Etsy Q4 EPS Beats but Revenue Misses, Sells Depop for $1.2B
Etsy reported Q4 EPS of $0.92 versus $0.86 estimate but missed revenue targets with $881.64M against a $882.89M consensus and core GMS grew 0.1%. It sold Depop to eBay for $1.2B cash, plans to reinvest proceeds into AI-driven core marketplace and fund $777M in share buybacks.
1. Mixed Q4 Performance
Etsy reported Q4 EPS of $0.92 beating the $0.86 estimate, while revenue reached $881.64 million versus a $882.89 million consensus and core gross merchandise sales growth turned positive at 0.1%.
2. Depop Sale to eBay
The company agreed to sell its Depop fashion resale marketplace to eBay for $1.2 billion in cash, delivering a significant liquidity boost but sacrificing a key growth engine.
3. Technical Momentum Decline
Etsy’s momentum ranking tumbled to the 19.26th percentile, signaling negative price trends across short, medium and long-term horizons, with shares down 8.57% year-to-date.
4. Reinvestment and Buybacks
Management intends to deploy Depop proceeds into AI-driven platform enhancements—after reporting a 15x increase in AI traffic—and to continue share repurchases, which totaled $777 million in 2025.