Etsy (NYSE:ETSY) Posts Earnings Results, Misses Estimates By $0.02 EPS

Etsy (NYSE:ETSY) issued its quarterly earnings data on Wednesday. The company reported $0.60 earnings per share for the quarter, missing analysts’ consensus estimates of $0.62 by ($0.02), FiscalAI reports. Etsy had a net margin of 5.65% and a negative return on equity of 24.94%. The company had revenue of $631.28 million during the quarter, compared to the consensus estimate of $622.39 million. During the same period in the previous year, the business posted ($0.49) earnings per share. The firm’s revenue was up 3.1% on a year-over-year basis.

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

• Q1 results surprised to the upside with GMS of $2.5 billion (+5.5% YoY), revenue of $631 million and adjusted EBITDA of $185 million (29.3% margin), while active buyers grew sequentially and app GMS accelerated to ~47% of total (app GMS +11.2% YoY), signaling early marketplace health improvements.
• Etsy agreed to sell Depop to eBay for $1.2 billion (expected close by end of Q3 2026), and management has already repurchased $145 million of stock with $828 million remaining on the buyback authorization—proceeds are expected to accelerate capital returns.
• Guidance assumes modest near-term momentum: Q2 Etsy marketplace GMS of $2.48–$2.53 billion (≈3–5% YoY) and a full-year view of low single-digit GMS growth with adjusted EBITDA margin of 28%–30%.
• Management cautioned that purchase frequency and repeat/habitual buyer metrics remain below prior-year levels and have not yet meaningfully inflected, so sustained growth depends on multi-quarter execution of personalization, app adoption and loyalty initiatives.

Etsy Trading Down 6.9%

Shares of ETSY traded down $4.84 during trading hours on Thursday, reaching $64.76. The stock had a trading volume of 2,971,225 shares, compared to its average volume of 3,505,187. Etsy has a 52 week low of $42.10 and a 52 week high of $76.51. The company’s 50-day moving average is $55.16. The company has a market cap of $6.15 billion, a P/E ratio of 49.22, a P/E/G ratio of 9.90 and a beta of 1.77.

Insider Activity at Etsy

In related news, insider Josh Silverman sold 70,000 shares of the company’s stock in a transaction on Tuesday, April 21st. The shares were sold at an average price of $65.00, for a total value of $4,550,000.00. Following the completion of the sale, the insider owned 130,694 shares in the company, valued at $8,495,110. This represents a 34.88% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Merilee Buckley sold 1,993 shares of the company’s stock in a transaction on Monday, April 6th. The shares were sold at an average price of $52.92, for a total transaction of $105,469.56. Following the completion of the sale, the chief accounting officer owned 809 shares of the company’s stock, valued at approximately $42,812.28. This represents a 71.13% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 168,636 shares of company stock worth $10,253,703 in the last quarter. Corporate insiders own 2.80% of the company’s stock.

Hedge Funds Weigh In On Etsy

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. AQR Capital Management LLC boosted its stake in Etsy by 40.1% in the 4th quarter. AQR Capital Management LLC now owns 4,111,639 shares of the company’s stock worth $227,785,000 after purchasing an additional 1,177,301 shares during the period. Dimensional Fund Advisors LP boosted its stake in Etsy by 16.2% in the 4th quarter. Dimensional Fund Advisors LP now owns 1,473,154 shares of the company’s stock worth $81,671,000 after purchasing an additional 205,644 shares during the period. Deutsche Bank AG boosted its stake in Etsy by 68.8% in the 4th quarter. Deutsche Bank AG now owns 1,378,170 shares of the company’s stock worth $76,406,000 after purchasing an additional 561,487 shares during the period. Quantinno Capital Management LP boosted its stake in Etsy by 65.6% in the 2nd quarter. Quantinno Capital Management LP now owns 613,395 shares of the company’s stock worth $30,768,000 after purchasing an additional 243,079 shares during the period. Finally, Alyeska Investment Group L.P. acquired a new position in Etsy in the 3rd quarter worth $31,793,000. 99.53% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on the company. Sanford C. Bernstein reissued a “market perform” rating and issued a $65.00 target price on shares of Etsy in a report on Thursday. Truist Financial increased their target price on Etsy from $83.00 to $85.00 and gave the stock a “buy” rating in a report on Thursday. Stifel Nicolaus dropped their target price on Etsy from $62.00 to $55.00 and set a “hold” rating for the company in a report on Friday, February 20th. Guggenheim raised their price target on Etsy from $75.00 to $85.00 and gave the company a “buy” rating in a report on Thursday. Finally, Barclays raised their price target on Etsy from $72.00 to $82.00 and gave the company an “overweight” rating in a report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, nineteen have assigned a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $67.67.

Etsy News Roundup

Here are the key news stories impacting Etsy this week:

• Positive Sentiment: Q1 top-line and marketplace improvement — Etsy reported Q1 revenue of ~$631M and the company logged the first year‑over‑year gross merchandise sales (GMS) growth in over two years, plus reported buyer growth. Those operational improvements underpin the thesis that marketplace fundamentals are repairing. Online marketplace Etsy beats revenue estimates
• Positive Sentiment: Profitability progress — Etsy swung back to GAAP profit in Q1 and margin trends improved as advertising and services revenue helped leverage the business. This supports upside to margins if GMS growth continues. ETSY Q1 Earnings & Revenues Surpass Estimates
• Positive Sentiment: Analyst bullishness — Several firms (Needham, Truist, BTIG, Barclays among others) raised price targets and reiterated buy/overweight views, signaling conviction among some investors that upside remains. Analyst price target updates
• Neutral Sentiment: Mixed analyst actions — other shops moved to neutral/hold (Deutsche Bank, B. Riley) or raised targets while keeping cautious ratings, creating a split analyst picture that can fuel intraday volatility. Deutsche Bank adjusts target
• Neutral Sentiment: Earnings call tone — management struck a “cautiously upbeat” tone on the call, acknowledging progress but flagging the need for continued improvement to sustain growth, which leaves the story dependent on execution. Earnings call summary
• Negative Sentiment: Sustainability concerns from Morgan Stanley — a note highlighted questions about whether current growth and margin trends are sustainable, which likely cooled post‑earnings enthusiasm and pressured the stock. Etsy Faces Sustainability Questions
• Negative Sentiment: Mixed/soft EPS signal in some reports — while revenue beat, some headline EPS figures were reported below consensus (small miss), giving short‑term traders a reason to sell into the post‑earnings pop. Earnings details and EPS miss
• Negative Sentiment: Profit‑taking after earlier rally — shares rallied on the initial print/guide but have been pulled back as investors digest the mixed signals and divergent analyst views, amplifying intraday downside. Shares pop then pullback

About Etsy

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.