Start here if you're new
what it is
Etsy runs online marketplaces where 95.5 million buyers find handmade, vintage, and secondhand stuff from 8.1 million sellers.
how it gets paid
Last year Etsy made $2.9B in revenue.
why it's growing
Revenue grew 2.7% last year. Revenue growth was driven by strong on-site advertising across Etsy and Depop.
what just happened
Etsy posted $2.0B in latest-quarter revenue, while EPS landed at $0.47 and gross margin stayed at 71.0%.
At a glance
B balance sheet — gets the job done, barely
50/100 earnings predictability — expect surprises
49.4x trailing p/e — you're paying up for this one
12.0% return on capital — nothing to write home about
xvary composite: 48/100 — below average
What they do
Etsy runs online marketplaces where 95.5 million buyers find handmade, vintage, and secondhand stuff from 8.1 million sellers.
Network effects → more buyers attract more sellers → so what: you go to Etsy because the weird, specific item you want is more likely to be there. As of 12/31/24, Etsy, Depop, and Reverb connected 95.5 million active buyers with 8.1 million active sellers. That scale matters because your next purchase starts where the inventory already is, and leaving that habit is annoying.
How they make money
$2.9B
annual revenue · their business grew +2.7% last year
total revenue
$2.9B
+2.7%
The products that matter
handmade and vintage goods marketplace
Etsy Marketplace
$2.9B revenue · 100% of sales
it's the center of gravity. the source data attributes the full $2.9B revenue base to the marketplace business, supported by 7.7 million sellers.
core
musical instruments marketplace
Reverb
revenue not broken out
Reverb matters strategically, but the source does not split its contribution out of the $2.9B total. That limits how much you can underwrite it as a separate growth engine.
adjacent
secondhand fashion marketplace
Depop
revenue not broken out
Depop gives Etsy exposure to resale, but again the source does not break out dollars from the $2.9B base. You know it's there. You do not get clean segment math.
optionality
Key numbers
49.4x
trailing p/e
Price-to-earnings → how expensive the stock is versus profit → so what: Etsy is priced for better growth than its 2.7% revenue increase shows.
$2.9B
annual revenue
This is the size of the business today, and it only grew 2.7% vs. prior year.
9.2%
operating margin
Operating margin → profit after running the business → so what: Etsy's gross margin looks rich, but the actual business keeps much less.
$3.0B
long-term debt
Debt at 33% of capital means Etsy has less room to shrug off a bad consumer year.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 4 — safer than 20% of stocks
- price stability 15 / 100
- long-term debt $3.0B (33% of capital)
- net profit margin 7.7% — keeps 8 cents of every dollar in revenue
B — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in ETSY 3 years ago → it's now worth $4,590.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
Etsy posted $2.0B in latest-quarter revenue, while EPS landed at $0.47 and gross margin stayed at 71.0%.
Revenue growth was driven by strong on-site advertising across Etsy and Depop, according to the earnings coverage in February 2026. The weird part is the company can beat estimates and still look expensive at 49.4x earnings.
$859M
revenue
$0.47
eps
71.0%
gross margin
the number that mattered
The 71.0% gross margin matters most because it shows the platform can monetize attention well, even while overall operating margin is just 9.2%.
-
etsy has the potential to benefit from a new ceo.
-
effective january 1st, kruti patel goyal took the helm of etsy.
-
prior to this leadership change, kruti served as etsy’s president and chief growth officer.
-
in that role, she oversaw product development, customer experience, and strategic operations.
-
ms.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
the #1 risk is a pullback in discretionary gifting and handmade goods demand.
med
discretionary demand slowdown
Etsy sells wants more than needs. If consumer budgets tighten, handmade gifts, custom items, and hobby purchases are among the first categories people postpone.
all $2.9B of revenue runs through that discretionary marketplace behavior, and a 7.6% net margin does not leave much cushion.
med
the network stops compounding
7.7 million sellers and 96 million buyers sound like a moat. They are. But only if that community keeps transacting. Low growth tells you the network is large, not automatically accelerating.
if buyer or seller engagement slips, the pressure hits the fee engine supporting the full $2.9B revenue base.
med
multiple compression before the turnaround
ETSY trades at 49.4x trailing earnings with a B balance sheet, $3.0B in long-term debt, and 2.7% revenue growth. That is an expensive setup for a company still proving it can reaccelerate.
the business does not need to break for the stock to disappoint. If growth stays muted, valuation alone can do the damage.
all $2.9B of revenue depends on discretionary marketplace activity, and the company only keeps 7.6% of that as net profit.
source: institutional data · regulatory filings · risk analysis
Pay attention to
growth
revenue above the current 2.7% pace
This stock needs more than low-single-digit growth. Watch whether revenue can move meaningfully beyond the current 2.7% on a $2.9B base.
flow
institutional selling finally stops
Three straight quarters of net selling tells you big money has been reducing exposure, not building it.
margin
net margin holding near 7.6%
A thin margin means even modest demand pressure can punch above its weight. Watch whether profitability stays intact if growth remains slow.
leadership
the first few quarters under Kruti Patel Goyal
A new CEO who previously ran growth, product, and customer experience now owns the whole scoreboard. You want to see cleaner execution, not just a new org chart.
Analyst rankings
short-term outlook
average
momentum score 3. In human-speak, analysts do not see a strong short-term edge here.
risk profile
below average
stability score 4 means the stock has been more volatile than most. Not chaos, not comfort.
chart momentum
average
technical score 3 says the chart is not sending a strong message either way. The market is waiting for proof.
earnings predictability
50 / 100
Earnings predictability at 50/100 means estimates are less reliable here than in steadier businesses. You should expect some noise.
source: institutional data
Institutional activity
institutions have been net selling for 3 consecutive quarters — 243 buyers vs. 262 sellers in 3q2025. total institutional holdings: 0.1B shares. net selling for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$23
$84
$62
current price
$54
target midpoint · 13% from current · 3-5yr high: $115 (+85% · 17% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive