Wayfair Announces Third Quarter 2026 Results, Reports Double Digit U.S. Revenue Growth

Long-term debt declined to $2.572 billion from $3.233 billion at year-end, while cash and cash equivalents also fell.

Rhea-AI Summary

Wayfair (NYSE: W) reported third-quarter 2026 revenue of $3.4 billion, with growth driven by its U.S. business. Revenue rose 9.7% year over year; U.S. revenue increased 11.4% to $3.040 billion, while international revenue fell 2.3% to $380 million. Net income reached $62 million, or $0.45 per diluted share, versus a $99 million loss, or $0.76 per share, a year earlier.

Gross profit was $1.012 billion, representing 29.6% of revenue. Adjusted earnings before interest, taxes, depreciation and amortization reached $236 million, versus $208 million. Operating cash flow increased to $198 million from $155 million. Active customers rose 4.7% to 22.2 million and delivered orders increased 12.2% to 11.0 million, although average order value fell to $311 from $317. Cash, cash equivalents and short-term investments totaled $1.1 billion, with total liquidity of $1.5 billion.

33 points · 0 major

PositiveiHow this balance works

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It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

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0 major · 11 points

How the balance works

Positive

• Moderate pointQ3 revenue increased 9.7% year over year to $3.420 billion.
• Moderate pointQ3 net income reached $62 million, versus a $99 million loss a year earlier.
• Moderate pointQ3 operating income increased to $106 million from $38 million a year earlier.
• Moderate pointQ3 gross profit increased to $1.012 billion from $934 million; gross margin was 29.6%.
• Moderate pointQ3 adjusted EBITDA increased to $236 million from $208 million; margin was 6.9%.
• Moderate pointQ3 non-GAAP adjusted diluted earnings increased to $0.93 per share from $0.70 a year earlier.
• Moderate pointQ3 non-GAAP contribution profit increased to $550 million from $493 million, representing 16.1% of revenue.
• Moderate pointQ3 operating cash flow increased to $198 million from $155 million a year earlier.
• Moderate pointQ3 non-GAAP free cash flow increased to $136 million from $93 million a year earlier.
• Moderate pointActive customers increased 4.7% year over year to 22.2 million at September 30, 2026.
• Moderate pointQ3 delivered orders increased 12.2% year over year to 11.0 million.
• Moderate pointLong-term debt declined to $2.572 billion at September 30, 2026, from $3.233 billion at December 31, 2025.

21 minor points

• Minor pointQ3 U.S. revenue increased 11.4% year over year to $3.040 billion.
• Minor pointQ3 diluted earnings reached $0.45 per share, versus a $0.76 loss a year earlier.
• Minor pointLast-twelve-month revenue per active customer increased 3.1% year over year to $596.
• Minor pointOrders per customer increased to 1.90 from 1.87 in Q3 2025, measured over trailing twelve months.
• Minor pointQ3 repeat-customer orders increased 11.4% year over year to 8.8 million.
• Minor pointQ3 selling, operations, technology, general and administrative expenses declined to $441 million from $445 million.
• Minor pointQ3 equity-based compensation and related taxes declined to $66 million from $92 million a year earlier.
• Minor pointQ3 restructuring charges fell to zero from $3 million a year earlier.
• Minor pointNine-month revenue increased to $9.870 billion from $9.120 billion a year earlier.
• Minor pointNine-month U.S. revenue increased to $8.777 billion from $8.031 billion a year earlier.
• Minor pointNine-month international revenue increased to $1.093 billion from $1.089 billion a year earlier.
• Minor pointNine-month gross profit increased to $2.946 billion from $2.755 billion a year earlier.
• Minor pointNine-month operating income reached $199 million, versus a $67 million loss a year earlier.
• Minor pointNine-month net loss narrowed to $44 million from $197 million; diluted loss narrowed to $0.33 from $1.54.
• Minor pointNine-month adjusted EBITDA increased to $629 million from $519 million a year earlier.
• Minor pointNine-month non-GAAP adjusted diluted earnings increased to $2.14 per share from $1.73 a year earlier.
• Minor pointNine-month non-GAAP contribution profit increased to $1.529 billion from $1.381 billion a year earlier.
• Minor pointNine-month operating cash flow increased to $506 million from $332 million a year earlier.
• Minor pointNine-month non-GAAP free cash flow increased to $331 million from $184 million a year earlier.
• Minor pointNine-month delivered orders increased to 31.0 million from 28.9 million; average order value rose to $318 from $315.
• Minor pointNine-month common-stock repurchases totaled $60 million.

