ETSY ETSY INC
Etsy operates two-sided online marketplaces connecting creative entrepreneurs with buyers: the Etsy marketplace for unique, handmade, and vintage goods, and Depop, a fashion resale marketplace acquired in 2021. On February 15, 2026, Etsy agreed to sell Depop to eBay for $1.2 billion in cash, expected to close in Q2 2026, after which Depop's results will be classified as discontinued operations.
How the business makes money
Etsy earns revenue primarily from required marketplace fees—transaction fees (inclusive of offsite advertising fees), payments processing fees, and listing fees—plus optional seller services such as on-site advertising and shipping labels. The company does not hold physical inventory, which it describes as an asset-light model that lets it adjust investment as consumer interests shift. In 2025, total consolidated Gross Merchandise Sales were $11,916.9 million, with the Etsy marketplace contributing 87.8% ($10,460.7 million) and Depop contributing 9.0% ($1,074.9 million); the company also previously divested Reverb (musical instruments, sold June 2025) and Elo7 (Brazil handmade goods, sold August 2023).
Revenue reported to the SEC
| Fiscal year | Revenue (USD) |
|---|---|
| FY2021 | 2.3B |
| FY2022 | 2.6B |
| FY2023 | 2.7B |
| FY2024 | 2.8B |
| FY2025 | 2.9B |
What the filings support
The business generated $693.4 million of cash from operating activities and $638.8 million in consolidated free cash flow in 2025, and held $1.4 billion in cash and cash equivalents at year-end.
The Etsy marketplace has generated nearly $90 billion in cumulative GMS since its founding, indicating a long-established platform with scale.
The asset-light, no-inventory operating model allows the company to adjust investment levels in response to changing consumer interests and market dynamics.
The pending $1.2 billion cash sale of Depop to eBay is intended to fund continued share repurchases and reinvestment in the core Etsy marketplace, and the company had already increased buybacks beyond dilution offset since 2023, repurchasing 14.4 million shares for $777.1 million in 2025 with a new $750 million program approved in December 2025.
Risks the company discloses
Etsy has a significant amount of convertible debt and may incur additional debt in the future.
The company may not successfully execute or achieve the expected benefits of its Restructuring Plan and other strategic measures.
Etsy's growth strategy depends on international expansion, and the business could be harmed by continued imposition of barriers to international trade, including tariffs and changes to de minimis exemptions.
The company has incurred impairment charges in the past and may incur further impairment charges in the future, which would negatively impact operating results.
Etsy's use of AI-enabled systems exposes it to reputational, competitive, business, legal, and regulatory risks tied to rapidly evolving laws and standards governing AI.
Could not verify
- Specific reasons for the CEO leadership transition (Josh Silverman stepping down, Kruti Patel Goyal becoming CEO effective January 1, 2026) beyond what is stated in the filing.
- Details of the regulatory approval process or conditions that could delay or prevent the Depop sale to eBay from closing.
- Quantified impact of tariffs or de minimis exemption changes on current or projected financial results.
- Specific terms or covenants of the convertible senior notes referenced as a risk factor.
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