You should read the following discussion and analysis of our financial condition and results of operations together with our condensed consolidated financial statements and related notes and other financial information included elsewhere in this Quarterly Report on Form 10-Q (“Quarterly Report”) and with the audited consolidated financial statements included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 19, 2026 (the “Annual Report”). This discussion, particularly information with respect to our outlook, key trends and uncertainties, our plans and strategy for our business, and our performance and future success, includes forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those discussed below. Factors that could cause or contribute to these differences include those discussed below and elsewhere in this Quarterly Report, particularly in Part II, Item 1A, “Risk Factors.” We also believe that our performance and future success depend on a number of factors that present significant opportunities for us, as discussed in Part I, Item 1, “Business,” in our Annual Report, which we incorporate by reference. Overview Business Etsy operates a two-sided online marketplace that connects millions of creative entrepreneurs with buyers around the world. The Etsy marketplace is the global destination for unique, creative goods from independent sellers, connecting artisans with thoughtful consumers seeking items that reflect their tastes and values. On February 15, 2026, we executed a Sale and Purchase Agreement (the “Original Purchase Agreement”) to sell all of the outstanding equity interests of Depop Limited (“Depop”), our fashion resale marketplace, to eBay Inc. (“eBay”) for a base purchase price of $1.2 billion in cash, subject to certain purchase price adjustments as set forth in the Purchase Agreement. The Original Purchase Agreement, as supplemented May 21, 2026 (the “First Amendment”) and as amended July 12, 2026 (the “Second Amendment”), is referred to herein collectively as the “Purchase Agreement.” The sale closed on July 30, 2026 (the “Closing Date”). See Part I, Item 1, “Note 2—Discontinued Operations” for further discussion of the executed Purchase Agreement. We continued to own and operate Depop through the date of sale, with Depop’s assets and liabilities, results of operations, and related cash flows presented as discontinued operations in the Consolidated Balance Sheets, Consolidated Statements of Operations, and Condensed Consolidated Statements of Cash Flows, respectively, for all periods presented. Unless otherwise noted, all financial results and other metrics discussed in this report are for continuing operations only. In keeping with our current capital allocation approach, we plan to utilize the proceeds from this transaction for general corporate purposes, continued share repurchases, and investment in the Etsy marketplace. On August 3, 2026, the Audit Committee of the Board of Directors approved a Restructuring Plan intended to better align the organization with Etsy's long-term strategic priorities, including by simplifying Etsy’s structure to improve coordination and speed of decision-making (the “Restructuring Plan”). The Restructuring Plan includes an approximate 12% net reduction of the Etsy marketplace workforce, which is approximately 220 employees. Charges of approximately $35 million related to restructuring and other exit costs are expected to be incurred in the third quarter of 2026, and the execution of the Restructuring Plan is expected to be substantially complete by the end of the third quarter of 2026. While we expect the reorganization to lower operating costs in the near term, we will also continue to invest to build the organization necessary to execute our strategy and drive Etsy’s long-term growth. On June 2, 2025, we completed the sale of Reverb Holdings, Inc. (“Reverb”), our musical instrument marketplace. The results of Reverb, until its sale on June 2, 2025, are included in all financial results and other metrics discussed in this report, unless otherwise noted. We generate revenue primarily from marketplace activities, including transaction fees (inclusive of offsite advertising), payments processing fees, and listing fees, as well as from optional seller services, which include on-site advertising and shipping labels. 