Etsy bounces back, revenue jumps 11 per cent 

My Nguyen

3 hours ago

Etsy has posted an 11 per cent increase in third-quarter revenue to $692.5 million, as improvements to its marketplace experience helped buyer numbers grow for the first time in two years.

Gross merchandise sales (GMS) across the Etsy marketplace rose 8.8 per cent year on year to $2.6 billion, while active buyers increased 1 per cent to 88 million.

GMS per active buyer also grew 3.9 per cent, signalling stronger spending among its customer base.  Meanwhile, net income reached $114 million. 

The company attributed the improvement partly to investments in search functionality, personalised recommendations and more efficient marketing. Personalisation initiatives contributed an estimated two percentage points to annualised year-on-year GMS growth during the quarter.

“We believe our improving performance reflects our progress not only in delivering a better shopping experience, but also in making Etsy’s unique value easier for buyers to discover and appreciate, and for sellers to want to be a part of,” Kruti Patel Goyal, CEO of Etsy, said in a letter to shareholders. 

Looking ahead, Etsy expects GMS to grow by about 7 per cent for the full year 2026, as the company focuses on its core marketplace following the sale of fashion resale platform Depop.

The online marketplace operator forecasts fourth-quarter GMS of $3.46 billion to $3.52 billion, representing year-on-year growth of 5 to 7 per cent.

• Further reading: Ebay snaps up Depop from Etsy for US$1.2 billion.