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It has been about a month since the last earnings report for Wayfair (W - Free Report) . Shares have lost about 12.1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Wayfair due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Wayfair Inc. before we dive into how investors and analysts have reacted as of late.

Wayfair Q2 Earnings Beat Estimates on U.S. Demand, Market Share GainsWayfair reported second-quarter 2026 earnings of 95 cents per share, which beat the Zacks Consensus Estimate of 94 cents. Net revenues for the second quarter of 2026 rose 7.5% year over year to $3.52 billion, surpassing the Zacks Consensus Estimate of $3.47 billion by 1.41%.

The outperformance was driven by accelerating U.S. demand, sustained market share gains and outsized growth from the company's specialty and luxury brands, including Perigold.

Last Twelve Months (LTM) net revenues per active customer increased 4.2% year over year to $596 as of June 30, 2026. The active customer base rose 3.3% year over year to 21.7 million.

Wayfair’s Q2 in DetailsNet revenues in the United States (88.8% of total net revenues) increased 8.7% year over year to $3.13 billion, the strongest growth the segment has posted in the post-pandemic period. International net revenues (11.2% of total net revenues) declined 1.3% year over year to $394 million. On a constant currency basis, international revenues declined 2% year over year.

Orders per customer (LTM orders delivered divided by active customers) were 1.89 for the quarter, up from 1.86 in the second quarter of 2025. The average order value expanded from $328 to $332 year over year.

Total orders delivered in the second quarter were 10.6 million, up 6% year over year. Repeat customers placed 8.5 million orders (80.2% of total orders delivered), representing an increase of 4.9% year over year compared with 80.7% of total orders in the second quarter of 2025. Mobile orders accounted for 64.1% of total orders delivered, up from 62.9% in the second quarter of 2025.

Operating Results of WayfairWayfair's second-quarter gross profit was $1.05 billion, representing a gross margin of 30%, which contracted 10 basis points year over year. Non-GAAP Contribution Profit was $539 million, or 15.3% of net revenues, representing a contribution margin improvement of 10 basis points year over year. Adjusted EBITDA was $242 million in the reported quarter, up 18% year over year, representing an adjusted EBITDA margin of 6.9%, which expanded 60 basis points year over year and marked the company's best margin performance since 2021.

Customer service and merchant fees represented 3.6% of net revenues. Advertising expenses represented 11.1% of net revenues, an improvement of roughly 30 basis points from the second quarter of 2025. Selling, operations, technology and general and administrative (SOT G&A) expenses were $361 million for the quarter, delivering 100 basis points of leverage against the prior-year period.

Wayfair reported a GAAP net loss of $1 million for the second quarter against GAAP net income of $15 million in the second quarter of 2025. GAAP loss per share was 1 cent versus earnings of 11 cents a year earlier. Second-quarter results included a $59 million loss on debt extinguishment tied to the repurchase of 2028 convertible notes.

Balance Sheet & Cash Flow of WayfairAs of June 30, 2026, cash and cash equivalents were $1.07 billion, and short-term investments were $78 million, bringing the combined total to $1.14 billion compared with $1.06 billion as of March 31, 2026. Total liquidity reached $1.6 billion, including availability under the revolving credit facility, up from $1.5 billion as of March 31, 2026.

Long-term debt as of June 30, 2026, was $2.8 billion compared with $2.93 billion as of March 31, 2026, reflecting the redemption of the remaining 2028 convertible notes, funded in part through the issuance of a $400 million high-yield note.

Net cash provided by operating activities was $360 million in the second quarter, up from $273 million in the second quarter of 2025. Non-GAAP free cash flow was $301 million, up more than 30% year over year and the strongest quarterly figure since the second quarter of 2020. Capital expenditures totaled $59 million for the quarter.

Q3 2026 GuidanceFor the third quarter of 2026, Wayfair expects revenues to grow in the high single digits year over year.

The company expects gross margin in the range of 29.5% to 30.5% of net revenues, with results likely landing toward the lower end as investment in the customer experience, including the loyalty program, continues.

Customer service and merchant fees are expected to be just below 4% of net revenues, while advertising is expected in the 10.5% to 11.5% range, also toward the low end. Together, this should yield a contribution margin in line with or slightly better than the second quarter. SOT G&A is expected to hold in the $360 million to $370 million range.

Adjusted EBITDA margin is guided in the 6% to 7% range for the third quarter.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in estimates revision.

The consensus estimate has shifted 71.26% due to these changes.

VGM ScoresCurrently, Wayfair has a strong Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Wayfair has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry PlayerWayfair is part of the Zacks Internet - Commerce industry. Over the past month, Carvana (CVNA - Free Report) , a stock from the same industry, has gained 6.7%. The company reported its results for the quarter ended June 2026 more than a month ago.