30 Table of Contents Key Operating and Financial Metrics We collect and analyze operating and financial data to evaluate the health and performance of our business and allocate our resources (such as capital, people, and technology investments). Our key operating and financial metrics are presented on a continuing operations basis in the table below for all periods presented, since Depop is presented as a discontinued operation due to its pending sale as of June 30, 2026. The sale closed on July 30, 2026. See Part I, Item 1, “Note 2—Discontinued Operations” for further discussion of the executed Purchase Agreement. Due to the sale of Reverb on June 2, 2025, continuing operations for the three and six months ended June 30, 2025 includes Etsy marketplace and Reverb marketplace through the date of sale, but the three and six months ended June 30, 2026 reflects the Etsy marketplace only. This makes year-over-year continuing operations results not directly comparable. To provide investors with a meaningful basis for comparing our results year-over-year, we have presented Etsy marketplace results for the three and six months ended June 30, 2025. Our calculation of trailing twelve months free cash flow includes activity for combined continuing and discontinued operations. See “Non-GAAP Financial Measures” for more information regarding our use of Etsy marketplace financial metrics, Adjusted EBITDA, Adjusted EBITDA margin, and free cash flow, and reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure. Our key operating and financial metrics are (in thousands, except percentages): Three Months Ended June 30, % Growth (Decline) Y/Y for Continuing Operations % Growth (Decline) Y/Y for the Etsy Marketplace (Non-GAAP) (1) 2026 2025 Continuing Operations Continuing Operations Etsy Marketplace (Non-GAAP) GMS (2) $ 2,582,892 $ 2,556,644 $ 2,403,655 1.0 % 7.5 % Revenue $ 668,313 $ 629,131 $ 611,542 6.2 % 9.3 % Revenue take rate (3) 25.9 % 24.6 % 25.4 % 130 bps 50 bps Marketplace revenue $ 456,074 $ 435,026 $ 420,717 4.8 % 8.4 % Services revenue $ 212,239 $ 194,105 $ 190,825 9.3 % 11.2 % Gross profit $ 484,045 $ 460,508 $ 450,946 5.1 % 7.3 % Operating expenses $ 358,777 $ 366,408 $ 355,542 (2.1) % 0.9 % Net income $ 114,339 $ 45,638 $ 47,306 150.5 % 141.7 % Net income margin 17.1 % 7.3 % 7.7 % 980 bps 940 bps Adjusted EBITDA (Non-GAAP) $ 195,358 $ 170,299 $ 167,592 14.7 % 16.6 % Adjusted EBITDA margin (Non-GAAP) 29.2 % 27.1 % 27.4 % 210 bps 180 bps Active sellers (4) 5,706 5,388 5,388 5.9 % 5.9 % Active buyers (5) 86,969 87,340 87,340 (0.4) % (0.4) % 31 Table of Contents Six Months Ended June 30, % (Decline) Growth Y/Y for Continuing Operations % Growth (Decline) Y/Y for the Etsy Marketplace (Non-GAAP) (1) 2026 2025 Continuing Operations Continuing Operations Etsy Marketplace (Non-GAAP) GMS (2) $ 5,043,087 $ 5,116,465 $ 4,735,117 (1.4) % 6.5 % Revenue $ 1,299,590 $ 1,241,335 $ 1,198,099 4.7 % 8.5 % Revenue take rate (3) 25.8 % 24.3 % 25.3 % 150 bps 50 bps Marketplace revenue $ 888,847 $ 863,262 $ 827,682 3.0 % 7.4 % Services revenue $ 410,743 $ 378,073 $ 370,417 8.6 % 10.9 % Gross profit $ 939,643 $ 904,911 $ 883,114 3.8 % 6.4 % Operating expenses $ 694,529 $ 814,684 $ 684,557 (14.7) % 1.5 % Net income $ 219,001 $ 10,551 $ 118,797 1,975.6 % 84.3 % Net income margin 16.9 % 0.8 % 9.9 % 1,610 bps 700 bps Adjusted EBITDA (Non-GAAP) $ 380,069 $ 343,820 $ 338,241 10.5 % 12.4 % Adjusted EBITDA margin (Non-GAAP) 29.2 % 27.7 % 28.2 % 150 bps 100 bps Active sellers (4) 5,706 5,388 5,388 5.9 % 5.9 % Active buyers (5) 86,969 87,340 87,340 (0.4) % (0.4) % (1)% growth (decline) Y/Y for the Etsy marketplace is the change in continuing operations for the three and six months ended June 30, 2026, which represents activity for the Etsy marketplace only, compared to the Etsy marketplace excluding Reverb for the three and six months ended June 30, 2025, as Reverb was sold in the second quarter of 2025. (2)Excluded from the tables above is gross merchandise sales (“GMS”) for Depop, which was $455.7 million and $249.6 million for the three months ended June 30, 2026 and 2025, respectively, and $804.6 million and $483.1 million for the six months ended June 30, 2026 and 2025, respectively. GMS is the dollar value of items sold in our marketplaces, excluding shipping fees and net of refunds, within the applicable period. GMS does not represent revenue earned by us. (3)Revenue take rate is revenue divided by GMS. (4)Active sellers for the three and six months ended June 30, 2026 and 2025 represent the Etsy marketplace only as Reverb was sold on June 2, 2025 and Depop is presented as discontinued operations. An active seller is a seller who has had a charge or sale in the last 12 months. A seller is separately identified in each of our marketplaces by a unique e-mail address; a single person can have multiple seller accounts and can count as a distinct active seller in