore, investors should consider this factor when evaluating their positions in Etsy.
What This Means for Investors Based on the GF Value™ assessment, Etsy Inc ETSY is currently fairly valued, suggesting that the stock is positioned near its intrinsic value. While there may be a slight opportunity for undervaluation based on current price versus GF Value™, the recent insider selling and average Financial Strength rank present potential risks that should be considered before making investment decisions.
For the complete analysis, visit the Etsy Inc ETSY stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is ETSY's GF Score™?
The GF Score™ for Etsy is 84/100, indicating a strong overall assessment and suggesting that the stock has the potential for favorable long-term returns.
Is ETSY overvalued or undervalued?
Etsy is currently considered fairly valued, with a slight undervaluation of 1.2% compared to the GF Value™ estimate.
What is ETSY's P/E ratio?
Etsy's P/E (TTM) is 25.4x, which is significantly below its 5-year median P/E of 34.1x, indicating that the stock is currently trading at a discount relative to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
Etsy demonstrates resilient operating leverage, with a 2025 turnaround from -6.5% to +0.9% YoY GMS growth by Q3. ETSY's asset-light model and rising take-rate (24.9% in Q3 2025) drive high-margin incremental EBITDA, with scenario modeling projecting 35.4%–39% margins by 2027. Share buybacks and disciplined capital allocation support shareholder returns, but aggressive fee hikes risk seller churn and platform erosion.
After underperforming the market for several years, Etsy (ETSY +0.06%) is finally bouncing back. The company's shares have climbed 34% over the past 12 months, slightly better than the broader market. If Etsy can maintain this momentum, it may still be time to invest in the e-commerce specialist, especially since its shares remain down more than 70% from their all-time high reached in late 2021. Let's see whether there is more upside ahead for Etsy.
A rejuvenated business Etsy is going back to the basics. Last year, the company divested Reverb, a marketplace for vintage musical instruments. And in February, Etsy announced it would sell Depop, a fashion-focused online marketplace.
Image source: The Motley Fool.
Etsy wants to focus on its core e-commerce platform, which is primarily geared toward the sale of vintage, handmade, or otherwise unique items. Meanwhile, Etsy's financial results are improving. In the first quarter, the company's revenue increased by 3% year over year to $631.3 million. After reporting a loss per share of $0.49 in the year-ago period, Etsy posted net earnings per share of $0.60 this time around. And although active buyers declined by 2.1% year over year to 86.6 million in the period, the metric increased sequentially -- by just 0.1% -- for the first time in two years. Active sellers grew on a year-over-year basis.
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Etsy is on the right track, but can the company keep going? On the one hand, one reason Etsy underperformed for years is that the items on its platform aren't exactly cheap, nor are they the essential goods people keep buying during a recession. And with rising inflation and various signs of a possible coming recession, the e-commerce leader might encounter more challenges ahead. However, Etsy's decision to overhaul its business could pay off through improved margins and profits, and better performance in its core marketplace as it focuses solely on that.
The company sees significant opportunities for growth, notably through improved artificial intelligence (AI)-powered algorithms on the platform that help shoppers find what they need more easily and spend more on the marketplace. Further, Etsy benefits from a competitive edge thanks to network effects. The company is known as a leading platform in its niche of the e-commerce industry, and the more buyers on its website, the more it attracts sellers, and vice versa. This same flywheel effect can help improve its AI algorithms: increased platform activity provides it with more data to train on, and so on. Etsy is still looking at a massive long-term opportunity in the growing e-commerce niche.
Lastly, Etsy is trading at just 12x forward earnings, versus the average of 27x for consumer discretionary stocks. Etsy is still somewhat risky given the potential economic challenges ahead. But in my view, it is worth serious consideration at current levels.
On May 28, 2026, Etsy Inc ETSY shares rose 4.7% to $66.78. The stock has seen significant price fluctuations over the past year, with a 52-week range between $44.00 and $76.52. The recent upward trend reflects a year-to-date increase of 20.4% and a one-year gain of 29.8%.
GF Value™ verdict: Current price of $66.78 is 8.1% above the GF Value™ of $61.76, indicating the stock is overvalued.GF Score™ is 80/100 (Strong), suggesting a solid overall performance across various metrics.Notable signal: Insider activity shows that insiders sold $18.8M worth of shares in the last 3 months, indicating potential concerns about the company's future performance. Is ETSY Overvalued or Undervalued? The current price of Etsy Inc ETSY at $66.78 is significantly higher than the GF Value™, which estimates the fair value at $61.76. This results in an overvaluation of approximately 8.1%, which may pose some risks for potential investors. The GF Valuation label categorizes Etsy as fairly valued, suggesting that the stock price is not justified by its intrinsic value based on historical trading multiples, past business growth, and future performance estimates.
