Etsy

After two years of shrinking sales, the core Etsy marketplace grew again in the holiday quarter. Shoppers spent 3.29 billion dollars, up 0.1 percent. It is a small gain, but the company expects 2.38 to 2.43 billion dollars in sales in the first quarter of 2026 and growth in every quarter of the year, while shopping on the Etsy app jumped 6.6 percent and now makes up about 46 percent of everything sold.

Etsy keeps more of every sale than it used to. Its cut rose to 24.5 percent from 22.8 percent a year ago, mostly because sellers are buying more ads. That pushed revenue up 6.6 percent to 881.6 million dollars, and Etsy expects its cut to reach about 25.5 percent in early 2026, with 1.8 billion dollars in cash, 133 million dollars of its own stock bought back in three months, and 1.2 billion dollars coming from selling Depop to eBay.

Fewer people are shopping on Etsy than a year ago. Active buyers fell 3.4 percent to 86.5 million, sellers slipped 1.5 percent to 5.6 million, and the average shopper now spends 121 dollars a year, down 0.5 percent. Etsy did win or win back 17.2 million buyers this quarter, but taking a bigger cut only works for so long if the crowd keeps thinning.

Profits went the wrong way in 2025. Full year net income fell 46.3 percent to 163 million dollars, as costs rose 8.8 percent while revenue grew just 2.7 percent. Etsy is also selling Depop, a business whose sales grew 37 percent last quarter, which leaves a slow-growing core marketplace to carry the whole story.