Forensic Analysis · Professional & Commercial Services · as of Aug 11, 2026

Etsy Inc (ETSY)

A forensic read on Etsy Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.

D · Weak — demands caution

Forensic grade

Grey Zone

Financial health

1.3

Distress distance

Clean

Earnings quality

Forensic signals

27.4

P / E (ttm)

$7.6B

Market cap

2.7%

Revenue growth

This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.

Etsy Inc earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads 1.3, placing it in the Grey zone. 2 forensic signals were flagged in its latest SEC filings, led by shareholder returns.

What the filings flag

115% of FCF

FY2025

Shareholder returns. Returned $777M to shareholders (buybacks + dividends) in FY2025 — 115% of free cash flow. More than free cash flow generated — and beyond operating cash too, so the extra is coming from debt or cash reserves, which isn't sustainable indefinitely. Counting the $245M of stock-based comp paid out in shares on top of that, the combined claim on free cash flow is 151%.

$1.1B

FY2022–FY2025

Goodwill impairments. Took $1.1B of goodwill writedowns across 2 years (FY2022 ($1.0B), FY2025 ($102M)) — about 1442% of net income over the span. A large writedown means an acquisition turned out worth far less than was paid — a real mark against M&A discipline.

Key fundamentals

Latest Revenue$2.88B

Revenue Growth YoY+2.7%

Revenue CAGR (3yr)+4.0%

Net Margin5.7%

Free Cash Flow$678.0M

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Data from SEC EDGAR public filings · metrics as of Aug 11, 2026. Forensic signals flag probability, not certainty.