Given that the stock is trading above its intrinsic value, investors should be cautious. A premium valuation can lead to increased volatility if market sentiment shifts or if the company fails to meet growth expectations. The margin of safety is minimal, which means investors may want to consider the inherent risks of entering a position at this level.
How Does ETSY's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 27.8x 34.0x Forward P/E 24.1x N/A Etsy's current P/E (TTM) of 27.8x is below its 5-year median P/E of 34.0x, indicating that the stock is trading at a lower valuation compared to its historical average. The forward P/E of 24.1x suggests that analysts expect earnings to grow in the future. This P/E analysis aligns with the GF Value™ verdict, reinforcing the view that the stock is presently overvalued, considering its historical performance metrics.
What Does ETSY's GF Score™ Tell Us? Metric Rating GF Score™ 80 Financial Strength 5/10 Profitability 8/10 Growth 5/10 Valuation 7/10 Momentum 8/10 The GF Score™ of 80/100 indicates a strong overall performance, particularly in profitability and momentum, where the scores are 8/10. However, financial strength and growth lag behind at 5/10, highlighting potential vulnerabilities in the company's balance sheet and growth trajectory. The valuation rank of 7/10 suggests that while the stock may be overvalued, it still holds some merit in comparison to others in the same industry.
What Are Insiders Doing with ETSY Stock? Recent insider activity has revealed that insiders sold approximately $18.8 million worth of Etsy shares over the last three months without any reported buying activity. This trend suggests that insiders may have concerns regarding the company's future performance or valuation levels, which could be a red flag for potential investors.
The lack of insider buying further emphasizes caution, as insiders are often seen as having a better understanding of the company's prospects. Their selling could be interpreted as a signal that they believe the stock is presently overvalued or that they anticipate challenges ahead.
What This Means for Investors Based on the current analysis, Etsy Inc ETSY is considered overvalued according to GF Value™, with a price exceeding its estimated fair value by 8.1%. This overvaluation, combined with the recent insider selling and mixed indicators from the GF Score™, suggests that potential investors should exercise caution before entering or expanding positions in the stock.
For the complete analysis, visit the Etsy Inc ETSY stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is ETSY's GF Score™?
ETSY's GF Score™ is 80/100, indicating a strong overall performance across multiple metrics, suggesting the company has solid potential for long-term returns.
Is ETSY overvalued or undervalued?
ETSY is currently overvalued, with a GF Value™ of $61.76 compared to the current price of $66.78, reflecting an 8.1% overvaluation.
What is ETSY's P/E ratio?
ETSY's P/E ratio (TTM) is 27.8x, which is below its 5-year median of 34.0x, indicating that the stock is trading at a lower valuation compared to its historical average.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Etsy demonstrated resilience in Q1 2026, with notable improvements across several key performance indicators. Despite a 5.98% YoY revenue decline to $612.2M, ETSY delivered $1.18 EPS, surpassing analyst expectations. Gross merchandise sales improved by 3-5% quarter-over-quarter, countering concerns about marketplace decline and discretionary spending pullback.
A month has gone by since the last earnings report for Etsy (ETSY - Free Report) . Shares have added about 3.8% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Etsy due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Etsy, Inc. before we dive into how investors and analysts have reacted as of late.
ETSY Q1 Earnings & Revenues Surpass Estimates, Both Increase Y/YEtsy reported first-quarter 2026 earnings of 89 cents per share from continuing operations, surpassing the Zacks Consensus Estimate of 62 cents by 43.55%. This compares favorably with a loss of 33 cents per share in the year-ago quarter.
First-quarter 2026 revenues rose 3.1% year over year to $631.3 million. The figure surpassed the Zacks Consensus Estimate of $616 million by 2.4%. Revenue growth was primarily driven by strength in advertising and services.
Year-over-year continuing operations comparisons include Reverb in the first quarter of 2025 but reflect the Etsy marketplace only in the first quarter of 2026, following Reverb's divestiture in June 2025.
ETSY's Q1 Top-Line DetailsMarketplace revenues were $432.8 million (68.5% of total revenues), up 1.1% year over year on a continuing operations basis. On an Etsy marketplace standalone basis, marketplace revenues grew 6.3% year over year.
