ETSY

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. Etsy (ETSY) is back in focus after second quarter 2026 results topped revenue expectations, followed by job cuts, the Depop sale to eBay, and a new US$2b share repurchase program. See our latest analysis for Etsy. Etsy’s latest moves around Depop, workforce reshaping and the US$2b buyback come after a sharp shift in momentum, with the share price up 38.8% year to date and the 1 year total shareholder return at 19.5%, while the 5 year total shareholder return remains materially lower. If this kind of reset has you thinking about what else might be setting up for change, it could be a good time to scan 18 top founder-led companies Etsy now looks more streamlined and focused on cash, with Depop sold and a US$2b buyback lined up. The business story is clear. The open question is whether the current share price fairly reflects it. Etsy closed at $79.48 against a widely followed fair value estimate of $76.33, which frames the latest rally as slightly ahead of that narrative. Read the complete narrative. Want to see what sits behind that fair value call for Etsy? The narrative leans on measured revenue growth, higher margins, and a leaner share count. The exact mix of those levers is where the story gets interesting. Result: Fair Value of $76.33 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Etsy still faces pressure from higher marketing spend and softer buyer metrics, which could weaken the AI driven growth and margin narrative if these conditions persist. Find out about the key risks to this Etsy narrative. The fair value narrative around $76.33 suggests Etsy is slightly overvalued on analyst targets. Our DCF model presents a different perspective. It indicates a fair value of $156.94 per share, which is materially higher than the current $79.48 price. This gap highlights how sensitive Etsy valuation is to long term cash flow assumptions rather than near term earnings multiples. It raises a key question for you: Which set of assumptions feels more realistic for Etsy over the next decade, the analyst target path or the SWS DCF model? Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Etsy for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 49 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. If this mix of optimism and concern around Etsy leaves you unsure, quickly review the data and form your own opinion using the 3 key rewards and 2 important warning signs. If Etsy has sharpened your focus on where your money works hardest, do not stop here. Use the tools available and keep your watchlist stocked with fresh possibilities. Spot potential value opportunities early by scanning companies that screen as attractively priced on quality and fundamentals through the 49 high quality undervalued stocks. Target reliable income by reviewing companies that currently appear as 8 dividend fortresses for investors who want yield with substance behind it. Prioritize resilience by focusing on the 85 resilient stocks with low risk scores and see which stocks currently stand out for lower overall risk profiles. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ETSY. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 8:30 a.m. ET Chief Executive Officer - Kruti Patel Goyal Chief Financial Officer - Charles Baker VP of Investor Relations - Debra Wasser Debra Wasser: Hi, everyone, and welcome to Etsy's Second Quarter 2026 Earnings Conference Call. I'm Deb Wasser, VP of Investor Relations. Today's prepared remarks have been prerecorded. Joining me today are Kruti Patel Goyal, our CEO; and our CFO, Lanny Baker. Please keep in mind that our remarks today include forward-looking statements, including statements related to our financial outlook, our business and our operating results. Our actual results may differ materially due to risks, uncertainties and other important factors as noted in the shareholder letter posted to our website and in our most recent periodic reports. Any forward-looking statements that we make on this call are based on our beliefs and assumptions today, and we disclaim any obligation to update them. Also during the call, we'll present both GAAP and non-GAAP historical financial measures, which are reconciled to GAAP financial measures in today's shareholder letter posted on our IR website, along with a replay of this call. With respect to our outlook, a reconciliation of adjusted EBITDA margin guidance to the closest corresponding GAAP measure is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to the charges excluded from adjusted EBITDA. As you review our shareholder letter and 10-Q, please keep in mind that on July 30, we completed the sale of Depop to eBay. Etsy's results in those documents are presented on a continuing operations basis, while Depop's results are presented within discontinued operations. I also want to note that Reverb, which we sold in June of last year, is included in Q2 2025 continuing operations, whereas Q2 2026 reflects only the Etsy Marketplace. This makes year-over-year continuing operations results not directly comparable, and we have included Etsy stand-alone marketplace comparisons where most relevant in order to provide investors with a more meaningful basis for evaluating our go-forward operations. Financial results presented on this call cover our continuing operations or the Etsy marketplace only. With that, I'll turn it over to Kruti. Kruti Goyal: Thanks, Deb, and good morning, everyone. Thank you for joining us. Since I stepped into this role, I've been clear about 3 things. Our greatest strength is our differentiation as a human-centered marketplace. We have a massive market opportunity ahead of us and realizing that opportunity requires clear strategic focus and disciplined execution. Our second quarter results reinforce our conviction that this focus is translating into stronger marketplace fundamentals and accelerating growth. We're encouraged by our progress and increasingly confident in our ability to create long-term shareholder value, reflected on our improved outlook for 2026 and our new $2 billion share repurchase authorization. Just as importantly, we continue to see significant opportunity to further strengthen relationships with our buyers and sellers to drive long-term marketplace value. So today, I'll share how our strategic priorities are improving performance as well as how we're evolving our organization to lay the foundation for Etsy's next stage of growth. Starting with our performance. Second quarter GMS and revenue growth accelerated on a sequential basis, and we delivered healthy flow-through of revenue growth to adjusted EBITDA, again, demonstrating the strength of our business model. Etsy marketplace GMS grew year-over-year for the third consecutive quarter, reflecting continued improvement across marketplace fundamentals. GMS was $2.6 billion, up 7.5% year-over-year for the Etsy marketplace. Revenue was $668 million with a take rate of 25.9%. And adjusted EBITDA was $195 million or a 29.2% adjusted EBITDA margin. We're beginning to see how our 4 priorities reinforce one another to improve marketplace health and performance. Discovery and matching help buyers find and connect with the right items, while loyalty and human connection give buyers more reasons to return. Together, these enable lasting relationships between buyers, sellers and Etsy. We're seeing very clear signal that these efforts are improving our performance. Active buyers improved, growing by 350,000 sequentially to approximately 87 million, roughly stable on a year-over-year basis. Gross buyer additions accelerated and habitual and repeat buyer cohorts, our most valuable buyers, each showed slight sequential growth for the first time since 2023. Trailing 12-month GMS per active buyer grew 2.8% year-over-year to $124. And while higher seller listing prices remain a contributor, our work to elevate higher-quality items on and off-site is increasingly playing a role. While purchase frequency remains below prior year levels, the year-over-year decline moderated compared to the first quarter, an early encouraging signal that we're improving the overall customer experience. And our app continues to be a key growth driver, with mobile app growth accelerating sequentially, up 12.5% year-over-year and visits per monthly active user and orders per visit, both increasing year-over-year. And we continue to see evidence of a healthier seller base, including year-over-year seller growth and stronger retention of prior year active sellers. We have a lot to cover today, so I won't review each of our priorities in the level of detail they are discussed in our shareholder letter. But here are a few updates I'm most excited about. First, we're making Etsy's core differentiation more consistently visible and tangible throughout the experience. We're bringing creativity, craftsmanship and human connection to the forefront across both the marketplace and our brand marketing, which celebrates being human and the way Etsy sellers bring meaning to moments that matter, big and small. Second, we're making Etsy feel much more personal through richer buyer profiles, real-time personalization and search and fresher content that helps buyers discover new shopping missions and more of Etsy sellers' unique inventory. Third, we're reaching younger buyers much earlier in their discovery journey by evolving the channels, content and experiences where Etsy shows up. One example is our Olivia Rodrigo partnership, which combines an in-person activation with an exclusive merchandise collaboration. And our investments in YouTube and TikTok drove a fivefold increase in visits in those channels from millennial and Gen Z audiences in the first half of 2026. Finally, we're continuing to evolve how we build loyalty across the marketplace, from testing new approaches for buyers to developing new ways to recognize and support the sellers who best represent what makes Etsy unique. Over the past year, we've sharpened our strategy, strengthened execution and are encouraged by the progress we're seeing across the marketplace. We've inflected Etsy's year-over-year growth trajectory from high single-digit GMS declines in early 2025 to mid-single-digit growth anticipated for the full year 2026, a more than 10 percentage point improvement in performance. As a result, we have even more conviction in our strategic direction to build the Etsy we envision. At the same time, we've gained additional clarity about the organization we'll need to deliver it. So we're announcing a restructuring of parts of our organization and a reduction of our workforce with most of the changes concentrated in our product and engineering group. We're changing our structure with fewer silos to reduce handoffs and with flatter, faster teams built to solve more broad and complex problems. And we'll invest more deeply in the skills and capabilities we need to accelerate execution and impact. This is not a cost-cutting move. It's about leaning in during a period of strong momentum so that we can move faster and execute with even greater focus. We are deeply grateful to our departing colleagues for their service, dedication and contributions, and we're committed to supporting them through this transition with care and respect. We know these decisions have a real impact on people's lives, and we didn't make them lightly. They reflect our conviction that focusing our investments in our team is the best way to build a stronger Etsy. One of my responsibilities is to make decisions not only for the Etsy we are today, but also the Etsy