ETSY 10-Q filed 2026-10-28 | Key takeaways
ETSY filed its 10-Q; the most relevant disclosure change is added Discontinued operations: Depop sale closed on July 30, 2026 for $1.4B cash consideration; gain on sale of $839.7M recognized in discontinued operations; Depop assets and liabilities removed from balance sheet as of September 30, 2026.
Key takeaways
Depop sale: Etsy closed the sale of Depop to eBay on July 30, 2026 for aggregate cash consideration of $1.4B, recognizing a gain on sale of $839.7M included in discontinued operations for Q3 and 9M 2026.
Restructuring: On August 3, 2026, the Audit Committee approved a Restructuring Plan reducing the Etsy marketplace workforce by approximately 12% (~220 employees), with charges of $33.9M incurred in Q3 2026; execution substantially complete by quarter end.
Stock repurchases: A new $2B stock repurchase program was authorized in August 2026; the combined remaining amount available under the December 2025 and August 2026 programs was $2.2B as of September 30, 2026; approximately 11.7M shares repurchased YTD at an average price of $67.37 per share.
Debt maturity: The 2019 Notes ($649.9M principal) matured on October 1, 2026; $12.1M aggregate principal amount was settled via conversion notices (paid $10.8M cash + $1.3M stock), and the remaining $637.8M was settled in cash; the 2019 Capped Call Transactions expired unexercised.
Cash position: Cash and cash equivalents increased to $2.07B as of September 30, 2026 from $1.36B as of December 31, 2025, primarily due to the Depop sale proceeds; short-term debt increased to $1.3B from $649M due to reclassification of the 2020 Notes (maturing Sept 2027) and 2019 Notes.
Segment: Etsy now reports as one operating and reportable segment following the sales of Reverb (Q2 2025) and Depop (Q3 2026); previously two segments (Etsy and Depop) were aggregated into one reportable segment.
Key metrics
Disclosure changes
- Discontinued operations
Depop sale closed on July 30, 2026 for $1.4B cash consideration; gain on sale of $839.7M recognized in discontinued operations; Depop assets and liabilities removed from balance sheet as of September 30, 2026
Material one-time gain significantly impacts total net income but is excluded from continuing operations metrics; eliminates ongoing losses from Depop - Restructuring and other exit costs
Restructuring Plan approved August 3, 2026 with approximately 12% reduction of Etsy marketplace workforce (~220 employees); charges of $33.9M incurred in Q3 2026 primarily for severance and employee benefits; execution substantially complete by quarter end
Restructuring charges affect operating expenses and net income; cost savings expected but not quantified - Debt classification and maturity
Short-term debt increased to $1.30B as of September 30, 2026 from $649M as of December 31, 2025, due to reclassification of 2020 Notes ($649M, maturing Sept 2027) and 2019 Notes ($649.9M, matured Oct 2026); 2019 Notes settled October 1, 2026 with $12.1M converted and $637.8M redeemed in cash
Significant change in debt maturity profile; $1.3B in short-term debt obligations; 2019 Capped Call Transactions expired unexercised - Stockholders' deficit
New $2B stock repurchase program authorized August 2026; combined remaining amount available under December 2025 and August 2026 programs was $2.2B as of September 30, 2026; approximately 11.7M shares repurchased YTD at average price of $67.37 per share
Significant increase in authorized repurchase capacity; ongoing share count reduction impacts per-share metrics - Segment reporting
One operating and reportable segment (Etsy) following sales of Reverb (Q2 2025) and Depop (Q3 2026); previously two segments (Etsy and Depop) were aggregated into one reportable segment
Simplified segment structure; Depop results now presented as discontinued operations for all periods - Cash and cash equivalents
Cash and cash equivalents of $2.07B as of September 30, 2026, up from $1.36B as of December 31, 2025, primarily due to $1.4B Depop sale proceeds partially offset by share repurchases and debt settlement
Strong liquidity position; significant cash build from Depop sale
Primary source
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