Q2 Net Revenue of $3.3 billion with 21.0 million Active Customers
BOSTON, Aug. 4, 2025 /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, 2025.
Second Quarter 2025 Financial Highlights
- Total net revenue of $3.3 billion, increased $156 million, up 5.0% year over year. Total net revenue excluding the impact of our exit from the German market grew 6.0% year over year
- U.S. net revenue of $2.9 billion, increased $144 million, up 5.3% year over year
- International net revenue of $399 million, increased $12 million, up 3.1% year over year. International Net Revenue Constant Currency Growth was 2.1%
- Gross profit was $984 million, or 30.1% of total net revenue
- Net income was $15 million and Non-GAAP Adjusted EBITDA was $205 million
- Diluted earnings per share was $0.11 and Non-GAAP Adjusted Diluted Earnings Per Share was $0.87
- Net cash provided by operating activities was $273 million and Non-GAAP Free Cash Flow was $230 million
- Cash, cash equivalents and short-term investments totaled $1.4 billion and total liquidity was $1.8 billion, including availability under our revolving credit facility
“The second quarter was a resounding success, defined by accelerating sales and share gain, in tandem with expanding profitability. As we have discussed over the last few years, we can and will grow profitably, while taking significant share in the market. Year-over-year revenue growth of 6% – excluding the impact of Germany – marks the highest growth rate we have seen since early 2021. Our over 6% Adjusted EBITDA margin demonstrates the significant leverage in our model, and as previewed in our investor day two years ago, is just the beginning of what we believe we can achieve over time,” said Niraj Shah, CEO, co-founder and co-chairman, Wayfair.
Shah continued, “Every dollar we spend solves for the best outcome across our customers, suppliers, and Wayfair. Two decades of this approach has taught us that building great things takes time, but when done with thought, care and prudence, can have a payoff well worth the wait. You’re seeing some of that this quarter – with years of work we’ve done leading to some of the best growth and profitability flow through our business has seen since the pandemic. We couldn’t be more excited for what lies ahead in 2025 and beyond.”
Other Second Quarter Highlights
- Active customers totaled 21.0 million as of June 30, 2025, a decrease of 4.5% year over year
- LTM net revenue per active customer was $572 as of June 30, 2025, an increase of 5.9% year over year
- Orders per customer, measured as LTM orders divided by active customers, was 1.86 for the second quarter of 2025, compared to 1.85 for the second quarter of 2024
- Orders delivered in the second quarter of both 2025 and 2024 were 10.0 million
- Repeat customers placed 80.7% of total orders delivered in the second quarter of 2025, compared to 81.7% in the second quarter of 2024
- Repeat customers placed 8.1 million orders in the second quarter of both 2025 and 2024
- Average order value was $328 in the second quarter of 2025, compared to $313 in the second quarter of 2024
- 62.9% of total orders delivered were placed via a mobile device in the second quarter of 2025, compared to 63.7% in the second quarter of 2024
Key Financial Statement and Operating Metrics
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Three Months Ended June 30, |
Six Months Ended June 30, |
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2025 |
2024 |
2025 |
2024 |
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(in millions, except LTM net revenue per active customer, average order value and per share data) |
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Key Financial Statement Metrics: |
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Net revenue |
$ 3,273 |
$ 3,117 |
$ 6,003 |
$ 5,846 |
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Gross profit |
$ 984 |
$ 941 |
$ 1,821 |
$ 1,760 |
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Income (Loss) from operations |
$ 17 |
$ (35) |
$ (105) |
$ (270) |
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Net income (loss) |
$ 15 |
$ (42) |
$ (98) |
$ (290) |
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Loss per share: |
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|
Basic |
$ 0.11 |
$ (0.34) |
$ (0.77) |
$ (2.39) |
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Diluted |
$ 0.11 |
$ (0.34) |
$ (0.77) |
$ (2.39) |
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Net cash provided by operating activities |
$ 273 |
$ 245 |
$ 177 |
$ 106 |
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Key Operating Metrics: |
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Active customers (1) |
21 |
22 |
21 |
22 |
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LTM net revenue per active customer (2) |
$ 572 |
$ 540 |
$ 572 |
$ 540 |
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Orders delivered (3) |
10 |
10 |
19 |
20 |
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Average order value (4) |
$ 328 |
$ 313 |
$ 315 |
$ 299 |
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Non-GAAP Financial Measures: |
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Adjusted EBITDA |
$ 205 |
$ 163 |
$ 311 |
$ 238 |
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Free Cash Flow |
$ 230 |
$ 183 |
$ 91 |
$ (10) |
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Adjusted Diluted Earnings (Loss) per Share |
$ 0.87 |
$ 0.47 |
$ 1.02 |
$ 0.16 |
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(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. |
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(2) |
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. |
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(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, and as such we estimate delivery dates based on 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. |
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(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 2025 financial results today at 8 a.m. (ET). Investors and participants should register for the call in advance by visiting https://registrations.events/direct/Q4I5693278. 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/583092726. 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.
Wayfair generated $12.0 billion in net revenue for the twelve months ended June 30, 2025 and is headquartered in Boston, Massachusetts with global operations.
Media Relations Contact:
Tara Lambropoulos
PR@wayfair.com
Investor Relations Contact:
Ryan Barney
IR@wayfair.com
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, including statements regarding our investment plans and anticipated returns on those investments; our future customer growth; our future results of operations and financial position; including the exit out of German business; available liquidity and access to financing sources; our business strategy, plans and objectives of management for future operations, including our international growth and omni-channel strategy; consumer activity and behaviors; developments in our technology and systems and anticipated results of those developments; and the impact of macroeconomic events, including interest rates, inflation and changes in tariffs and global trade conditions, and our response to such events, are forward-looking statements. 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,” “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, 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; our ability to increase our net revenue per active customer; our ability to build and maintain strong brands; and our ability to expand our business and compete successfully. 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.
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WAYFAIR INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
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June 30, |
December 31, |
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2025 |
2024 |
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(in millions, except share and per |
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Assets: |
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Current assets |
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Cash and cash equivalents |
$ 1,326 |
$ 1,316 |
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Short-term investments |
52 |
56 |
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Accounts receivable, net |
110 |
155 |
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Inventories |
89 |
76 |
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Prepaid expenses and other current assets |
233 |
274 |
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Total current assets |
1,810 |
1,877 |
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Operating lease right-of-use assets |
868 |
925 |
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Property and equipment, net |
540 |
603 |
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Other non-current assets |
60 |
54 |
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Total assets |
$ 3,278 |
$ 3,459 |
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Liabilities and Stockholders’ Deficit: |
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Current liabilities |
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Accounts payable |
$ 1,140 |
$ 1,246 |
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Other current liabilities |
1,075 |
1,124 |
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Total current liabilities |
2,215 |
2,370 |
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Long-term debt |
2,884 |
2,882 |
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Operating lease liabilities, net of current |
869 |
929 |
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Other non-current liabilities |
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