Etsy Inc

Equity Research 16 August 2026 | 11:59PM EDT

Etsy Inc. (ETSY) The Post Depop Etsy Emerges; Updating Our Operating Estimates & Framing Key Debates; Reinstate Rating at Neutral (PT of $89)

ETSY 12m Price Target: $89.00 Price: $79.90 Upside: 11.4% NEUTRAL Eric Sheridan With the close of the Depop divestiture, we reinstate a rating on Etsy | Goldman Sachs & Co. LLC (ETSY) at Neutral with an $89 12-month price target. In this note, we Sarah Boulos frame Etsy’s investment case centered around a handful of key | Goldman Sachs & Co. LLC debates: (1) Will their strategic initiatives be enough to meaningfully re-accelerate topline growth? Our view – Work In Progress. Etsy’s Emma Huang | Goldman Sachs & Co. LLC GMV and active buyer growth have been muted since 2022, but we acknowledge a recent uptick in buyers in 1H26 and attribute this to a combination of improving execution against management’s Key Data _____________________________________ Market cap: $9.7bn strategic initiatives (incl. enhance discovery, search, and Enterprise value: $9.5bn 3m ADTV: $225.5mn personalization); (2) Will we see Adj EBITDA margin expansion amid United States an investment cycle? Our view - Likely. We expect Etsy’s Adj. EBITDA Americas Internet M&A Rank: 3 margin to reach ~32% by 2031 (up from 25.5% in 2025) driven by GS Forecast __________________________________ the sale of Depop, flow through from topline and continued 12/25 12/26E 12/27E 12/28E

execution despite heightened reinvestment levels around the Revenue ($ mn) New Revenue ($ mn) Old 2,883.5 2,886.4 2,824.2 2,898.0 2,967.2 3,004.2 3,117.9 3,056.6 strategic priorities – the exact pathway on how linear margin EBITDA ($ mn) EBIT ($ mn) trajectory progresses in the medium/long term (against needed EPS ($) New levels for growth investments) remains less visible; and (3) How will EPS ($) Old P/E (X) Etsy perform in a world becoming increasingly centered around Dividend yield (%) -- -- -- -- agentic shopping? Our view – Likely well. Etsy has intentionally Net debt/EBITDA (X) 2.2 (0.3) (0.7) (1.1)

positioned itself to be a share taker and first mover as the world 6/26 9/26E 12/26E 3/27E increasingly shifts towards agentic commerce both in terms of off EPS ($) (

platform partnerships and innovating toward AI increasingly at the GS Factor Profile ______________________________ Growth center of the consumer experience on property. Financial Returns In their 2Q26 earnings release (released on August 5th), Etsy Multiple messaged a few key themes 1) Q2 GMS, revenue and profitability metrics came in at or above the high end of prior guidance, Integrated

prompting management to raise its FY26 outlook and reinforcing Percentile 20th 40th 60th 80th 100th confidence in the trajectory of the core Etsy marketplace; 2) management continued to point to stabilizing buyer trends (with a ETSY relative to Americas Coverage ETSY relative to Americas Internet focus on younger buyers) and improving engagement metrics, while remaining focused on driving frequency and retention; 3) continued Source: Company data, Goldman Sachs Research estimates. See disclosures for details. focus on the four strategic priorities (show up where shoppers discover, match shoppers with the right inventory through ML,

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Goldman Sachs Etsy Inc. (ETSY)

Etsy Inc. (ETSY) Balance Sheet ($ mn) _______________________________________ NEUTRAL Rating since Aug 16, 2026 12/25 12/26E 12/27E 12/28E Cash & cash equivalents 1,395.8 1,911.0 2,283.4 2,719.4 Accounts receivable 8.7 8.4 8.8 9.0 Inventory Ratios & Valuation __________________________________________ Other current assets /25 12/26E 12/27E 12/28E Total current assets 1,961.0 2,463.1…