Carvana reported revenues of $7.38 billion in the last reported quarter, representing a year-over-year change of +52.4%. EPS of $0.42 for the same period compares with $0.26 a year ago.

For the current quarter, Carvana is expected to post earnings of $0.49 per share, indicating a change of +133.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.9% over the last 30 days.

Carvana has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.

These Outperforming Giants Are Boosting Dividends in 2026, With Yields of Up to 6.6%Wayfair NYSE: W reported 7.5% year-over-year revenue growth in the second quarter of 2026, led by an 8.7% increase in its U.S. segment, as the online home-goods retailer said it continued to capture market share despite uneven consumer demand and subdued housing turnover.

Chief Executive Officer Niraj Shah said orders rose 6% from a year earlier and more than 12% sequentially from the first quarter, representing the company’s strongest second-quarter sequential order growth since 2020. Active customers increased by more than 3%, while average order value rose 1.2% year over year.

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3 Low-Volatility Plays Quietly Making a Name For ThemselvesShah said the U.S. home category showed flat to slightly positive year-over-year growth during the quarter, the first such reading by Wayfair since 2021. Growth was stronger among higher-income consumers, reflecting what management described as a K-shaped economic recovery.

U.S. Growth Offsets International Pressure Wayfair’s U.S. revenue growth accelerated to nearly 9%, which Shah described as the company’s best domestic revenue growth rate of the post-pandemic period. In contrast, international revenue declined 1.3%, as Canada and the United Kingdom continued to face weaker consumer sentiment and discretionary spending pressure.

ABB’s Rotork Deal Could Put These Flow Control Stocks Back in FocusChief Financial Officer Kate Gulliver said Wayfair’s new-order growth accelerated for a fourth consecutive quarter and reached a post-COVID high. Management attributed its U.S. momentum to improvements in pricing, selection, delivery speed and product availability, alongside newer initiatives including Wayfair Rewards, Wayfair Verified, Delivery Plus and physical stores.

For the third quarter, the company projected high-single-digit revenue growth. Gulliver said the outlook does not assume an improvement in broader macroeconomic conditions, but instead reflects the company’s expectation of continued market-share gains from its operating initiatives.

Management said the mass-market Wayfair business remains the company’s primary revenue driver, even as its higher-end businesses grow more rapidly. Shah said promotions remain an important feature of the mass-market home category, which has been promotional for several years, though Wayfair is continuing to refine its promotional calendar and supplier tools.

Perigold Expands Luxury Presence Wayfair highlighted momentum at Perigold, its luxury home furnishings platform, which grew more than 35% year over year during the second quarter. The company’s specialty retail brands collectively grew nearly 20%.

Shah said Perigold now generates slightly more than $400 million in annual sales and has posted double-digit growth every year since its 2017 launch, including growth of more than 20% in both 2024 and 2025. The platform offers nearly 3.5 million products from 1,500 brands and has an active customer base approaching 400,000, up nearly 20% from a year earlier.

Perigold customers spend nearly three times as much annually as a typical Wayfair.com customer, according to Shah. About 40% of Perigold customers each year are new to Wayfair’s family of brands. The company also said business-to-business volume reached an all-time high share of Perigold sales following a relaunch of its trade program for designers, architects and other professionals.

Wayfair has opened two Perigold stores, in Houston and West Palm Beach. Shah said those locations are producing average order values above the online business and are generating early design-led project pipelines. The company plans to introduce a Perigold loyalty program later this year and intends to expand its luxury store presence over time.

Shah also described the use of internally developed artificial intelligence tools for Perigold product and lifestyle imagery. He said a seasonal outdoor imagery project that could have required roughly $2 million in traditional production costs was completed for less than $10,000 using an AI pipeline, with stylists overseeing the output and automated quality checks applied to images.

Margins, Cash Flow and Capital Structure Wayfair reported a 30.0% gross margin in the second quarter and a 15.3% contribution margin, which reflects gross profit less customer service, merchant and advertising costs. Advertising expense represented 11.1% of revenue, while customer service and merchant fees were 3.6%.

Selling, operations, technology and general and administrative expenses totaled $361 million. Gulliver said the company generated $242 million in adjusted EBITDA, equivalent to a 6.9% margin, its best EBITDA margin since 2021. The company also generated $301 million in free cash flow, up more than 30% year over year and its strongest quarterly cash generation since the second quarter of 2020.

