The Company entered into a Purchase Agreement to sell Depop to eBay, in an effort to focus on driving growth in the core Etsy marketplace, for a base purchase price of $1.2 billion in cash, subject to certain purchase price adjustments as set forth in the Purchase Agreement. Purchase price adjustments include those for Depop’s working capital, transaction expenses, cash, and indebtedness as well as for the value of any forfeited equity awards of Depop employees continuing with eBay, and for certain investments Etsy and Depop, in their sole discretion, made in the Depop business prior to the Lockbox Date.

The Company determined the assets of the Depop subsidiary met the criteria for classification as held for sale as of June 30, 2026. The Company analyzed the quantitative and qualitative factors relevant to the divestiture of Depop and determined the disposal represents a strategic shift that has a major effect on its operations and financial results. As such, the assets and liabilities, results of operations, and cash flows of Depop are 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. In addition, divestiture-related expenses incurred as part of the Depop divestiture have been reflected in discontinued operations.

On the Closing Date, the Company completed the sale of Depop to eBay for aggregate cash consideration of approximately $1.4 billion, reflecting the purchase price of $1.2 billion plus $200 million of net purchase price adjustments and interest as set forth in the Purchase Agreement.

The Company expects to recognize an estimated gain on the disposal of Depop of approximately $840 million in the third quarter of 2026. The actual gain will be determined based on the final carrying value of Depop’s net assets as of the Closing Date as well as any post-closing adjustments, and thus, may differ from this estimate. The gain on disposal, together with Depop’s results of operations through the Closing Date, will be reported within “Net income (loss) from discontinued operations” in the Consolidated Statements of Operations for the three and nine months ending September 30, 2026.

The following table summarizes the major line items for Depop that are included in the net loss from discontinued operations in the Consolidated Statements of Operations (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Revenue	$	76,415	$	43,532	$	136,153	$	82,504
Cost of revenue	35,833		24,926		68,038		49,185
Gross profit	40,582		18,606		68,115		33,319
Operating expenses:
Marketing	170,216		21,056		212,270		38,204
Product development	14,756		12,536		27,930		22,236
General and administrative	15,679		2,685		24,521		9,005

Total operating expenses	200,651		36,277		264,721		69,445
Loss from discontinued operations	(160,069)		(17,671)		(196,606)		(36,126)
Other (expense) income, net	(700)		(88)		28		(365)
Loss from discontinued operations before income taxes	(160,769)		(17,759)		(196,578)		(36,491)
(Provision) benefit for income taxes	(220)		961		607		2,684
Net loss from discontinued operations	$	(160,989)	$	(16,798)	$	(195,971)	$	(33,807)


	As of June 30, 2026		As of December 31, 2025
Assets
Cash and cash equivalents	$	130,302	$	40,408
Prepaid and other current assets	15,083		13,414
Property and equipment, net	28,916		23,645

Intangible assets, net	275,447		282,841
Other assets	671		740
Total assets	$	450,419	$	361,048
Liabilities


Accrued expenses	$	70,579	$	50,815

Other current liabilities	5,626		1,459
Other liabilities	—		1,107
Total liabilities	$	76,205	$	53,381

On April 21, 2025, the Company entered into an agreement to sell Reverb to Reverb IntermediateCo LLC, a Delaware limited liability company and wholly owned subsidiary of Reverb Partners LLC, a Delaware limited liability company, in an effort to focus on driving growth in the core Etsy marketplace. Reverb Partners LLC is an affiliate of Servco Pacific Inc., a Hawaii corporation, and Creator Partners LLC, a Delaware limited liability company, for a purchase price of $105.0 million in cash, subject to certain closing adjustments.

The transaction closed on June 2, 2025 and the Company recorded a loss on sale of $5.1 million during the three months ended June 30, 2025. The loss on sale is the difference between the fair value of the consideration received of $108.2 million and the carrying amount of Reverb’s net assets as of the closing date of $113.3 million. The major classes of assets and liabilities sold consisted of the following (in thousands):


	As of June 2, 2025
Assets
Current assets:
Cash and cash equivalents	$	9,212
Funds receivable and seller accounts	19,861
Other current assets	4,448
Total current assets	33,521
Property and equipment, net	17,372
Intangible assets, net	107,390
Other assets	2,344
Total assets	$	160,627
Liabilities
Current liabilities:
Funds payable and amounts due to sellers	$	19,814
Other current liabilities	11,391
Total current liabilities	31,205
Deferred tax liabilities	13,319
Other liabilities	2,779
Total liabilities	$	47,303