📊 AI Stock Rating — Summary

Etsy reported revenue of $678 million for Q3 2025, with net income reaching $75.5 million, resulting in an EPS of $0.76 and a net margin of approximately 11.1%. The company generated a robust free cash flow of $214.9 million. On a year-over-year basis, key metrics illustrate Etsy's focus on fiscal discipline and return strategies. With total assets of $2.65 billion and total liabilities at $3.77 billion, the company shows a negative equity position of $1.11 billion. However, their net cash situation, marked by a net debt of -$1.15 billion, demonstrates considerable liquidity. Etsy's strong cash flow enabled significant share buybacks worth $523.9 million, aligning with its capital return strategy. Despite no dividend payouts, the stock buyback indicates management's confidence in future prospects. Analyst consensus targets ranging from $41 to $81 suggest potentially substantial upside. However, the lack of explicit free cash flow yield and P/E details limits comprehensive valuation analysis. Overall, Etsy has displayed resilience through strong operational cash flows and effective capital allocation, albeit with a somewhat leveraged balance sheet.

AI Score Breakdown

Revenue Growth — Score: 6/10

Stable revenue of $678 million but growth is modest without specific YoY figures. Focus on efficiency and cost control seems strong.

Profitability — Score: 7/10

Solid net margin of 11.1% with an EPS of $0.76. Profitability is underpinned by strong cash flows, though precise trends in operating margins need further context.

Cash Flow Quality — Score: 9/10

Excellent free cash flow of $214.9 million and substantial buybacks indicate healthy liquidity and effective cash deployment.

Leverage & Balance Sheet — Score: 4/10

Negative equity of $1.11 billion is a concern; however, a strong net cash position provides a buffer against leverage risks.

Shareholder Returns — Score: 8/10

Significant buybacks of $523.9 million enhance shareholder value, despite no dividend payments. Analyst targets suggest potential for appreciation.

Analyst Sentiment & Valuation — Score: 6/10

Analyst price targets up to $81 suggest some upside; however, detailed valuation metrics are lacking. Market perception appears moderately positive.

⚠ AI-generated — informational only, not financial advice.