Revenue growth remains constrained at 3.1% in 2026Q1, while operating margins fluctuate between 10.5% and 19.0% due to elevated product development and marketing costs.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Sales/Revenue | 2.86B | 2.88B | 2.81B | 2.75B | 2.57B | 2.33B | 1.73B | 818.38M | 603.69M | 441.23M | 364.97M | 273.5M | 195.59M | 125.02M | 74.6M |
| Revenue Growth % | 3.21% | 2.68% | 2.18% | 7.1% | 10.18% | 34.97% | 110.86% | 35.56% | 36.82% | 20.9% | 33.44% | 39.83% | 56.45% | 67.59% | - |
| Cost of Goods Sold | 801.42M | 817.8M | 774.55M | 828.67M | 744.59M | 654.51M | 464.75M | 271.04M | 190.76M | 150.99M | 123.33M | 96.98M | 73.63M | 47.78M | 24.49M |
| COGS % of Revenue | - | 28.36% | 27.58% | 30.15% | 29.02% | 28.1% | 26.93% | 33.12% | 31.6% | 34.22% | 33.79% | 35.46% | 37.65% | 38.22% | 32.83% |
| Gross Profit | 2.06B | 2.07B | 2.03B | 1.92B | 1.82B | 1.67B | 1.26B | 547.34M | 412.93M | 290.25M | 241.64M | 176.52M | 121.96M | 77.24M | 50.11M |
| Gross Margin % | 72.01% | 71.64% | 72.42% | 69.85% | 70.98% | 71.9% | 73.07% | 66.88% | 68.4% | 65.78% | 66.21% | 64.54% | 62.35% | 61.78% | 67.17% |
| Gross Profit Growth % | - | 1.57% | 5.94% | 5.39% | 8.77% | 32.81% | 130.36% | 32.55% | 42.27% | 20.12% | 36.89% | 44.74% | 57.89% | 54.15% | - |
| Operating Expenses | 1.65B | 1.7B | 1.65B | 1.64B | 2.48B | 1.21B | 836.87M | 458.58M | 338.14M | 278.35M | 224.06M | 178.4M | 128.21M | 76.51M | 51.46M |
| OpEx % of Revenue | - | 58.88% | 58.88% | 59.67% | 96.65% | 51.9% | 48.5% | 56.04% | 56.01% | 63.08% | 61.39% | 65.23% | 65.55% | 61.2% | 68.98% |
| Selling, General & Admin | 1.22B | 1.25B | 1.21B | 1.1B | 1.02B | 937.34M | 656.79M | 336.7M | 240.9M | 200.57M | 168.43M | 135.71M | 91.58M | 48.96M | 32.81M |
| SG&A % of Revenue | - | 43.27% | 43.1% | 40.11% | 39.85% | 40.24% | 38.06% | 41.14% | 39.9% | 45.46% | 46.15% | 49.62% | 46.82% | 39.16% | 43.98% |
| Research & Development | 438.73M | 450.19M | 443.06M | 469.33M | 412.4M | 271.54M | 180.08M | 121.88M | 97.25M | 74.62M | 55.08M | 42.69M | 36.63M | 27.55M | 18.65M |
| R&D % of Revenue | - | 15.61% | 15.78% | 17.08% | 16.07% | 11.66% | 10.44% | 14.89% | 16.11% | 16.91% | 15.09% | 15.61% | 18.73% | 22.03% | 25% |
| Other Operating Expenses | 0 | 0 | 0 | 68.09M | 1.05B | 0 | 0 | 0 | 0 | 3.16M | 551K | 0 | 0 | 0 | 0 |
| Operating Income | 408.38M | 367.91M | 380.21M | 279.84M | -658.56M | 465.73M | 424.01M | 88.76M | 74.79M | 11.9M | 17.58M | -1.88M | -6.25M | 733K | -1.35M |
| Operating Margin % | 14.26% | 12.76% | 13.54% | 10.18% | -25.66% | 20% | 24.57% | 10.85% | 12.39% | 2.7% | 4.82% | -0.69% | -3.2% | 0.59% | -1.82% |
| Operating Income Growth % | - | -3.23% | 35.87% | 142.49% | -241.4% | 9.84% | 377.7% | 18.69% | 528.67% | -32.32% | 1032.96% | 69.86% | -952.8% | 154.1% | - |
| EBITDA | 508.35M | 469.76M | 488.28M | 371.16M | -561.86M | 540M | 482.2M | 136.79M | 101.53M | 39.09M | 40.1M | 16.67M | 10.97M | 13.11M | 6.58M |
| EBITDA Margin % | 17.75% | 16.29% | 17.39% | 13.5% | -21.9% | 23.18% | 27.94% | 16.71% | 16.82% | 8.86% | 10.99% | 6.09% | 5.61% | 10.49% | 8.81% |
| EBITDA Growth % | -0% | -3.79% | 31.55% | 166.06% | -204.05% | 11.99% | 252.5% | 34.73% | 159.71% | -2.52% | 140.62% | 51.9% | -16.33% | 99.44% | - |
| D&A (Non-Cash Add-back) | 99.97M | 101.84M | 108.07M | 91.32M | 96.7M | 74.27M | 58.19M | 48.03M | 26.74M | 27.2M | 22.52M | 18.55M | 17.22M | 12.38M | 7.93M |
