Etsy (ETSY) is focused on strengthening the core marketplace after the company agreed to sell Depop to eBay (EBAY), with management emphasizing improvements in customer retention and purchase frequency, Oppenheimer said.

Core marketplace gross merchandise sales, or GMS, fell 1% year-over-year in Q4, improving from a 3% decline in Q3. Active buyers decreased 2% year-over-year, compared with a 4% drop in Q3. Revenue rose 3% year-over-year, 1% above Oppenheimer's estimate and in line with Street consensus.

Etsy expects 2026 core GMS excluding Depop to grow slightly on a reported US dollar basis, compared with flat growth estimates by Oppenheimer and the Street. The company also expects Q1 core GMS growth of 3%, which is 2% above Oppenheimer's estimate.

The investment firm said in a Thursday research note that the company's management may use the $1.2 billion in Depop proceeds to increase share repurchases above the current $750 million authorization.

The firm raised its core GMS growth estimates for fiscal 2026 and 2027 and increased its EBITDA growth forecasts by 1% for 2026 and 5% for 2027.

Oppenheimer maintained a perform rating on Etsy.

Shares of Etsy rose more than 10% in recent Friday trading.

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