Etsy Q1 GMS Up 5.5% to $2.5B, Net Income Turns $104.7M Profit
Etsy’s Q1 gross merchandise sales rose 5.5% to $2.5 billion, driving revenue up to $631.2 million with 6.3% marketplace and 10.5% services growth year on year. Net income swung to $104.7 million profit from a $35.1 million loss, while Etsy hiked its full-year marketplace GMS outlook and forecast Q2 GMS of $2.48–$2.53 billion.
1. Q1 Financial Results
Etsy reported Q1 gross merchandise sales of $2.5 billion, a 5.5% increase year on year, and total revenue of $631.2 million, up from $612.2 million. Net income from continuing operations was $104.7 million, compared with a $35.1 million loss in the prior-year period, and adjusted EBITDA reached $184.7 million (29.3% margin).
2. Segment Performance
On an Etsy marketplace-only basis, revenue rose 6.3% to $432.8 million, while services revenue climbed 10.5% to $198.5 million. App-based GMS increased 11.2% to represent roughly 47% of total GMS, and non-app GMS returned to growth with a 1.0% gain after a prior 4.8% decline.
3. Operations and Marketing
Etsy reallocated marketing spend toward paid search, citing strong returns, and brought paid social operations fully in-house. The shift involved cutting lower-funnel paid social and above-the-line activity to optimize customer acquisition efficiency.
4. Outlook and Asset Sale
For Q2, Etsy forecasts marketplace GMS of $2.48–$2.53 billion (3–5% growth) and raised its full-year marketplace GMS outlook to low single-digit gains. The $1.2 billion Depop sale has cleared US and German reviews, with UK and Australian approvals pending and completion expected by end of Q3 2026.