Wayfair Reports Financial Results for Third Quarter

October 28, 2025  by Karen Parrish in Business Strategy, Industry   

Third Quarter 2025 Financial Highlights

— Total net revenue of $3.1 billion, increased $233 million, up 8.1% year over year. Total net revenue excluding the impact of our exit from the German market grew 9.0% year over year

— U.S. net revenue of $2.7 billion, increased $216 million, up 8.6% year over year

— International net revenue of $389 million, increased $17 million, up 4.6% year over year. International Net Revenue Constant Currency Growth was 3.5%

— Gross profit was $934 million, or 30.0% of total net revenue

— Net loss was $99 million and Non-GAAP Adjusted EBITDA was $208 million

— Diluted loss per share was $0.76 and Non-GAAP Adjusted Diluted Earnings Per Share was $0.70

— Net cash provided by operating activities was $155 million and Non-GAAP Free Cash Flow was $93 million

— Cash, cash equivalents and short-term investments totaled $1.2 billion and total liquidity was $1.7 billion, including availability under our revolving credit facility

"The third quarter was a great success - share gain further accelerated, with revenue growing 9% year-over-year excluding Germany. 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. Our 6.7% Adjusted EBITDA margin marks 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," said Niraj Shah, CEO, co-founder and co-chairman, Wayfair.

Other Third Quarter Highlights 

— Active customers totaled 21.2 million as of September 30, 2025, a decrease of 2.3% year over year

— LTM net revenue per active customer was $578 as of September 30, 2025, an increase of 6.1% year over year

— Orders per customer, measured as LTM orders delivered divided by active customers, was 1.87 for the third quarter of 2025, compared to 1.85 for the third quarter of 2024

— Orders delivered in the third quarter of 2025 were 9.8 million, an increase of 5.4% year over year

— Repeat customers placed 80.1% of total orders delivered in the third quarter of 2025, compared to 79.9% in the third quarter of 2024

— Repeat customers placed 7.9 million orders in the third quarter of 2025, an increase of 6.8% year over year.

— Average order value was $317 in the third quarter of 2025, compared to $310 in the third quarter of 2024

— 63.0% of total orders delivered were placed via a mobile device in the third quarter of 2025, compared to 62.9% in the third quarter of 2024

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.