Etsy Inc (NASDAQ:ETSY, XETRA:3E2) shares jumped more than 11% on Thursday after the company announced it will sell its fashion resale app Depop to eBay for approximately $1.2 billion in cash, as the online marketplace reported mixed fourth quarter financial results.
The transaction is expected to close in the second quarter of 2026, subject to customary closing conditions. Etsy will continue to operate Depop until the sale is finalized, with the app’s results reported as discontinued operations beginning in the first quarter of 2026.
For Q4, Etsy posted a diluted earnings per share of $0.92, surpassing Wall Street’s consensus estimate of $0.84. Revenue came in at $882 million, up 6.6% year-over-year and slightly below the $885 million analysts had expected.
Etsy said its growth in revenue was primarily driven by strong performance in on-site advertising, and highlighted gains in its Home and Living category as well as initiatives like curated gift ideas and Cyber deals.
On a year-over-year basis, Etsy’s consolidated gross merchandise sales (GMS) rose 2.4% to $3.59 billion, or up 1.3% on a currency-neutral basis, excluding prior-year contributions from Reverb, which the company sold in June 2025. Consolidated revenue increased 6.6% from the prior year on a comparable basis, reaching $881.6 million.
Marketplace highlights showed GMS of $3.29 billion, largely flat year-over-year, with the Etsy app accounting for 46% of total GMS. The platform had 86.5 million active buyers and 5.6 million active sellers at year-end, with modest sequential gains in buyer and seller activity.
"Our clear strategic focus and solid execution are driving progress on the journey to bring the Etsy marketplace back to sustained growth," Etsy CEO Kruti Patel Goyal said in a statement.