Etsy vs Redbubble: Revenue, Profit and Business Model
Etsy reported $2.9B of revenue in FY2025 and $163M of net income. Redbubble reported ~$263.5M of revenue in FY2026 and ~$7M of net income.
Latest financial snapshot
Financial summary
Etsy
Etsy earns money from fees on a marketplace it does not stock, so gross margin stays near 72% (FY2025 gross profit was $2.07B on $2.88B of revenue). The pandemic pulled demand forward: GMS more than doubled to $10.3B in 2020, then consolidated GMS declined from $13.3B in 2022 to $11.9B in 2025. Revenue held up only because the take rate rose from 22.3% to 24.2% as sellers paid more for advertising and payments. FY2025 net income fell 46.3% to $163.0M as operating expenses rose 8.8%. In 2026 the picture improved: Q2 revenue was $668M, adjusted EBITDA was $195M (a 29.2% margin), and Etsy guided to mid-single-digit full-year GMS growth.
Redbubble
Articore Group (ASX: ATG), the owner of Redbubble and TeePublic, reported FY26 (year to 30 June 2026) revenue of ~$263 million (A$408.5 million), down 6.9%, with marketplace revenue down 6.5% to ~$229 million (A$354.5 million). Gross profit rose 1.7% to ~$113 million (A$175.9 million) at a record 49.6% margin, operating EBITDA rose 76.9% to ~$10.6 million (A$16.4 million), and EBIT reached ~$6.64 million (A$10.3 million), a ~$13 million (A$20.1 million) swing from FY25. Net profit was about $7.03 million (A$10.9 million) and cash rose to ~$26.1 million (A$40.5 million) from ~$18.3 million (A$28.4 million). Operating expenses fell to ~$54.8 million (A$85 million), 34% below FY23. FY27 guidance is operating EBITDA of A$17-23 million.
Revenue and profit by year
Etsy
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $2.9B | $163M | 5.7% | +2.7% | Source |
| FY2024 | $2.8B | — | 0.0% | +2.2% | Source |
| FY2023 | $2.7B | — | 0.0% | +7.1% | Source |
| FY2022 | $2.6B | — | 0.0% | — | Source |
Redbubble
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | ~$263.5M | ~$7M | 2.7% | -6.9% | Source |
| FY2025 | ~$282.9M | ~-$7.3M | -2.6% | -11.0% | Source |
| FY2024 | ~$318M | ~-$5.7M | -1.8% | -11.2% | Source |
| FY2023 | ~$358.1M | ~-$34.9M | -9.8% | -3.2% | Source |
| FY2022 | ~$369.8M | ~-$15.9M | -4.3% | — | Source |
Where the revenue comes from
Etsy
- Marketplace Revenue~69.6%
Marketplace revenue includes the 6.5% transaction fee, $0.20 listing fees, and Etsy Payments processing fees. It totaled $2,007.2 million in FY2025, down 0.7% from $2,020.7 million in FY2024, as lower GMS offset fee and payments gains.
- Services Revenue~30.4%
Services revenue includes Etsy Ads (on-site, cost-per-click), Offsite Ads fees and shipping labels. It totaled $876.3 million in FY2025, up 11.3% from $787.6 million in FY2024, and drove all of the year's revenue growth.
- Other Revenue
Not separately reported
Etsy does not break out a separate "other" line in its FY2025 results; total revenue is reported as Marketplace plus Services. Any residual items are immaterial.
- Subsidiary Marketplace Revenue (Discontinued)
~0% (divested)
Reverb was included until its June 2, 2025 sale. Depop is reported as discontinued operations in 2026 and was sold to eBay on July 30, 2026. In FY2025 Depop generated about $1.07 billion of GMS.
Redbubble
No segment breakdown is published.
Business model and strategy
Etsy
How it makes money
Etsy operates a pure B2C and C2C two-sided marketplace model. They do not own warehouses or delivery trucks. They simply provide the software platform connecting buyers and sellers. The core revenue engine relies entirely on 'Take Rates'. The seller pays a fee just to list an item, and then Etsy takes a large cut (often over 6.5%) of the final sale price, plus payment processing fees.
Growth strategy
Facing stagnant growth in their core market, Etsy's growth strategy is highly focused on improving 'Search and Discovery' and strictly purging 'mass-produced' goods. Because Etsy has over 100 million unique, unstandardized items, searching the site can be overwhelming. They are heavily investing in Artificial Intelligence to improve search relevance.
Competitive advantage
Etsy's absolute competitive advantage is its large, highly authentic brand identity and a highly powerful, deeply entrenched 'two-sided network effect'. Buyers go to Etsy because they know all the unique, handmade sellers are there. Sellers are forced to list their crafts on Etsy because they know all the millions of buyers are there.
Redbubble
How it makes money
Redbubble earns money as the merchant of record on every sale. Artists upload designs for free and set a margin on top of a base price; a shopper pays the retail price; Redbubble routes the order to a third-party printer near the customer, pays the fulfiller's base cost, pays the artist's margin, and keeps the rest along with shipping revenue.
Growth strategy
Since 2023 the strategy has shifted from chasing sales volume to profitable revenue. Management merged Redbubble and TeePublic operations under one marketplaces team, consolidated supply chains, cut operating costs by about a third from FY23, introduced artist account fees, and made paid marketing more selective. The aim now is to return revenue to growth while scaling Dashery and Frankly Wearing.
Competitive advantage
Redbubble's main advantage is a very large catalog of artist-made designs covering niche fandoms, hobbies and jokes that a stock-holding retailer could not economically carry. That long tail produces millions of indexable product pages that attract organic search traffic.
Questions about Etsy vs Redbubble
Which company has higher revenue — Etsy, Inc. or Redbubble?
Etsy, Inc. reported $2.9B (FY2025), while Redbubble reported ~$263.5M (FY2026). By last reported revenue, Etsy, Inc. is the larger business, with Redbubble reporting a smaller revenue base. Note: these are from different fiscal years and are not a direct like-for-like comparison.
What is the market cap of Etsy, Inc. vs Redbubble?
Etsy, Inc.'s market capitalisation stands at $6.7B, while Redbubble's is $109M. Etsy, Inc. carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Redbubble.
Which is more financially efficient — Etsy, Inc. or Redbubble?
Etsy, Inc. generates $1.20M / employee in revenue per employee, while Redbubble generates $1.01M / employee. Etsy, Inc. shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Etsy, Inc. and Redbubble make money?
Etsy, Inc. and Redbubble generate revenue in fundamentally different ways. Etsy, Inc.: Etsy operates a pure B2C and C2C two-sided marketplace model. Redbubble: Redbubble earns money as the merchant of record on every sale.
Which company is valued higher relative to revenue — Etsy, Inc. or Redbubble?
On a price-to-sales (P/S) basis, Etsy, Inc. trades at 2.3x P/S and Redbubble at 0.4x P/S. Etsy, Inc. commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Redbubble. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Etsy, Inc. bigger than Redbubble?
By last reported revenue, Etsy, Inc. ($2.9B (FY2025)) is the larger company compared to Redbubble (~$263.5M (FY2026)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Etsy vs Redbubble overview