ETSY INC
For the period ended Oct 23, 2026. Filed Oct 28, 2026.
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Oct 23, 2026 · Filed Oct 28, 2026
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Contents
EX-99.1 · Calculation of Adjusted EBITDA Margin
Calculation of Adjusted EBITDA Margin
Adjusted EBITDA represents our net income (loss) adjusted to exclude: stock-based compensation expense
and related payroll taxes; depreciation and amortization expense; provision for income taxes; interest and
other non-operating (income) expense, net; foreign exchange (gain) loss; restructuring and other exit costs;
acquisition, divestiture, and corporate structure-related expenses; asset impairment charge; loss on sale of
business; andretroactive non-income tax income. The following tables reflect the reconciliation of net income
(loss) to Adjusted EBITDA as well as the calculation of Adjusted EBITDA margin for continuing operations, the
Etsy marketplace, and the Reverb marketplace for the periods indicated:
| Three Months Ended September 30, | ||
|---|---|---|
| 2026 | 2025 | |
| Continuing Operations | Continuing Operations | |
| Net income | $113,637 | $104,596 |
| Excluding: | ||
| Stock-based compensation expense and related payroll taxes (1) | 47,941 | 56,521 |
| Depreciation and amortization expense | 16,059 | 13,299 |
| Provision for income taxes | 15,064 | 15,554 |
| Interest and other non-operating income, net | (12,768) | (7,680) |
| Foreign exchange gain | (3,433) | (548) |
| Restructuring and other exit costs | 33,864 | 1,883 |
| Acquisition, divestiture, and corporate structure-related expenses | — | (18) |
| Adjusted EBITDA | $210,364 | $183,607 |
| Divided by: | ||
| Revenue | $692,469 | $624,153 |
| Adjusted EBITDA margin | 30.4% | 29.4% |
| Nine Months Ended September 30, | ||||
|---|---|---|---|---|
| 2026 · 2025 | ||||
| Continuing Operations | Continuing Operations (As Reported) | Less: Reverb Marketplace | Etsy Marketplace (Non-GAAP) | |
| Net income (loss) | $332,638 | $115,147 | $(108,246) | $223,393 |
| Excluding: | ||||
| Stock-based compensation expense and related payroll taxes (1) | 158,303 | 169,542 | 3,035 | 166,507 |
| Depreciation and amortization expense | 46,603 | 45,086 | 5,078 | 40,008 |
| Provision for income taxes | 60,294 | 59,321 | 109 | 59,212 |
| Interest and other non-operating (income) expense, net | (25,609) | (17,521) | 380 | (17,901) |
| Foreign exchange (gain) loss | (9,699) | 40,424 | (573) | 40,997 |
| Restructuring and other exit costs | 33,864 | 1,480 | — | 1,480 |
| Acquisition, divestiture, and corporate structure-related expenses | 75 | 7,148 | 4,093 | 3,055 |
| Asset impairment charge | — | 101,703 | 101,703 | — |
| Loss on sale of business | — | 5,097 | — | 5,097 |
| Retroactive non-income tax income | (6,036) | — | — | — |
| Adjusted EBITDA | $590,433 | $527,427 | $5,579 | $521,848 |
| Divided by: | ||||
| Revenue | $1,992,059 | $1,865,488 | $43,236 | $1,822,252 |
| Adjusted EBITDA margin | 29.6% | 28.3% | 12.9% | 28.6% |
(1)Stock-based compensation expense included in continuing operations in the Condensed Consolidated Statements of Operations for
the periods presented below is as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||
|---|---|---|---|---|
| 2026 | 2025 | 2026 | 2025 | |
| Cost of revenue | $3,970 | $5,962 | $14,532 | $19,623 |
| Marketing | 3,441 | 4,063 | 10,911 | 8,627 |
| Product development | 21,980 | 29,921 | 75,650 | 90,146 |
| General and administrative | 16,314 | 15,179 | 48,759 | 45,828 |
| Stock-based compensation expense | $45,705 | $55,125 | $149,852 | $164,224 |
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