How does Etsy (ETSY) make money?

Etsy (ETSY) generates revenue primarily from Marketplace Revenue, which accounted for 69.2% of total revenue in TTM through Q1 2026. The company reported $2.86B in revenue and converted 9.9% of it into net profit, equivalent to roughly $284.76M in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Etsy (ETSY)?

Etsy (ETSY) reported a gross profit margin of 72% in TTM through Q1 2026, equivalent to $2.06B in gross profit on $2.86B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Etsy (ETSY)?

Etsy (ETSY) reported an operating profit margin of 14.3% in TTM through Q1 2026, equivalent to $408.38M in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Etsy (ETSY)?

Etsy (ETSY) reported a net profit margin of 9.9% in TTM through Q1 2026, equivalent to $284.76M in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Etsy (ETSY) profitable?

Yes. Etsy (ETSY) reported $284.76M in net income for TTM through Q1 2026, with a net profit margin of 9.9%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Etsy (ETSY) invest in research and development?

Etsy (ETSY) invested $438.73M in research and development during TTM through Q1 2026, roughly 15.3% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

How much does Etsy (ETSY) spend on capital expenditures?

Etsy (ETSY) spent $52.33M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 1.8% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Etsy (ETSY) generate?

Etsy (ETSY) generated $672.64M in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 23.5%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Etsy (ETSY)?

Etsy (ETSY) had an effective tax rate of 21.9% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Etsy (ETSY)?

Etsy (ETSY) reports revenue across 2 reportable product segments, led by Marketplace Revenue at 69.2% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

Where does Etsy (ETSY) generate most of its revenue?

UNITED STATES is the largest geographic market for Etsy (ETSY), accounting for 50% of revenue in the most recent annual filing. The complete regional split — including international markets and any Rest-of-World rollup — is shown in the revenue-by-geography table on this page.

How Etsy Makes Money: 2026 Visual Revenue Map

Etsy (ETSY) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported April 29, 2026).

Etsy (ETSY) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Etsy (ETSY) in TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Marketplace Revenue	$1.98B	69.2%
Services Revenue	$882.16M	30.8%
Total	$2.86B	100%

Marketplace Revenue$1.98B
Services Revenue$882.16M
Total$2.86B

Etsy (ETSY) Revenue by Geography — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported regions changed mid-year.

Revenue contribution by geographic region for Etsy (ETSY), TTM through Q1 2026
Region	Revenue (USD)	% of total
UNITED STATES	$1.43B	50%
Non-US	$1.14B	39.8%
UNITED KINGDOM	$293.09M	10.2%
Total	$2.86B	100%

UNITED STATES
Non-US
UNITED KINGDOM
Total

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, Etsy (ETSY) reports revenue across 2 operating segments; the largest segment was Marketplace Revenue at 69.2%, followed by Services Revenue (30.8%). Separately, by end-market geography, UNITED STATES accounted for 50% of revenue, followed by Non-US (39.8%) and UNITED KINGDOM (10.2%).

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