Is the business good?
How good a business is ETSY?
Etsy, Inc. earns 77% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
77%
Return on invested capital · cost of capital 9.0% · 68 points above what the capital costs: growth creates value
- Operating margin
- 14%
Operating margin · Internet Retail median 7.6% · 12 months to Q1 2026
- Cash conversion
- 2.50×
Cash conversion · 3.81× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- +13%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 25% |
| FY2021 | 20% |
| FY2022 | −26% |
| FY2023 | 10% |
| FY2024 | 14% |
| FY2025 | 9.2% |
Details›
- Gross margin12 months to Q1 2026
- 72%
- Operating margin12 months to Q1 2026
- 14%
- Net margin12 months to Q1 2026
- 9.9%
- Free cash flow margin
- 25%
- R&D as % of revenue
- 15%
- Revenue, trailing twelve months
- $2.86B
- Free cash flow, trailing twelve months
- $711M
- Net income, trailing twelve months
- $285M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 77%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Internet Retail
Ranks #3 of 18 by Smart Score