Etsy Shares Jump 11% as Depop Sale Offsets Revenue Miss

Core Insights - Etsy reported fourth-quarter earnings that exceeded Wall Street expectations on earnings per share, while revenue slightly missed forecasts. The stock surged over 11% intra-day following the announcement of the sale of Depop to eBay for $1.2 billion in cash [1] Financial Performance - The company posted earnings per share of $0.92, surpassing analyst estimates of $0.85. Revenue reached $881.6 million, reflecting a year-over-year increase of 6.6% when excluding Reverb from the prior-year period, but was marginally below the consensus estimate of $884.14 million [2] - Adjusted EBITDA was reported at $222.5 million, resulting in a consolidated adjusted EBITDA margin of approximately 25.2%. Gross merchandise sales (GMS) totaled $3.59 billion, marking a 2.4% year-over-year increase, or 1.3% growth on a currency-neutral basis when excluding Reverb. The quarterly take rate was 24.5% [3] Future Guidance - Looking ahead, Etsy provided guidance for first-quarter 2026 GMS in the range of $2.38 billion to $2.43 billion, with an expected adjusted EBITDA margin of roughly 28% to 30%. The company also forecasted a first-quarter take rate of approximately 25.5% [4]