Services revenues were $198.5 million (31.5% of total revenues), up 7.9% year over year on a continuing operations basis. On an Etsy marketplace standalone basis, services revenues rose 10.5% year over year, led by Etsy Ads and Offsite Ads, with Etsy Payments also contributing. The stronger expansion in services reflects Etsy's ongoing shift toward monetizing seller services, particularly advertising, which continues to enhance take rate and overall revenue mix. Etsy Payments also contributed to services growth.
ETSY's Active User Base & GMSEtsy's trailing 12-month active buyer base was 86.6 million, down 2.1% year over year but up 0.1% sequentially, marking the first quarter of sequential growth in two years. New buyers totaled 5 million, up 2.3% year over year and reactivated buyers reached 6.9 million, up 6.6% year over year. Combined gross buyer additions were 11.9 million, up 4.8% year over year.
The active seller base was 5.6 million, up 3.3% year over year, representing the first period of year-over-year growth since the introduction of the seller setup fee.
Etsy marketplace GMS was $2.5 billion, up 5.5% year over year and representing a 540-basis-point improvement over the fourth-quarter 2025 growth rate. On a currency-neutral basis, the Etsy marketplace GMS grew 3.6% year over year.
Mobile app GMS grew 11.2% year over year, accelerating from 6.6% last quarter, with app share reaching approximately 47% of total GMS, expanding 240 basis points (bps) year over year. Non-app GMS also improved, growing 1% year over year versus a decline of 4.8% last quarter. GMS per active buyer reached $122 on a trailing 12-month basis, up 1.5% year over year for the first time since 2022 and marking a fourth consecutive quarter of sequential improvement.
The Etsy marketplace take rate for the first quarter reached 25.7%, expanding 180 bps year over year. Take rate expansion was led by Etsy Ads on the back of machine learning improvements to ad relevance and seller budget pacing. Offsite Ads and Etsy Payments also contributed to the take rate expansion.
ETSY’s Operating ResultsIn the first quarter of 2026, total operating expenses were $335.8 million on a continuing operations basis, down 25.1% year over year. The prior-year period included a $101.7 million asset impairment charge; absent that, total operating expenses declined modestly year over year on a like-for-like basis.
Marketing expenses were $174.2 million. As a percentage of revenues, marketing expenses declined 40 bps year over year to 27.6% on a continuing operations basis, reflecting targeted portfolio mix shifts toward paid search and owned channels and the full in-sourcing of paid social efforts.
Product development expenses were $99.1 million. As a percentage of revenues, product development expenses declined 60 bps year over year to 15.7%, as modestly higher employee costs were offset by savings in other areas.
General and administrative (G&A) expenses were $62.5 million. As a percentage of revenues, G&A expenses contracted 190 bps year over year to 9.9%, benefiting from a one-time reversal of non-income tax expense and stable employee costs on a larger revenue base.
Adjusted EBITDA grew 6.4% year over year to $184.7 million on a continuing operations basis. The adjusted EBITDA margin expanded 100 bps year over year to 29.3%. Operating income was $119.8 million, compared to an operating loss of $3.9 million in the year-ago quarter, with the prior period weighed by the asset impairment charge.
ETSY's Balance SheetAs of March 31, 2026, cash and cash equivalents totaled $1.21 billion, down sequentially from $1.36 billion as of Dec. 31, 2025. Total liquidity, including short and long-term investments, was approximately $1.58 billion, a sequential decline from approximately $1.71 billion at year-end 2025.
Long-term debt stood at $2.33 billion as of March 31, 2026, up marginally from $2.33 billion as of Dec. 31, 2025, with short-term debt also stable at $649.3 million, unchanged sequentially. Net cash provided by continuing operations was $102.5 million in the quarter, representing free cash flow conversion of approximately 50% of adjusted EBITDA, compared to approximately 29% in the year-ago quarter.
Under its share repurchase program, Etsy repurchased approximately $145 million or 2.7 million shares of common stock in the first quarter of 2026. As of March 31, 2026, $827.9 million remained on the current board-authorized repurchase programs.
ETSY's Q2 & 2026 GuidanceWith Depop classified as a discontinued operation beginning in the first quarter of 2026, all guidance pertains to the Etsy marketplace only. The pending sale of Depop to eBay for $1.2 billion is expected to close by the end of the third quarter of 2026.
For the second quarter of 2026, Etsy anticipates the take rate to be approximately 25.7%. Marketplace GMS is projected to be between $2.48 billion and $2.53 billion, representing 3% to 5% year-over-year growth. The adjusted EBITDA margin is expected to be in the range of 27% to 29%.