each of our marketplaces. As part of our commitment to integrity and transparency, we continuously monitor, and from time to time adjust, the criteria for disqualifying a seller as an active seller. (5)Active buyers for the three and six months ended June 30, 2026 and 2025 represent the Etsy marketplace only as Reverb was sold on June 2, 2025 and Depop is presented as discontinued operations. An active buyer is a buyer who has made at least one purchase in the last 12 months. A buyer is separately identified in each of our marketplaces by a unique e-mail address; a single person can have multiple buyer accounts and can count as a distinct active buyer in each of our marketplaces. As of June 30, % Decline Y/Y 2026 2025 Continuing and Discontinued Operations Continuing and Discontinued Operations Net cash provided by operating activities - trailing twelve months $ 657,391 $ 689,695 (4.7) % Free cash flow - trailing twelve months (Non-GAAP) $ 610,141 $ 634,622 (3.9) % We disclose key operating metrics because they provide meaningful insight into the performance and health of our business. GMS, active sellers, and active buyers each reflect core drivers of our business—seller success, buyer engagement, and the overall scale of our platforms. We believe these measures help investors and management evaluate our growth potential and the underlying strength of our marketplace. GMS GMS from continuing operations increased by $26.2 million to $2,582.9 million in the three months ended June 30, 2026 compared to the three months ended June 30, 2025, and decreased by $73.4 million to $5,043.1 million in the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase in GMS between the three months ended June 30, 2026 and 2025 reflects an increase of $179.2 million related to the Etsy marketplace, partially offset by a decrease of $153.0 million from the sale of Reverb. The decrease in GMS between the six months ended June 30, 2026 and 2025 reflects a decrease of $381.3 million from the sale of Reverb, partially offset by an increase of $308.0 million from the Etsy marketplace. 32 Table of Contents Etsy marketplace year-over-year GMS growth for the three and six months ended June 30, 2026, which excludes Reverb from the prior year period, was up 7.5% and 6.5%, respectively. This growth was driven by continued progress against our strategic priorities, which are translating into underlying improvements across our marketplace, reflected in improving buyer and seller trends and stronger marketplace health. The first quarter of 2026 also benefited from foreign exchange tailwinds and softer performance in the prior year comparable period. The Etsy marketplace GMS per active buyer on a trailing twelve month basis increased 2.8% year-over-year to $124, partially offset by a year-over-year decline of 0.4% of active buyers on the Etsy marketplace to 87.0 million. U.S. buyer GMS is GMS from transactions in which the shipping address entered by the buyer at the time of sale is in the U.S., net of refunds. GMS from transactions in which the shipping address entered by the buyer at the time of sale is not in the U.S, net of refunds is non-U.S. buyer GMS. Percent U.S. buyer GMS for the periods presented below are as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Percent U.S. Buyer GMS - Continuing operations 75 % 75 % 74 % 75 % Percent U.S. Buyer GMS - Etsy marketplace 75 % 74 % 74 % 74 % There is considerable uncertainty regarding macroeconomic conditions, including geopolitical conflicts, the evolving tariff landscape, and inflationary pressures, and the impact any of the foregoing might have on consumer demand and discretionary wallet share. Any circumstances that reduce consumer demand or hinder our sellers' cross-border trade may adversely affect our business. See Part II, Item 1A, “Risk Factors” for further detail. Currency-Neutral GMS We calculate currency-neutral GMS by translating current period GMS for goods sold that were listed in non-U.S. dollar currencies into U.S. dollars using prior year foreign currency exchange rates. As reported and currency-neutral GMS growth (decline) for the periods presented below are as follows: 2026 2025 As Reported Currency-Neutral FX Impact As Reported Currency-Neutral FX Impact Three months ended June 30, GMS - Continuing operations 1.0 % 0.8 % 0.2 % (7.5) % (8.5) % 1.0 % GMS - Etsy marketplace 7.5 % 7.2 % 0.3 % (5.4) % (6.3) % 0.9 % Six months ended June 30, GMS - Continuing operations (1.4) % (2.4) % 1.0 % (8.2) % (8.3) % 0.1 % GMS - Etsy marketplace 6.5 % 5.4 % 1.1 % (7.1) % (7.2) % 0.1 % 33 Table of Contents Results of Operations