Etsy, Inc. reported financial results for the third quarter of 2026, noting that key performance indicators continued to improve with accelerating growth in Gross Merchandise Sales (GMS) and revenue. For the quarter ended September 30, 2026, the company reported GMS of $2.6 billion, representing an 8.8% year-over-year increase. Revenue for the Etsy Marketplace was $692 million, an increase of 10.9% year-over-year. The company reported net income of $114 million, an increase of $9 million year-over-year, and adjusted EBITDA of $210 million with a margin of 30.4%.
The company stated that active buyers grew year-over-year for the first time in two years, while the active seller base grew at its fastest rate in two years. The filing notes that the positive impact from internal efforts has accelerated, with personalization improvements estimated to have contributed approximately two percentage points to the annualized year-over-year GMS growth rate. Additionally, the company completed the sale of Depop on July 30, 2026.
In other news, Etsy announced that Charles (Lanny) Baker will depart from his role as Chief Financial Officer. Mr. Baker is expected to remain in his role through March 1, 2027, and will serve in an advisory capacity through July 1, 2027. The company has retained an executive recruiting firm to assist in the search for his successor. Mr. Baker and Etsy entered into a separation agreement governing the terms of his departure and advisory period on October 27, 2026.
