Q2 2026 Etsy, Inc. Earnings Call Transcript
Key Points
- Etsy Marketplace GMS grew 7.5% year-over-year to $2.6 billion, marking the third consecutive quarter of growth and accelerating sequentially.
- Active buyers increased by 350,000 sequentially to approximately 87 million, with habitual and repeat buyer cohorts showing slight growth for the first time since 2023.
- Mobile app GMS growth accelerated to 12.5% year-over-year, with visits per monthly active user and orders per visit both increasing.
- The company announced a new $2 billion share repurchase program, reflecting confidence in strategic execution and returning excess capital to shareholders.
- Full-year 2026 GMS growth is expected to be in the mid-single-digit range, an improvement from earlier expectations, with adjusted EBITDA margin outlook tightened upward to 29%-30%.
- Purchase frequency remains below prior-year levels, though the year-over-year decline moderated compared to the first quarter.
- The company announced a restructuring plan that will reduce its workforce by approximately 220 employees, or 12%, primarily in product and engineering.
- Take rate increased 130 basis points year-over-year, partly due to an 80 basis point benefit from the Reverb divestiture, which may not be sustainable.
- Gross margin saw slight compression year-over-year due to increased costs in trust and safety, refunds, and other marketplace pressures.
- Traffic from agentic commerce experiences remains less than 1% of overall traffic, indicating limited near-term impact from emerging AI-driven channels.
Hi, everyone, and welcome to Etsy's second-quarter 2026 earnings conference call. I'm Deb Wasser, VP of Investor Relations. Today's prepared remarks have been pre-recorded. Joining me today are Kruti Patel Goyal, our CEO; and our CFO, Lanny Baker.
Please keep in mind that our remarks today include forward-looking statements, including statements related to our financial outlook, our business, and our operating results. Our actual results may differ materially due to risks, uncertainties, and other important factors, as noted in the shareholder letter posted to our website and in our most recent periodic reports. Any forward-looking statements that we make on this call are based on our beliefs and assumptions today, and we disclaim any obligation to update them.
Also during the call, we'll present both GAAP and non-GAAP historical financial measures, which are reconciled to GAAP financial measures in today's shareholder letter posted on our IR website, along with the replay of this call. With respect to our outlook, a
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