Etsy Sellers: Mixed Signals – Q1 Recovery vs. Long-Term Attrition

Etsy's Q1 2026 earnings transcript shows GMS up 5.5%, active buyers growing sequentially for first time in 2 years, app GMS up 11.2% – challenging earlier narrative of a shrinking marketplace. New CEO Kruti Patel Goyal emphasizes discovery, matching, and loyalty. However, rising take rates and buyer attrition remain concerns, and the 'intentional pruning' narrative is still debated. Sellers should watch for sustained recovery in upcoming quarters.