Etsy (ETSY) AI Stock Analysis

• Market Cap: $5.40B
• Dividend Yield: N/A
• Average Volume (3M): 4.17M
• Price to Earnings (P/E): 37.6
• Beta (1Y): 0.74
• Revenue Growth: 1.98%
• EPS Growth: -20.98%
• Country: US
• Employees: 2,400
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.63
• Shares Outstanding: 98,706,010
• 10 Day Avg. Volume: 3,120,492
• 30 Day Avg. Volume: 4,166,938
• PEG Ratio: 6.41
• Price to Book (P/B): -8.01
• Price to Sales (P/S): 2.16
• P/FCF Ratio: 8.23
• Enterprise Value/Market Cap: 1.83
• Enterprise Value/Revenue: 3.46
• Enterprise Value/Gross Profit: 4.80
• Enterprise Value/Ebitda: 18.44
• 1Y Price Target: $70.61
• Price Target Upside: 32.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 25
• EPS Forecast (FY): 1.3
• Revenue Forecast (FY): $2.88B

• Rating: 55 Neutral
• Price Target: $56.00 ▲(5.14% Upside)

Etsy's overall stock score is primarily influenced by financial performance challenges, including declining net profitability and negative equity. Technical analysis indicates bearish momentum, while valuation suggests the stock is expensive relative to earnings. The earnings call provided a positive outlook with strong growth in Depop and strategic initiatives, but concerns remain about declining marketplace GMS and active buyers.

Positive Factors

Revenue Growth

Etsy's Q3 revenue surpassing expectations indicates strong market demand and effective business strategies, supporting long-term growth.

Leadership Transition

The leadership transition to Kruti Patel Goyal as CEO is expected to bring fresh strategic perspectives, potentially enhancing Etsy's market position.

Depop Growth

Depop's significant growth reflects Etsy's successful expansion in the resale market, strengthening its competitive edge in the industry.

Negative Factors

Declining Profitability

The decline in net profit margin suggests challenges in cost management or pricing power, potentially affecting long-term profitability.

Negative Equity

Negative equity can limit financial flexibility and increase risk, potentially impacting Etsy's ability to invest in growth opportunities.

Active Buyer Decline

A decline in active buyers may indicate challenges in customer retention or acquisition, potentially affecting future revenue growth.

Etsy Business Overview & Revenue Model

Company Description

Etsy, Inc. operates two-sided online marketplaces that connect buyers and sellers primarily in the United States, the United Kingdom, Germany, Canada, Australia, France, and India. Its primary marketplace is Etsy.com that connects artisans and entrepreneurs with various consumers. The company also offers Reverb, a musical instrument marketplace; Depop, a fashion resale marketplace; and Elo7, a Brazil-based marketplace for handmade and unique items. In addition, it offers various seller services, including Etsy Payments, a payment processing service; Etsy Ads, an advertising platform; and Shipping Labels, which allows sellers in the United States, Canada, the United Kingdom, Australia, and India to purchase discounted shipping labels. Further, the company provides various seller tools, including Shop Manager dashboard, a centralized hub for Etsy sellers to track orders, manage inventory, view metrics and statistics, and have conversations with their customers; and Sell on Etsy, an application to enable enhanced onboarding and video uploading. Additionally, it offers Etsy seller analytics pages that provides insights regarding traffic acquisition for their shops; Targeted Offers, a sales and promotions tool, and social media tool; and accounting and bookkeeping services. The company also provides educational resources comprising blog posts, video tutorials, Etsy Seller Handbook, Etsy.com online forums, and insights; Etsy Teams, a platform to build personal relationships with other Etsy sellers; and a Star Seller program. As of December 31, 2021, it connected a total of 7.5 million active sellers to 96.3 million active buyers; and had 120 million items for sale. The company was formerly known as Indieco, Inc changed its name to Etsy, Inc. in June 2006. Etsy, Inc. was founded in 2005 and is headquartered in Brooklyn, New York.

How the Company Makes Money

Etsy generates revenue through several key streams. The primary source is transaction fees, which are charged to sellers for each sale made through the platform. In addition, Etsy collects listing fees for each product a seller lists on the site. The company also earns revenue from advertising services, where sellers can pay for increased visibility of their listings through promoted listings. Furthermore, Etsy has introduced a subscription service, Etsy Plus, which offers sellers additional tools and features for a monthly fee. Significant partnerships, such as collaborations with shipping providers, also contribute to its earnings by enhancing the seller experience and streamlining logistics.

Etsy Financial Statement Overview

Summary

Etsy shows strong revenue growth and gross profit margins, but declining net profitability and negative equity pose significant financial risks. Cash flow generation is solid, yet free cash flow growth is a concern. The company needs to address its leverage and equity issues to stabilize its financial position.

Income Statement

Etsy's income statement shows a strong gross profit margin of 72% TTM, indicating efficient cost management. However, the net profit margin has decreased to 6.38% TTM from 10.80% in 2024, suggesting declining profitability. Revenue growth is robust at 55% TTM, but the EBIT margin remains stable around 15%, showing limited operational efficiency improvements.

Balance Sheet

The balance sheet reveals a concerning negative stockholders' equity, leading to a negative debt-to-equity ratio, which indicates financial instability. The return on equity is negative, reflecting losses relative to equity. Despite these issues, the equity ratio is not available due to negative equity, highlighting potential risks.

Cash Flow

Etsy's cash flow statement shows a strong operating cash flow to net income ratio of 1.22 TTM, indicating good cash generation relative to earnings. However, free cash flow growth is negative, and the free cash flow to net income ratio is slightly below 1, suggesting challenges in maintaining cash flow levels.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.85B	2.81B	2.75B	2.57B	2.33B	1.73B
Gross Profit	2.06B	2.03B	1.92B	1.82B	1.67B	1.26B
EBITDA	534.92M	532.65M	398.19M	-551.11M	555.81M	465.92M
Net Income	182.15M	303.28M	307.57M	-694.29M	493.51M	349.25M
Balance Sheet
Total Assets	2.65B	2.42B	2.69B	2.63B	3.83B	2.40B
Cash, Cash Equivalents and Short-Term Investments	1.51B	1.04B	1.15B	1.17B	984.61M	1.67B
Total Debt	3.08B	2.39B	2.39B	2.39B	2.39B	1.12B
Total Liabilities	3.77B	3.18B	3.23B	3.18B	3.20B	1.66B
Stockholders Equity	-1.11B	-758.87M	-543.72M	-547.27M	628.62M	742.42M
Cash Flow
Free Cash Flow	656.82M	738.26M	665.61M	652.87M	623.38M	671.85M
Operating Cash Flow	691.25M	752.47M	705.51M	683.61M	651.55M	678.96M
Investing Cash Flow	15.19M	-53.10M	-73.31M	-30.02M	-1.56B	-11.38M
Financing Cash Flow	-286.96M	-787.17M	-656.53M	-506.48M	452.75M	119.28M

Etsy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 53.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ETSY, the sentiment is Negative. The current price of 53.26 is below the 20-day moving average (MA) of 55.81, below the 50-day MA of 63.83, and below the 200-day MA of 55.86, indicating a bearish trend. The MACD of -2.90 indicates Negative momentum. The RSI at 35.62 is Neutral, neither overbought nor oversold. The STOCH value of 54.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ETSY.

Etsy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EBAY	70 Outperform	$37.12B	17.84	42.43%	1.41%	4.89%	17.30%
GLBE	70 Outperform	$6.88B	1,018.30	0.81%	―	31.57%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DIBS	60 Neutral	$225.91M	―	-17.73%	―	3.49%	-16.10%
ETSY	55 Neutral	$5.40B	37.63	―	―	1.98%	-20.98%
CHWY	54 Neutral	$13.81B	93.93	34.48%	―	9.04%	-56.79%
TDUP	45 Neutral	$926.05M	―	-35.37%	―	-4.90%	50.77%

Etsy Corporate Events

Etsy Inc. Reports Strong Q3 2025 Performance

Etsy Inc. operates as a two-sided online marketplace connecting creative buyers and sellers globally, with a focus on unique and handcrafted goods, and also owns the fashion resale platform Depop. In its third quarter of 2025, Etsy reported results that exceeded expectations, with growth in key financial metrics and a return to year-over-year growth in Gross Merchandise Sales (GMS) for both Etsy and Depop. The company’s revenue increased by 6.1% year-over-year, excluding the impact of the Reverb sale, and net income rose by $18.1 million, reflecting a significant foreign exchange gain. Notably, Depop showed strong performance with a 39.4% increase in GMS, driven by user growth and improved buyer conversion in the U.S. and Australia. Looking ahead, Etsy’s management is optimistic about further growth, with expectations for stable profitability and strategic investments in brand marketing for Depop to capitalize on the growing apparel resale market.

Etsy’s Earnings Call: Growth Amid Challenges

The recent earnings call for Etsy Inc. painted a balanced picture of the company’s current standing and future prospects. While there were notable achievements, such as surpassing financial expectations and impressive growth in Depop, there were also challenges, including a decline in Etsy’s marketplace gross merchandise sales (GMS) and a decrease in the active buyer count. The leadership transition was highlighted positively, with confidence expressed in the company’s growth under the new CEO.

Etsy Announces Leadership Transition with New CEO

On October 29, 2025, Etsy announced a leadership transition effective January 1, 2026, with Kruti Patel Goyal appointed as the new CEO and President, succeeding Josh Silverman who will transition to Executive Chair. This change is part of a strategic succession plan, with Goyal bringing extensive experience from her previous roles at Etsy and Depop, and is expected to guide Etsy’s future growth while maintaining its mission of ‘Keeping Commerce Human.’

The most recent analyst rating on (ETSY) stock is a Hold with a $65.00 price target. To see the full list of analyst forecasts on Etsy stock, see the ETSY Stock Forecast page.

Etsy Moves Stock Listing to NYSE

On September 29, 2025, Etsy announced its decision to transfer the listing of its Common Stock from the Nasdaq to the New York Stock Exchange (NYSE), with the transition expected to complete by October 13, 2025. This move is seen as a strategic alignment with Etsy’s commitment to transparency and excellence, and it positions the company alongside other respected and innovative firms, potentially enhancing its market presence and shareholder value.

The most recent analyst rating on (ETSY) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on Etsy stock, see the ETSY Stock Forecast page.