| EBIT | 414.94M | 265.17M | 424.58M | 306.86M | -647.81M | 481.54M | 407.73M | 104.97M | 77.26M | 43.4M | 4.33M | -26.47M | -9.67M | 360K | -2.04M |
| Net Interest Income | 21.08M | 25.98M | 17.18M | 21.96M | -3.21M | -7.75M | -34.92M | -11.12M | -13.22M | -8.74M | -5.5M | -1.2M | -549K | -256K | -438K |
| Interest Income | 36.18M | 44.49M | 30.98M | 36M | 10.96M | 2.14M | 7.1M | 13.2M | 8.96M | 2.39M | 1.7M | 324K | 41K | 46K | 48K |
| Interest Expense | 15.11M | 18.51M | 13.81M | 14.04M | 14.17M | 9.88M | 42.02M | 24.32M | 22.18M | 11.13M | 7.2M | 1.53M | 590K | 302K | 486K |
| Other Income/Expense | 861K | -121.25M | 30.57M | 12.98M | -3.42M | 5.92M | -58.3M | -8.12M | -19.71M | 20.37M | -20.45M | -26.11M | -4.01M | -675K | -1.18M |
| Pretax Income | 409.24M | 246.66M | 410.77M | 292.82M | -661.98M | 471.65M | 365.71M | 80.65M | 55.08M | 32.27M | -2.88M | -27.99M | -10.26M | 58K | -2.53M |
| Pretax Margin % | 14.29% | 8.55% | 14.63% | 10.65% | -25.8% | 20.25% | 21.19% | 9.85% | 9.12% | 7.31% | -0.79% | -10.24% | -5.25% | 0.05% | -3.39% |
| Income Tax | 89.5M | 83.68M | 107.49M | -14.75M | 32.31M | -21.85M | 16.46M | -15.25M | -22.41M | -49.53M | 27.02M | 26.07M | 4.98M | 854K | -145K |
| Effective Tax Rate % | 21.87% | 33.93% | 26.17% | -5.04% | -4.88% | -4.63% | 4.5% | -18.91% | -40.69% | -153.53% | -939.67% | -93.12% | -48.57% | 1472.41% | 5.73% |
| Net Income | 284.76M | 162.98M | 303.28M | 307.57M | -694.29M | 493.51M | 349.25M | 95.89M | 77.49M | 81.8M | -29.9M | -54.06M | -15.24M | -796K | -2.38M |
| Net Margin % | 9.94% | 5.65% | 10.8% | 11.19% | -27.06% | 21.19% | 20.24% | 11.72% | 12.84% | 18.54% | -8.19% | -19.77% | -7.79% | -0.64% | -3.2% |
| Net Income Growth % | 51.32% | -46.26% | -1.39% | 144.3% | -240.68% | 41.31% | 264.2% | 23.75% | -5.27% | 373.57% | 44.69% | -254.67% | -1814.95% | 66.62% | - |
| Net Income (Continuing) | 319.74M | 162.98M | 303.28M | 307.57M | -694.29M | 493.51M | 349.25M | 95.89M | 77.49M | 81.8M | -29.9M | -54.06M | -15.24M | -796K | -2.38M |
| Discontinued Operations | -1000K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.35 | 1.39 | 2.35 | 2.24 | -5.48 | 3.40 | 2.69 | 0.76 | 0.61 | 0.68 | -0.26 | -0.59 | -0.16 | -0.01 | -0.06 |
| EPS Growth % | 76.81% | -40.85% | 4.91% | 140.88% | -261.18% | 26.39% | 253.95% | 24.59% | -10.29% | 361.54% | 55.93% | -268.75% | - | 86.66% | - |
| EPS (Basic) | - | 1.68 | 2.64 | 2.56 | -5.48 | 3.88 | 2.88 | 0.80 | 0.61 | 0.69 | -0.26 | -0.59 | -0.16 | -0.01 | -0.06 |
| Diluted Shares Outstanding | 121.03M | 123.54M | 131.72M | 140.15M | 126.78M | 146.68M | 136.41M | 125.72M | 127.08M | 122.27M | 113.56M | 91.12M | 93.69M | 93.69M | 37.44M |
| Basic Shares Outstanding | 96.23M | 98.21M | 114.94M | 122.5M | 126.78M | 127.22M | 121.25M | 119.67M | 127.02M | 118.54M | 113.56M | 91.12M | 93.69M | 93.69M | 37.44M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Stagnant GMS growth
According to recent financial disclosures, Etsy's revenue growth has remained in the low single digits, with 2026Q1 revenue of $631.3 million representing a modest 3.1% year-over-year increase, suggesting that the platform is struggling to drive meaningful expansion beyond its existing, mature buyer base.
The persistent low-single-digit growth suggests that the company is currently unable to catalyze significant new volume, relying instead on incremental take-rate adjustments. Investors should monitor whether this trend reflects a structural saturation of the core marketplace or merely a temporary lull in discretionary consumer spending.