Cash and equivalents: $1.1 billion at quarter-end Total liquidity, including an undrawn revolver: $1.6 billion Cash from operations: $360 million Capital expenditures: $59 million During the quarter, Wayfair issued a $400 million high-yield note and used the proceeds to redeem the remainder of its 2028 convertible bonds. The company said it has $39 million of 2026 bonds and $229 million of 2027 bonds remaining. Gulliver said the reduced convertible debt balance should limit future losses on debt extinguishment that have affected GAAP net income in recent periods.

Wayfair said stock-based compensation on a trailing 12-month basis was about 40% lower than two years earlier. The company expects to use future free cash flow opportunistically for share repurchases, with an initial objective of more directly offsetting stock-based compensation dilution.

Third-Quarter Outlook For the third quarter, Wayfair forecast gross margin of 29.5% to 30.5%, with results expected toward the lower end as it continues to invest in customer experience and loyalty. The company expects those investments to be largely offset by lower advertising expense.

Wayfair projected customer service and merchant fees just below 4% of revenue, advertising expense of 10.5% to 11.5% of revenue, and contribution margin in line with or slightly above the second-quarter level. It expects selling, operations, technology and G&A expenses of $360 million to $370 million and adjusted EBITDA margin of 6% to 7%.

Management also forecast third-quarter capital expenditures of $60 million to $70 million. The company plans to continue investing in physical retail, with a Denver store scheduled to open this fall and additional Wayfair locations planned next year in Westchester, Fort Lauderdale, Cincinnati, Princeton and Pittsburgh.

About Wayfair (NYSE:W)Wayfair Inc NYSE: W is an e-commerce company focused on home furnishings and décor. Through its platform, Wayfair offers a broad assortment of furniture, lighting, home textiles, kitchenware and decorative accessories. The company's portfolio includes flagship sites such as Wayfair.com, as well as specialty retail brands like Joss & Main, AllModern, Birch Lane and Perigold, each catering to distinct design styles and price points.

Founded in 2002 by Niraj Shah and Steve Conine under the name CSN Stores, the business rebranded as Wayfair in 2011 and went public in 2014.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Q2 Net Revenue of $3.5 billion with 21.7 million Active Customers

, /PRNewswire/ -- Wayfair Inc. ("Wayfair," "we," or "our") (NYSE: W), the destination for all things home, today reported financial results for its second quarter ended June 30, 2026.

Second Quarter 2026 Financial Highlights

Total net revenue of $3.5 billion, increased $246 million, up 7.5% year over year U.S. net revenue of $3.1 billion, increased $251 million, up 8.7% year over year International net revenue of $394 million, decreased $5 million, down 1.3% year over year. International Net Revenue Constant Currency Growth was (2.0)% Gross profit was $1,054 million, or 30.0% of total net revenue. Non-GAAP Contribution Profit was $539 million, or 15.3% of net revenue Net loss was $1 million and Non-GAAP Adjusted EBITDA was $242 million Diluted loss per share was $0.01 and Non-GAAP Adjusted Diluted Earnings Per Share was $0.95 Net cash provided by operating activities was $360 million and Non-GAAP Free Cash Flow was $301 million Cash, cash equivalents and short-term investments totaled $1.1 billion and total liquidity was $1.6 billion, including availability under our revolving credit facility "Q2 marked another strong quarter of share capture and top line momentum, with 7.5% net revenue growth fueled by momentum in orders, which were up by 6% for the period. We saw the best sequential growth we've seen in a Q2 since the second quarter of 2020. In fact, revenue growth in the US was the best we've seen in the entire post-COVID period, with nearly 9% year-over-year revenue growth, continuing the high single digit share spread we've held since last fall," said Niraj Shah, CEO, co-founder and co-chairman, Wayfair.

"We saw noteworthy outperformance from our specialty retail brands, which grew by nearly 20% in the second quarter, and Perigold, which grew by more than 35%. We are excited to see ramping growth in the Wayfair business and complementing that with outsized growth from our specialty and luxury brands, all building to why we expect to see even further acceleration as our numerous initiatives play out."

Other Second Quarter Highlights 

Active customers totaled 21.7 million as of June 30, 2026, an increase of 3.3% year over year LTM net revenue per active customer was $596 as of June 30, 2026, an increase of 4.2% year over year Orders per customer, measured as LTM orders delivered divided by active customers, was 1.89 for the second quarter of 2026, compared to 1.86 for the second quarter of 2025 Orders delivered in the second quarter of 2026 were 10.6 million, an increase of 6.0% year over year Repeat customers placed 80.2% of total orders delivered in the second quarter of 2026, compared to 80.7% in the second quarter of 2025 Repeat customers placed 8.5 million orders in the second quarter of 2026, an increase of 4.9% year over year Average order value was $332 in the second quarter of 2026, compared to $328 in the second quarter of 2025 64.1% of total orders delivered were placed via a mobile device in the second quarter of 2026, compared to 62.9% in the second quarter of 2025 Key Financial Statement and Operating Metrics