Negative

• Moderate pointQ3 net interest expense increased to $42 million from $31 million a year earlier.
• Moderate pointNine-month debt-extinguishment loss increased to $102 million from $68 million a year earlier.
• Moderate pointCash and cash equivalents declined to $1.038 billion at September 30, 2026, from $1.476 billion at year-end.
• Minor pointQ3 international revenue declined 2.3% year over year to $380 million; constant-currency growth was negative 1.8%.
• Minor pointQ3 average order value declined to $311 from $317 a year earlier.

6 minor points

• Minor pointQ3 repeat customers' share of delivered orders slipped to 80.0% from 80.1% a year earlier.
• Minor pointQ3 customer service and merchant fees increased to $127 million from $118 million a year earlier.
• Minor pointQ3 advertising expense increased to $338 million from $330 million a year earlier.
• Minor pointNine-month net interest expense increased to $120 million from $83 million a year earlier.
• Minor pointNine-month property and equipment purchases increased to $81 million from $45 million a year earlier.
• Minor pointStockholders' deficit widened to $2.804 billion at September 30, 2026, from $2.782 billion at year-end.

News Explained

A profitable quarter did not eliminate Wayfair’s nine-month loss, while its reported long-term debt balance was lower at September thirtieth than at year-end.

Wayfair reported third-quarter net income of $62 million, but a net loss for the nine months ended September 30, 2026. Long-term debt was $2,572 million at September 30, 2026, compared with $3,233 million at December 31, 2025.

Key Figures

Total net revenue: $3.4 billion; +9.7% YoY U.S. net revenue: $3.0 billion; +11.4% YoY International net revenue: $380 million; -2.3% YoY +5 more

Total net revenue

$3.4 billion; +9.7% YoY

Q3 2026

U.S. net revenue

$3.0 billion; +11.4% YoY

Q3 2026

International net revenue

$380 million; -2.3% YoY

Q3 2026

Net income

$62 million vs. $(99) million

Q3 2026 vs. Q3 2025

Adjusted EBITDA

$236 million vs. $208 million

Q3 2026 vs. Q3 2025

Diluted earnings per share

$0.45 vs. $(0.76)

Q3 2026 vs. Q3 2025

Free cash flow

$136 million vs. $93 million

Q3 2026 vs. Q3 2025

Orders delivered

11.0 million; +12.2% YoY

Q3 2026

Previous Earnings Reports

1 past event · Latest: Aug 04

Same Type 1 event

1. Aug 04

   Q2 earnings

   24h Move

   +30.0%

   Q2 revenue rose 7.5%, U.S. revenue grew 8.7%, and free cash flow reached $301 million.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

non-gaap, adjusted ebitda, diluted earnings per share, free cash flow, +1 more

5 terms

non-gaap financial

"Non-GAAP Contribution Profit was $550 million"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

adjusted ebitda financial

"Non-GAAP Adjusted EBITDA was $236 million"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

diluted earnings per share financial

"Diluted earnings per share was $0.45"

Diluted earnings per share is a measure of a company's profit allocated to each share of stock, taking into account all possible shares that could be created through stock options, convertible bonds, or other securities. It shows the lowest possible earnings per share if all these potential shares were issued, helping investors understand the worst-case scenario for their ownership. This figure matters because it provides a more conservative view of a company's profitability per share.

free cash flow financial

"Non-GAAP Free Cash Flow was $136 million"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

View in glossary

revolving credit facility financial

"including availability under our revolving credit facility"

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Q3 Net Revenue of $3.4 billion with 22.2 million Active Customers

BOSTON, Nov. 4, 2026 /PRNewswire/ -- Wayfair Inc. ("Wayfair," "we," or "our") (NYSE: W), the destination for all things home, today reported financial results for its third quarter ended September 30, 2026.

