On August 6, Etsy fell 6.93% in regular trading, trading around $81.48/share, with turnover of approximately $42.10 million. The decline was triggered by a sharp miss on GAAP earnings and the announcement of a major workforce restructuring despite top-line strength.

Etsy reported Q2 revenue of $668.3 million, exceeding the FactSet consensus estimate of $646.1 million. Adjusted EPS from continuing operations came in at $0.98, up from $0.39 a year earlier. However, on a GAAP basis, the company posted a loss of $0.36 per share, dramatically missing the analyst consensus estimate of $0.74 in profit — representing a 244% decline from year-ago earnings of $0.25 per share.

Simultaneously, the company approved a restructuring plan to eliminate approximately 220 positions, or roughly 12% of its marketplace workforce, reducing total headcount to about 1,600 employees. Etsy estimates the plan will incur approximately $35 million in charges, primarily consisting of severance, employee benefits, and related costs, with implementation expected to be substantially complete by end of Q3.

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