Etsy Q2 Earnings Call Highlights

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%.

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.

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.

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 ...