Etsy 10-Q: Q3 Revenue Rises 10.9% to $692.5M; Depop Sale Delivers $839.7M Gain
ETSY has more than doubled off its 52-week low of $44.
Summary
Etsy's Q3 10-Q shows marketplace GMS up 8.8% and revenue up 10.9% to $692.5M with a 30.4% adjusted EBITDA margin, while the closed Depop sale contributed an $839.7M gain and $1.4B of cash.
Key Events · Earnings and Guidance · ETSY
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Q3 Growth Accelerates
GMS rose 8.8% to $2.65B and revenue rose 10.9% to $692.5M, with adjusted EBITDA margin of 30.4% versus 29.4% a year ago.
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Depop Sale Closes With Big Gain
The July 30 sale to eBay brought $1.4B of aggregate cash consideration and an $839.7M gain, lifting Q3 net income to $853.5M and diluted EPS to $7.31.
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Restructuring Charge Booked
A $33.9M charge covers the 12% workforce reduction (~220 employees); execution was substantially complete at quarter end with $6.5M of severance still accrued.
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2019 Notes Retired in Cash
On October 1, 2026 Etsy paid $637.8M cash for the remaining 2019 Notes and settled $12.1M of converted notes with $10.8M cash plus $1.3M of stock.
Analysis · ETSY · Trade & Services
The headline numbers were already out this morning, but the 10-Q is where the quality of the quarter shows. Core Etsy marketplace GMS grew 8.8% to $2.65B and revenue rose 10.9% to $692.5M, with adjusted EBITDA margin at 30.4% — a real acceleration from the 5.5% GMS growth reported in the prior 10-Q. Continuing-operations net income was $113.6M, or $1.00 per diluted share. The $853.5M of reported net income is mostly accounting: it includes an $839.7M gain on the July 30 Depop sale, which also delivered $1.4B of cash and removed a business that had been burning capital. Against that, the company took a $33.9M restructuring charge for cutting about 220 roles (12% of the marketplace workforce), and it retired the last $649.9M of 2019 convertible notes on October 1 with $637.8M of cash plus a small share settlement. With $2.3B of cash and short-term investments and $2.2B left on the buyback, the balance sheet is not the issue; the question is whether 8.8% GMS growth holds after the cost cuts.
How filings like this one have moved
In the 30 days to Oct 28, 2026, 36.5% of the 953 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.66%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, ETSY was trading at $93.37 on NYSE in the Trade & Services sector, with a market capitalization of approximately $8B. The 52-week trading range was $44.00 to $91.12. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.