Wayfair Q3 tops Street amid increased spending by repeat customers
Wayfair Inc. reported better-than-expected third-quarter earnings and revenue as it struck a positive note about the upcoming holiday season.
The online home furnishings giant has not seen any consumer behavior related to tariffs, CEO and co-founder Niraj Shah said on the company’s earnings call, with a few slight exceptions.
“We’re seeing strong performance over the first month of the quarter and we’re excited about the holiday season ahead,” Shah told analysts.
Wayfair reported a net loss of $99 million, or $0.76 per share, for the quarter ended Sept. 30, compared to a loss of $74 million, or $0.60 per share, in the year-ago period. Adjusted earnings came to $0.70 a share, far ahead of analysts’ estimates of $0.44 a share.
Total revenue rose 8.1% to $3.12 billion from $2.88 billion, topping estimates of $3.02 billion. U.S. net revenue increased 8.6% to $2.7 billion. International net revenue rose 4.6% to $389 million.
Orders delivered to customers rose 5.4% from the year-ago quarter, with repeat customers placing 80.1% of total orders, up from 79.9% last year. Wayfair said its repeat customers placed 7.9 million orders during the third quarter, up 6.8% from the year-ago period.
In other results, the average order value was $317, up from $310 in the year-ago quarter. Active customers totaled 21.2 million at the end of the quarter, down 2.3% year over year.
"The third quarter was a great success — share gain further accelerated, with revenue growing 9% year over year excluding Germany,” said Shah. “We saw orders delivered grow by over 5% year over year in the quarter, including new orders now growing mid-single digits for two quarters in a row. This came in tandem with more than 70% year over year growth in adjusted EBITDA.”
Shah noted that company’s 6.7% adjusted EBITDA margin marked the highest level achieved in Wayfair's history outside of the pandemic period.
“As we've promised, substantial profitability flow through is powered by a strong contribution margin and fixed cost discipline as our business has returned to growth," he said.
Wayfair is continuing to expand its namesake brand in brick and mortar. It has added several locations to the 2026 lineup for its large-format store concept, including The Shops at Northfield in Denver, and The District at Howell Mill in Atlanta.
The company expects fourth-quarter net revenue to be up in the mid-single digits year over year.
Boston-based Wayfair generated $11.9 billion in net revenue for the 12 months ended March 31, 2025. Its brands include Wayfair, AllModern, Perigold, Birch Lane, Joss & Main and Wayfair Professional.
