How Etsy (ETSY) Makes Money: A Visual Guide
Etsy (ETSY) generated $2.88B in revenue (TTM through Q4 2025), earning $162.98M in net profit (5.7% margin). Its largest revenue source is Marketplace Revenue (69.6% of revenue). Below is an interactive breakdown of how revenue flows through the income statement.
Etsy (ETSY) Income Statement Flow
Frequently asked questions
How does Etsy (ETSY) make money?
- Etsy (ETSY) primarily makes money through Marketplace Revenue, which accounts for 69.6% of total revenue. For TTM through Q4 2025, Etsy generated $2.88B in total revenue with a net profit margin of 5.7%.
What is Etsy (ETSY) gross profit margin?
- Etsy (ETSY) reported a gross profit margin of 71.6% for TTM through Q4 2025, equivalent to $2.07B in gross profit. This means Etsy retains 71.6% of each revenue unit after direct costs of production.
What is Etsy (ETSY) operating profit margin?
- Etsy (ETSY) reported an operating profit margin of 9.3% for TTM through Q4 2025, equivalent to $267.31M in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.
What is Etsy (ETSY) net profit margin?
- Etsy (ETSY) reported a net profit margin of 5.7% for TTM through Q4 2025, equivalent to $162.98M in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.
How much does Etsy (ETSY) invest in R&D?
- Etsy (ETSY) invested $450.19M in research and development in TTM through Q4 2025 (15.6% of total revenue). R&D spending reflects investment in future products, services, and technologies.
How much does Etsy (ETSY) spend on capital expenditures?
- Etsy (ETSY) spent $54.01M on capital expenditures in TTM through Q4 2025 (1.9% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.
What is Etsy (ETSY) free cash flow?
- Etsy (ETSY) generated $699.49M in free cash flow for TTM through Q4 2025 (24.3% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.
What is Etsy (ETSY) effective tax rate?
- Etsy (ETSY) had an effective tax rate of 33.9% for TTM through Q4 2025. This is the actual percentage of pre-tax income paid as income taxes.
Data & methodology
What is a Sankey diagram?
- A Sankey diagram shows how money flows through a company from revenue to net profit. The width of each flow represents its proportion.
How is the data calculated?
- We use the income statement from company filings. For TTM (Trailing Twelve Months), we sum the last four quarters. Revenue flows to cost of revenue and gross profit, then to operating expenses (R&D, S&M, G&A) and operating profit.
When was this data last updated?
- Based on company filings through TTM through Q4 2025.
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