Third Quarter 2026 Financial Highlights

• Total net revenue of $3.4 billion, increased $303 million, up 9.7% year over year
• U.S. net revenue of $3.0 billion, increased $312 million, up 11.4% year over year
• International net revenue of $380 million, decreased $9 million, down 2.3% year over year. International Net Revenue Constant Currency Growth was (1.8)%
• Gross profit was $1,012 million, or 29.6% of total net revenue. Non-GAAP Contribution Profit was $550 million, or 16.1% of net revenue
• Net income was $62 million and Non-GAAP Adjusted EBITDA was $236 million
• Diluted earnings per share was $0.45 and Non-GAAP Adjusted Diluted Earnings per Share was $0.93
• Net cash provided by operating activities was $198 million and Non-GAAP Free Cash Flow was $136 million
• Cash, cash equivalents and short-term investments totaled $1.1 billion and total liquidity was $1.5 billion, including availability under our revolving credit facility

"Q3 was our strongest quarter of growth in the post-pandemic period, with total net revenue up 9.7% year-over-year and our U.S. business growing over 11%. That growth flowed through nicely to the bottom line, with an Adjusted EBITDA Margin of 6.9%, our best Q3 result since 2020," said Niraj Shah, CEO, co-founder and co-chairman, Wayfair.

"At the start of this year, we told you we expected to take share in the U.S. at a pace we had not seen in several years. With U.S. revenue growing double digits against a roughly flat category here in Q3, we've done exactly that. That growth was driven by orders, which were up 12% year-over-year, and active customers up more than 4%. The momentum we have on orders and customers give us confidence that our share gains are structural, and we are still in the early innings."

Other Third Quarter Highlights 

• Active customers totaled 22.2 million as of September 30, 2026, an increase of 4.7% year over year
• LTM net revenue per active customer was $596 as of September 30, 2026, an increase of 3.1% year over year
• Orders per customer, measured as LTM orders delivered divided by active customers, was 1.90 for the third quarter of 2026, compared to 1.87 for the third quarter of 2025
• Orders delivered in the third quarter of 2026 were 11.0 million, an increase of 12.2% year over year
• Repeat customers placed 80.0% of total orders delivered in the third quarter of 2026, compared to 80.1% in the third quarter of 2025
• Repeat customers placed 8.8 million orders in the third quarter of 2026, an increase of 11.4% year over year
• Average order value was $311 in the third quarter of 2026, compared to $317 in the third quarter of 2025
• 64.4% of total orders delivered were placed via a mobile device in the third quarter of 2026, compared to 63.0% in the third quarter of 2025

Key Financial Statement and Operating Metrics

		Three Months Ended September 30,				Nine Months Ended September 30,
		2026		2025		2026		2025
		(in millions, except LTM net revenue per active customer, average order value and per share data)
Key Financial Statement Metrics:
Net revenue		$          3,420		$          3,117		$          9,870		$          9,120
Gross profit		$          1,012		$            934		$          2,946		$          2,755
Income (loss) from operations		$             106		$              38		$             199		$             (67)
Net income (loss)		$               62		$             (99)		$             (44)		$           (197)
Earnings (loss) per share
Basic		$            0.45		$          (0.76)		$          (0.33)		$          (1.54)
Diluted		$            0.45		$          (0.76)		$          (0.33)		$          (1.54)
Net cash provided by operating activities		$             198		$            155		$             506		$            332
Key Operating Metrics:
Active customers (1)		22.2		21.2		22.2		21.2
LTM net revenue per active customer (2)		$            596		$            578		$            596		$            578
Orders delivered (3)		11.0		9.8		31.0		28.9
Average order value (4)		$            311		$            317		$            318		$            315
Non-GAAP Financial Measures:
Adjusted Gross Profit		$         1,013		$            937		$         2,950		$         2,762
Contribution Profit		$            550		$            493		$         1,529		$         1,381
Adjusted EBITDA		$            236		$            208		$            629		$            519
Free Cash Flow		$            136		$              93		$            331		$            184
Adjusted Diluted Earnings per Share		$           0.93		$           0.70		$           2.14		$           1.73

(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.
(2)	Last twelve months ("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.
(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; in those cases, we estimate delivery dates using 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.
(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 third quarter 2026 financial results today at 8 a.m. (ET). Investors and participants should register for the call in advance by visiting https://events.q4inc.com/analyst/124710659?pwd=m5JZILpt. 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/124710659. 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.