we want to become. That means paying close attention to how the world around us is changing. Buyers are discovering products in new ways. Sellers have access to increasingly powerful tools to build their businesses and the expectations they have of Etsy continue to rise. By investing in the capabilities that matter most for the future of the marketplace, we believe Etsy will be better positioned to innovate more quickly and ultimately deliver more value for our customers, community and shareholders. Thank you for your time this morning. I'll turn the call over to Lanny for more insights on our Q2 performance, our outlook and the financial implications of our restructuring plan. Charles Baker: Thanks, Kruti. Great to connect with all of you today. Kruti already covered Etsy marketplace GMS and our headline metrics, so I'll focus on revenue, profitability, capital allocation and our outlook. Revenue was $668 million in the second quarter, up 6.2% on a continuing operations basis and 9.3% for the Etsy marketplace stand-alone. Revenue growth accelerated in tandem with GMS strength and both marketplace and services revenue at Etsy delivered solid year-over-year growth, increasing 8.4% and 11.2%, respectively. Take rate remained healthy at 25.9% for the second quarter, up 130 basis points year-over-year, including an approximate 80 basis point benefit from the Reverb divestiture. Meanwhile, Etsy marketplace take rate also expanded year-over-year, primarily driven by Etsy Ads, where we're using machine learning to enhance relevance and improve seller budget pacing. Offsite Ads also contributed, benefiting from a tilt in paid marketing activity toward higher monetizing channels. On the operating expense side, we remained disciplined in the second quarter while continuing to invest in areas with the clearest evidence of attractive returns. As Etsy marketplace GMS growth has improved, we have gained leverage across marketing, product development and G&A. Nearly half of the year-to-year growth in Etsy marketplace revenue flowed through to adjusted EBITDA in the quarter, creating room to fund our top priorities while sustaining healthy profitability. Turning to capital allocation. Our balance sheet remains strong. As of June 30, 2026, we held $1.3 billion in cash, cash equivalents and short- and long-term investments. And we continue to generate significant cash. On a continuing operations basis, we converted 81% of adjusted EBITDA to free cash flow during the quarter. And on top of this, we received $1.4 billion in cash proceeds from the sale of Depop at the end of last week. Many of you have expressed interest in when or how we would step up our share repurchases given the cash coming in from the sale of Depop. I'm pleased to report we've already done so. During the second quarter, we stepped up our buyback program and repurchased approximately $250 million in stock. That was roughly 70% more than the first quarter and reduced the outstanding share count by approximately 3.9 million shares. At quarter's end, we had $578 million remaining on our current Board-authorized share repurchase program, and we're announcing today a new $2 billion share repurchase program. The additional authorization reflects our growing confidence in strategic execution and will enable us to continue the return of excess capital to shareholders and accelerate our buyback program with the proceeds from the sale of Depop. As outlined in our shareholder letter, the Restructuring Plan will reduce the size of our workforce by roughly 220 employees or approximately 12%. Following the restructuring, our headcount is expected to be approximately 1,600 people. We expect to incur approximately $35 million in charges, largely made up of cash expenditures associated with severance payments, employee benefits and related costs. We anticipate that the charges will be incurred and the execution of the restructuring plan will be substantially complete by the end of the third quarter of 2026. Now turning to our outlook. We currently anticipate that Etsy marketplace third quarter GMS will be between $2.53 billion and $2.58 billion, representing year-over-year growth of approximately 4% to 6% for the quarter. We expect third quarter take rate to be approximately 26% and adjusted EBITDA margin to be within a range of 28% to 30%. For the full year, we now expect the Etsy marketplace to sustain a bit stronger GMS growth momentum across the second half of the year than we anticipated previously. Accordingly, we anticipate that GMS growth at Etsy will be in the mid-single-digit range for the full year 2026. We currently expect full year take rate to be roughly equal to what we reported in the first half of the year, and our full year adjusted EBITDA margin outlook tightens upward to 29% to 30%. We expect the restructuring to lower operating costs in the near term, and we've incorporated an expected benefit into our increased full year adjusted EBITDA margin outlook. We believe that higher GMS and revenue growth sustained over time can create far greater absolute cash flow and shareholder value than can margin expansion alone. Accordingly, our objective in the restructuring is to not only extend the expense discipline we've demonstrated historically, but also to position ourselves to build the organization necessary to execute our strategy and accelerate growth in the years ahead. Specifically, we intend to deepen our expertise in strategically critical areas across product, engineering and customer operations with a particular focus on expanding and strengthening our team's machine learning skills. We also plan to explore additional R&D investment in new product capabilities, marketing initiatives, customer trust and international growth to accelerate our learnings in 2026 and inform our plans for 2027. We will be purposeful and disciplined in the investments we make, and we remain committed to maintaining the very attractive profit margin profile of our business. With that, we'll now turn it over to the operator to take your questions. Operator: [Operator Instructions] Our first question will come from Rick Patel with Raymond James. Rakesh Patel: Congrats on the progress. Can you dig deeper on what you think are the most effective drivers of strong and improved GMS growth in Q2? What's working? And where do you see the most opportunity for improvement? And second, can you provide additional color on the initiative to improve discovery among young buyers? How will you tackle this? And are you seeing early signs of progress? Kruti Goyal: Thanks for the question, Rick. First of all, I think what I would say is that what we're seeing is the result of strong execution against a clear set of strategic priorities. And the results that we're seeing are exactly what we thought we would, what we expected when we laid out these priorities. Just as a reminder, they are not -- you shouldn't think about them as independent initiatives. They are designed to reinforce one another to create a stronger marketplace over time. And we're seeing that market -- those marketplace health indicators in the quarterly results that we shared. The clearest examples of how this is working are how our product and marketing improvements are working together to drive growth this quarter. So first, at the top of the funnel, our marketing is becoming more efficient at bringing buyers in. We're continuing to see strength in own channels like SEO, and we've improved our PLA performance really meaningfully through better segmentation and bidding strategies that direct spend towards our highest quality inventory and bring in the right buyers more efficiently. Then once those buyers arrive, they're landing on a meaningfully better experience as a result of the on-site product improvements that we're making. We've made really steady improvements across discovery and matching from real-time search personalization to more relevant recommendations and a fresher home feed. So these are examples of improvements that are helping buyers find more relevant inventory, discover new shopping missions and really engage more deeply with Etsy over time. And then I think the third part of this is that as buyers are engaging more, we are developing a richer understanding of what they're looking for and what makes them tick. That's powering richer buyer profiles that we highlighted in our shareholder letter, and they're now covering over 65 million buyers. And that makes -- if you think about it, that means every subsequent visit that these buyers make more relevant and more personalized, and that creates the flywheel that gets stronger over time. And I'd just call out that, again, the app is probably our clearest proof point of how this is all working together. Our app GMS growth accelerated again to 12.5% year-over-year. We saw stronger engagement this quarter with both visits per monthly active and orders per visit increasing year-over-year. And it's just a great example of how the work that we're doing across both marketing and product are working together to drive that flywheel. Debra Wasser: And then the second question, Kruti, was, can we provide additional color on the younger buyers? Kruti Goyal: Yes. What I'll say about our younger buyers, we saw some really nice improvements this quarter in terms of how we're engaging them. And I'll start out by saying our research showed that our value proposition resonates with this younger audience as much as it does with older audiences. But what wasn't happening was that we weren't showing up where these shoppers are discovering and with relevant content as much as we could. And that's really where we've been focused. So you see that in the shift in our marketing investments, shifting our investment to social channels to OTT, the channels that are -- the places that younger shoppers shop and really focused on both putting in front of them content that is more relevant and showing up in cultural moments that are really relevant. So the work that we're doing on Creator Collective to engage influencers to elevate and curate the content that we have on Etsy for these younger buyers and the example of the partnership that we're doing with Olivia Rodrigo, which is a really innovative partnership that's incredibly relevant to this audience. Those are all examples of how we're really approaching that younger audience differently, and we're seeing great traction, particularly on channels like YouTube and TikTok, where we've meaningfully increased our reach to that audience segment. Operator: Your next question will come from Nathan Feather with Morgan Stanley. Nathaniel Feather: Two, if I may. First, in terms of AOV gains that you've seen here, historically, we've seen more limited uptake from sellers. How sustainable do you think that can be if trade changes normalize? And then on the buyer split, it's really encouraging to see repeat individual buyers take a step forward here. How can we think through -- what have been the key elements that have allowed that to stabilize? And what's the run rate to start to get that to grow as a portion of the mix relative to the one-off buyers? Charles Baker: Sure. Thanks, Nathan. On AOV, what we've seen over the last, call it, year, year plus is the effect of the tariffs that went in a year ago and then the expiration of de minimis and then getting through the holiday season, and sellers seeming to kind of readjust their pricing led to a series of waves of increases in listing prices that don't always -- don't necessarily flow through to average order value. But we have seen our buyers