-- Etsy's (ETSY) first-quarter revenue rose more than Wall Street's expectations, helping the online marketplace swing to earnings.
Revenue for the March quarter increased to $631.3 million from $612.2 million and surpassed the FactSet-polled consensus of $619.6 million. Etsy swung to first-quarter earnings of $0.89 per share from a loss of $0.33 per share a year earlier.
Gross merchandise sales, which measures the total dollar amount of items sold on the platform, grew 5.5% to $2.46 billion on a non-GAAP basis.
The metric for continuing operations, which exclude Depop's results, fell 3.9%. Etsy in February agreed to sell fashion marketplace Depop to eBay (EBAY) for $1.2 billion. Additionally, Reverb's results are included in last year's continuing operations, but not in the March 2026 quarter. Reverb was sold in June 2025.
Analysts expected GMS of $2.44 billion.
"We are beginning to see early improvements in customer behavior that reflect progress against our strategy: active buyers grew sequentially for the first time in two years, though still down from the prior year, and we delivered year-over-year growth in new buyers, active sellers, and GMS per buyer, alongside continued momentum in our mobile app," according to a shareholder letter.
Shares of Etsy were up 11% intraday Wednesday. The stock has gained about 26% so far this year.
For the current quarter, the company is projecting GMS of $2.48 billion to $2.53 billion, representing a 3% to 5% year-over-year growth for the Etsy marketplace. The Street is looking for $2.45 billion.
"For the full year, we now anticipate that GMS growth will be in the low single-digit range, as our outlook for the Etsy marketplace has improved relative to the full year commentary provided in mid-February," the company said.
The company previously anticipated "slight" year-over-year growth in 2026 GMS.
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