Comparison of Three Months Ended June 30, 2026 and 2025 Revenue Three Months Ended June 30, Change (in thousands, except percentages) 2026 2025 $ % Revenue: Marketplace $ 456,074 $ 435,026 $ 21,048 4.8 % Percentage of total revenue 68.2 % 69.1 % Services $ 212,239 $ 194,105 $ 18,134 9.3 % Percentage of total revenue 31.8 % 30.9 % Total revenue $ 668,313 $ 629,131 $ 39,182 6.2 % Revenue increased driven by an increase in both marketplace and services revenue. Marketplace revenue increased primarily due to a $17.8 million increase in Etsy transaction fee revenue and a $14.5 million increase in Etsy payments revenue, both driven by an increase in Etsy marketplace GMS. These increases in marketplace revenue were partially offset by a decrease of $14.3 million related to the sale of Reverb on June 2, 2025. Services revenue increased primarily due to a $19.1 million increase in advertising revenue, primarily driven by higher click volume on Etsy Ads. Costs and Operating Expenses Cost of Revenue Three Months Ended June 30, Change (in thousands, except percentages) 2026 2025 $ % Cost of revenue $ 184,268 $ 168,623 $ 15,645 9.3 % Percentage of total revenue 27.6 % 26.8 % The increase in cost of revenue was primarily driven by an increase in payments fees, cost of refunds, and, to a lesser extent, cloud-related hosting and bandwidth costs, partially offset by the sale of Reverb on June 2, 2025. Marketing Three Months Ended June 30, Change (in thousands, except percentages) 2026 2025 $ % Marketing $ 190,928 $ 191,053 $ (125) (0.1) % Percentage of total revenue 28.6 % 30.4 % Marketing expenses decreased primarily due to the sale of Reverb on June 2, 2025, offset by an increase due to targeted shifts in portfolio mix, in which strong returns in specific channels supported incremental spend. Paid GMS was 25% of overall GMS for the three months ended June 30, 2026 compared to 24% for the three months ended June 30, 2025. 34 Table of Contents Product development Three Months Ended June 30, Change (in thousands, except percentages) 2026 2025 $ % Product development $ 100,921 $ 99,326 $ 1,595 1.6 % Percentage of total revenue 15.1 % 15.8 % Product development expenses increased primarily due to increased cash-based compensation and benefits. This increase is partially offset by a decrease in stock-based compensation expense and the sale of Reverb on June 2, 2025. General and administrative Three Months Ended June 30, Change (in thousands, except percentages) 2026 2025 $ % General and administrative $ 66,928 $ 76,029 $ (9,101) (12.0) % Percentage of total revenue 10.0 % 12.1 % General and administrative expenses decreased, primarily due to the sale of Reverb on June 2, 2025, lower professional services expenses, and net favorable non-income tax items. These decreases are partially offset by an increase in stock-based compensation expense. Other Income (Expense), net Three Months Ended June 30, Change (in thousands, except percentages) 2026 2025 $ % Other income (expense), net: Interest expense $ (5,630) $ (3,773) $ (1,857) 49.2 % Interest and other income 11,515 9,031 2,484 27.5 % Foreign exchange gain (loss) 3,818 (25,356) 29,174 (115.1) % Loss on sale of business — (5,097) 5,097 NM Other income (expense), net $ 9,703 $ (25,195) $ 34,898 (138.5) % Percentage of total revenue 1.5 % (4.0) % Other income, net increased from other expense, net, primarily driven by changes in exchange rates that impact our non-functional currency cash and intercompany balances, which resulted in a gain for the three months ended June 30, 2026 as compared to a loss for the three months ended June 30, 2025. Provision for Income Taxes Three Months Ended June 30, Change (in thousands, except percentages) 2026 2025 $ % Provision for income taxes $ (20,632) $ (23,267) $ 2,635 (11.3) % Percentage of total revenue (3.1) % (3.7) % The primary drivers of our income tax provision for the three months ended June 30, 2026 were tax expense on income before income taxes and state and local income taxes. The primary drivers of our income tax provision for the three months ended June 30, 2025 were tax deficiencies from stock-based compensation due to a lower stock price at vesting of restricted stock units compared to the stock price upon grant and tax expense on income before income taxes. 