be very receptive to those price changes. And so what's happened on the listings prices has, over time, come through to average order value. There's another dynamic, and there's been a little bit of less so in the last quarter, but in a couple of prior quarters, there was a little bit of foreign currency translation tailwind in there as well. But I'd say most importantly, the thing that's changing, sort of the new signal that started to emerge across 2026 is that the efforts that we've undertaken on relevance and quality that we are surfacing in the Etsy search results, is starting to present items that are higher quality with a little bit higher listings price that are better matches for what the customers are looking for. And we're not making those changes in relevance and quality in an effort to drive AOV. We're really making them in an effort to better serve what our customers are looking for. But those improvements in the way that we're surfacing the best inventory is contributing on an increasing basis to the momentum that we have in AOV. So as you asked the question kind of forward-looking, I think that we are only getting started with things that we can do to continue to elevate high-quality items that really match what customers are looking for. And then secondly, I think the sort of increases in listing prices that have been taken, I think those -- in our experience, those, I think, will turn out to be fairly durable increases. The year-over-year increase will probably slow down unless there are other stimulants that the sellers are reacting to. But the increases they've made in listing prices, our expectation is those remain pretty durable going forward. Your second question was about the composition of buyer growth and the growing for the first time in 3 years, the little bit of progress that we made in active buyers and habitual buyers. And habitual buyers and repeat buyers are really just our most frequent buyers. And everything in our strategy is organized around making the whole product end-to-end experience better for our customers that brings them back more often and builds loyalty and through that drives frequency. So you're seeing, I think, in those metrics, just that earliest hint of everything that Kruti talked about a minute ago starting to come to fruition. And how do we continue to drive that? Well, it's about showing up where they are. It's about giving them relevant results. It's about personalizing the experience. It's about rewarding them for being Etsy customers. It's about reaching back out to them through our own channels. It's about improving our product experience. So there's really not new news there, but there is, I think, new signs of progress that we are making. And while those numbers are improving, I'm really -- we're excited at the same time that the gross addition number of new people -- of customers coming new into Etsy for the first time or coming back to Etsy has accelerated. So we kind of have this -- we're in a good moment right now where at the top of the funnel, we're opening it up a little bit wider. And then on our most valuable buyers, we're starting to see growth kind of on the back end of the funnel. And that's really what we've been driving for. Operator: Your next question will come from Ken Gawrelski with Wells Fargo. Kenneth Gawrelski: Maybe, if I may, could you talk about -- there's many new models of both distribution and kind of emerging use cases in e-commerce. And I'd love to get your take on how they may or may not fit with Etsy and the platform and your merchants. Could you talk about the opportunity in live commerce, one? And two, you're seeing players like a Whatnot, et cetera, that have kind of a unique take. Maybe they're positive, maybe they're negative, but there's certainly different takes on the e-commerce experience, some of those B2C, some of C2C. But I'd be curious as to -- as you think about your seller base and maybe they're thinking about innovative ways to sell their products and market their products, how these may or may not fit with Etsy? Kruti Goyal: That's a great question. Thank you for it. We are -- one of our priorities is showing up for shoppers discover. And so this is something we're always thinking about. This is the driving force behind us partnering with AI, with agentic commerce and showing up in those channels. So as we're thinking about the full range of those distribution channels for our sellers, where as it relates to live shopping, in particular, look, it's a really interesting space that's been developing and evolving for a while. And what we're seeing is that they're starting -- live shopping is starting to gain traction beyond the collectible space where it got -- where it was most popular initially. And we think that there's some potential opportunity for sellers like ours who have a really great story to tell, who have a lot to share about how they create, what they create that's relevant to a buying audience. So we're certainly open to exploring this, but we don't have plans at the moment to launch anything in live shopping. We think it's an interesting potential channel for sellers like ours. Operator: Your next question will come from Marvin Fong with BTIG. Marvin Fong: Congratulations on the progress. I'd love to double-click on what Lanny was saying about investing on new products. Should we kind of think about that as going deeper in the initiatives that you're already exploring, including AI or without giving up the store, would you -- are you exploring just completely different products outside of your existing strategy? And then just a question on -- now that we've seen gas prices kind of go back and forth, giving us a little bit larger sample set. Are you seeing any kind of impact from that -- the rise and fall of gas prices on your business in terms of buyer behavior? Kruti Goyal: I'll take the first part and then pass to you. Look, the way that I would think about this is that over the last year, we've gotten much more confident in our strategic priorities and the drivers of long-term growth. We're seeing really great evidence that shows that our work across discovery, matching, personalization is really working. That's what you're hearing. So when we say we're going to invest more, I think this is related to the changes that we've made in our team, we have greater clarity about the organization, the capabilities that we need to build on that momentum and drive even more value for our buyers and sellers. And so we're going to be continuing to deepen our investment and our focus on our strategic priorities to continue to deliver and build on that momentum. Charles Baker: Yes. I would just add to this, zooming out a little bit, when you think about what's going on in live commerce or you think of what's going on in resale commerce, there is really exciting growth happening in these places where there's some real innovation, both in the product and in the user experience and in the marketing. And it's growing the overall size of the market. These are not zero-sum opportunities. There -- and that really encourages us that as we continue to innovate on what makes Etsy differentiated, we can build on the growth that we've already started to build. On your second question about gas prices, yes, they've been up and down. And it's hard to look at any one dynamic on the consumer side in isolation. I think it stands to reason that there is some impact from higher gas prices on consumer spending. But our consumer demand held up pretty well across the second quarter. We saw growth in GMS in the United States as well in -- amongst U.S. buyers as well as non-U.S. buyers. And we saw accelerated growth across, in particular, U.S. import -- U.S. buyers and imports was a strong channel for us in the quarter. And really across all household income segments, we saw good numbers in this quarter. The high end is growing a little bit faster than the lower income households are. But as you sort of zoom out and try to -- I would -- there's not a discernible impact right now from gas prices. But I think our consumer demand picture has held up really well throughout the second quarter. Operator: Your next question will come from Maria Ripps with Canaccord. Maria Ripps: First, I just wanted to ask on workforce reduction, which is largely across product and engineering. But then at the same time, you're calling ML as kind of the core of discovery and personalization to sort of accelerate growth further from here. Can you maybe give us a little bit more color on sort of how smaller teams move the road map faster? And sort of what specifically are you choosing to stop doing that you focused on before? Kruti Goyal: Yes. So first of all, I'll just say that we -- what we did is we asked teams to think about what the team they needed were to deliver on our biggest growth ambitions. And starting with what the structure of the team was that they needed, what the skills were that they needed and what the talent was they needed. And when we looked across product and engineering, we saw an opportunity to really simplify the organization, and that's where the streamlining comes in, really this opportunity to reduce overlap by bringing teams together around shared problems or shared capabilities. And that's what enables our product and engineering teams to move forward with more speed and more focus. The other part of that is this change allows us to reshape our talent mix around the capabilities that matter most for the next phase of growth. And that's really about continuing to deepen our investments in discovery and matching and personalization. And so that's going to be about building really strong cross-functional teams and deepening our machine learning expertise so we can translate advancements into stronger -- better experiences at scale. So we really see this as an investment in execution and in concentrating our talent where we can have the greatest impact. Operator: Your next question will come from Anna Andreeva with Piper Sandler. Noah Helfstein: This is Noah on for Anna. Just wanted to follow up on some of the drivers by category. You mentioned gifting and personalization is working well. Curious what you're seeing in your bigger product verticals as well. And then just a follow-up on gross margin. You've seen some compression on the higher compute costs. Should we expect that pressure to continue in '26 and just any way we can think about that? Charles Baker: Sure. Let me start on the gross margin side of things. We're really happy with the gross -- where the gross margins are for the business. It's a healthy low 70s percent number. The -- we've seen a little bit of compression year-to-year, and it's not coming from compute. We are balancing the customer experience around trust and safety, around refunds, around other pressures on the marketplace to really deliver the best experience to customers, and we're making -- and there's some cost in there that shows up in cost of revenue. On the hosting and compute side, what we are spending more money this year, obviously, on AI and on usage of AI and on compute. But the overall spending that we're doing on hosting and bandwidth and technology is exactly where we thought it would be this year, and we've been able to find offsets in other places and shifting usage patterns allow us to absorb the cost of the incremental compute without going higher on our overall sort of infrastructure cost. So we feel really comfortable about our ability to continue to manage that AI cost, hosting bandwidth cost as we look forward. Remind