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

(in millions, except LTM net revenue per active customer, average order
value and per share data)

Key Financial Statement Metrics:

Net revenue

$          3,519

$          3,273

$          6,450

$          6,003

Gross profit

$          1,054

$             984

$          1,934

$          1,821

Income (loss) from operations

$             104

$               17

$               93

$           (105)

Net (loss) income

$                (1)

$               15

$            (106)

$             (98)

(Loss) earnings per share

Basic

$          (0.01)

$            0.11

$           (0.81)

$          (0.77)

Diluted

$          (0.01)

$            0.11

$           (0.81)

$          (0.77)

Net cash provided by operating activities

$            360

$             273

$             308

$            177

Key Operating Metrics:

Active customers (1)

21.7

21.0

21.7

21.0

LTM net revenue per active customer (2)

$            596

$             572

$            596

$            572

Orders delivered (3)

10.6

10.0

20.0

19.1

Average order value (4)

$            332

$             328

$            322

$            315

Non-GAAP Financial Measures:

Adjusted Gross Profit

$         1,056

$            986

$         1,937

$         1,825

Contribution Profit

$            539

$            497

$            979

$            888

Adjusted EBITDA

$            242

$            205

$            393

$            311

Free Cash Flow

$            301

$            230

$            195

$              91

Adjusted Diluted Earnings per Share

$           0.95

$           0.87

$           1.22

$           1.02

(1)

The number of active customers represents the total number of individual customers who have purchased at least once directly from our sites during the preceding twelve-month period. The change in active customers in a reported period captures both the inflow of new customers as well as the outflow of existing customers who have not made a purchase in the last twelve months. We view the number of active customers as a key indicator of our growth.

(2)

Last twelve months ("LTM") net revenue per active customer represents our total net revenue in the last twelve months divided by our total number of active customers for the same preceding twelve-month period. We view LTM net revenue per active customer as a key indicator of our customers' purchasing patterns, including their initial and repeat purchase behavior.

(3)

Orders delivered represent the total orders delivered in any period, inclusive of orders that may eventually be returned. As we ship a large volume of packages through multiple carriers, actual delivery dates may not always be available; in those cases, we estimate delivery dates using historical data. We recognize net revenue when an order is delivered, and therefore orders delivered, together with average order value, is an indicator of the net revenue we expect to recognize in a given period. We view orders delivered as a key indicator of our growth.

(4)

We define average order value as total net revenue in a given period divided by the orders delivered in that period. We view average order value as a key indicator of the mix of products on our sites, the mix of offers and promotions and the purchasing behavior of our customers.

Webcast and Conference Call

Wayfair will host a conference call and webcast to discuss its second quarter 2026 financial results today at 8 a.m. (ET). Investors and participants should register for the call in advance by visiting https://events.q4inc.com/analyst/622572405?pwd=UaY8U308. After registering, instructions will be shared on how to join the call. The call will also be available via live webcast at https://events.q4inc.com/attendee/622572405. An archive of the webcast conference call will be available shortly after the call ends on Wayfair's Investor website at investor.wayfair.com. Important information may be disseminated initially or exclusively via the Investor website; investors should consult the site to access this information.

About Wayfair

Wayfair is the destination for all things home, and we make it easy to create a home that is just right for you. Whether you're looking for that perfect piece or redesigning your entire space, Wayfair offers quality finds for every style and budget, and a seamless experience from inspiration to installation.

The Wayfair family of brands includes:

Wayfair: Every style. Every home. AllModern: Modern made simple. Birch Lane: Classic style for joyful living. Joss & Main: The ultimate style edit for home.  Perigold: The destination for luxury home. Wayfair Professional: A one-stop Pro shop. Media Relations Contact:
Tara Lambropoulos
[email protected] 

Investor Relations Contact
Ryan Barney
[email protected] 

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of federal and state securities laws. All statements other than statements of historical fact contained in this press release are forward-looking statements, including statements regarding our investment plans and anticipated returns on those investments; our plans for growth, including customer and revenue growth and growth rates; our future results of operations and financial position; available liquidity and access to financing sources; performance across our brands and segments; anticipated cost-cutting and liability and dilution management exercises and the expected results of such exercises; our business strategy; anticipated benefits of our strategic initiatives; plans and objectives of management for future operations, including regarding our physical retail stores and omni-channel strategy; investment in our logistics network; consumer activity and behaviors; developments in our technology and systems, including our use of artificial intelligence and machine learning technologies and the anticipated results of those developments; and the impact of macroeconomic events, including interest rates, tariffs and inflation, and our response to such events. In some cases, you can identify forward-looking statements by terms such as "aim," "may," "will," "should," "expects," "plans," "anticipates," "continues," "could," "intends," "goals," "target," "projects," "contemplates," "believes," "estimates," "predicts" or "potential" or the negative of these terms or other similar expressions.

