Etsy shares pop on Q1 results, improved outlook

Etsy Inc (NASDAQ:ETSY, XETRA:3E2) reported archetypal 4th results that topped Wall Street expectations for some gross and net per share, driven by higher gross merchandise income and improving marketplace performance.

Shares roseate astir 10% to astir $70 successful aboriginal trading pursuing the report.

The institution posted gross of $631.3 million, up of expert estimates of astir $620 million, portion adjusted net per stock came successful astatine $0.89 versus expectations of astir $0.62.

Gross merchandise income (GMS) accrued 5.5% year-over-year to $2.5 billion, reflecting stronger user request and higher spending per buyer. Growth besides improved sequentially from the anterior quarter, supported by gains successful mobile app usage, selling effectiveness, and hunt improvements.

Mobile app spot remained a cardinal driver, accounting for astir 47% of full GMS, up astir 240 ground points year-over-year. App-based GMS grew 11.2% year-over-year, portion non-app GMS returned to maturation astatine 1.0%. Etsy besides cited continued improvements successful paid hunt performance, merchandise listing ads, and hunt motor optimization arsenic contributors to postulation and conversion gains.

The institution said GMS per progressive purchaser roseate year-over-year for the archetypal clip since 2022, reaching $122 connected a trailing twelve-month basis, supported by higher mean bid value. Etsy noted that immoderate of the AOV summation was driven by impermanent factors, including overseas speech movements and pricing adjustments pursuing changes successful cross-border commercialized rules.

International show besides improved, with non-U.S. purchaser GMS maturation turning affirmative connected a changeless currency ground for the archetypal clip since 2023. Growth was broad-based crossed income cohorts, with the strongest publication continuing to travel from higher-income households.

“We saw encouraging signals during the archetypal 4th that our maturation priorities are taking hold,” Etsy CEO Kruti Patel Goyal wrote successful a missive to shareholders.

Alongside its results, Etsy provided updated guidance for the Etsy marketplace, pursuing the anticipated merchantability of Depop, which is present treated arsenic discontinued operations. The outlook besides reflects the earlier divestiture of Reverb, meaning results are based solely connected continuing operations.

For the 2nd 4th of 2026, Etsy expects GMS of $2.48 cardinal to $2.53 billion, representing 3% to 5% year-over-year maturation for the marketplace. The institution expects a instrumentality complaint of astir 25.7% and adjusted EBITDA borderline of 27% to 29%.

For full-year 2026, Etsy present expects GMS maturation successful the debased single-digit range, improving from anterior commentary successful mid-February. The institution said it inactive expects year-over-year GMS maturation successful each 4th of 2026, citing stronger-than-expected first-quarter show and advancement connected maturation initiatives. Adjusted EBITDA borderline guidance was maintained astatine 28% to 30%.