me of your first question. Noah Helfstein: We just some more color on the drivers by product category. Kruti Goyal: Verticals. Charles Baker: On the verticals, we have reported at the end of the year how we do in categories. We've sort of moved away from that on like a moment-by-moment basis because our -- it's not necessarily how our buyers come to Etsy in a category. They come to Etsy for an occasion. And we can talk more about how we did across -- this is an occasion-laden quarter, and we did really well on those occasions. I would tell you, like if you look across our categories, we grew in every one of our top categories, and we grew faster than our peer benchmarks in those categories in this quarter, including our biggest categories. So -- but I think that strength in categories is less reflective of like something we're doing in a specific jewelry versus Home & Living than it is the way that we are showing up for our buyers in the right demographics across occasions. Kruti Goyal: Great. Thanks, Lanny. It was U.S. was that data point for outperformance, but I just wanted to be clear. Okay. Operator: Your next question will come from Bryan Smilek with JPMorgan. Bryan Smilek: I guess, Kruti, great to see Etsy getting into the zeitgeist here and targeting newer demographics. Can you just talk about how you can translate this brand activation towards more international markets as well? And then just more broadly, can you share a bit more color on their LTV profile and conversion relative to some of your other legacy cohorts? Charles Baker: The -- so of the younger buyers, the LTVs are... Bryan Smilek: Younger buyers. Charles Baker: Yes. I mean the younger buyers have a little bit lower LTVs, but they have a lot higher growth rate in the LTVs because they're moving through life changes in compensation and other household formation and things like this that really give them -- in the near term, the LTV may not be as great, but the potential for growth in that cohort is really, really attractive. And that's why we and others really go after it. And so we're pleased with sort of the beachhead that we are establishing, building those relationships today as we're bringing more of them into our business. And the first part of the question was? Kruti Goyal: The part of the question was about how we would be taking -- I think it was getting more zeitgeist kind of things selling internationally. Was that what it was related to, Bryan? Charles Baker: He's probably on mute. Kruti Goyal: I mean, I think that the approach that... Operator: Your line is re-enabled if you need to respond. Kruti Goyal: No, I think we got it. I was just going to say that I think that the approach that we're taking with younger buyers is one that we think works globally. So there's not a specifically different approach that we're taking internationally. So we're just going to keep doing more of what's working for us with these younger buyers. Operator: Your next question will come from Nick Jones with BNP Paribas. Nicholas Jones: One on enhancing buyer profiles in the letter covering 65 million buyers. I think it's 3x kind of the data points. I noticed the 65 million buyers is above kind of the repeat and initial combined. So I guess, can you speak to what the funnel looks like to kind of aggregate these data points and what it would take to kind of drive that 65 million buyer number a bit higher? Kruti Goyal: First, I would just say that we can build these buyer profiles for all of our buyers. They're just richer. They get richer and richer, the more that you engage with us. So we see the potential for buyer profiles for all of our buyers. Obviously, we look at broader data than just your buyer profile if we -- if you're a relatively infrequent or newer buyer. What we think is exciting there is all of the applications of where we can use that buyer profile to personalize your experience and make it richer from the recommendations you get in your app home feed to the marketing that we send you to how we personalize your search results. And so it's not just that we are able to extend the coverage of these buyer profiles. It's that we're collecting more and more valuable data in them and that we're able to apply them in more and more places in your experience end-to-end. Operator: Your next question will come from Michael Morton with MoffettNathanson. Michael Morton: Maybe one on the -- in the shareholder letter, you talked about growing direct relationships with our most active buyers by optimizing how you communicate with them and deliver kind of more timely and relevant, I guess, recommendations. Kruti, I was wondering from someone being on the outside, could you give us some examples of what this looks like because we've all seen how powerful like the big buyers can be on these larger platforms, how this will play out in the acquisition and I guess, like reactivation of these big active buyers? And then just a quick one for Lanny on some of the cost savings from the reorganization. Sounds like you're letting this flow through to the bottom line. I was wondering why not reinvest even more in marketing or if there's diminishing marginal returns there or anything along those lines would be great. Debra Wasser: The first one, Kruti, was growing direct relationships with our most active buyers. Kruti Goyal: Oh, it's how we're optimizing our communications. Look, the way that this should play out is we're really playing with 2 things with our most active buyers, the relevance of the content that we show you, the personalization of the content that we show you, the freshness of the content that we show you and how frequently we show it to you. So sometimes it's even more valuable to send fewer communications, especially to our most active buyers who are engaging with us all the time. And we're looking at that across both e-mail and push and then really all of the channels where we're connecting with you. So that's how I would think about that optimization work that we're doing around engaging with our most active buyers. It's because we have so much great information and content on you. We want to make sure that we're optimizing every touch, and we have the frequency right as well. Charles Baker: Michael, the reorganization is not intended to structurally alter Etsy's long-term margin profile. What we're really seeking is a more focused organization suited to execute on our strategy and with all the strengths and skills that we think we need over the coming years. And if we have those things, as we get those things, I think they pay off in growth, health of the marketplace, differentiation of Etsy. And ultimately, the durability of growth comes from really having that more focused and really rightly suited team. So we will be reinvesting some of the savings, if you will, into our people, into engineering talent, product talent, customer operations and some of the R&D projects we talked about earlier. I think the kind of margin growth that we really like is the margin growth that comes from revenue and GMS growth. And in this quarter, 50% of the revenue growth went down to the bottom line. That is -- that's the stuff that really we believe creates shareholder value. So that's what we're aiming for. And you talked about marketing. This is a quarter in which we got a good deal of leverage, and we're pretty proud of it in the marketing channel and in our marketing activities. But I want to make the point, we are earning our growth there, not buying it. We have increased the efficiency in our more mature channels, i.e., search and PLAs. We are making ongoing learnings and having some nice wins in our less mature channels like social. We're being prudent about managing and optimizing the mix of those channels. And I frankly think some of the messaging that we're doing in our brand campaigns, in our PLA relevance, in our social media is also contributing there. So what we're seeing is we're just getting more GMS per dollar. And actually, that doesn't -- that's not declining marginal return. That's increasing marginal return, and that's sort of causing us to lean in on marketing. So we're -- I don't want to send a signal at all that we are tapped out on investment. We're just at a point right now where we're having some really good gains in efficiency in marketing, I think sets us up to continue to use that as a driver of growth in the future. Operator: Your next question will come from Shweta Khajuria with Wolfe Research. Shweta Khajuria: Could you -- just a follow up on something that you were talking about earlier, Lanny, which is on marketing spend. Could you please talk to, if anything has -- what specifically has changed in your marketing spend where you're seeing spend and strategy, where you're seeing best returns on that spend? And how much of that runway do you have left ahead of -- to drive potentially new and reactivated buyer growth? And second is if you could please talk to mobile app users and how their engagement is different and where you see runway for growth coming from app users as we think about frequency over time? Charles Baker: Sure. On the marketing front, I'll get into the details of kind of the mix and the channels and things we're doing there. But one of the secret weapons is the owned channels that we have of push and e-mail and the mobile app, where your question was how are we using these channels to bring -- attract new customers and bring them back. Those owned channels have been really effective in helping us bring people back very efficiently. So that's also happening in our greater marketing portfolio. But in the places where we're spending media dollars in marketing, the competitive dynamic in PLA has gotten -- has changed over the last year as Amazon has pulled out. But the bigger driver right now are internal wins that we've made in our marketing technology, particularly the way we segment the PLA feeds that we give to Google, the way -- the information that we give them around listings is helping them, I think, place our listings with better, more competitive bids in a broader number of auctions. And we call it PLA segmentation, the way we're segmenting our feed is really helping us strike some really good advances right now in the performance of our most mature, most well-developed, most predictable marketing channels. That's been great. While that progress is happening, it allows us to make flex and test and move around other parts of the overall portfolio. And in terms of portfolio shifts, I would say we are getting -- we've talked about pushing a lot of money into social at times to then figure out what works best and then optimizing, and we're making some good gains right now optimizing our social channels. And the one other shift is moving away from like linear and some of the older television or video advertising that we've done toward more targeted streaming and services like that has helped us go after the right audience. And we're really happy with that. So performance on our own side in PLAs has been a big driver, and that's allowed us a lot of flexibility to move around the rest of the portfolio and find ways to be more efficient and find new opportunities to grow. Debra Wasser: And then the second one is on app and app engagement. Kruti Goyal: Yes. So yes, I think the question was what's working in the app and how -- where do we see potential going forward. And so look, we're really pleased with the growth acceleration that we saw in Q2 in the app, up 12.5% year-over-year. We're now at about 47% of total GMS coming from the app. We think that's