Forward-looking statements are based on current expectations of future events. We cannot guarantee that any forward-looking statement will be accurate, although we believe that we have been reasonable in our expectations and assumptions. Investors should realize that if underlying assumptions prove inaccurate or that known or unknown risks or uncertainties materialize, actual results could vary materially from our expectations and projections. Investors are therefore cautioned not to place undue reliance on any forward-looking statements. We believe that these risks and uncertainties include, but are not limited to, adverse macroeconomic conditions, including economic instability, changes in laws and regulations and other governmental actions or policies, including those related to taxes and new or increased tariffs, and the uncertainty surrounding potential changes in such laws and regulations or other potential governmental actions or policies; export controls, sustained higher interest rates and inflation, slower growth or the potential for recession, disruptions in the global supply chain and other conditions affecting the retail environment for products we sell, geopolitical disturbances and conflicts, or threats of such actions and related uncertainty, which could exacerbate other risks such as shipment disruptions or fuel shortages, and other matters that influence consumer spending and preferences, as well as our ability to plan for and respond to the impact of these conditions; risks relating to our liability and dilution management exercises; our ability to manage the impacts of our restructurings and workforce reductions; our ability to acquire and retain customers in a cost-effective manner; our ability to increase our net revenue; our ability to curate, market, grow and maintain strong brands; our ability to grow our customer base; and our ability to expand our business and compete successfully, including risks relating to achieving the anticipated benefits of strategic initiatives and investments in our technology and systems, including generative AI. A further list and description of risks, uncertainties and other factors that could cause or contribute to differences in our future results include the cautionary statements herein and in our most recent Annual Report on Form 10-K and in our other filings and reports with the Securities and Exchange Commission. We qualify all of our forward-looking statements by these cautionary statements.

These forward-looking statements speak only as of the date of this press release and, except as required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events or otherwise.

WAYFAIR INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited) 

June 30,

December 31,

2026

2025

(in millions, except share and per
share data)

Assets:

Current assets

Cash and cash equivalents

$          1,065

$             1,476

Short-term investments

78

66

Accounts receivable, net

184

132

Inventories

84

71

Prepaid expenses and other current assets

274

256

Total current assets

1,685

2,001

Operating lease right-of-use assets

722

862

Property and equipment, net

512

516

Other non-current assets

59

61

Total assets

$          2,978

$             3,440

Liabilities and Stockholders' Deficit:

Current liabilities

Accounts payable

$          1,317

$             1,202

Other current liabilities

951

927

Total current liabilities

2,268

2,129

Long-term debt

2,797

3,233

Operating lease liabilities, net of current

680

835

Other non-current liabilities

21

25

Total liabilities

5,766

6,222

Commitments and contingencies (Note 5)

Stockholders' deficit:

Convertible preferred stock, $0.001 par value per share: 10,000,000 shares authorized
and none issued at June 30, 2026 and December 31, 2025.

—

—

Class A common stock, par value $0.001 per share, 500,000,000 shares authorized,
115,500,539 and 108,365,428 shares issued and outstanding at June 30, 2026 and
December 31, 2025, respectively.

—

—

Class B common stock, par value $0.001 per share, 164,000,000 shares authorized,
20,977,914 and 21,978,295 shares issued and outstanding at June 30, 2026 and
December 31, 2025, respectively.

—

—

Additional paid-in capital

2,166

2,073

Accumulated deficit

(4,929)

(4,823)

Accumulated other comprehensive loss

(25)

(32)

Total stockholders' deficit

(2,788)

(2,782)

Total liabilities and stockholders' deficit

$          2,978

$             3,440

WAYFAIR INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

(in millions, except per share data)

Net revenue (1) 

$          3,519

$          3,273

$          6,450

$          6,003

Cost of goods sold (2)

2,465

2,289

4,516

4,182

Gross profit

1,054

984

1,934

1,821

Operating expenses:

Customer service and merchant fees (2)

128

121

242

228

Advertising

392

372

721

716

Selling, operations, technology, general and administrative (2)

428

465

852

894

Impairment and other related net charges

2

—

2

23

Restructuring and other charges, net

—

9

24

65

Total operating expenses

950

967

1,841

1,926

Income (loss) from operations

104

17

93

(105)

