Canaccord Genuity cut its 12-month price target for Etsy Inc. to $72 from $80 on Thursday but left its rating unchanged at Buy. The shares are trading at $48.14, reflecting a 26% decline over the past six months, though InvestingPro analysis cited in the earnings note characterizes the stock as undervalued at current levels.
In its review of Etsy's fourth-quarter performance, the firm described the results as broadly consistent with expectations. Etsy Marketplace gross merchandise sales (GMV) rose slightly year-over-year, aided by a modest foreign-exchange tailwind and stronger spending in certain marketing channels. The company reported a 72% gross profit margin and produced $678 million in free cash flow over the trailing twelve months.
Within product verticals, Home and Living - Etsy's largest category - returned to positive year-over-year GMV growth in the fourth quarter. The Etsy mobile application showed continued strength: app downloads increased 4% year-over-year, and app-based GMV growth accelerated.
Management highlighted a nascent but fast-growing cohort it described as "agentic" traffic, which remains under 1% of total site traffic but is expanding at about 15 times year-over-year. According to the company, these users demonstrate higher purchase intent and a greater average order value than typical traffic.
Looking ahead, Etsy provided guidance for the core Marketplace that calls for GMV to rise in the low single digits in the first quarter, with management expecting GMV growth to remain positive throughout 2026. The first-quarter and full-year 2026 guidance for take rate and adjusted EBITDA margin were presented as having notable upside relative to consensus estimates.
For investors seeking a deeper dive, Etsy's Pro Research Report on InvestingPro is cited as a resource; it is listed as one of more than 1,400 available reports on the platform.
Other analyst activity and company disclosures around the quarter included:
- Etsy reported fourth-quarter 2025 earnings per share of $0.92, beating the expected $0.85.
- Record quarterly revenue was $882 million, a hair below the $884.14 million consensus estimate.
- The company announced the sale of Depop; management described Depop as having served as a growth buffer while also acting as a drag on adjusted EBITDA.
- Needham lowered its price target on Etsy to $65 from $76 but kept a Buy rating, citing positive implications for future EBITDA estimates from the Depop sale.
- Cantor Fitzgerald trimmed its target to $51 from $55 and maintained a Neutral rating, noting GMV was largely in line with expectations while EBITDA exceeded prior estimates by 4%.
Together, the post-quarter commentary and target adjustments reflect a mixed but generally constructive tone among analysts: revenue slightly missed consensus, earnings beat, and strategic decisions such as the Depop sale reverberated through estimates for profitability.
This analysis presents the company-reported operational and financial metrics and the subsequent analyst adjustments without extrapolation beyond the information released by the company and the firms mentioned.