As reported in quarterly filings, Etsy has maintained a relatively stable gross margin profile, hovering around 71% to 73% over the last ten quarters, which indicates that the company's asset-light marketplace model remains resilient despite the emergence of aggressive, low-cost international retail competitors.
This consistency in gross margin suggests that Etsy retains significant pricing power within its niche, as it has not been forced to sacrifice its take rate to compete with discount platforms. However, the lack of margin expansion warrants further investigation into whether the company has reached a ceiling in its ability to monetize seller traffic.
Based on the provided income statement data, Etsy's operating margin has fluctuated between 10.5% and 19.0% over the past ten quarters, revealing that operating income is not scaling linearly with gross profit, likely due to persistent, high levels of marketing and product development expenditures.
The inability to consistently expand operating margins suggests that the company is forced to reinvest a substantial portion of its gross profit to maintain buyer acquisition and platform visibility. This dynamic implies that the business model may be more capital-intensive than a pure-play marketplace, requiring constant spending to defend its market position.
Analysis of recent income statements shows that Etsy consistently records significant stock-based compensation expenses, often exceeding $50 million per quarter, which serves to dilute shareholders and complicates the assessment of true cash-generative capacity relative to the reported net income figures.
The reliance on equity-based incentives appears to be a structural component of the company's cost base, which may be masking the true economic cost of maintaining its technical infrastructure. Investors should be cautious, as the gap between GAAP net income and cash-based performance metrics may be wider than the headline figures suggest.
While Etsy maintains a strong gross margin, the persistent volatility in quarterly EPS and the reliance on high marketing spend to drive revenue growth suggest that the platform's competitive moat may be thinner than the current valuation implies in a tightening discretionary spending environment.
Short-term fluctuations in profitability, such as the net loss observed in 2025Q1, highlight the sensitivity of the business to operational costs that do not scale down as easily as revenue. The market may be underestimating the risk that Etsy's unique seller base could migrate if take-rate increases continue to outpace the value provided by the platform.
Quick answers to the most common questions about buying ETSY stock.
For fiscal year 2025, Etsy, Inc. (ETSY) reported total revenue of $2.88B. This represents a 3765.2% increase compared to $74.6M in 2012.
Etsy, Inc. (ETSY) is profitable, generating $163.0M in net income for the fiscal year ending 2025 with a net profit margin of 5.7%.
Etsy, Inc. (ETSY) reported an operating income of $367.9M, resulting in an operating profit margin of 12.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Etsy, Inc. (ETSY) generated $2.07B in gross profit for the year, representing a gross profit margin of 71.6%. This demonstrates the company's core pricing power and production efficiency.