Etsy (NASDAQ:ETSY) Releases Earnings Results, Beats Expectations By $0.05 EPS

Etsy (NASDAQ:ETSY) issued its earnings results on Thursday. The specialty retailer reported $0.92 earnings per share for the quarter, beating the consensus estimate of $0.87 by $0.05, Briefing.com reports. Etsy had a negative return on equity of 31.10% and a net margin of 5.78%.During the same quarter in the previous year, the firm posted $1.03 earnings per share. Etsy’s revenue for the quarter was up 3.5% on a year-over-year basis.

Here are the key takeaways from Etsy’s conference call:

• Sale of Depop for $1.2 billion in cash, expected to close in 2Q26, will let Etsy focus on its core marketplace and provide proceeds for buybacks, investments, and general corporate purposes while removing a drag on consolidated margins.
• Etsy’s core marketplace showed early rebound in Q4 — consolidated revenue hit a record $882M, consolidated adjusted EBITDA margin was 25.2%, Etsy Marketplace margin was slightly above 30%, and U.S. buyer GMS grew for the first time in four years.
• Organizational and product changes (customer-outcome-focused teams, app redesign, and tighter owned marketing) are producing signals of improvement — app GMS growth accelerated, homepage clicks per visit rose ~14% Y/Y, and owned-channel engagement (push/email) is up ~25%.
• Etsy is an early mover in AI/agentic commerce with integrations (Microsoft Copilot, Google, Stripe); agentic traffic was ~15x higher Y/Y (still <1% of total) and shows higher order value and reactivation potential, indicating a promising new discovery channel.
• Structural challenges remain — habitual buyers declined 8.6% Y/Y, purchase frequency is still below last year, and consolidated margin was pressured by Depop brand investment and other cost increases, meaning sustainable growth is not yet fully proven.

Etsy Trading Up 12.2%

Etsy stock traded up $5.38 on Thursday, hitting $49.43. 8,151,044 shares of the stock traded hands, compared to its average volume of 3,851,063. The business’s fifty day simple moving average is $55.76 and its 200 day simple moving average is $59.57. The firm has a market cap of $4.88 billion, a P/E ratio of 39.75, a price-to-earnings-growth ratio of 10.65 and a beta of 1.77. Etsy has a 1 year low of $40.05 and a 1 year high of $76.51.

Insider Transactions at Etsy

In other news, CAO Merilee Buckley sold 5,636 shares of the business’s stock in a transaction that occurred on Monday, January 5th. The stock was sold at an average price of $58.45, for a total value of $329,424.20. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Josh Silverman sold 86,666 shares of the company’s stock in a transaction that occurred on Friday, January 2nd. The stock was sold at an average price of $57.46, for a total value of $4,979,828.36. Following the completion of the sale, the insider owned 90,661 shares in the company, valued at $5,209,381.06. The trade was a 48.87% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 135,634 shares of company stock valued at $7,647,664. 2.80% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Etsy

A number of hedge funds have recently added to or reduced their stakes in the company. Corient Private Wealth LLC boosted its stake in Etsy by 33.7% during the 4th quarter. Corient Private Wealth LLC now owns 23,023 shares of the specialty retailer’s stock valued at $1,276,000 after purchasing an additional 5,797 shares during the last quarter. Mercer Global Advisors Inc. ADV raised its stake in shares of Etsy by 64.6% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 39,736 shares of the specialty retailer’s stock worth $2,203,000 after purchasing an additional 15,596 shares during the last quarter. EP Wealth Advisors LLC bought a new position in shares of Etsy during the fourth quarter valued at $271,000. NewEdge Advisors LLC boosted its position in shares of Etsy by 4,241.8% during the fourth quarter. NewEdge Advisors LLC now owns 4,776 shares of the specialty retailer’s stock valued at $265,000 after buying an additional 4,666 shares during the last quarter. Finally, Empowered Funds LLC increased its holdings in Etsy by 413.6% in the 4th quarter. Empowered Funds LLC now owns 56,145 shares of the specialty retailer’s stock worth $3,113,000 after buying an additional 45,213 shares in the last quarter. 99.53% of the stock is currently owned by hedge funds and other institutional investors.

Etsy declared that its Board of Directors has approved a stock repurchase plan on Thursday, December 18th that permits the company to buyback $750.00 million in shares. This buyback authorization permits the specialty retailer to reacquire up to 14.2% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s management believes its stock is undervalued.

More Etsy News

Here are the key news stories impacting Etsy this week:

• Positive Sentiment: Sale of Depop to eBay for $1.2B in cash gives Etsy immediate liquidity and lets management refocus on its core marketplace. Transaction expected to close in Q2 2026. TechCrunch: Etsy sells Depop to eBay
• Positive Sentiment: Q4 earnings beat on EPS ($0.92 vs. consensus ~ $0.87–$0.88), showing operating leverage in the quarter even as prior‑year EPS was higher. Zacks: Etsy surpasses Q4 estimates
• Positive Sentiment: High short interest likely amplified the move higher after the Depop deal and earnings, contributing to the sharp intraday/rally behavior. Benzinga: Short interest fuels rally
• Neutral Sentiment: Etsy released full Q4/FY2025 results and a slide deck — revenue rose ~3.5% YoY and the company says marketplace GMS returned to slight growth in Q4 and expects GMS growth in FY2026. PR Newswire: Q4 and full-year results
• Negative Sentiment: Underlying demand pressures: merchandise sales and buyer metrics weakened, and Etsy logged lower profit versus a year earlier despite revenue growth — signs of margin pressure and slower marketplace momentum. CNBC: Stock pops despite disappointing revenue/merchandise sales
• Negative Sentiment: Depop was sold at a markdown relative to expectations and reported results (reports note a loss on the sale), which could concern investors about prior M&A execution and the company’s ability to grow newer businesses. The Information: Depop sold at a loss
• Negative Sentiment: Profitability metrics remain constrained (net margin ~5.8%, negative return on equity reported), keeping longer‑term investor focus on whether core marketplace growth and margins can sustainably improve. MarketBeat: Q4 results and metrics

Analyst Ratings Changes

A number of analysts have recently weighed in on the company. Evercore lowered Etsy from a “strong-buy” rating to a “hold” rating in a research note on Thursday, October 30th. Citigroup reissued a “buy” rating on shares of Etsy in a research report on Tuesday, December 30th. Stifel Nicolaus cut their price target on shares of Etsy from $65.00 to $62.00 and set a “hold” rating on the stock in a report on Tuesday, January 27th. Morgan Stanley upped their price objective on shares of Etsy from $61.00 to $65.00 and gave the company an “equal weight” rating in a research note on Wednesday, October 29th. Finally, Wells Fargo & Company cut their target price on Etsy from $58.00 to $52.00 and set an “underweight” rating on the stock in a research note on Thursday, October 30th. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, eighteen have issued a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $63.52.

About Etsy

Etsy, Inc (NASDAQ: ETSY) operates a global e-commerce marketplace focused on handmade, vintage and unique goods. The platform connects individual artisans, small businesses and collectors with buyers seeking one-of-a-kind items, ranging from handcrafted jewelry and clothing to home décor and art supplies. Etsy’s revenue is primarily generated through listing fees, transaction fees on sales and optional seller services such as advertising and shipping labels.

Founded in 2005 and headquartered in Brooklyn, New York, Etsy has cultivated a community-driven ethos, encouraging sustainable practices and personal entrepreneurship.