$ETSY

ETSY INC

CIK:0001370637|SEC Filings

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenue	$ 668,313	$ 629,131	$ 1,299,590	$ 1,241,335
Cost of revenue	184,268	168,623	359,947	336,424
Gross profit	484,045	460,508	939,643	904,911
Operating expenses:
Marketing	190,928	191,053	365,167	362,910
Product development	100,921	99,326	199,973	200,136
General and administrative	66,928	76,029	129,389	149,935
Asset impairment charge	0	0	0	101,703
Total operating expenses	358,777	366,408	694,529	814,684
Income from operations	125,268	94,100	245,114	90,227
Other income (expense):
Interest expense	(5,630)	(3,773)	(11,278)	(7,177)
Interest and other income	11,515	9,031	24,129	17,337
Foreign exchange gain (loss)	3,818	(25,356)	6,266	(40,972)
Loss on sale of business	0	(5,097)	0	(5,097)
Other income (expense), net	9,703	(25,195)	19,117	(35,909)
Income from continuing operations before income taxes	134,971	68,905	264,231	54,318
Provision for income taxes from continuing operations	(20,632)	(23,267)	(45,230)	(43,767)
Net income from continuing operations	114,339	45,638	219,001	10,551
Discontinued operations:
Loss from discontinued operations before income taxes	(160,769)	(17,759)	(196,578)	(36,491)
(Provision) benefit for income taxes from discontinued operations	(220)	961	607	2,684
Net loss from discontinued operations	(160,989)	(16,798)	(195,971)	(33,807)
Net (loss) income	$ (46,650)	$ 28,840	$ 23,030	$ (23,256)
Basic net income from continuing operations per share attributable to common stockholders (in dollars per share)	$ 1.21	$ 0.44	$ 2.29	$ 0.10
Total basic net (loss) income per share attributable to common stockholders (in dollars per share)	(0.49)	0.28	0.24	(0.22)
Diluted net income from continuing operations per share attributable to common stockholders (in dollars per share)	0.98	0.39	1.87	0.10
Total diluted net (loss) income per share attributable to common stockholders (in dollars per share)	$ (0.36)	$ 0.25	$ 0.25	$ (0.22)
Weighted-average common shares outstanding:
Basic (in shares)	94,358	103,212	95,618	105,246
Diluted (in shares)	119,961	121,514	120,908	107,393

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities
Net (loss) income	$ 23,030	$ (23,256)
Net loss from discontinued operations	(195,971)	(33,807)
Net income from continuing operations	219,001	10,551
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities:
Stock-based compensation expense	104,147	109,099
Depreciation and amortization expense	30,544	31,787
Provision for expected credit losses	2,650	4,908
Deferred provision (benefit) for income taxes	18,447	(1,018)
Asset impairment charge	0	101,703
Other non-cash (income) expense, net	(8,604)	33,184
Changes in operating assets and liabilities (net of impact of sale of business):
Current assets	13,746	44,509
Non-current assets	(3,239)	2,255
Current liabilities	(110,473)	(172,172)
Non-current liabilities	2,222	4,006
Net cash provided by operating activities of continuing operations	268,441	168,812
Net cash used in operating activities of discontinued operations	(147,144)	(11,492)
Net cash provided by operating activities	121,297	157,320
Cash flows from investing activities
Purchases of property and equipment	(2,718)	(10,101)
Website and app development	(14,915)	(18,318)
Purchases of investments	(179,142)	(197,570)
Sales and maturities of investments	156,256	184,207
Proceeds from sale of business, net of cash sold	0	100,485
Net cash (used in) provided by investing activities of continuing operations	(40,519)	58,703
Net cash used in investing activities of discontinued operations	(6,529)	(3,157)
Net cash (used in) provided by investing activities	(47,048)	55,546
Cash flows from financing activities
Payment of tax obligations on vested equity awards	(40,687)	(28,959)
Repurchase of stock	(394,925)	(523,852)
Proceeds from exercise of stock options	10,249	5,654
Proceeds from issuance of convertible senior notes	0	700,000
Payment of debt issuance costs	0	(10,500)
Payments on finance lease obligations	(3,192)	(3,045)
Other financing, net	(753)	(17,226)
Net cash (used in) provided by financing activities	(429,308)	122,072
Effect of exchange rate changes on cash	(10,063)	37,241
Net (decrease) increase in cash and cash equivalents	(365,122)	372,179
Cash, cash equivalents, and restricted cash at beginning of period	1,404,360	811,178
Cash, cash equivalents, and restricted cash at end of period	1,039,238	1,183,357
Supplemental cash flow disclosures:
Cash paid for income taxes, net of refunds	22,804	41,883
Supplemental non-cash disclosures from continuing operations:
Stock-based compensation capitalized in website and app development	7,095	10,420
Lease assets obtained in exchange for new lease liabilities	$ 3,494	$ 0

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 901,281	$ 1,355,428
Short-term investments	221,007	224,088
Accounts receivable, net of expected credit losses of $4,506 and $5,611 as of June 30, 2026 and December 31, 2025, respectively	8,664	8,690
Prepaid and other current assets	100,063	113,953
Funds receivable and seller accounts	193,840	205,002
Current assets of discontinued operations	450,419	53,822
Total current assets	1,875,274	1,960,983
Restricted cash	7,655	8,524
Property and equipment, net of accumulated depreciation and amortization of $257,165 and $235,066 as of June 30, 2026 and December 31, 2025, respectively	200,272	205,552
Goodwill	37,408	38,067
Intangible assets, net of accumulated amortization of $33,919 and $32,479 as of June 30, 2026 and December 31, 2025, respectively	12,013	14,511
Deferred tax assets	104,115	119,051
Long-term investments	160,665	134,376
Other assets	41,765	38,964
Noncurrent assets of discontinued operations	0	307,226
Total assets	2,439,167	2,827,254
Current liabilities:
Accounts payable	20,449	27,732
Accrued expenses	247,805	342,200
Short-term debt, net	649,594	649,008
Funds payable and amounts due to sellers	193,840	205,002
Deferred revenue	32,478	27,049
Other current liabilities	49,940	60,354
Current liabilities of discontinued operations	76,205	52,274
Total current liabilities	1,270,311	1,363,619
Finance lease obligations—net of current portion	90,302	93,482
Deferred tax liabilities	11,031	8,808
Long-term debt, net	2,335,911	2,333,230
Other liabilities	126,690	125,103
Noncurrent liabilities of discontinued operations	0	1,107
Total liabilities	3,834,245	3,925,349
Commitments and contingencies (Note 12)
Stockholders’ deficit:
Common stock ($0.001 par value, 1,400,000 shares authorized as of June 30, 2026 and December 31, 2025; 92,370 and 97,031 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively)	92	97
Preferred stock ($0.001 par value, 25,000 shares authorized as of June 30, 2026 and December 31, 2025)	0	0
Additional paid-in capital	1,625,697	1,532,204
Accumulated deficit	(2,778,626)	(2,404,020)
Accumulated other comprehensive loss	(242,241)	(226,376)
Total stockholders’ deficit	(1,395,078)	(1,098,095)
Total liabilities and stockholders’ deficit	$ 2,439,167	$ 2,827,254