Wayfair Media Relations:
Tara Lambropoulos
PR@wayfair.com

Wayfair Investor Relations:
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 are forward-looking statements, including statements regarding our investment plans and anticipated returns on those investments; our plans for growth, including customer, order and revenue growth in the U.S. and abroad, and market share growth and growth rates; our future results of operations and financial position; available liquidity and access to financing sources; performance across our brands and segments; anticipated cost-cutting and liability and dilution management exercises and the expected results of such exercises; our business strategy; anticipated benefits of our strategic initiatives; plans and objectives of management for future operations, including regarding our physical retail stores and omni-channel strategy; investment in our logistics network; consumer activity and behaviors; developments in our technology and systems, including our use of artificial intelligence and machine learning technologies and the anticipated results of those developments; and the impact of macroeconomic events, including interest rates, tariffs and inflation, and our response to such events. 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" or "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, geopolitical disturbances and conflicts, or threats of such actions and related uncertainty, which could exacerbate other risks such as shipment disruptions or fuel shortages, 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; risks relating to our liability and dilution management exercises; our ability to manage the impacts of our restructurings and workforce reductions; our ability to acquire and retain customers in a cost-effective manner; our ability to increase our net revenue; our ability to curate, market, grow and maintain strong brands; our ability to grow our customer base; and our ability to expand our business and compete successfully, including risks relating to achieving the anticipated benefits of strategic initiatives and investments in our technology and systems, including generative AI. 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.

 

WAYFAIR INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
		September 30,		December 31,
		2026		2025
		(in millions, except share and per share data)
Assets:
Current assets
Cash and cash equivalents		$          1,038		$          1,476
Short-term investments		60		66
Accounts receivable, net		165		132
Inventories		89		71
Prepaid expenses and other current assets		323		256
Total current assets		1,675		2,001
Operating lease right-of-use assets		881		862
Property and equipment, net		533		516
Other non-current assets		62		61
Total assets		$          3,151		$          3,440
Liabilities and Stockholders' Deficit:
Current liabilities
Accounts payable		$          1,213		$          1,202
Other current liabilities		1,283		927
Total current liabilities		2,496		2,129
Long-term debt		2,572		3,233
Operating lease liabilities, net of current		864		835
Other non-current liabilities		23		25
Total liabilities		5,955		6,222
Commitments and contingencies (Note 5)
Stockholders' deficit:
Convertible preferred stock, $0.001 par value per share: 10,000,000 shares authorized and none issued at September 30, 2026 and December 31, 2025.		—		—
Class A common stock, par value $0.001 per share, 500,000,000 shares authorized, 115,400,430 and 108,365,428 shares issued and outstanding at September 30, 2026 and December 31, 2025, respectively.		—		—
Class B common stock, par value $0.001 per share, 164,000,000 shares authorized, 20,977,838 and 21,978,295 shares issued and outstanding at September 30, 2026 and December 31, 2025, respectively.		—		—
Additional paid-in capital		2,087		2,073
Accumulated deficit		(4,867)		(4,823)
Accumulated other comprehensive loss		(24)		(32)
Total stockholders' deficit		(2,804)		(2,782)
Total liabilities and stockholders' deficit		$          3,151		$          3,440

 

WAYFAIR INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
		Three Months Ended September 30,				Nine Months Ended September 30,
		2026		2025		2026		2025
		(in millions, except per share data)
Net revenue (1)		$          3,420		$          3,117		$          9,870		$          9,120
Cost of goods sold (2)		2,408		2,183		6,924		6,365
Gross profit		1,012		934		2,946		2,755
Operating expenses:
Customer service and merchant fees (2)		127		118		369		346
Advertising		338		330		1,059		1,046
Selling, operations, technology, general and administrative (2)		441		445		1,293		1,339
Impairment and other related net charges		—		—		2		23
Restructuring and other charges, net		—		3		24		68
Total operating expenses		906		896		2,747		2,822
Income (loss) from operations		106		38		199		(67)
Interest expense, net		(42)		(31)		(120)		(83)
Other income (expense), net		1		(5)		(14)		28
Loss on debt extinguishment, net		—		(99)		(102)		(68)
Income (loss) before income taxes		65		(97)		(37)		(190)
Provision for income taxes, net		3		2		7		7
Net income (loss)		$              62		$             (99)		$             (44)		$           (197)
Earnings (loss) per share
Basic		$            0.45		$          (0.76)		$          (0.33)		$          (1.54)
Diluted		$            0.45		$          (0.76)		$          (0.33)		$          (1.54)
Weighted-average number of shares of common stock outstanding used in computing per share amounts:
Basic		137		130		133		128
Diluted		138		130		133		128

