ETSYCAUTIOUS

Gross Margin

72.2%

Updated 104h ago

Sector Performance

88th percentile

ETSY

72.2%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin measures the percentage of revenue a company keeps after paying the direct costs of making its products—a higher figure generally indicates stronger pricing power and cost efficiency.

ETSY's current gross margin of 72.2% is well above the sector median of 43.2%, placing it in the 88th percentile among peers. However, no trend data is available: the year-over-year change is listed as N/A, and the quarter-over-quarter change is also N/A, so there is no history to assess direction. The combination of a very high gross margin level with no observable trend suggests the company has a durable competitive advantage at a single point in time, but investors cannot gauge whether that advantage is improving or eroding. This absence of trend information introduces uncertainty, as a high margin that is declining could signal future risk, while a stable one would be reassuring. The overall CAUTIOUS verdict is supported by this metric: the strong margin level is positive, but the lack of trend data means there is not enough evidence to confirm that performance is sustainable or improving.

Frequently Asked Questions

What does the Gross Margin tell investors about ETSY?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are ETSY's closest peers by Gross Margin?

The closest peers by Gross Margin include: WHR (12.7%), JBHT (12.6%), DVN (12.1%), F (11.9%), GM (11.5%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.