Wayfair Exceeds Q2 Sales Estimates, Earnings Rise Amid Strong Revenue Growth

Wayfair's Q2 sales beat estimates with a 5% YoY increase to $3.27 billion, exceeding analyst expectations. Non-GAAP profit was $0.87 per share, significantly above consensus estimates. Active customers were 21 million, down 1 million YoY. The company's adjusted EBITDA was $205 million, with a 6.3% margin, beating estimates by 38.9%.

Wayfair Inc. (NYSE: W) reported its second-quarter 2025 financial results, showcasing a 5.0% year-over-year (YoY) increase in net revenue to $3.3 billion, surpassing analyst expectations. The company's non-GAAP adjusted earnings per share (EPS) were $0.87, significantly above consensus estimates. Active customers totaled 21.0 million as of June 30, 2025, down 4.5% YoY. The company's adjusted EBITDA was $205 million, with a 6.3% margin, beating estimates by 38.9%.

Key highlights include:
- Total net revenue of $3.3 billion, up $156 million (5.0% YoY).
- U.S. net revenue of $2.9 billion, up $144 million (5.3% YoY).
- International net revenue of $399 million, up $12 million (3.1% YoY).
- Gross profit of $984 million, or 30.1% of total net revenue.
- Net income of $15 million and non-GAAP Adjusted EBITDA of $205 million.
- Diluted earnings per share (EPS) of $0.11 and non-GAAP adjusted diluted EPS of $0.87.
- Net cash provided by operating activities of $273 million and non-GAAP free cash flow of $230 million.

Wayfair's CEO, Niraj Shah, commented, "The second quarter was a resounding success, defined by accelerating sales and share gain, in tandem with expanding profitability. We can and will grow profitably, while taking significant share in the market."

The company's active customer base decreased by 4.5% YoY, while LTM net revenue per active customer increased by 5.9% YoY. Orders per customer and average order value also showed positive trends.

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.

References:
[1] https://www.morningstar.com/news/pr-newswire/20250804ne42806/wayfair-announces-second-quarter-2025-results-reports-highest-revenue-growth-and-profitability-since-2021