really healthy, and we think there's more room to grow. What's working really well, what I would say is the work that we're doing across the board is showing up with particular strength in the app for lots of reasons that I talked about where our most engaged, most valuable users are already, and it's where we have we have the ability to personalize with even more depth. So what's working? I'd say, first, better discovery and matching. We talked about richer buyer profiles. They're really improving the content that we can show you in home feeds and push notifications that bring you back into the app. The second thing I would say that's happening on the app is we're really improving the freshness of our feed. So the newness and the diversity of the -- of what we're showing in a way that's really improving engagement. The team made a really big shift in terms of reducing the prevalence of things that were recently viewed or engaged and in place of showing you much fresher, newer listings. And what we're seeing is that, that's driving feed favoring, listing views, new searches. And excitingly, it's broadening consideration. We're seeing people -- we're seeing buyers on the app starting more new shopping missions. And so all of that is really exciting. In general, we're seeing just much more engagement, more strong signs of engagement in the app with visits per MAU improving, orders per visit improving, feed favoring, like I said, new mission starts. So all really strong indicators of how what we're doing is working in the app, and I think bodes well for the future in terms of continued opportunity there. Charles Baker: I would just add that the bulk of the GMS growth, the primary driver of app GMS growth is existing app users purchasing more. And the second behind that is new to Etsy buyers coming into the app for their first-time purchases. Those are really healthy incremental signs of reflections of the work that we're doing on both the marketing and the product experience. Operator: Your next question will come from Ygal Arounian with Wedbush. Ygal Arounian: Can you hear me? Charles Baker: Yes. Kruti Goyal: Yes. Ygal Arounian: Somehow it says my line is still on mute, but -- okay. I wanted to dig into the tech investments, particularly around ML. That's something you guys have talked a lot about. So what's kind of evolving here on that? And how does that tie into agentic commerce? Maybe more specifically or if you want broadly on third parties, too, but how you're building it to the Etsy platform directly? Kruti Goyal: Sure. So in terms of our investment in ML, the way you should think about that is we're continuing to invest more deeply in what's working. And what's working is discovery, matching and personalization. And the investments that we're making as a result of reshaping our teams is really about strengthening our talent to do more of what's working. So that's how I would think about the ML investment. In terms of AI, I think there are a couple of parts to this. The first thing I'd say is that we see the biggest opportunity for AI on Etsy itself. It's really about using AI to make Etsy much, much better at connecting the right buyers with the right sellers. So we're applying AI across all of these areas that I just talked about, discovery, matching and personalization to really better understand what buyers are looking for, to better understand our buyers, to better understand our inventory so that we can surface the most relevant inventory from the full breadth of our marketplace. That's where we think AI is really going to deliver the most value over time because it makes Etsy feel more personal and help more of our sellers and more of our inventory get discovered. And then in terms of off of Etsy and the opportunity there, it's still a really important priority for us to make sure that Etsy is showing up wherever shoppers discover. So we're continuing to partner with these major AI platforms because we want to be in there and learning and evolving our experience as consumer behavior and adoption evolves. So that's where we continue to focus there. I'll say that traffic from agentic experiences is still less than 1% of our overall traffic. We're still seeing the same things that we shared last time. There's higher intent, higher average order value traffic. So that's what's happening there. The third thing I would say about AI is we're experimenting actively with AI-native shopping experiences on Etsy itself. We've shared that we think that there's a really interesting opportunity to use these conversational interfaces to get more context more quickly to understand intent in any given shopping mission. And so the work that we've done on our gifting assistant is a good example of that. It gives buyers a more natural conversational way to express what they're looking for, and it's helping us learn actively in that space. So I guess to sum it up, what I'd say is like across AI, I think about it in 3 ways, making Etsy more personal, making Etsy more discoverable and then learning how this next generation of shopping experience is going to evolve. Operator: Your next question will come from Youssef Squali with Truist. Youssef Squali: Lanny, maybe starting with you. The 50% flow-through from incremental revenue to adjusted EBITDA in Q2 is pretty impressive. Maybe talk about the biggest drivers there and just the sustainability of that as we look into the second half and into 2027, particularly on the back of this latest RIF. And maybe not to beat the dead horse here, but can you maybe help us understand how you guys think about balancing increase in marketing spend, especially on the back of clearly, what you're seeing is improving efficiency with the other decisions that you've made of the $2 billion buyback, which obviously is a huge step-up from what it was before? So are we getting maybe the efficient frontier in marketing spend at this point until maybe we improve the user experience that much better before we lean more aggressively into marketing? Just helping us -- help us a little bit understand the puts and takes there. Charles Baker: Yes, sure. Let me -- good questions overall. Let me start with the incremental profitability. I don't -- look, any one quarter doesn't -- isn't set the model forever. And we had a great quarter and flow through this quarter. And I think what sort of built across the course of this year is the internal momentum and execution and the health of the marketplace has turned out to be a little bit better and a little bit more sustainable than we anticipated. And what that did was drive better GMS than we expected. And when GMS grows unexpectedly, it's going to drive really good profitability characteristics for our business. And so I think you'll see the incremental margin sort of move back and forth across the ranges that the company has shown over time. But we really like the incremental profitability characteristics of the business. Oh, and PS, we really like the margin level that we have right now to start with. And from the reorganization, our intention is not to, as I said, to like structurally lift margins. It's to like bring the team into more perfect alignment with the strategy in terms of the way it's organized, the way it's staffed, the skills we have on hand so that we can drive the revenue growth that ultimately produces everything else we've already talked about. So I mean, hopefully, those pieces will fit together for you as you look forward. I think on your second question, which was about marketing and the share buyback, they're -- look, they're not mutually exclusive. They're really complementary. And it is, hey, we are becoming more efficient and more effective in our marketing, and that increases our estimation of the value of the franchise in the future, and that makes the buyback feel like a reasonable allocation of capital. And we just received a large incremental amount of capital from the sale of Depop. And we don't see a place where we could spend that in the business right now. And we think the right thing to do is return that capital to shareholders by shrinking the equity basis. As we've done -- I think over the last couple -- over the last like 3 or 4 years, we reduced the share count by almost 25 million shares. So we feel really good about that investment we've made. And I'm going to go back -- you asked a question, Michael's question. I don't -- there is not a frontier that we are hitting up against in marketing. What we are seeing more so is that our marketing dollars are going further. And you know we are a company that doesn't set a marketing budget. It sets a return target. And if our marketing dollars are going further, that says the return is better, and that is, over time, going to lead us to continue to spend more on marketing and drive flywheel. Interestingly and importantly, this quarter, our organic GMS that was not driven by marketing grew. So we've got -- that's nice to have the like fundamental underlying growth from SEO and from the app and from the owned channels and then be able to use marketing really efficiently with a good return on top of that to further extend our reach and our frequency is what we're all about. Kruti Goyal: The other thing that I would add on the marketing front is we see a lot of great opportunities to continue to lean into marketing. And I think we've really shown that this quarter. As we've gained efficiency in certain areas, we've leaned into others with a great effect, right? As we've seen efficiency in paid search, we've leaned into paid social. We've seen the impact of that in terms of our engagement with younger buyers on TikTok and YouTube. We've leaned into marketing partnerships like our Olivia Rodrigo partnership. We think there's a lot of great opportunities to continue to expand our reach and our relevance through marketing even as we make our more mature channels more efficient. Debra Wasser: Great. Operator, I know we're almost at time, but I want to squeeze in one more. Can we call the next one? Operator: Your final question will come from Oliver Lester with Arete Research. Oliver Lester: Can you hear me? Debra Wasser: Yes. We're good, Oliver. Go ahead. Oliver Lester: Two for me. One is, I wanted to know whether you expect to see any impact from the recent EU de minimis changes. And my second question is just on Etsy Insider. I know that got a brief mention in the shareholder letter. Is there any kind of update that you can give us on the progress you're making there? Debra Wasser: What's the time, Lanny? You want to do de minimis? Charles Baker: On de minimis, I don't think we'll see a big impact from it. And I will tell you that Etsy is at the forefront of helping sellers deal with all of those kind of changes. We have a great track record over the last year and really strong partners that we work with to help sellers navigate that changed playing field. Kruti Goyal: On Insider, we don't have a specific update. What I would say is what I've shared in the past, which is that we're thinking about loyalty and driving loyalty is much broader than one program or one initiative. We're starting to test more mechanics to drive that loyalty. Including free loyalty mechanics. But more broadly, the biggest thing that's going to drive loyalty is a better end-to-end user experience in the product. So that's where we're focused. Debra Wasser: Perfect. Thank you, guys. Operator, I think that's it for us today. Thank you so much, everyone. We'll talk to you soon. 