Interest expense, net

(39)

(29)

(78)

(52)

Other (expense) income, net

(4)

23

(15)

33

(Loss) gain on debt extinguishment

(59)

6

(102)

31

Income (loss) before income taxes

2

17

(102)

(93)

Provision for income taxes, net

3

2

4

5

Net (loss) income

$               (1)

$               15

$           (106)

$             (98)

(Loss) earnings per share

Basic

$          (0.01)

$            0.11

$          (0.81)

$          (0.77)

Diluted

$          (0.01)

$            0.11

$          (0.81)

$          (0.77)

Weighted-average number of shares of common stock
outstanding used in computing per share amounts:

Basic

132

128

131

127

Diluted

132

129

131

127

(1) The following tables present net revenue attributable to our reportable segments for the periods indicated:

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

(in millions)

U.S. net revenue

$          3,125

$          2,874

$          5,737

$          5,303

International net revenue

394

399

713

700

Net revenue

$          3,519

$          3,273

$          6,450

$          6,003

(2) Includes equity-based compensation and related taxes as follows:

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

(in millions)

Cost of goods sold

$               2

$                2

$                3

$                4

Customer service and merchant fees

3

4

5

7

Selling, operations, technology, general and administrative

67

95

135

158

Total equity-based compensation and related taxes

$             72

$            101

$            143

$            169

WAYFAIR INC. 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Six Months Ended June 30,

2026

2025

(in millions)

Cash flows from operating activities:

Net loss

$             (106)

$              (98)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization

131

159

Equity-based compensation expense

136

164

Amortization of debt discount and issuance costs

4

5

Impairment and other related net charges

2

23

Loss (gain) on debt extinguishment

102

(31)

Other non-cash adjustments

(15)

32

Changes in operating assets and liabilities:

Accounts receivable, net

(52)

49

Inventories

(12)

(11)

Prepaid expenses and other assets

(21)

21

Accounts payable and other liabilities

139

(136)

Net cash provided by operating activities

308

177

Cash flows for investing activities:

Purchase of short- and long-term investments

(43)

(55)

Sale and maturities of short- and long-term investments

31

58

Purchase of property and equipment

(51)

(18)

Site and software development costs

(62)

(68)

Net cash used in investing activities

(125)

(83)

Cash flows for financing activities:

Proceeds from issuance of debt, net of issuance costs

395

691

Payments to extinguish debt

(245)

(742)

Settlement of long-term debt

(701)

—

Payments of taxes related to net share settlement of equity awards

(48)

(9)

Net cash used in financing activities

(599)

(60)

Effect of exchange rate changes on cash and cash equivalents

5

(28)

Net (decrease) increase in cash, cash equivalents and restricted cash

(411)

6

Cash, cash equivalents and restricted cash

Beginning of period

$            1,476

$            1,320

End of period

$            1,065

$            1,326

Non-GAAP Financial Measures

To supplement our unaudited condensed consolidated financial statements presented in accordance with generally accepted accounting principles ("GAAP"), this earnings release and the accompanying tables and the related earnings conference call contain certain non-GAAP financial measures, including Adjusted Gross Profit, Adjusted Gross Margin, Contribution Profit, Contribution Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Adjusted Diluted Earnings or Loss per Share and Net Revenue Constant Currency Growth. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating our core operational performance. We have provided a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure in this earnings release.

We calculate Adjusted Gross Profit as gross profit plus equity-based compensation and related taxes included in cost of goods sold. Gross margin is defined as gross profit as a percentage of net revenue for the same period. Adjusted Gross Margin is calculated as Adjusted Gross Profit as a percentage of revenue for the same period. We disclose Adjusted Gross Profit and Adjusted Gross Margin because they are important indicators of our business performance, as they provide visibility into our underlying gross profitability by excluding the impact of non-cash equity-based compensation expense and related taxes. Accordingly, we believe these metrics provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and the board of directors.

We calculate Contribution Profit as Adjusted Gross Profit less customer service and merchant fees and less advertising expense, plus equity-based compensation and related taxes included in customer service and merchant fees. Contribution Margin is calculated as Contribution Profit as a percentage of revenue for the same period. We believe that these adjustments to gross profitability provide a more meaningful understanding of the economic impact of orders fulfilled through our platform, as they incorporate the direct expenses associated with generating and servicing customer demand and isolate key cost drivers. Accordingly, we believe that Contribution Profit and Contribution Margin offer useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and the board of directors.