(1)	The following tables present net revenue attributable to our reportable segments for the periods indicated:

 

		Three Months Ended September 30,				Nine Months Ended September 30,
		2026		2025		2026		2025
		(in millions)
U.S. net revenue		$          3,040		$          2,728		$          8,777		$          8,031
International net revenue		380		389		1,093		1,089
Net revenue		$          3,420		$          3,117		$          9,870		$          9,120

(2)	Includes equity-based compensation and related taxes as follows:

 

		Three Months Ended September 30,				Nine Months Ended September 30,
		2026		2025		2026		2025
		(in millions)
Cost of goods sold		$                1		$                3		$                4		$                7
Customer service and merchant fees		2		4		7		11
Selling, operations, technology, general and administrative		63		85		198		243
Total equity-based compensation and related taxes		$              66		$              92		$            209		$            261

 

WAYFAIR INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
		Nine Months Ended September 30,
		2026		2025
		(in millions)
Cash flows from operating activities:
Net loss		$            (44)		$           (197)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		195		234
Equity-based compensation expense		201		252
Amortization of debt discount and issuance costs		6		7
Impairment and other related net charges		2		23
Loss on debt extinguishment		102		68
Other non-cash adjustments		(20)		21
Changes in operating assets and liabilities:
Accounts receivable, net		(36)		33
Inventories		(18)		7
Prepaid expenses and other assets		(70)		18
Accounts payable and other liabilities		188		(134)
Net cash provided by operating activities		506		332
Cash flows for investing activities:
Purchase of short- and long-term investments		(53)		(76)
Sale and maturities of short- and long-term investments		60		74
Purchase of property and equipment		(81)		(45)
Site and software development costs		(94)		(103)
Net cash used in investing activities		(168)		(150)
Cash flows for financing activities:
Proceeds from issuance of debt, net of issuance costs		395		691
Payment of principal upon maturity of debt		(39)		—
Payments to extinguish debt		(245)		(940)
Settlement of long-term debt		(696)		—
Payments of taxes related to net share settlement of equity awards		(77)		(54)
Repurchase of common stock		(60)		—
Payments for purchase of equity instrument		(60)		—
Net cash used in financing activities		(782)		(303)
Effect of exchange rate changes on cash and cash equivalents		6		(28)
Net decrease in cash, cash equivalents and restricted cash		(438)		(149)
Cash, cash equivalents and restricted cash
Beginning of period		$          1,476		$          1,320
End of period		$          1,038		$          1,171

Non-GAAP Financial Measures

To supplement our unaudited condensed consolidated financial statements presented in accordance with generally accepted accounting principles ("GAAP"), this earnings release and the accompanying tables and the related earnings conference call contain certain non-GAAP financial measures, including Adjusted Gross Profit, Adjusted Gross Margin, Contribution Profit, Contribution Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Adjusted Diluted Earnings or Loss per Share and Net Revenue Constant Currency Growth. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating our core operational performance. We have provided a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure in this earnings release.

We calculate Adjusted Gross Profit as gross profit plus equity-based compensation and related taxes included in cost of goods sold. Gross margin is defined as gross profit as a percentage of net revenue for the same period. Adjusted Gross Margin is calculated as Adjusted Gross Profit as a percentage of net revenue for the same period. We disclose Adjusted Gross Profit and Adjusted Gross Margin because they are important indicators of our business performance, as they provide visibility into our underlying gross profitability by excluding the impact of non-cash equity-based compensation expense and related taxes. Accordingly, we believe these metrics provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and the board of directors.