For 2026, management now expects the Etsy marketplace GMS to grow in the low single-digit range, an improvement from prior guidance, with year-over-year growth expected in each quarter. The full-year adjusted EBITDA margin outlook of 28% to 30% is unchanged from prior guidance.
How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 15.99% due to these changes.
VGM ScoresCurrently, Etsy has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Etsy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Online resale app Vinted is seeing a structural shift in consumer behaviour, as habits form around the resale economy, the company's marketplace boss told CNBC on Monday.
Vinted, the consumer-to-consumer platform allowing customers to sell unwanted items like clothing, electronics, or even furniture, has seen rapid growth in recent years, boosted by consumers increasingly looking for value amid rising costs of living globally.
The value of items sold on Vinted grew nearly 50% last year, as it launched in more European markets.
"It's a fundamental change in consumption towards second hand, and I think that is very much here to stay," Adam Jay, CEO of Vinted Marketplace, told CNBC. "Vinted was growing well before the current economic difficulties, the cost of living crisis, inflation, and has continued to grow well in times of difficulty and stress."
His comments come as Vinted in late April completed a secondary shares transaction of 880 million euros ($1.02 billion), valuing the Lithuanian startup at over $9 billion.
Vinted's rapid growth and multi-billion dollar valuation have fueled intense speculation regarding a potential blockbuster IPO.
The company's robust financial health also signals that it is under little pressure to list soon, as it is cash-positive and capable of raising nearly a billion euros in private capital.
Executives have hinted at an upcoming IPO but haven't given a timeline. Jay said he was happy with the current investors, but declined to comment on the timing and location of a potential IPO.
The secondary transaction led by EQT brought on new investors such as Schroders Capital and BlackRock, and saw existing shareholders like Baillie Gifford increase their position.
It introduced "institutional, long-term investors that can hold across private and public markets, while providing liquidity to existing shareholders and employees," Vinted said at the time. The company didn't raise any new primary capital in this transaction.
Expanding beyond fashion and EuropeOnline secondhand apparel is growing rapidly, and at twice the speed of the overall market, according to market research firm GlobalData.
The explosive growth is partially because the secondhand market represents a win-win for buyers and sellers, according to Jay. "You've got this habit being formed, you've got this big social impact, climate impact, and that… combines to be the Vinted equation."
Vinted coined the term "Vinted math," referring to consumers who view second hand as an easy and more affordable option, and consider the resale value when buying new items.
Vinted users saved 21.6 billion euros on fashion in 2025, compared to retail prices, paying on average 72% less than the original price, according to the company's 2025 Impact Report.
Vinted is now trying to take that formula across the Atlantic as well as to new categories.
"It took us a long time before we decided to go beyond fashion, and we really needed to be confident that our fashion marketplace was working right across Europe," said Jay.
"We were nervous because a lot of what our members tell us they love about Vinted is that it's simple, it's easy to use, it's really clear how it works, and we were worried that we'd lose that as we started layering in other categories."
Ultimately, it had enough signals to take the leap, such as feedback from users having been creative in selling non-fashion items even before Vinted officially expanded its categories beyond apparel.
Vinted is currently present in 26 countries, with France and the UK being the biggest markets. The company has had a presence in the U.S. since 2013, but it only earlier this year started being more active in marketing its product and trying to grow that market.
There's an "enormous opportunity" in the U.S., but success could take "weeks, months, and maybe years," Jay said.
It has historically been challenging for European tech and consumer companies to successfully bring their business models to the U.S.
One of the biggest challenges in taking on the U.S. market is high shipping costs, Jay said.
Vinted is also building out its shipping and payments infrastructure via Vinted Go and Vinted Pay. Its expansion into logistics, wallet infrastructure, and new markets is having an impact on the company's bottom line.
Net profit declined by 19% in 2025 compared to the previous year. Even as revenue rose 38% to 1.1 billion euros. Its gross merchandise value (GMV) spiked 47% to 10.8 billion euros.
The platform also still has some way to go before it can compete with the likes of, for example eBay, which reported GMV of $79.6 billion in 2025. EBay also recently said it plans to buy fashion marketplace Depop from Etsy for about $1.2 billion to strengthen its fashion offering and attract a younger demographic.
"We're here for the long term," Jay said in response to a question of whether rapid expansion is the best use of capital for a company eyeing public markets. "We're trying to make the investments, all of it is the unsexy stuff, make the unsexy investments that make secondhand first choice worldwide."
