Etsy Q3 Revenue Rises 10.9% as GMS Growth Accelerates; CFO Lanny Baker to Depart

Etsy said growth in its marketplace accelerated again in the third quarter, with active buyers rising for the first time in two years, and the company announced that Chief Financial Officer Lanny Baker will leave in 2027.

The Brooklyn, New York, online marketplace reported revenue of $692.5 million for the quarter ended Sept. 30, up 10.9% from $624.2 million a year earlier, according to the shareholder letter it filed with an 8-K on Wednesday. Gross merchandise sales, the value of goods sold on the platform, rose 8.8% to $2.6 billion.

Growth picks up

Etsy said GMS growth, excluding foreign exchange, accelerated by about 190 basis points from the second quarter, its sixth straight quarter of sequential improvement. Active buyers rose 1.0% to about 88 million on a trailing-twelve-month basis.

"After three consecutive quarters of accelerating growth this year, I'm increasingly confident that our business is now firmly in growth mode," CEO Kruti Patel Goyal wrote in the letter.

The company's take rate, the share of GMS it keeps as revenue, rose 50 basis points to 26.2%, which it attributed mainly to improvements in Etsy Ads.

• Net income from continuing operations: $113.6 million, up from $104.6 million
• Diluted EPS from continuing operations: $1.00, versus 86 cents
• Adjusted EBITDA: $210.4 million, up 14.6%, a 30.4% margin
• App GMS: up 10.4%

Depop gain swells the bottom line

Etsy completed the sale of Depop on July 30, and the business is now reported as a discontinued operation. Including a $839.7 million gain on the sale, total net income was $853.5 million, or $7.31 a diluted share, compared with $75.5 million a year earlier.

The company ended September with $2.5 billion in cash, cash equivalents and investments. On Oct. 1, it paid $648.6 million in cash to settle the remaining principal of its 2019 notes.

Buybacks accelerate

Etsy repurchased about $394.6 million of stock in the quarter, cutting its share count by about 5.2 million shares. It has $2.2 billion of remaining authorization and said it expects to keep buying back shares at an accelerated rate.

For the fourth quarter, Etsy expects GMS of $3.46 billion to $3.52 billion, up 5% to 7%, with a take rate of about 25.6% and an adjusted EBITDA margin of about 30%. For the full year, it expects GMS growth of about 7%.

CFO to depart

Baker will step down as CFO effective March 1, 2027, and is expected to stay on as an advisor through July 1, 2027, the company said in the same 8-K. Etsy has hired an executive recruiting firm to find a successor, who is expected to be based in New York.

Under a separation agreement signed Oct. 27, Baker will keep his base salary and continued equity vesting during the advisory period, followed by benefits consistent with a qualifying termination under the company's executive severance plan, according to the filing.

Sources

1. Etsy Form 8-K with third-quarter 2026 shareholder letter (Exhibit 99.1), CFO departure (Item 5.02) and related press release (Exhibit 99.2), filed Oct. 28, 2026 (accession 0001370637-26-000090)
2. Etsy Form 10-Q for the quarter ended September 30, 2026, filed Oct. 28, 2026 (accession 0001370637-26-000092)

This article is for informational and educational purposes only and is not investment advice. It is not a recommendation to buy or sell any security.

Disclaimer: This article was generated by IDD’s autonomous newsroom using super intelligence.