We calculate Adjusted EBITDA as net income or loss before depreciation and amortization, equity-based compensation and related taxes, interest income or expense, net, other income or expense, net, provision or benefit for income taxes, net, non-recurring items and other items not indicative of our core operating performance. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by Net Revenue. We disclose Adjusted EBITDA because it is a key measure used by our management and board of directors to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, management uses Adjusted EBITDA as a measure of profitability, and our references in this earnings release and the related earnings conference call to profitability (other than references to GAAP gross profit) are references to Adjusted EBITDA. We believe the exclusion of certain expenses in calculating Adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis as these costs may vary independent of business performance. For instance, we exclude the impact of equity-based compensation and related taxes as we do not consider this item to be indicative of our core operating performance. Investors should, however, understand that equity-based compensation and related taxes will be a significant recurring expense in our business and an important part of the compensation provided to our employees. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors.

We calculate Free Cash Flow as net cash provided by or used in operating activities less net cash used to purchase property and equipment and site and software development costs (collectively, "Capital Expenditures"). We disclose Free Cash Flow because it is an important indicator of our business performance as it measures the amount of cash we generate. Accordingly, we believe that Free Cash Flow provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management.

We calculate Adjusted Diluted Earnings or Loss per Share as net income or loss plus equity-based compensation and related taxes, provision or benefit for income taxes, net, non-recurring items, other items not indicative of our core operating performance, and, if dilutive, interest expense associated with convertible debt instruments under the if-converted method divided by the weighted-average number of shares of common stock used in the computation of diluted earnings or loss per share. Accordingly, we believe that these adjustments to our adjusted diluted net income or loss before calculating per share amounts for all periods presented provide a more meaningful comparison between our operating results from period to period.

We calculate Net Revenue Constant Currency Growth by translating the current period local currency net revenue by the currency exchange rates used to translate the financial statements in the comparable prior-year period. We disclose Net Revenue Constant Currency Growth because it is an important indicator of our operating results. Accordingly, we believe that Net Revenue Constant Currency Growth provides useful information to investors and others in understanding and evaluating trends in our operating results in the same manner as our management.

We calculate forward-looking non-GAAP financial measures based on internal forecasts that omit certain amounts that would be included in forward-looking GAAP financial measures. We do not attempt to provide a reconciliation of forward-looking non-GAAP financial measures to forward looking GAAP financial measures because forecasting the timing or amount of items that have not yet occurred and are out of our control is inherently uncertain and unavailable without unreasonable efforts. Further, we believe that such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of financial performance.

The non-GAAP financial measures have limitations as analytical tools. We do not, nor do we suggest that investors should consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors should also note that the non-GAAP financial measures we use may not be the same non-GAAP financial measures and may not be calculated in the same manner as that of other companies, including other companies in our industry.

The following table reflects the reconciliation of gross profit to Adjusted Gross Profit and Adjusted Gross Profit Margin for each of the periods indicated:

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

(in millions, except percentages)

Reconciliation of Adjusted Gross Profit:

Gross profit

$       1,054

$          984

$       1,934

$       1,821

Gross margin

30.0 %

30.1 %

30.0 %

30.3 %

Add: Equity-based compensation and related taxes included in cost of goods sold

2

2

3

4

Adjusted Gross Profit

$       1,056

$          986

$       1,937

$       1,825

Adjusted Gross Margin

30.0 %

30.1 %

30.0 %

30.4 %

The following table reflects the reconciliation of Adjusted Gross Profit to Contribution Profit and Contribution Profit Margin for each of the periods indicated:

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

(in millions, except percentages)

Reconciliation of Contribution Profit:

Net revenue

$       3,519

$       3,273

$       6,450

$       6,003

Less: Cost of goods sold

2,465

2,289

4,516

4,182

Gross profit

1,054

984

1,934

1,821

Gross margin

30.0 %

30.1 %

30.0 %

30.3 %

Add: Equity-based compensation and related taxes included in cost of goods sold

2

2

3

4

Adjusted Gross Profit

1,056

986

1,937

1,825

Adjusted Gross Margin

30.0 %

30.1 %

30.0 %

30.4 %

Less: Customer service and merchant fees

128

121

242

228

Less: Advertising

392

372

721

716

Add: Equity-based compensation and related taxes
included in customer service and merchant fees

3

4

5

7

Contribution Profit

$          539

$          497

$          979

$          888

Contribution Margin

15.3 %

15.2 %

15.2 %

14.8 %

The following table reflects the reconciliation of net (loss) income to Adjusted EBITDA and Adjusted EBITDA margin for each of the periods indicated:

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

(in millions, except percentages)

Reconciliation of Adjusted EBITDA:

Net (loss) income

$               (1)

$             15

$        (106)

$           (98)

