v3.26.1
Stock-Based Compensation
6 Months Ended
Jun. 30, 2026
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation
Note 14—Stock-Based Compensation
2024 Equity Incentive Plan
During the three and six months ended June 30, 2026, the Company granted restricted stock units (“RSUs”), including financial performance-based restricted stock units (“Financial PBRSUs”) and total shareholder return performance-based restricted stock units (“TSR PBRSUs”), and long-term cash awards (“LTC awards”) under its 2024 Equity Incentive Plan (“2024 Plan”). LTC awards are not included in the stock-based compensation awards disclosures below. In June 2026, the Company’s stockholders approved an amendment to increase the number of shares available for issuance under the 2024 Plan by 3,824,088 shares. At June 30, 2026, 23,104,150 shares were authorized under the 2024 Plan and 7,725,790 shares were available for future grant.
2024 Inducement Plan
The Etsy, Inc. 2024 Inducement Plan (the “2024 Inducement Plan”) was terminated on March 6, 2026, and no further awards will be granted thereunder.
Stock-Based Compensation Awards
The following table summarizes the activity for the Company’s unvested RSUs under the 2024 Plan and the 2024 Inducement Plan, which includes Financial PBRSUs and TSR PBRSUs, and includes awards related to continuing and discontinued operations, during the six months ended June 30, 2026 (in thousands, except per share amounts):
SharesWeighted-Average
Grant Date Fair Value
Unvested at December 31, 20257,942 $63.21 
Granted3,652 55.25 
Vested(1,801)73.34 
Forfeited/Canceled(572)63.22 
Unvested at June 30, 2026 (1)9,221 58.08 
(1) Includes 1.2 million shares underlying unvested awards held by employees of Depop as of June 30, 2026. Subsequent to June 30, 2026, upon completion of the sale of Depop, unvested Depop awards were forfeited. See “Note 2—Discontinued Operations” for further discussion of the executed Purchase Agreement.
The total unrecognized compensation expense at June 30, 2026 related to the Company’s unvested RSUs, including the Financial PBRSUs and TSR PBRSUs, was $445.6 million, which will be recognized over an estimated weighted-average amortization period of 2.30 years.
Stock-based compensation expense included in continuing operations in the Consolidated Statements of Operations for the periods presented below is as follows (in thousands):
Three Months Ended 
 June 30,
Six Months Ended 
 June 30,
2026202520262025
Cost of revenue$4,730 $6,775 $10,562 $13,661 
Marketing3,698 4,500 7,470 4,564 
Product development26,132 28,239 53,670 60,225 
General and administrative16,624 13,407 32,445 30,649 
Stock-based compensation expense$51,184 $52,921 $104,147 $109,099