35 Table of Contents Loss on Discontinued Operations Three Months Ended June 30, Change (in thousands, except percentages) 2026 2025 $ % Loss on discontinued operations $ (160,989) $ (16,798) $ (144,191) 858.4 % Loss on discontinued operations for the three months ended June 30, 2026 and 2025 was $161.0 million and $16.8 million, respectively, reflecting operating results from Depop. The increase was primarily due to investments that Etsy made in the Depop business which after period end were recovered through purchase price adjustments at the Closing Date. See Part I, Item 1, “Note 2—Discontinued Operations” for more information regarding the financial results of discontinued operations. Comparison of Six Months Ended June 30, 2026 and 2025 Revenue Six Months Ended June 30, Change 2026 2025 $ % (in thousands, except percentages) Revenue: Marketplace $ 888,847 $ 863,262 $ 25,585 3.0 % Percentage of total revenue 68.4 % 69.5 % Services $ 410,743 $ 378,073 $ 32,670 8.6 % Percentage of total revenue 31.6 % 30.5 % Total revenue $ 1,299,590 $ 1,241,335 $ 58,255 4.7 % Revenue increased driven by an increase in both services and marketplace revenue. Services revenue increased primarily due to a $33.5 million increase in advertising revenue, primarily driven by higher click volume and an increase in average price per click on Etsy Ads. Marketplace revenue increased primarily due to a $27.4 million increase in Etsy transaction fee revenue and an increase in payments revenue of $26.0 million, both driven by an increase in Etsy marketplace GMS. These increases in marketplace revenue were partially offset by a decrease of $35.6 million related to the sale of Reverb on June 2, 2025. Costs and Operating Expenses Cost of Revenue Six Months Ended June 30, Change 2026 2025 $ % (in thousands, except percentages) Cost of revenue $ 359,947 $ 336,424 $ 23,523 7.0 % Percentage of total revenue 27.7 % 27.1 % The increase in cost of revenue was primarily driven by an increase in cost of refunds, payments fees, and, to a lesser extent, cloud-related hosting and bandwidth costs, partially offset by the sale of Reverb on June 2, 2025. 36 Table of Contents Marketing Six Months Ended June 30, Change 2026 2025 $ % (in thousands, except percentages) Marketing $ 365,167 $ 362,910 $ 2,257 0.6 % Percentage of total revenue 28.1 % 29.2 % Marketing expenses increased primarily due to targeted shifts in portfolio mix, in which strong returns in specific channels supported incremental spend and an increase in stock-based compensation, mainly resulting from forfeitures related to an executive departure in the six months ended June 30, 2025 that did not recur in the six months ended June 30, 2026. This increase was partially offset by the sale of Reverb on June 2, 2025, which reduced marketing expenses. Paid GMS was 23% of overall GMS for both the six months ended June 30, 2026 and 2025. Product development Six Months Ended June 30, Change 2026 2025 $ % (in thousands, except percentages) Product development $ 199,973 $ 200,136 $ (163) (0.1) % Percentage of total revenue 15.4 % 16.1 % Product development expenses decreased, primarily due to the sale of Reverb on June 2, 2025 and a decrease in stock-based compensation. These decreases were offset by an increase in cash-based compensation and benefits. General and administrative Six Months Ended June 30, Change 2026 2025 $ % (in thousands, except percentages) General and administrative $ 129,389 $ 149,935 $ (20,546) (13.7) % Percentage of total revenue 10.0 % 12.1 % General and administrative expenses decreased, primarily due to the reversal of previously recognized Canadian digital services tax (“DST”) expense in the first quarter of 2026, following the repeal of the DST in Canada in March 2026. Additionally, general and administrative expenses decreased due to the sale of Reverb on June 2, 2025. Asset impairment charge Six Months Ended June 30, Change 2026 2025 $ % (in thousands, except percentages) Asset impairment charge $ — $ 101,703 $ (101,703) NM Percentage of total revenue — % 8.2 % Asset impairment charge was $101.7 million in the six months ended June 30, 2025, related to the impairment of the goodwill of Reverb. See Part I, Item 1, “Note 7—Goodwill” for more information. 