NYSE Shariah screener · October 2026
Is Etsy, Inc. (ETSY) Halal?
Etsy, Inc. · NYSE: ETSY · Consumer Discretionary
The short answer
Etsy's marketplace business shows no haram segments, but it fails on leverage: total debt of $2,985.5 million is 47.1% of its ~$6.34 billion market cap (over the 33% ceiling). Interest and other income of $24.129 million is 1.86% of revenue.
Gate 1 — Business activity: PASS
Gate 1 — business activity: PASS. Etsy, Inc., per its FY2025 Form 10-K (filed February 19, 2026), operates two-sided online marketplaces connecting creative entrepreneurs with buyers: FY2025 revenue of $2,883.5 million ($2,007.2 million marketplace, $876.3 million seller services such as advertising and shipping labels), with 8.8 million active sellers and 93.5 million active buyers.
No haram segments were identified: no alcohol, tobacco, gambling, weapons or adult-entertainment lines are disclosed. (Listing note: the 10-K cover shows NYSE - Etsy transferred off Nasdaq. Reverb was sold June 2, 2025; the Depop sale to eBay was agreed in February 2026.) The business passes gate 1; the FAIL comes from the debt ratio.
Gate 2 — Debt and cash: FAIL
Gate 2 — interest-bearing debt: FAIL (47.1%, ceiling 33%). Per Etsy's Q2 2026 Form 10-Q consolidated balance sheet (filed August 5, 2026), short-term debt was $649,594 thousand and long-term debt $2,335,911 thousand - total debt of about $2,985.5 million.
$2,985.5 million against a market capitalization of about $6.34 billion (Finnhub, October 2, 2026; NYSE: ETSY) is about 47.1%, over the 33% ceiling. The debt gate fails and is decisive.
Gate 3 — Non-compliant income: PASS
Gate 3 — non-compliant income: PASS (1.86%, ceiling 5%). Etsy's Q2 2026 Form 10-Q reports interest and other income of $24,129 thousand for the first half of 2026 against total revenue of $1,299,590 thousand - about 1.86%, under the 5% ceiling (FY2025: $44,489 thousand against $2,883.5 million, about 1.54%).
The income gate passes, but the result is moot given the debt-gate failure.
Key figures used
- Business: two-sided online marketplaces — FY2025 revenue $2,883.5M ($2,007.2M marketplace, $876.3M seller services); 8.8M active sellers, 93.5M active buyers
- Haram assessment: no haram segments identified (no alcohol/tobacco/gambling/weapons/adult lines) — business-activity gate passes
- Debt: $649,594k short-term + $2,335,911k long-term = $2,985.5M (Q2 2026 10-Q) ÷ ~$6.34B market cap (Finnhub, Oct 2, 2026) = 47.1% — over the 33% ceiling (decisive)
- Interest income: $24,129k interest and other income (6M-2026) ÷ $1,299,590k revenue = 1.86% — under the 5% ceiling (moot); FY2025: 1.54%
- Market data: NYSE-listed (ETSY) per FY2025 10-K and Q2 2026 10-Q covers — transferred off Nasdaq; actively listed, confirmed October 2, 2026
- Corporate actions: Reverb sold Jun 2, 2025; Depop sale to eBay (~$1.2B) agreed Feb 2026; Elo7 sold 2023
- Third-party: Zoya flags ETSY not Shariah-compliant (AAOIFI, Oct 2026) — consistent with this FAIL; no verifiable Musaffa or ShariaPortfolio rating
Frequently asked questions
What does Etsy do?
Etsy, Inc. (NYSE: ETSY) operates two-sided online marketplaces connecting creative entrepreneurs with buyers. Per its filings, FY2025 revenue was $2,883.5 million ($2,007.2 million marketplace, $876.3 million seller services such as advertising and shipping labels), with 8.8 million active sellers and 93.5 million active buyers. (Listing note: Etsy's 10-K cover shows NYSE - it transferred off Nasdaq. Reverb was sold June 2, 2025; the Depop sale to eBay was agreed in February 2026.)
Is Etsy's business Shariah compliant?
Etsy's business shows no haram segments: it runs online marketplaces earning transaction, listing, payments and seller-services fees, with no alcohol, tobacco, gambling, weapons or adult-entertainment lines disclosed. The business-activity gate passes; the FAIL comes from the debt ratio.
How much interest-bearing debt does Etsy have?
Etsy's Q2 2026 Form 10-Q reports short-term debt of $649,594 thousand plus long-term debt of $2,335,911 thousand - total debt of about $2,985.5 million. Against a market capitalization of about $6.34 billion (Finnhub, October 2, 2026), that is about 47.1% - over the 33% ceiling. The debt gate fails and is decisive.
How much interest income does Etsy earn?
Etsy's Q2 2026 Form 10-Q reports interest and other income of $24,129 thousand for the first half of 2026 against total revenue of $1,299,590 thousand - about 1.86%, under the 5% non-compliant income ceiling (FY2025: $44,489 thousand against $2,883.5 million, about 1.54%). The income gate passes, but the result is moot given the debt-gate failure.
What do third-party Shariah screeners say about Etsy?
Zoya flags ETSY as not Shariah-compliant (AAOIFI, October 2026) - consistent with this page's FAIL. I could not verify a Musaffa rating page for ETSY or a ShariaPortfolio rating from public sources. Third-party screeners apply different assumptions and update on different schedules - always check the latest screening before investing.
Sources
- Etsy FY2025 Form 10-K — investor relations (filed Feb 19, 2026)
- Etsy Q2 2026 Form 10-Q — investor relations (filed Aug 5, 2026)
- Finnhub — Etsy financial market data (market cap $6.34B, live quote Oct 2, 2026)
- Zoya — Etsy (ETSY) Shariah compliance page (not Shariah-compliant, AAOIFI, Oct 2026)
Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.
Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).