Filing Flows › Etsy (ETSY) › How it makes money
How Etsy (ETSY) makes money
Etsy (ETSY) made $692M of revenue in the third quarter 2026 (Q3 2026), +11% from a year earlier. Marketplace revenue brought in $468M (68%); Services revenue brought in $224M (32%). Of every dollar of revenue, 73¢ was left as gross profit, 16¢ was left as operating profit, 123¢ was left as net earnings.
Drawing the Sankey…
Revenue by segment, Q3 2026
| Segment | Revenue | Share | Q/Q | Y/Y |
|---|---|---|---|---|
| Marketplace revenue | $468M | 67.6% | +3% | +9% |
| Services revenue | $224M | 32.4% | +6% | +15% |
Where each dollar of revenue goes
| Line | Q3 2026 | % of revenue |
|---|---|---|
| Revenue | $692M | 100.0% |
| Cost of revenue | $189M | 27.3% |
| Gross profit | $503M | 72.7% |
| Operating expenses | $392M | 56.6% |
| Operating profit | $111M | 16.1% |
| Income tax | $15.1M | 2.2% |
| Net earnings | $854M | 123.3% |
| Operating cash flow | $160M | 23.1% |
| Free cash flow | $158M | 22.9% |
Revenue, quarter by quarter
| Quarter | Revenue | Y/Y |
|---|---|---|
| Q3 2026 | $692M | +11% |
| Q2 2026 | $668M | +6% |
| Q1 2026 | $631M | +3% |
| Q4 2025 | $882M | +4% |
| Q3 2025 | $678M | +2% |
| Q2 2025 | $673M | +4% |
| Q1 2025 | $651M | +0.8% |
From Etsy's 10-Q filed Oct 28, 2026 (on EDGAR).
Questions
How does Etsy make money?
Etsy (ETSY) made $692M of revenue in the third quarter 2026 (Q3 2026), +11% from a year earlier. Marketplace revenue brought in $468M (68%); Services revenue brought in $224M (32%). Of every dollar of revenue, 73¢ was left as gross profit, 16¢ was left as operating profit, 123¢ was left as net earnings.
What is Etsy's biggest business?
Marketplace revenue: $468M in the third quarter 2026, 68% of revenue, +9% from a year earlier.
What is Etsy's profit margin?
Net earnings were $854M, 123.3% of revenue, in the third quarter 2026; the operating margin was 16.1%.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.