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While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Etsy. The Motley Fool has a disclosure policy. Etsy (ETSY) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Etsy Inc? Here are five stocks we like better. Etsy’s marketplace momentum accelerated: Second-quarter GMS rose 7.5% year over year to $2.6 billion, revenue reached $668 million, and adjusted EBITDA was $195 million. Active buyers increased sequentially to about 87 million, while app GMS growth accelerated to 12.5%. The company raised its 2026 outlook and expanded capital returns: Etsy now expects full-year mid-single-digit GMS growth and an adjusted EBITDA margin of 29%–30%. It also authorized a new $2 billion share repurchase program after buying back about $250 million of stock in the second quarter. Etsy announced a workforce restructuring while emphasizing reinvestment: The plan will eliminate roughly 220 roles, or about 12% of its workforce, and incur approximately $35 million in charges. Management said the changes aim to reduce organizational silos and strengthen product, engineering and machine-learning capabilities rather than serve solely as a cost-cutting measure. Etsy Partners With OpenAI—What It Means for Investors Now Etsy (NYSE:ETSY) reported accelerating second-quarter marketplace growth, raised its full-year 2026 outlook and authorized a new $2 billion share repurchase program, while also announcing a restructuring that will reduce its workforce by roughly 12%. CEO Kruti Patel Goyal said the company’s strategy around discovery, matching, loyalty and human connection is improving marketplace fundamentals. Etsy marketplace gross merchandise sales, or GMS, totaled $2.6 billion in the second quarter, rising 7.5% from a year earlier. Revenue was $668 million, while adjusted EBITDA was $195 million, representing an adjusted EBITDA margin of 29.2%. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Etsy Loses Its Meme Stock Shine – Is It Still a Buy? The company said its reported continuing-operations comparisons are affected by portfolio changes. Depop was sold to eBay on July 30 and is now classified as discontinued operations, while Reverb, sold in June 2025, remained part of continuing operations in the prior-year quarter. Etsy said financial results discussed on the call cover continuing operations or the Etsy marketplace only. Etsy reported that active buyers increased by 350,000 sequentially to about 87 million, remaining roughly flat year over year. Gross buyer additions accelerated, and the company said its habitual and repeat buyer cohorts posted slight sequential growth for the first time since 2023. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Here’s Why Etsy Management Is Investing $1 Billion in Buybacks Trailing 12-month GMS per active buyer rose 2.8% year over year to $124. Patel Goyal said higher seller listing prices continued to contribute, but Etsy’s efforts to surface higher-quality inventory through search, recommendations and other experiences were increasingly supporting the increase. Purchase frequency remained below prior-year levels, but the year-over-year decline moderated from the first quarter. Etsy also cited improving seller health, including year-over-year seller growth and stronger retention of sellers that were active in the prior year. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Mobile app performance remained a focal point. App GMS growth accelerated to 12.5% year over year, and the app accounted for about 47% of total GMS, according to Patel Goyal. Visits per monthly active user and orders per visit both increased from a year earlier. Patel Goyal said Etsy has been making its app feed fresher by reducing the prevalence of recently viewed items and displaying more new and diverse listings. The company said this work has supported feed favoriting, listing views, new searches and new shopping missions. Management attributed growth partly to stronger marketing efficiency and product improvements. Patel Goyal said Etsy improved product listing ad performance through better segmentation and bidding strategies, while product updates such as real-time search personalization, more relevant recommendations and a fresher home feed were helping buyers find more suitable inventory. The company said richer buyer profiles now cover more than 65 million buyers. Patel Goyal said those profiles become more detailed as users engage with Etsy and can be used across search, recommendations, app home feeds and marketing communications. Etsy is also targeting younger consumers through social channels, creators and cultural partnerships. The company said investments in YouTube and TikTok drove a fivefold increase in visits from Millennial and Generation Z audiences in the first half of 2026. Etsy cited its Olivia Rodrigo partnership, which includes an in-person activation and exclusive merchandise collaboration, as an example of its approach. CFO Lanny Baker said younger buyers currently have lower lifetime values than older cohorts but offer higher lifetime-value growth potential as they move through life and household changes. He added that Etsy expects its approach to younger consumers to work internationally as well as in domestic markets. Second-quarter revenue increased 6.2% year over year on a continuing-operations basis and 9.3% for the standalone Etsy marketplace. Marketplace revenue rose 8.4%, while services revenue increased 11.2%. Take rate was 25.9%, up 130 basis points from a year earlier, including an approximately 80-basis-point benefit from the Reverb divestiture. Baker said Etsy marketplace take rate expanded primarily due to Etsy Ads, where machine learning has been used to improve relevance and seller budget pacing. Offsite ads also contributed as paid marketing shifted toward higher-monetizing channels. Nearly half of the year-over-year increase in Etsy marketplace revenue flowed through to adjusted EBITDA, Baker said. The company held $1.3 billion in cash equivalents and investments as of June 30 and converted 81% of adjusted EBITDA into free cash flow during the quarter on a continuing-operations basis. Etsy also received $1.4 billion in cash proceeds from the Depop sale. During the second quarter, it repurchased about $250 million of stock, roughly 70% more than in the first quarter, reducing its outstanding share count by approximately 3.9 million shares. The company had $578 million remaining under its prior authorization at quarter-end before announcing the new $2 billion authorization. The restructuring will eliminate about 220 roles, primarily in product and engineering, leaving expected headcount of about 1,600. Etsy expects to incur roughly $35 million in charges, mostly for severance, benefits and related costs, and expects the plan to be substantially complete by the end of the third quarter. Patel Goyal said the restructuring was not designed as a cost-cutting initiative, but rather to reduce organizational silos, create flatter teams and strengthen capabilities in areas including machine learning. Baker said Etsy intends to reinvest some savings in product, engineering, customer operations and research and development. For the third quarter, Etsy expects marketplace GMS of $2.53 billion to $2.58 billion, representing year-over-year growth of approximately 4% to 6%. The company expects a take rate of about 26% and an adjusted EBITDA margin between 28% and 30%. For full-year 2026, Etsy now expects mid-single-digit GMS growth, reflecting stronger second-half momentum than it had previously anticipated. It expects its full-year take rate to be roughly in line with the first half and raised its adjusted EBITDA margin outlook to 29% to 30%. Management said artificial intelligence remains central to its efforts to improve discovery, matching and personalization. Patel Goyal said traffic from agentic commerce experiences remains below 1% of Etsy’s total traffic, though it has shown higher intent and higher average order value. The company is also experimenting with AI-native shopping experiences, including its gifting assistant. Etsy, Inc operates two-sided online marketplaces that connect buyers and sellers primarily in the United States, the United Kingdom, Germany, Canada, Australia, France, and India. Its primary marketplace is Etsy.com that connects artisans and entrepreneurs with various consumers. The company also offers Reverb, a musical instrument marketplace; Depop, a fashion resale marketplace; and Elo7, a Brazil-based marketplace for handmade and unique items. In addition, it offers various seller services, including Etsy Payments, a payment processing service; Etsy Ads, an advertising platform; and Shipping Labels, which allows sellers in the United States, Canada, the United Kingdom, Australia, and India to purchase discounted shipping labels. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Etsy Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Etsy, Inc. ETSY paired a stronger 2026 outlook with a restructuring aimed at faster product execution. Management said search, personalization and marketing are improving marketplace fundamentals and buyer engagement. The call reinforced management’s preference for sustained GMS and revenue growth over structural margin expansion as Etsy redirects talent toward machine learning and customer operations. CFO Charles Baker guided third-quarter Etsy marketplace GMS to $2.53 billion to $2.58 billion, representing 4% to 6% year-over-year growth. He expects a take rate of about 26% and a 28% to 30% adjusted EBITDA margin. Baker said full-year GMS growth is now expected in the mid-single-digit range, above the prior outlook. Full-year adjusted EBITDA margin guidance increased to 29% to 30% from 28% to 30%. Second-quarter earnings were $1.34 per share, which surpassed the Zacks Consensus Estimate of $1.17. Revenues of $668.31 million topped the $649.7 million consensus mark. Etsy, Inc. price-consensus-eps-surprise-chart | Etsy, Inc. Quote CEO Kruti Goyal said the restructuring will simplify product and engineering, reduce overlap and create flatter teams. The plan eliminates roughly 220 positions, or about 12% of the workforce. Goyal said the goal is faster execution rather than cost-cutting. She wants talent aligned with discovery, matching and personalization, with deeper machine-learning expertise. CFO Charles Baker expects about $35 million of restructuring charges and roughly 1,600 employees afterward. He said near-term savings are reflected in 2026 margin guidance, but the move is not intended to structurally lift margins. A Raymond James analyst asked what drove stronger GMS growth. Goyal cited better product-listing-ad segmentation, continued SEO strength and more efficient acquisition feeding into an improved on-site experience. Goyal said real-time search personalization, fresher recommendations and richer buyer profiles reinforce one another. Those profiles cover more than 65 million buyers, improving Etsy’s ability to tailor later visits. Goyal highlighted the app as a proof point, with GMS up 12.5% year over year. Visits per monthly active user and orders per visit increased, while younger-buyer outreach expanded through social channels. Baker said active buyers rose about 350,000 sequentially to roughly 87 million. Repeat and habitual buyers each posted slight sequential growth for the first time since 2023, while the decline in purchase frequency moderated. A Morgan Stanley analyst pressed on average order value. Baker said higher seller listing prices have been durable, while search improvements increasingly surface higher-quality, higher-priced items that better match buyer intent. Baker added that existing app users buying more drive most app GMS growth. He said younger buyers have lower near-term lifetime values but higher growth rates as they move through life stages. A Wedbush analyst asked how machine learning connects with agentic commerce. Goyal said Etsy’s largest AI opportunity remains on its marketplace, where AI can improve buyer understanding, inventory understanding and matching. Goyal said agentic traffic remains below 1% of traffic but carries higher intent and higher average order value. Etsy is testing conversational shopping through its Gifting Assistant and partnering with major AI platforms. A Wells Fargo analyst raised live commerce. Goyal said Etsy sees potential for sellers with strong maker stories but has no current launch plan. Baker said higher AI compute spending remains within planned infrastructure costs. Baker said nearly half of year-over-year Etsy marketplace revenue growth flowed through to adjusted EBITDA in the second quarter, but one quarter does not establish a permanent incremental-margin model. Baker said restructuring, marketing efficiency and capital allocation are meant to support durable growth. Etsy also authorized a new $2 billion repurchase program after receiving about $1.4 billion from the Depop sale. ETSY carries a Zacks Rank #3 (Hold), with a Growth Score of A, Value and Momentum Scores of D and a VGM Score of B. Under the Zacks framework, Growth and VGM are favorable, while Value and Momentum are weaker. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Style Scores complement the Zacks Rank, with the strongest combinations pairing a Zacks Rank #1 or #2 (Buy) with A or B scores. ETSY lacks that top-rank combination, and its Zacks Rank can change as analyst estimates are revised after the just-reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Etsy, Inc. (ETSY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Etsy Marketplace GMS: $2.6 billion, up 7.5% year over year. Revenue: $668 million, up 6.2% on a continuing operations basis and 9.3% for the Etsy marketplace stand-alone. Take Rate: 25.9%, up 130 basis points year over year. Adjusted EBITDA: $195 million, or a 29.2% adjusted EBITDA margin. Active Buyers: Approximately 87 million, growing by 350,000 sequentially and roughly stable year over year. GMS per Active Buyer: Trailing 12-month GMS per active buyer grew 2.8% year over year to $124. Mobile App Growth: Up 12.5% year over year. Marketplace Revenue Growth: Increased 8.4% year over year. Services Revenue Growth: Increased 11.2% year over year. Free Cash Flow Conversion: 81% of adjusted EBITDA converted to free cash flow during the quarter. Share Repurchases: Repurchased approximately $250 million in stock during the second quarter, reducing outstanding share count by approximately 3.9 million shares. Cash and Investments: $1.3 billion in cash equivalents and short and long-term investments as of June 30, 2026. Depop Sale Proceeds: Received $1.4 billion in cash proceeds from the sale of Depop. Restructuring Charges: Expect to incur approximately $35 million in charges, with a workforce reduction of roughly 220 employees (approximately 12%). Third Quarter 2026 Guidance: Etsy Marketplace GMS between $2.53 billion and $2.58 billion, representing year-over-year growth of approximately 4% to 6%; take rate approximately 26%; adjusted EBITDA margin within a range of 28% to 30%. Full Year 2026 Guidance: Etsy Marketplace GMS growth in the mid-single-digit range; full-year take rate roughly equal to first half; adjusted EBITDA margin outlook tightened upward to 29% to 30%. Warning! GuruFocus has detected 6 Warning Sign with ETSY. Is ETSY fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Etsy Marketplace GMS grew 7.5% year-over-year to $2.6 billion, marking the third consecutive quarter of growth and accelerating sequentially. Active buyers increased by 350,000 sequentially to approximately 87 million, with habitual and repeat buyer cohorts showing slight growth for the first time since 2023. Mobile app GMS growth accelerated to 12.5% year-over-year, with visits per monthly active user and orders per visit both increasing. The company announced a new $2 billion share repurchase program, reflecting confidence in strategic execution and returning excess capital to shareholders. Full-year 2026 GMS growth is expected to be in the mid-single-digit range, an improvement from earlier expectations, with adjusted EBITDA margin outlook tightened upward to 29%-30%. Purchase frequency remains below prior-year levels, though the year-over-year decline moderated compared to the first quarter. The company announced a restructuring plan that will reduce its workforce by approximately 220 employees, or 12%, primarily in product and engineering. Take rate increased 130 basis points year-over-year, partly due to an 80 basis point benefit from the Reverb divestiture, which may not be sustainable. Gross margin saw slight compression year-over-year due to increased costs in trust and safety, refunds, and other marketplace pressures. Traffic from agentic commerce experiences remains less than 1% of overall traffic, indicating limited near-term impact from emerging AI-driven channels. Q: Can you dig deeper on what you think are the most effective drivers of strong and improved GMS growth in Q2? What's working and where do you see the most opportunity for improvement? A: Kruti Patel Goyal (CEO) stated that the results stem from strong execution against clear strategic priorities that reinforce one another. She highlighted that marketing is becoming more efficient at bringing in buyers through improved PLA performance and segmentation, while on-site product improvements like real-time search personalization and a fresher home feed are helping buyers find more relevant inventory. She noted that richer buyer profiles now cover over 65 million buyers, creating a flywheel that strengthens over time, with the app being the clearest proof point, as app GMS growth accelerated to 12.5% year over year. Q: AOV gains that you've seen here, historically, we've seen more limited uptake from sellers. How sustainable do you think that can be if trade changes normalize? And then the buyer split, it's really encouraging to see repeat individual buyers take a step forward here. How can we think through what have been the key elements that have allowed that to stabilize? A: Lanny Baker (CFO) explained that AOV gains are increasingly driven by efforts to surface higher-quality items in search results, which are better matches for customers, rather than just tariff-related price increases. He believes these listing price increases are durable. On buyer growth, he noted that habitual and repeat buyers are growing for the first time in three years, driven by improvements in the end-to-end product experience, personalization, and loyalty initiatives. He also highlighted that gross buyer additions have accelerated, indicating strength at both the top and bottom of the funnel. Q: There are many new models of both distribution and kind of emerging use cases in e-commerce. Could you talk about the opportunity in live commerce? A: Kruti Patel Goyal (CEO) stated that live shopping is an interesting space gaining traction beyond collectibles, and there is potential for Etsy sellers who have great stories to tell. However, she confirmed that Etsy has no plans to launch anything in live shopping at the moment, but views it as a potential future channel for sellers. Q: Should we kind of think about that as going deeper in the initiatives that you're already exploring including AI or without giving up the store, are you exploring just completely different products outside of your existing strategy? And then just a question on now that we've seen gas prices kind of go back and forth, are you seeing any kind of impact from that on your business? A: Kruti Patel Goyal (CEO) clarified that investments will deepen focus on existing strategic priorities like discovery, matching, and personalization, building on the momentum and clarity gained over the past year. Lanny Baker (CFO) added that while higher gas prices could impact consumer spending, Etsy saw no discernible impact in Q2, with GMS growth in the US and across all household income segments, with high-end consumers growing slightly faster. Q: On workforce reduction, which is largely across product and engineering, but at the same time, you're calling ML as kind of the core discovery and personalization to sort of accelerate growth further from here. Can you maybe give us a little bit more color on sort of how smaller teams move the roadmap faster and sort of what specifically are you choosing to stop doing? A: Kruti Patel Goyal (CEO) explained that the restructuring was driven by asking teams what they needed to deliver on growth ambitions, leading to a simplification of the organization by reducing overlap and bringing teams together around shared problems. This allows for more speed and focus. The change also reshapes the talent mix to deepen investments in discovery, matching, and personalization, with a focus on building strong cross-functional teams and deepening machine learning expertise. Q: I'm just wanted to follow-up on some of the drivers by category. You'd mentioned gifting and personalization is working well. I'm curious what you're seeing in your bigger product verticals as well. And then just to follow-up on gross margin, you've seen some compression on the higher compute costs. Should we expect that pressure to continue? A: Lanny Baker (CFO) stated that Etsy grew in every top category and grew faster than peer benchmarks, but noted that strength is less about specific categories and more about showing up for buyers across occasions. On gross margin, he said the business is healthy at a low 70% number, with compression coming from customer experience investments like trust and safety, not compute. He confirmed that AI and compute costs are being absorbed through offsets and shifting usage patterns, and the company feels comfortable managing these costs going forward. Q: Great to see Etsy getting into the zeitgeist here and targeting younger demographics. Can you just talk about how you can translate this brand activation towards more international markets as well? And then just more broadly, can you share a bit more color on their LTV profiling conversion relative to some of your other legacy cohorts? A: Lanny Baker (CFO) noted that younger buyers have slightly lower LTVs but much higher growth rates as they move through life changes like household formation, making the cohort attractive for growth. Kruti Patel Goyal (CEO) added that the approach to younger buyers is global and not specifically different internationally, so Etsy will continue doing more of what works with this demographic. Q: One on enhancing buyer profiles in the letter covering 65 million buyers. I noticed the 65 million buyers is above kind of the repeat habitual combined. So I guess can you speak to what the funnel looks like to kind of aggregate these data points? A: Kruti Patel Goyal (CEO) explained that buyer profiles can be built for all buyers and become richer with engagement. The profiles are used to personalize the experience across recommendations, app home feed, marketing, and search results. The value is not just in expanding coverage but in collecting more valuable data and applying it in more places throughout the user experience. Q: You talk about growing direct relationships with our most active buyers by optimizing how you communicate with them. Could you give us some