Etsy's CEO Kruti Patel Goyal highlighted the company's three-pronged AI approach: enhancing personalization, improving discoverability, and developing conversational shopping tools. This strategy has led to a sequential increase of 350,000 active buyers, stable year-over-year buyer numbers, and a 7.5% rise in gross merchandise sales to $2.6 billion in Q2 2026. AI-driven improvements in search and ad relevance contributed to a higher take rate of 25.9%. Etsy also shifted marketing to platforms like YouTube and TikTok, boosting engagement among younger buyers. The company sold its Depop marketplace to eBay, using proceeds for share buybacks, and raised its full-year growth outlook. Etsy is cautiously observing live shopping trends but has no immediate plans to enter that space.
