On July 30, 2026, the Company completed the sale of Depop to eBay for aggregate cash consideration of $1.4 billion, reflecting the purchase price of $1.2 billion plus $200.0 million of net purchase price adjustments and interest as set forth in the Purchase Agreement. The consideration received is subject to customary post-closing adjustments. Any post-closing adjustments are expected to adjust the gain on sale amount included in income (loss) from discontinued operations before income taxes in the period in which they are finalized.

The financial results of Depop have been included in Etsy’s condensed consolidated financial statements through the Closing Date. The Company recognized a gain on sale of Depop of $839.7 million during the three and nine months ended September 30, 2026. The gain on sale, together with Depop’s results of operations through the Closing Date, are included in income (loss) from discontinued operations before income taxes in the Consolidated Statements of Operations for the three and nine months ended September 30, 2026.

The gain on sale includes aggregate cash consideration of $1.4 billion less (i) derecognition of Depop net assets of $313.1 million; (ii) a reclassification out of accumulated other comprehensive loss of $236.4 million related to cumulative translation adjustment associated with Depop, which was a non-cash component of the gain on sale; and (iii) costs incurred to sell the business of $10.7 million.

Net cash provided by investing activities of discontinued operations for the nine months ended September 30, 2026 includes $1.4 billion of proceeds from the sale of Depop, net of $78.8 million of cash and cash equivalents.

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Revenue	$	2,433	$	53,873	$	138,586	$	136,377
Cost of revenue	14,811		28,416		82,849		77,601
Gross profit	(12,378)		25,457		55,737		58,776
Operating expenses:
Marketing	81,615		34,472		293,885		72,676
Product development	644		13,612		28,574		35,848
General and administrative	3,434		5,666		27,955		14,671

Total operating expenses	85,693		53,750		350,414		123,195
Loss from discontinued operations	(98,071)		(28,293)		(294,677)		(64,419)
Other income (expense):
Gain on sale of Depop	839,716		—		839,716		—
Foreign exchange gain (loss)	(1,051)		228		(1,023)		(137)
Other income (expense), net	838,665		228		838,693		(137)
Income (loss) from discontinued operations before income taxes	740,594		(28,065)		544,016		(64,556)
(Provision) benefit for income taxes	(714)		(1,028)		(107)		1,656
Net income (loss) from discontinued operations	$	739,880	$	(29,093)	$	543,909	$	(62,900)

No assets or liabilities of Depop remain in the Consolidated Balance Sheet as of September 30, 2026, following completion of the sale of Depop. The following table summarizes the carrying amounts of major classes of assets and liabilities of Depop’s discontinued operations as of December 31, 2025 (in thousands):


	As of December 31, 2025
Assets
Cash and cash equivalents	$	40,408
Prepaid and other current assets	13,414
Total current assets	$	53,822
Property and equipment, net	23,645

Intangible assets, net	282,841
Other assets	740
Total non-current assets	$	307,226
Liabilities


Accrued expenses	$	50,815

Other current liabilities	1,459
Total current liabilities	$	52,274
Other liabilities	1,107
Total non-current liabilities	$	1,107

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 nine months ended September 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.