37 Table of Contents Other Income (Expense), net Six Months Ended June 30, Change 2026 2025 $ % (in thousands, except percentages) Other income (expense), net: Interest expense $ (11,278) $ (7,177) $ (4,101) 57.1 % Interest and other income 24,129 17,337 6,792 39.2 % Foreign exchange gain (loss) 6,266 (40,972) 47,238 (115.3) % Loss on sale of business — (5,097) 5,097 NM Other income (expense), net $ 19,117 $ (35,909) $ 55,026 (153.2) % Percentage of total revenue 1.5 % (2.9) % Other income, net increased from other expense, net, primarily driven by changes in exchange rates that impact our non-functional currency cash and intercompany balances, which resulted in a gain for the six months ended June 30, 2026 as compared to a loss for the six months ended June 30, 2025. Provision for Income Taxes Six Months Ended June 30, Change 2026 2025 $ % (in thousands, except percentages) Provision for income taxes $ (45,230) $ (43,767) $ (1,463) 3.3 % Percentage of total revenue (3.5) % (3.5) % The primary drivers of our income tax provision for the six months ended June 30, 2026 were tax expense on income before income taxes and state and local income taxes. The primary drivers of our income tax provision for the six months ended June 30, 2025 were tax expense on income before income taxes excluding the impairment charge and tax deficiencies from stock-based compensation due to a lower stock price at vesting of restricted stock units compared to the stock price upon grant. Loss on Discontinued Operations Six Months Ended June 30, Change (in thousands, except percentages) 2026 2025 $ % Loss on discontinued operations $ (195,971) $ (33,807) $ (162,164) 479.7 % Loss on discontinued operations for the six months ended June 30, 2026 and 2025 was $196.0 million and $33.8 million, respectively, reflecting operating results from Depop. The increase was primarily due to investments that Etsy made in the Depop business which after period end were recovered through purchase price adjustments at the Closing Date. See Part I, Item 1, “Note 2—Discontinued Operations” for more information regarding the financial results of discontinued operations. 38 Table of Contents Non-GAAP Financial Measures Other Key Financial Metrics Given that the sale of Depop was pending as of June 30, 2026, Etsy results are presented on a continuing operations basis, while Depop results are reported as discontinued operations for all periods presented. Due to the sale of Reverb on June 2, 2025, continuing operations for the three and six months ended June 30, 2025 includes Etsy marketplace and Reverb marketplace through the date of sale, but the three and six months ended June 30, 2026 reflects the Etsy marketplace only. This makes year-over-year continuing operations results not directly comparable. To provide investors with a meaningful basis for comparing our ongoing operating results year-over-year, we have presented certain Etsy marketplace financial measures for the three and six months ended June 30, 2025 in this Quarterly Report. These measures include the following non-GAAP financial measures for the three and six months ended June 30, 2025 where we exclude the impact of Reverb: (1) Revenue and Revenue take rate, (2) Marketplace revenue, (3) Services revenue, (4) Gross profit, (5) Operating expenses, (6) Net income (loss) and Net income (loss) margin, and (7) Adjusted EBITDA and Adjusted EBITDA margin. Management believes that presenting these Etsy marketplace non-GAAP financial measures is useful to investors because they: •provide a clearer, normalized baseline to evaluate the organic growth, financial performance, and underlying trends of our remaining Etsy marketplace business; •facilitate more direct year-over-year comparisons of our continuing operations by removing the impact of the divested Reverb marketplace; and •align with how management evaluates the performance of the business, allocates resources, and sets internal operational targets moving forward. These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation, or as a substitute for, financial information prepared in accordance with GAAP. Furthermore, our calculation of these non-GAAP measures may differ from similarly titled measures reported by other companies. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures is provided in the following tables below (in thousands, except percentages): Three Months Ended June 30, 2025 Six Months Ended June 30, 2025 Continuing Operations (As Reported) Less: Reverb Marketplace Etsy Marketplace (Non-GAAP) Continuing Operations (As Reported) Less: Reverb Marketplace Etsy Marketplace (Non-GAAP) Revenue $ 629,131 $ 17,589 $ 611,542 $ 1,241,335 $ 43,236 $ 1,198,099 Revenue take rate 24.6 % 11.5 % 25.4 % 24.3 % 11.3 % 25.3 % Marketplace revenue $ 435,026 $ 14,309 $ 420,717 $ 863,262 $ 35,580 $ 827,682 Services revenue $ 194,105 $ 3,280 $ 190,825 $ 378,073 $ 7,656 $ 370,417 Gross profit $ 460,508 $ 9,562 $ 450,946 $ 904,911 $ 21,797 $ 883,114 Operating expenses $ 366,408 $ 10,866 $ 355,542 $ 814,684 $ 130,127 $ 684,557 Net income (loss) $ 45,638 $ (1,668) $ 47,306 $ 10,551 $ (108,246) $ 118,797 Net income (loss) margin 7.3 % (9.5) % 7.7 % 0.8 % (250.4) % 9.9 % 39 Table of Contents Adjusted EBITDA Adjusted EBITDA represents our net income (loss) adjusted to