Wayfair posts Q2 net income of $15mln, first quarterly profit in 4 years

Wayfair reported its first quarterly profit in 4 years, with a net income of $15 million and an operating income of $17 million for Q2. Net revenue grew 5% YoY to $3.3 billion, and the company's active customer base declined 4.5%. CEO Niraj Shah declared the quarter a "resounding success," highlighting the potential for stronger sales to unlock higher margins.

Wayfair Inc. (NYSE: W) reported its first quarterly profit in four years, with a net income of $15 million and an operating income of $17 million for Q2. The online home furnishings company's net revenue grew 5% year-over-year (YoY) to $3.3 billion, despite a 4.5% decline in its active customer base. CEO Niraj Shah described the quarter as a "resounding success," highlighting the potential for stronger sales to unlock higher margins [1].

Excluding the impact from its exit from the German market, Wayfair's net revenue increased 6% YoY. U.S. revenues grew 5.3%, while international revenues were up 3.1%. The company's gross profit reached $984 million, representing 30.1% of total net revenue. Non-GAAP adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were $205 million, with a 6.3% margin [2].

Wayfair's active customer count decreased 4.5% YoY to 21 million, but revenue per active customer increased by 5.9% to $572. Orders per customer slightly rose to 1.86, maintaining orders delivered at 10 million. The average order value increased to $328, up from $313 in the previous year [3].

Shah attributed the company's success to its marketplace model, which has allowed its prices to remain largely unchanged. He noted that the momentum felt by Wayfair is driven by structural business initiatives, not by any one-time events. Wayfair has been steadily building out its brick-and-mortar footprint, with plans to open stores in Atlanta and Yonkers, New York [1].

The company's portfolio includes brands catering to different styles and preferences, such as AllModern, Birch Lane, Joss & Main, Perigold, and Wayfair Professional. In June 2025, Wayfair's Perigold opened its first bricks-and-mortar store in Houston, Texas [2].

Wayfair will host a conference call and webcast to discuss its second-quarter 2025 financial results today at 8 a.m. (ET). Investors can register for the call at https://registrations.events/direct/Q4I5693278 and access the live webcast at https://events.q4inc.com/attendee/583092726 [3].

References:
[1] https://finance.yahoo.com/news/wayfair-posts-first-quarterly-profit-120600535.html
[2] https://finance.yahoo.com/news/wayfair-reports-revenue-growth-5-135122811.html
[3] https://www.ainvest.com/news/wayfair-exceeds-q2-sales-estimates-earnings-rise-strong-revenue-growth-2508/