Depreciation and amortization

64

78

131

159

Equity-based compensation and related taxes

72

101

143

169

Interest expense, net

39

29

78

52

Other expense (income), net

4

(23)

15

(33)

Provision for income taxes, net

3

2

4

5

  Other:

      Impairment and other related net charges (1)

2

—

2

23

      Restructuring and other charges, net (2)

—

9

24

65

      Loss (gain) on debt extinguishment (3)

59

(6)

102

(31)

Adjusted EBITDA

$            242

$          205

$         393

$          311

Net revenue

$         3,519

$       3,273

$      6,450

$       6,003

Net (loss) income margin

— %

0.5 %

(1.6) %

(1.6) %

Adjusted EBITDA Margin

6.9 %

6.3 %

6.1 %

5.2 %

(1)

During the three and six months ended June 30, 2026, we recorded $2 million impairment associated with our decision to exit a customer service center in the U.S. During the six months ended June 30, 2025, we recorded net charges of $23 million, inclusive of $20 million associated with the Germany Restructuring and weakened macroeconomic conditions in connection with our Germany operations and, $3 million related to changes in sublease market conditions for a technology center in the U.S.

(2)

During the six months ended June 30, 2026, we incurred $24 million of charges related to a loss on termination of an operating lease for a logistics facility. During the three and six months ended June 30, 2025, we incurred $9 million and $65 million, respectively, of charges consisting primarily of one-time employee severance, benefits, relocation and transition costs. This is inclusive of $46 million related to the Germany Restructuring and $19 million related to the March 2025 workforce reduction. We do not expect to incur any further material charges related to this workforce reduction.

(3)

During the three and six months ended June 30, 2026, we recorded a $59 million and $102 million, respectively, loss on debt extinguishment upon repurchase of $145 million in aggregate principal amount of the 2028 Notes. During the three and six months ended June 30, 2025, we recorded a $6 million and $31 million, respectively, gain on debt extinguishment upon repurchase of $80 million in aggregate principal amount of the 2025 Notes and $696 million in aggregate principal amount of the 2026 Notes.

The following table presents Adjusted EBITDA attributable to our segments, and the reconciliation of net income or loss to Adjusted EBITDA is presented in the preceding table:

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

(in millions)

Segment Adjusted EBITDA:

US

$            261

$            224

$            422

$            319

International

(19)

(19)

(29)

(8)

Adjusted EBITDA

$            242

$            205

$            393

$            311

The following table presents a reconciliation of net cash provided by or used in operating activities to Free Cash Flow for each of the periods indicated:

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

(in millions)

Net cash provided by operating activities

$            360

$            273

$            308

$            177

Purchase of property and equipment

(26)

(13)

(51)

(18)

Site and software development costs

(33)

(30)

(62)

(68)

Free Cash Flow

$            301

$            230

$            195

$             91

A reconciliation of the numerator and denominator for diluted earnings or loss per share, the most directly comparable GAAP financial measure, to the numerator and denominator for Adjusted Diluted Earnings or Loss per Share, in order to calculate Adjusted Diluted Earnings or Loss per Share is as follows:

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

(in millions, except per share data)

Numerator:

Numerator for basic and diluted (loss) earnings per share - net (loss) income

$               (1)

$             15

$           (106)

$             (98)

Adjustments to net (loss) income

Interest expense associated with convertible debt instruments

4

13

11

27

Equity-based compensation and related taxes

72

101

143

169

Provision for income taxes, net

3

2

4

5

Other:

Impairment and other related net charges

2

—

2

23

Restructuring and other charges, net

—

9

24

65

Loss (gain) on debt extinguishment

59

(6)

102

(31)

Numerator for Adjusted Diluted Earnings
per Share - Adjusted net (loss) income

$            139

$            134

$            180

$             160

Denominator:

Denominator for basic (loss) earnings per share -
weighted-average number of shares of common stock
outstanding

132

128

131

127

Effect of dilutive securities:

Restricted stock units

—

1

—

—

Denominator for diluted (loss) earnings per share -
weighted-average number of shares of common stock
outstanding after the effect of dilutive securities

132

129

131

127

Adjustments to effect of dilutive securities:

Restricted stock units

1

—

—

—

Convertible debt instruments

14

27

16

30

Denominator for Adjusted Diluted Earnings per
Share - Adjusted weighted-average number of shares
of common stock outstanding after the effect of
dilutive securities

147

156

147

157

Diluted (loss) earnings per share

$          (0.01)

$           0.11

$          (0.81)

$           (0.77)

Adjusted Diluted Earnings per Share

$           0.95

$           0.87

$           1.22

$            1.02

SOURCE Wayfair Inc.