exclude: stock-based compensation expense (income) and related payroll taxes; depreciation and amortization expense; provision for income taxes; interest and other non-operating (income) expense, net; foreign exchange (gain) loss; acquisition, divestiture, and corporate structure-related expenses; asset impairment charge; loss on sale of business; restructuring and other exit income; and retroactive non-income tax income. The following tables reflect the reconciliation of net income (loss) from continuing operations to Adjusted EBITDA from continuing operations and the Etsy marketplace. The tables also reflect the calculation of Adjusted EBITDA margin from continuing operations and the Etsy marketplace for each of the periods indicated (in thousands, except percentages): Three Months Ended June 30, 2026 2025 Continuing Operations Continuing Operations (As Reported) Less: Reverb Marketplace Etsy Marketplace (Non-GAAP) Net income (loss) $ 114,339 $ 45,638 $ (1,668) $ 47,306 Excluding: Stock-based compensation expense (income) and related payroll taxes 54,825 55,382 (1,048) 56,430 Depreciation and amortization expense 15,229 14,598 966 13,632 Provision for income taxes 20,632 23,267 552 22,715 Interest and other non-operating (income) expense, net (5,885) (4,939) 160 (5,099) Foreign exchange (gain) loss (3,818) 25,356 (348) 25,704 Acquisition, divestiture, and corporate structure-related expenses 36 5,903 4,093 1,810 Loss on sale of business — 5,097 — 5,097 Restructuring and other exit income — (3) — (3) Adjusted EBITDA $ 195,358 $ 170,299 $ 2,707 $ 167,592 Divided by: Revenue $ 668,313 $ 629,131 $ 17,589 $ 611,542 Adjusted EBITDA margin 29.2 % 27.1 % 15.4 % 27.4 % Six Months Ended June 30, 2026 2025 Continuing Operations Continuing Operations (As Reported) Less: Reverb Marketplace Etsy Marketplace (Non-GAAP) Net income (loss) $ 219,001 $ 10,551 $ (108,246) $ 118,797 Excluding: Stock-based compensation expense and related payroll taxes 110,362 113,021 3,035 109,986 Depreciation and amortization expense 30,544 31,787 5,078 26,709 Provision for income taxes 45,230 43,767 109 43,658 Interest and other non-operating (income) expense, net (12,841) (9,841) 380 (10,221) Foreign exchange (gain) loss (6,266) 40,972 (573) 41,545 Acquisition, divestiture, and corporate structure-related expenses 75 7,166 4,093 3,073 Asset impairment charge — 101,703 101,703 — Loss on sale of business — 5,097 — 5,097 Restructuring and other exit income — (403) — (403) Retroactive non-income tax income (6,036) — — — Adjusted EBITDA $ 380,069 $ 343,820 $ 5,579 $ 338,241 Divided by: Revenue $ 1,299,590 $ 1,241,335 $ 43,236 $ 1,198,099 Adjusted EBITDA margin 29.2 % 27.7 % 12.9 % 28.2 % 40 Table of Contents Free Cash Flow Free cash flow represents our net cash provided by operating activities, reduced by purchases of property and equipment and website and app development that are included in cash flows from investing activities. The following table reflects the reconciliation of operating activities to free cash flow for combined continuing and discontinued operations on a trailing twelve month basis (in thousands): As of June 30, 2026 2025 Continuing and Discontinued Operations Continuing and Discontinued Operations Net cash provided by operating activities $ 657,391 $ 689,695 Purchases of property and equipment (8,111) (18,412) Website and app development (39,139) (36,661) Free cash flow $ 610,141 $ 634,622 Liquidity and Capital Resources Cash and cash equivalents and short-term investments were $1.1 billion as of June 30, 2026. Additionally, we have $160.7 million in long-term investments, a majority of which we can liquidate at short notice and with minimal penalties if needed. We also have the ability to draw down on our $400.0 million senior secured revolving credit facility (the “2023 Credit Agreement”). As of June 30, 2026, we had net working capital from continuing operations of $230.7 million and in the six months ended June 30, 2026, we had positive operating cash flows of continuing operations of $268.4 million. We believe that this capital structure, as well as the nature and framework of our business, will allow us to meet all debt covenants, sustain our business operations, and be able to react to changing macroeconomic conditions. As of June 30, 2026, a majority of our cash and cash equivalents, short-term, and long-term investments balance was held in the United States. Our cash and cash equivalents are held for future investments, working capital funding, and general corporate purposes. We fund our non-U.S. operations from our funds held in the United States on an