Etsy to Sell Depop for $1.2B as Q4 Revenue Hits Record $882M
Etsy signed an agreement to sell Depop to eBay for $1.2 billion in cash, with Depop contributing $1.1 billion in GMS and $187 million in revenue in 2025 and reducing consolidated adjusted EBITDA margin by 350 basis points. In Q4, Etsy posted record $882 million revenue and $3.6 billion GMS, with core marketplace GMS up 0.1%.
1. Depop Sale Agreement
Etsy signed a definitive agreement to sell Depop to eBay for $1.2 billion in cash, expected to close in Q2 2026 pending regulatory approval. Depop generated $1.1 billion in GMS and $187 million in revenue in 2025, and depressed consolidated take rate by 80 basis points and adjusted EBITDA margin by 350 basis points; results will be classified as a discontinued operation.
2. Q4 Financial Performance
In the fourth quarter, Etsy recorded consolidated revenue of $882 million, up 6.6% excluding Reverb, and GMS of $3.6 billion, up 2.4% year-over-year excluding Reverb. Adjusted EBITDA reached $222 million for a 25.2% margin, while the core Etsy marketplace delivered a 30%-plus adjusted EBITDA margin and GMS growth of 0.1%, its first annual increase since Q3 2023.
3. AI Initiatives and Outlook
Etsy is accelerating AI and agentic shopping partnerships, integrating with Microsoft Copilot, Google and Stripe, driving a 15x year-over-year increase in agentic traffic. For Q1 2026, management forecasts GMS of $2.38 billion to $2.43 billion (2–4% growth) and an adjusted EBITDA margin target of 28–30%.
4. Marketplace Metrics and Engagement
Active buyers stabilized at 86.5 million in Q4, with gross additions of 17.2 million new and reactivated buyers, up 2.7% year-over-year. The mobile app drove engagement, with a 6.6% GMS growth rate, 4% increase in downloads and a 46% contribution to total GMS, up five percentage points from the end of 2023.