Wayfair beats Street, marks highest revenue growth and profitability since 2021
Wayfair Inc. swung to a profit in its second quarter amid better-than-expected profit and revenue as its CEO suggested that the worst of it may be over for the struggling furniture market.
On the company’s earnings call, Wayfair CEO, co-founder and co-chairman Niraj Shah said that the furniture market is better so far this year than it has been in the last three years, but is still flat to down low single digits.
“I would describe the market not as having strength, but as sort of feeling like it’s bottomed out,” he told analysts.
The online home furnishings giant reported its results several days after it announced it would open its fourth large-format store, in Denver, in late 2026. Wayfair unveiled the concept in May 2024 at Edens Plaza in Wilmette, Ill. Upcoming locations include Atlanta, opening in 2026, and Yonkers, N.Y., opening in early 2027. In other expansion, the company opened the first physical store of its upscale Perigold brand in June, in Houston, with a second set to open this fall, in West Palm Beach, Fla.
Wayfair reported net income of $15 million, or $0.11 a share, for the quarter ended June 30 compared to a loss of $42 million, or $0.34 a share, in the year-ago quarter. Adjusted earnings were $0.87, far ahead of analysts’ estimates of adjusted earnings of $0.33 a share.
Total net revenue rose 5% to $3.3 billion, topping estimates of $3.1 billion. (Total net revenue excluding the impact of Wayfair’s exit from the German market grew 6.0% year over year, marking its highest growth rate since early 2021.) U.S. net revenue increased 5.3% to $2.9 billion.
"The second quarter was a resounding success, defined by accelerating sales and share gain, in tandem with expanding profitability,” said Shah in the earnings statement. “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,"
Active customers totaled 21 million, a decrease of 4.5% from the prior-year quarter. (Wayfair noted it exited the German market this year.)
Wayfair’s average order value in the second quarter was $328, up from $313 in the prior year’s quarter. 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.
The company’s brand portfolio include Wayfair, AllModern, Perigold, Birch Lane, Joss & Main and Wayfair Professional.