as-needed basis. We typically invest in short- and long-term instruments, which are intended to allow us to preserve our principal, maintain the ability to meet our liquidity needs, deliver positive yields across a balanced portfolio, and continue to provide us with direct fiduciary control. In accordance with our investment policy, all investments, other than investments made through our Impact Investment Fund, have maturities no longer than 37 months, with the average maturity of these investments maintained at 12 months or less. Sources of Liquidity We have the ability to draw down on the 2023 Credit Agreement. See Part I, Item 1, “Note 11—Debt” for more information on the 2023 Credit Agreement. Upon completion of the sale of Depop to eBay, which closed on July 30, 2026, we received approximately $1.4 billion in cash. See Part I, Item 1, “Note 2—Discontinued Operations” for more information. We believe that our existing cash and cash equivalents and short- and long-term investments, together with cash generated from operations, will be sufficient to meet our anticipated operating cash needs for at least the next 12 months. While this belief is based on our current expectations and assumptions, in light of current macroeconomic conditions, our future capital requirements and the adequacy of available funds will depend on many factors, including those described in Part II, Item 1A, “Risk Factors” in this Quarterly Report. 41 Table of Contents Cash Flows Six Months Ended June 30, (in thousands) 2026 2025 Cash provided by (used in): Operating activities of continuing operations $ 268,441 $ 168,812 Investing activities of continuing operations (40,519) 58,703 Financing activities (429,308) 122,072 Net Cash Provided by Operating Activities of Continuing Operations Our cash flows from continuing operations are largely dependent on revenue generation and net income from continuing operations, as well as working capital movements and non-cash items. Non-cash working capital at any specific point in time is subject to many variables, including variability in the timing of cash receipts and payments (including payment of taxes), and vendor payment terms. The increase in the six months ended June 30, 2026 of $99.6 million, compared to the same period in 2025, was primarily due to an increase of $76.0 million in net income, excluding non-cash items and an increase of $23.7 million in the change in working capital less cash. Net Cash (Used in) Provided by Investing Activities of Continuing Operations Net cash (used in) provided by investing activities of continuing operations results from purchases and maturities of investments and capital expenditures, including investments in website and app development and purchases of property and equipment to support our business initiatives, and any proceeds from sale of business. The decrease in the six months ended June 30, 2026 of $99.2 million, compared to the same period in 2025, was primarily due to the proceeds from sale of Reverb, net of cash in 2025. Net Cash (Used in) Provided by Financing Activities Net cash (used in) provided by financing activities primarily consists of cash outflows for stock repurchases and payment of tax obligations on vested equity awards, and any cash inflows from the issuance of convertible notes. The decrease in the six months ended June 30, 2026 of $551.4 million, compared to the same period in 2025, was primarily due to the issuance of the 2025 Notes in 2025 offset in part by an increase in stock repurchases. 42 Table of Contents Critical Accounting Policies and Estimates Our management’s discussion and analysis of our financial condition and results of operations is based on our condensed consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these condensed consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, equity, revenue, expenses, and related disclosures. We evaluate our estimates and assumptions on an ongoing basis. We continue to monitor the effects of global macroeconomic and geopolitical factors on our results of operations, cash flows, and financial position. We believe we have used reasonable estimates and assumptions in preparing the condensed consolidated financial statements. Our actual results could differ from these estimates. There have been no significant changes to our critical accounting policies and estimates included in our Annual Report. Recent Accounting Pronouncements See Part I, Item 1, “Note 1—Basis of Presentation and Summary of Significant Accounting Policies” for information regarding recently adopted and recently issued accounting pronouncements.