Etsy reported Oct. 28, 2026, that third-quarter revenue rose 10.9% to $692.5 million as marketplace sales and advertising revenue increased, giving sellers a stronger demand backdrop ahead of the holiday quarter without establishing returns for any individual shop.
Rapid News Brief — Gross merchandise sales reached $2.65 billion, up 8.8% year over year. That measures sales transacted through the marketplace, rather than revenue retained by Etsy itself.
Advertising grows faster than marketplace revenue
Marketplace revenue increased 9.1% to $468.1 million, while services revenue rose 15% to $224.3 million, according to the company’s shareholder letter. Revenue take rate, defined as revenue divided by gross merchandise sales, increased to 26.2% from 25.7%.
In its quarterly filing, Etsy attributed the services increase primarily to $30.9 million of additional advertising revenue, driven mainly by higher click volume on Etsy Ads. A larger platform advertising business does not, by itself, show that an individual seller’s advertising became more profitable.
Etsy’s own marketing expenditure also increased, rising 19.4% to $207 million. The filing said paid gross merchandise sales represented 26% of overall marketplace sales, compared with 23% a year earlier. That company marketing expenditure is distinct from advertising revenue earned from sellers.
Active buyers increased 1% to 87.5 million on a trailing-twelve-month basis, the filing said. Gross merchandise sales per active buyer increased 3.9% to $126 on the same basis, a different measurement period from quarterly sales.
Keep the comparison on continuing operations
Net income from continuing operations was $113.6 million, up 8.6%. Adjusted EBITDA was $210.4 million, with a 30.4% margin, as also summarized by Quartr. The adjusted measure is not interchangeable with net income.
Etsy completed the sale of Depop July 30. The company presents that business as discontinued operations; continuing operations for both comparable third quarters represent the Etsy marketplace alone. Nine-month comparisons require additional care because the prior-year period included Reverb before its sale.
For the fourth quarter, Etsy forecast marketplace sales of $3.46 billion to $3.52 billion, implying approximately 5%–7% year-over-year growth. It projected an adjusted EBITDA margin of about 30%. Those are management expectations for the holiday period, not completed sales or guaranteed outcomes for sellers.