Wayfair narrows Q4 loss; notches first annual sales gain since 2020
Wayfair Inc. ended its fiscal year on a strong note, capping off a “tremendous year” that saw it return to annual revenue growth amid rising order volumes and strong repeat customer sales.
The online home furnishings giant reported a loss of $116 million, or a loss of $0.89 per share, for the quarter ended Dec. 31, compared with a loss of $128 million, or $1.02 per share, in the year-ago period. Excluding one-time items related to equity-based compensation and other nonrecurring charges, earnings per share totaled $0.85, ahead of analysts estimates of $0.66 per share.
Total net revenue increased 6.9% year over year to $3.34 billion, topping analysts expectations of $3.30 billion. U.S. net revenue rose 7.4% to $2.9 billion. International net revenue rose 3.7% to $395 million.
Wayfair’s average fourth-quarter order value was $301, compared to $290 in the fourth quarter of 2024. Repeat customers placed 8.8 million orders during the quarter, up 3.5% year over year, and placed 79.1% of total orders delivered.
The average order values increased to $301, up from $290 in the year-ago period. The company ended the quarter with 21.3 million active customers, a decrease of 0.5% year over year.
Full Year
For the full year 2025, Wayfair reported total net revenue of $12.5 billion, up 5.1% from 2024, with a net loss of $313 million. The company generated $534 million in operating cash flow and $329 million in free cash flow for the year.
"Q4 capped off a tremendous year for Wayfair, with revenue growing 7.8% year over year excluding the impact of Germany,” said Niraj Shah, CEO, co-founder and co-chairman, Wayfair. “We had our third consecutive quarter of new customer growth, on top of healthy growth in repeat orders, all in the face of a category that contracted in the low single digits for the final quarter of the year.“
Shah noted that 2025 was a year where Wayfair returned to growth and accelerated throughout the year through a number of “organic business strategies that can compound for years to come.”
“This was characterized by two important themes: our share capture overwhelming the drag of the macro, and the substantial flow through of that growth to the bottom line,” he said, “We expect our topline growth and flow through to adjusted EBITDA to be the bedrock of our story for years to come.”
Wayfair’s brands include Wayfair, AllModern, Perigold, Birch Lane, Joss & Main and Wayfair Professional.
