What is the revenue and EPS growth rate for Wayfair year over year?

Did Wayfair beat or miss consensus estimates last quarter?

What were the key takeaways from Wayfair’s earnings call?

What guidance did Wayfair's management provide for the next earnings period?

What does Wayfair do and what are its main business segments?

What is Wayfair's gross profit margin?

What is Wayfair's latest dividend and current dividend yield?

What were the key takeaways from Wayfair's earnings call?

- **Revenue and Profit Growth**: Q3 revenue +8% YoY, EBITDA $208M (6.7% margin), up 70% YoY. Mobile app revenue up double digits YoY.
- **AI-Driven Innovation**: Generative AI initiatives like Muse and Complete the Look enhance customer experience; replatforming boosts tech velocity.
- **Strategic Expansion**: Wayfair Rewards, Verified, and physical retail drive share gains; contribution margin 15.8%, up 150bps YoY.
- **2026 Outlook**: EBITDA growth to outpace revenue, with focus on AI, customer experience, and structural cost efficiency.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 revenue grew 8% YoY (9% excluding Germany), driven by order momentum (+5% YoY) and active customer growth. Adjusted EBITDA reached $208M (6.7% margin), up 70% YoY.
- **AI and Technology**: Generative AI initiatives like Muse (AI-powered inspiration engine) and Complete the Look are enhancing customer experience. Replatforming efforts have boosted developer velocity and innovation.
- **Strategic Programs**: Wayfair Rewards, Wayfair Verified, and physical retail expansion are key growth drivers. Contribution margin improved to 15.8%, up 150bps YoY.
- **Tariff Impact**: Minimal consumer pull-forward behavior; Q3 growth driven by structural improvements, not tariffs.

**【CFO Financial Commentary】**
- **Top Line**: Net revenue $1.2B, up 8% YoY. U.S. segment grew 9%, international 5%. Mobile app revenue up double digits YoY.
- **Profitability**: Gross margin 30.1%, customer service & merchant fees 3.7%, advertising 10.6%. Free cash flow $93M, up $100M YoY. Cash balance $1.2B, net leverage 2.8x.
- **Guidance**: Q4 revenue expected mid-single digits YoY, adjusted EBITDA margin 5.5%-6.5%. 2026 focus on EBITDA growth outpacing revenue.

**【Q&A Highlights】**
- **Holiday Season**: Way Day timing unchanged from 2022-23; no tariff-driven pull-forward. Q4 ad spend expected higher due to seasonality.
- **AI and Search**: Investing in generative AI for customer journey and operations. Testing agnostic search platforms but maintaining site as premier destination.
- **Industry Backdrop**: Category flattening after multiyear declines. Wayfair gaining share through price, selection, and AI-driven experience.
- **Gross Margin Strategy**: Balancing reinvestment in customer experience with cost control. Contribution margin focus to drive EBITDA growth.

Wayfair Inc. (W) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

W

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