Etsy (ETSY)
NYSEConsumer DiscretionarySpecialty RetailSnapshot 2026-09-04
$76.51-6.73%
Close 2026-09-04 · 1-day change
NYSEConsumer DiscretionarySpecialty RetailSnapshot 2026-09-04
QuarterlyIQ Insights · ETSY
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within consumer discretionary on a research-validated quality screen. As of 2026-09-04.
The screen ranks ETSY against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 3 of the last 3 quarter-over-quarter moves. Historically, Consumer Discretionary names rated strong grew net income 63% of the time over the next year (vs 50% for the rest of the cohort, n=5213).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Focus on expanding buyer discovery, improving matching, and strengthening buyer-seller relationships to drive repeat purchases and marketplace growth.
Stated as a priority in 3 of last 3 quarters. Etsy marketplace GMS grew from $2.5 billion in 2026-Q1 (+5.5% YoY) to $2.6 billion in 2026-Q2 (+7.5% YoY), showing accelerating growth. Management emphasizes expanding discovery, matching, and buyer-seller relationships as core to sustainable growth, and the trajectory is delivering with improving marketplace fundamentals.
“Our four growth priorities are designed to work together to build lasting relationships between buyers, sellers, and Etsy.”
“Etsy's path back to long-term growth is grounded in a focused plan: expanding how and where buyers discover us, connecting them with items that feel personal and relevant.”
“What sets Etsy apart is not just what we sell, but who we're built for: buyers seeking something personal and sellers bringing creativity to life.”
Enhance profitability through disciplined execution, margin expansion, and operating expense management.
Stated as a priority in 3 of last 3 quarters. Operating income improved from -$3.9 million in 2025-Q1 to $119.8 million in 2026-Q1. Adjusted EBITDA margin increased to 29.2% in 2026-Q2 from 25.2% in 2025-Q4. Net income rose from $69.7 million in 2026-Q1 to $114 million in 2026-Q2. Management's focus on profitability is reflected in improving margins and income, indicating delivering trajectory.
Increase operating cash flow and deploy capital efficiently, including share repurchase programs.
Stated as a priority in 2 of last 3 quarters. Cash from operations was $317.1 million in 2025-Q4 and $80.7 million in 2026-Q1, showing variability but positive cash generation. In 2026-Q2, management announced a new $2 billion share repurchase authorization with no expiration date, indicating active capital allocation focus. The trajectory shows ongoing emphasis on cash flow and capital deployment.
Implement workforce reduction and organizational restructuring to simplify structure and accelerate decision-making.
Newly stated in 2026-Q2. Management announced a restructuring plan including workforce reduction and organizational simplification to improve coordination and speed. This is a recent initiative with no prior quarters stating it. No financial impact quantified yet, so trajectory is early stage.
“Announced restructuring plan to better align organization with long-term strategic priorities, including workforce reduction.”
Divest Depop to eBay and concentrate resources on Etsy marketplace growth and operations.
Stated as a priority in 3 of last 3 quarters. Depop GMS grew 37.2% year-over-year to $299.7 million in 2025-Q4. Management announced sale agreement in 2026-Q1 and completed the sale on July 30, 2026. The focus is now on Etsy marketplace continuing operations. The trajectory shows successful divestiture and strategic refocus.
Over the trailing year it converted 3.01x of net income into operating cash flow. Historically, Consumer Discretionary names rated robust grew net income 58% of the time over the next year (vs 45% for the rest of the cohort, n=3652).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to real (inflation-adjusted) rates, long-term interest rates, the US dollar, Fed net liquidity (low R² over the window).
12 material management or governance events in the past 24 months, led by capital-allocation actions. Historically, Consumer Discretionary names rated neutral grew net income 48% of the time over the next year (vs 53% for the rest of the cohort, n=2538).
Not investment advice. As of 2026-09-04.
“We delivered healthy flow-through of revenue growth to adjusted EBITDA, again demonstrating the strength of our business model.”
“We delivered year-over-year growth in net income and adjusted EBITDA, with a 29.3% adjusted EBITDA margin.”
“Fourth quarter Adjusted EBITDA was $222 million, with consolidated margin of 25.2%, Etsy marketplace margin approximately 30%.”
“Improved outlook for 2026 and new $2 billion share repurchase authorization.”
“During Q4 2025, Etsy repurchased approximately $133 million of common stock under prior program.”
“On July 30, 2026 we completed the sale of Depop to eBay; results now presented on continuing operations basis.”
“Entered agreement to sell Depop to eBay for $1.2 billion; closing expected by end of Q3 2026.”
“Depop GMS was $299.7 million, up 37.2% year-over-year; sale announced in February 2026.”