GET DAILY SIGNALSEtsy (ETSY) Delivers Steady Q3 Growth as Buyer Numbers Turn Positive
Key Takeaways
- Third quarter 2026 revenue reached $692.5 million, up 10.9% year over year and above the roughly $668 million consensus estimate.
- Diluted earnings per share (EPS) from continuing operations came in at $1.00, comfortably ahead of the $0.76 analysts had expected.
- Active buyers grew about 1% to roughly 88 million, marking the first year-over-year increase in two years.
- Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 14.6% to $210 million, a 30.4% margin.
- The company repurchased approximately $395 million of stock, reducing its share count by about 5.2 million shares during the quarter.
- For more detail on Etsy's Major News, Today's Price Move, Price Targets, and Forecast, explore the dedicated Etsy pages.
- Discover additional market opportunities by exploring Trending AI Robots.
Why This Report Matters
Etsy's third quarter 2026 results offer an important check on whether the marketplace can maintain the positive direction it has shown since the start of the year. After a stretch of flat buyer growth and pressure from bigger e-commerce players, the focus has been on whether improvements in search relevance, product quality, and differentiation would support lasting expansion. The quarter also comes after the completed sale of Depop in July 2026 and an August restructuring. Solid revenue growth alongside the return of active-buyer increases would indicate the turnaround is taking hold, while the numbers also shed light on profitability trends and how capital is being allocated.
The Quarter in Detail
Etsy reported total revenue of $692.5 million for the third quarter ended September 30, 2026, an increase of 10.9% year over year and above the consensus estimate of approximately $668 million. Marketplace revenue grew 9.1%, while services revenue rose 15%. Diluted EPS from continuing operations was $1.00, well above the $0.76 analysts had projected. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
The company's take rate—the share of gross merchandise sales (GMS) it captures as revenue—reached 26.2%, up 50 basis points year over year, driven largely by enhancements to Etsy Ads and a higher contribution from Offsite Ads. Adjusted EBITDA climbed 14.6% to $210 million, representing a 30.4% margin and growing faster than revenue for the second consecutive quarter.
On the engagement front, active buyers returned to year-over-year growth for the first time in two years, increasing about 1% to roughly 88 million. GMS per buyer rose 3.9% year over year, its third straight quarter of growth. Etsy ended the quarter with about $2.5 billion in cash and investments and repurchased roughly $395 million in stock.
Market Reaction and Sentiment
ETSY shares entered the report with considerable positive momentum, having gained roughly 34% over the prior 12 months. The third quarter results reinforced that optimism, with revenue and EPS both exceeding expectations and active-buyer growth turning positive for the first time in two years. Investors responded favorably to the combination of accelerating revenue, expanding adjusted EBITDA margins, and aggressive share repurchases, viewing the report as confirmation that the company's marketplace-health initiatives are gaining traction. Sentiment also benefited from disciplined expense management, even as the company continued investing in marketing to drive profitable GMS growth. The main areas of scrutiny heading forward remain purchase frequency, which was modestly lower year over year, and the durability of the buyer-growth recovery.
Looking Ahead
Following this report, investors will be watching several factors to assess whether Etsy's momentum can be sustained. The most important signal is active-buyer growth, which turned positive for the first time in two years. Continued improvement in gross buyer additions, reactivation, and retention would suggest the company's marketplace-health efforts are working on a durable basis.
Purchase frequency remains a point of caution. While GMS per buyer has grown for three consecutive quarters, the company noted that purchase frequency was modestly lower year over year. Etsy's ability to convert higher order values and improved search relevance into more frequent purchases will be a key test of its longer-term growth trajectory.
Profitability and capital allocation also merit attention. Management has indicated it expects to sustain healthy adjusted EBITDA profitability while gradually adding product and engineering headcount. With roughly $2.2 billion in remaining buyback authorization and a stronger balance sheet following the Depop sale and debt settlement, investors will watch how Etsy balances reinvestment against continued share repurchases. Finally, broader consumer spending trends and competitive dynamics in e-commerce will continue to shape the environment in which the marketplace operates.
Using AI Tools in My Analysis
In my regular research, I find Tickeron’s AI Screener helpful for quickly filtering stocks by technical patterns, fundamentals, and industry trends. It lets me scan for ideas and monitor conditions across sectors like e-commerce without spending hours on manual checks, which keeps my process efficient when evaluating names such as ETSY.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
ETSY in upward trend: price rose above 50-day moving average on October 13, 2026
ETSY moved above its 50-day moving average on October 13, 2026 date and that indicates a change from a downward trend to an upward trend. In 33 of 39 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 85%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 08, 2026. You may want to consider a long position or call options on ETSY as a result. In 70 of 88 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 80%.
The Moving Average Convergence Divergence (MACD) for ETSY just turned positive on October 01, 2026. Looking at past instances where ETSY's MACD turned positive, the stock continued to rise in 38 of 47 cases over the following month. The odds of a continued upward trend are 81%.
The 10-day moving average for ETSY crossed bullishly above the 50-day moving average on October 16, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 9 of 11 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 82%.
Following a +2.67% 3-day Advance, the price is estimated to grow further. Considering data from situations where ETSY advanced for three days, in 217 of 289 cases, the price rose further within the following month. The odds of a continued upward trend are 75%.
The Aroon Indicator entered an Uptrend today. In 141 of 195 cases where ETSY Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 72%.
Bearish Trend Analysis
The 10-day RSI Indicator for ETSY moved out of overbought territory on October 23, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 29 similar instances where the indicator moved out of overbought territory. In 25 of the 29 cases, the stock moved lower in the following days. This puts the odds of a move lower at 86%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 47 of 55 cases where ETSY's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 85%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ETSY declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 83%.
ETSY broke above its upper Bollinger Band on October 13, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 39 (best 1 - 100 worst), indicating steady price growth. ETSY’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is 79 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 83 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (-5.767) is normal, around the industry mean (22.666). ETSY has a moderately high P/E Ratio (42.761) as compared to the industry average of (9.403). Projected Growth (PEG Ratio) (0.729) is also within normal values, averaging (1.774). Dividend Yield (0.000) settles around the average of (0.033) among similar stocks. ETSY's P/S Ratio (3.268) is slightly higher than the industry average of (1.321).
The Tickeron SMR rating for this company is 100 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ETSY’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
an online marketplace for buying and selling of handmade and vintage goods
Industry InternetRetail
Advertisement