examples of what this looks like? And then just a quick one for Lanny on some of the cost savings from the reorganization. Sounds like you're letting those flow through to the bottom line. I was wondering why not reinvest even more in marketing? A: Kruti Patel Goyal (CEO) explained that optimization involves balancing the relevance, personalization, and frequency of communications, sometimes sending fewer messages to the most active buyers. Lanny Baker (CFO) stated that the reorganization is not intended For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Etsy’s ETSY second-quarter 2026 earnings of $1.34 per share beat the Zacks Consensus Estimate by 14.53%. The company reported 98 cents per share from continuing operations. Strength in gross merchandise sales, advertising and operating leverage supported the earnings outperformance.Revenues increased 6.2% year over year to $668 million, surpassing the consensus estimate by 2.87%. On an Etsy marketplace standalone basis, revenues increased 9.3% year over year. Marketplace revenues were $456.1 million, accounting for 68.2% of total revenues, up 4.8% year over year on a continuing operations basis. On an Etsy marketplace standalone basis, marketplace revenues increased 8.4% year over year.Second-quarter Etsy marketplace GMS rose 7.5% year over year to $2.6 billion. On a continuing operations basis, GMS increased 1% year over year, marking the third consecutive quarter of growth for the Etsy marketplace. Etsy, Inc. price-consensus-eps-surprise-chart | Etsy, Inc. Quote Services revenues were $212.2 million, accounting for 31.8% of total revenues, up 9.3% year over year on a continuing operations basis. On an Etsy marketplace standalone basis, services revenues rose 11.2% year over year.Etsy Ads was the primary driver of take-rate expansion, aided by machine learning improvements that enhanced ad relevance and seller budget pacing. Offsite Ads also contributed as paid marketing shifted toward higher-monetizing channels. Trailing 12-month active buyers totaled 87 million, down 0.4% year over year but up 0.4% sequentially. Etsy added roughly 350,000 active buyers from the first quarter. Gross buyer additions increased 7.1% year over year to 12.1 million.New buyers rose 4.4% to 5 million, while reactivated buyers grew 9% to 7.1 million. Repeat and habitual buyer cohorts recorded their first sequential gains since 2023, although both remained below year-ago levels.Etsy Expands Margins With Cost DisciplineSecond-quarter adjusted EBITDA rose 14.7% year over year on a continuing operations basis to $195.4 million. The adjusted EBITDA margin expanded 210 basis points to 29.2%, as nearly half of incremental revenues flowed through to adjusted EBITDA.Second-quarter operating expenses declined 2.1% to $358.8 million. Marketing expenses were $190.9 million, while product development costs totaled $100.9 million. General and administrative expenses fell to $66.9 million, benefiting from headcount discipline, lower professional services spending and a reversal of non-income tax expense. As of June 30, 2026, cash and cash equivalents totaled $901.3 million, down sequentially from $1.21 billion as of March 31, 2026.Total liquidity, including short- and long-term investments, was approximately $1.28 billion, a sequential decline from approximately $1.58 billion as of March 31, 2026. The company repurchased 3.9 million shares for $250 million during the quarter. Etsy also authorized a new $2 billion repurchase program. The completed Depop sale is expected to bring approximately $1.4 billion in cash during the third quarter, supporting accelerated buyback activity.Net cash provided by continuing operations totaled $165.9 million in the reported quarter. Free cash flow from continuing operations was $158.1 million in the second quarter of 2026; this represented approximately 81% of adjusted EBITDA. For the third quarter of 2026, management expects GMS between $2.53 billion and $2.58 billion, representing year-over-year growth of 4% to 6%. The take rate is projected at approximately 26%, with an adjusted EBITDA margin of 28% to 30%.For 2026, Etsy now anticipates mid-single-digit GMS growth, up from its previous low-single-digit growth outlook. Management raised the adjusted EBITDA margin forecast to 29% to 30% from 28% to 30%. Currently, Etsy carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader Retail-Wholesale sector are The TJX Companies TJX, StubHub Holdings, Inc. STUB and Abercrombie & Fitch ANF, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The TJX Companies shares have returned 3% in the past six months. TJX is set to report its second-quarter fiscal 2027 results on Aug. 19, 2026.StubHub Holdings shares have declined 9.8% in the past six months. STUB is slated to report its second-quarter 2026 results on Aug. 12.Abercrombie & Fitch shares have gained 18% in the past six months. ANF is slated to report its second-quarter 2026 results on Aug. 26. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Etsy, Inc. (ETSY) : Free Stock Analysis Report The TJX Companies, Inc. (TJX) : Free Stock Analysis Report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report StubHub Holdings, Inc. (STUB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Etsy stock has staged a solid comeback in the past year, yet its valuation signals are split, with the Discounted Cash Flow (DCF) intrinsic value estimate suggesting meaningful upside while traditional market multiples point to a richer price tag. At the same time, Etsy has been reshaping its business through job cuts and asset sales, which feeds directly into how investors might think about the current share price. Over the past 5 years, Etsy shares are down 55.7%, which means the recent rebound comes after a significant drawdown for longer term holders. Recent moves to lay off around 12% of staff and to sell Depop for about US$1.4b in cash can support efficiency and capital returns. However, execution risks around restructuring and competition from large platforms like Amazon and TikTok Shop may weigh on how much value is ultimately created. Etsy screens as undervalued on the DCF intrinsic value estimate by about 38.5%. Yet with the broader checks showing it is only undervalued in 2 of 6 tests, the stock does not come across as a straightforward bargain. For investors, the debate is whether Etsy’s current price around US$85.86 leans closer to the upside suggested by the intrinsic value estimate or to the caution implied by the richer earnings multiples and low value score. Etsy delivered 52.8% returns over the last year. See how this stacks up to the rest of the Multiline Retail industry. The Discounted Cash Flow (DCF) model estimates what Etsy might be worth based on its expected future cash generation. Etsy generated around $676.9 million of free cash flow over the latest twelve months, and the model assumes those cash flows continue to grow from this base over time. On that basis, the DCF points to an intrinsic value of about $140 per share. Set against the current share price near $85.86, the DCF implies Etsy trades at roughly a 38.5% discount to this cash flow based estimate. The recent Depop sale for about $1.4 billion in cash and the focus on the core marketplace help explain why the model rests on ongoing cash generation, even as competition from larger platforms remains a key risk to those projections. On this cash flow view, Etsy stock currently appears undervalued relative to the DCF intrinsic value estimate. Our Discounted Cash Flow (DCF) analysis suggests Etsy is undervalued by 38.5%. Track this in your watchlist or portfolio, or discover 51 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Etsy. P/E is a useful check for Etsy because the company reports positive earnings that give you a clear anchor for the share price. On this measure, Etsy trades on a P/E of about 26.9x, which is higher than both the Multiline Retail industry average of roughly 20.1x and the peer group average of about 22.8x. The Fair P/E Ratio model, which factors in Etsy’s profile and risk, suggests a level closer to 18.8x. That is well below where the stock currently trades, so on earnings the market is asking you to pay a premium to both the tailored fair ratio and the broader group. While investors may see reasons for that premium, the P/E signal on its own points to a full price rather than a clear bargain. On the P/E multiple, Etsy stock currently appears expensive relative to both its fair ratio and sector benchmarks. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where this valuation split on Etsy leaves off. They spell out the specific assumptions on Etsy’s future growth, margins and earnings that would need to hold for the stock to be worth materially more or materially less than today’s price, and they sit on the company’s Community page. Rather than a single multiple or model output, each narrative lays out the drivers behind its view of fair value so you can compare them with actual results over time. One of the top community narratives on Etsy: 12% overvalued Read one of the top narratives on Etsy Do you think there's more to the story for Etsy? Head over to our Community to see what others are saying! The Discounted Cash Flow (DCF) intrinsic value estimate suggests Etsy stock trades at a clear discount, while the earnings multiples say you are already paying up compared with peers and a tailored fair P/E. That gap mainly reflects different weight on Etsy’s cash generation versus the growth expectations and sentiment embedded in current multiples, and the wider checks still look weak despite the DCF support. The key question from here is whether Etsy can sustain attractive cash flows and execute its refocus without competition and restructuring risks turning that apparent discount into a value trap. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ETSY. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Etsy (ETSY) came out with quarterly earnings of $1.34 per share, beating the Zacks Consensus Estimate of $1.17 per share. This compares to earnings of $0.25 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +14.53%. A quarter ago, it was expected that this online crafts marketplace would post earnings of $0.62 per share when it actually produced earnings of $0.89, delivering a surprise of +43.55%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Etsy, which belongs to the Zacks Internet - Commerce industry, posted revenues of $668.31 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.87%. This compares to year-ago revenues of $672.66 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Etsy shares have added about 55.9% since the beginning of the year versus the S&P 500's gain of 13%. While Etsy has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Etsy was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.28 on $651.61 million in revenues for the coming quarter and $5.44 on $2.81 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Commerce is currently in the bottom 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. TripAdvisor (TRIP), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This travel website operator is expected to post quarterly earnings of $0.42 per share in its upcoming report, which represents a year-over-year change of -8.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. TripAdvisor's revenues are expected to be $508.66 million, down 3.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Etsy, Inc. (ETSY) : Free Stock Analysis Report TripAdvisor, Inc. (TRIP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research