Etsy (NYSE: ETSY) reported fourth-quarter earnings that topped Wall Street expectations on the bottom line, although revenue fell slightly short of forecasts. Shares surged more than 11% intra-day Thursday, driven largely by the company's agreement to sell Depop to eBay for $1.2 billion in cash.

The online marketplace operator posted earnings per share of $0.92, exceeding analyst estimates of $0.85. Revenue totaled $881.6 million, up 6.6% year over year excluding Reverb from the prior-year period, but marginally below the consensus estimate of $884.14 million.

Adjusted EBITDA reached $222.5 million, resulting in a consolidated adjusted EBITDA margin of approximately 25.2%. Gross merchandise sales (GMS) came in at $3.59 billion, representing a 2.4% increase year over year, or 1.3% growth on a currency-neutral basis excluding Reverb. The quarterly take rate was 24.5%.

Looking ahead, Etsy guided first-quarter 2026 GMS in a range of $2.38 billion to $2.43 billion and projected an adjusted EBITDA margin of roughly 28% to 30%. The company also forecast a first-quarter take rate of approximately 25.5%.