We calculate Contribution Profit as Adjusted Gross Profit less customer service and merchant fees and less advertising expense, plus equity-based compensation and related taxes included in customer service and merchant fees. Contribution Margin is calculated as Contribution Profit as a percentage of net revenue for the same period. We believe that these adjustments to gross profitability provide a more meaningful understanding of the economic impact of orders fulfilled through our platform, as they incorporate the direct expenses associated with generating and servicing customer demand and isolate key cost drivers. Accordingly, we believe that Contribution Profit and Contribution Margin offer useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and the board of directors.

We calculate Adjusted EBITDA as net income or loss before depreciation and amortization, equity-based compensation and related taxes, interest income or expense, net, other income or expense, net, provision or benefit for income taxes, net, non-recurring items and other items not indicative of our core operating performance. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by Net Revenue. We disclose Adjusted EBITDA because it is a key measure used by our management and board of directors to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, management uses Adjusted EBITDA as a measure of profitability, and our references in this earnings release and the related earnings conference call to profitability (other than references to GAAP gross profit) are references to Adjusted EBITDA. We believe the exclusion of certain expenses in calculating Adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis as these costs may vary independent of business performance. For instance, we exclude the impact of equity-based compensation and related taxes as we do not consider this item to be indicative of our core operating performance. Investors should, however, understand that equity-based compensation and related taxes will be a significant recurring expense in our business and an important part of the compensation provided to our employees. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors.

We calculate Free Cash Flow as net cash provided by or used in operating activities less net cash used to purchase property and equipment and site and software development costs (collectively, "Capital Expenditures"). We disclose Free Cash Flow because it is an important indicator of our business performance as it measures the amount of cash we generate. Accordingly, we believe that Free Cash Flow provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management.

We calculate Adjusted Diluted Earnings or Loss per Share as net income or loss plus equity-based compensation and related taxes, provision or benefit for income taxes, net, non-recurring items, other items not indicative of our core operating performance, and, if dilutive, interest expense associated with convertible debt instruments under the if-converted method divided by the weighted-average number of shares of common stock used in the computation of diluted earnings or loss per share. Accordingly, we believe that these adjustments to our adjusted diluted net income or loss before calculating per share amounts for all periods presented provide a more meaningful comparison between our operating results from period to period.

We calculate Net Revenue Constant Currency Growth by translating the current period local currency net revenue by the currency exchange rates used to translate the financial statements in the comparable prior-year period. We disclose Net Revenue Constant Currency Growth because it is an important indicator of our operating results. Accordingly, we believe that Net Revenue Constant Currency Growth provides useful information to investors and others in understanding and evaluating trends in our operating results in the same manner as our management.

We calculate forward-looking non-GAAP financial measures based on internal forecasts that omit certain amounts that would be included in forward-looking GAAP financial measures. We do not attempt to provide a reconciliation of forward-looking non-GAAP financial measures to forward looking GAAP financial measures because forecasting the timing or amount of items that have not yet occurred and are out of our control is inherently uncertain and unavailable without unreasonable efforts. Further, we believe that such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of financial performance.

The non-GAAP financial measures have limitations as analytical tools. We do not, nor do we suggest that investors should consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors should also note that the non-GAAP financial measures we use may not be the same non-GAAP financial measures and may not be calculated in the same manner as that of other companies, including other companies in our industry.

The following table reflects the reconciliation of gross profit to Adjusted Gross Profit and Adjusted Gross Margin for each of the periods indicated:

			Three Months Ended September 30,				Nine Months Ended September 30,
			2026		2025		2026		2025
			(in millions, except percentages)
Reconciliation of Adjusted Gross Profit:
Gross profit			$        1,012		$          934		$        2,946		$        2,755
Gross margin			29.6 %		30.0 %		29.8 %		30.2 %
Add: Equity-based compensation and related taxes included in cost of goods sold			1		3		4		7
Adjusted Gross Profit			$        1,013		$          937		$        2,950		$        2,762
	Adjusted Gross Margin		29.6 %		30.1 %		29.9 %		30.3 %

The following table reflects the reconciliation of Adjusted Gross Profit to Contribution Profit and Contribution Margin for each of the periods indicated:

			Three Months Ended September 30,				Nine Months Ended September 30,
			2026		2025		2026		2025
			(in millions, except percentages)
Reconciliation of Contribution Profit:
Net revenue			$        3,420		$        3,117		$        9,870		$        9,120
Less: Cost of goods sold			2,408		2,183		6,924		6,365
Gross profit			1,012		934		2,946		2,755
Gross margin			29.6 %		30.0 %		29.8 %		30.2 %
Add: Equity-based compensation and related taxes included in cost of goods sold			1		3		4		7
Adjusted Gross Profit			1,013		937		2,950		2,762
	Adjusted Gross Margin		29.6 %		30.1 %		29.9 %		30.3 %
Less: Customer service and merchant fees			127		118		369		346
Less: Advertising			338		330		1,059		1,046
Add: Equity-based compensation and related taxes included in customer service and merchant fees			2		4		7		11
Contribution Profit			$          550		$          493		$        1,529		$        1,381
	Contribution Margin		16.1 %		15.8 %		15.5 %		15.1 %

The following table reflects the reconciliation of net income (loss) to Adjusted EBITDA and Adjusted EBITDA Margin for each of the periods indicated:

				Three Months Ended September 30,				Nine Months Ended September 30,
				2026		2025		2026		2025
				(in millions, except percentages)
Reconciliation of Adjusted EBITDA:
Net income (loss)				$            62		$          (99)		$          (44)		$         (197)
Depreciation and amortization				64		75		195		234
Equity-based compensation and related taxes				66		92		209		261
Interest expense, net				42		31		120		83
Other (income) expense, net				(1)		5		14		(28)
Provision for income taxes, net				3		2		7		7
Other:
Impairment and other related net charges (1)				—		—		2		23
Restructuring and other charges, net (2)				—		3		24		68
Loss on debt extinguishment (3)				—		99		102		68
Adjusted EBITDA				$          236		$          208		$         629		$          519
Net revenue				$       3,420		$       3,117		$      9,870		$       9,120
Net income (loss) margin				1.8 %		(3.2) %		(0.4) %		(2.2) %
Adjusted EBITDA Margin				6.9 %		6.7 %		6.4 %		5.7 %

(1)	During the nine months ended September 30, 2026, we recorded a $2 million impairment associated with our decision to exit a customer service center in the U.S. During the nine months ended September 30, 2025, we recorded net charges of $23 million, inclusive of $20 million associated with the Germany Restructuring and weakened macroeconomic conditions in connection with our Germany operations and $3 million related to changes in sublease market conditions for a technology center in the U.S.
(2)	During the nine months ended September 30, 2026, we incurred $24 million of charges related to a loss on termination of an operating lease for a logistics facility. During the three and nine months ended September 30, 2025, we incurred $3 million and $68 million, respectively, of charges consisting primarily of one-time employee severance, benefits, relocation and transition costs. This is inclusive of $48 million related to the Germany Restructuring and $20 million related to the March 2025 workforce reduction. We do not expect to incur any further material charges related to this workforce reduction.
(3)	During the nine months ended September 30, 2026, we incurred a $102 million loss on debt extinguishment upon repurchase of $145 million in aggregate principal amount of the 2028 Notes. During the three and nine months ended September 30, 2025, we recorded a $99 million and $68 million, respectively, loss on debt extinguishment upon repurchase of $101 million in aggregate principal amount of the 2028 Notes, $80 million in aggregate principal amount of the 2025 Notes and $696 million in aggregate principal amount of the 2026 Notes.

The following table presents Adjusted EBITDA attributable to our segments, and the reconciliation of net income or loss to Adjusted EBITDA is presented in the preceding table:

		Three Months Ended September 30,				Nine Months Ended September 30,
		2026		2025		2026		2025
		(in millions)
Segment Adjusted EBITDA:
U.S.		$            261		$             209		$            683		$            528
International		(25)		(1)		(54)		(9)
Adjusted EBITDA		$            236		$             208		$            629		$            519

The following table presents a reconciliation of net cash provided by or used in operating activities to Free Cash Flow for each of the periods indicated:

		Three Months Ended September 30,				Nine Months Ended September 30,
		2026		2025		2026		2025
		(in millions)
Net cash provided by operating activities		$            198		$             155		$            506		$            332
Purchase of property and equipment		(30)		(27)		(81)		(45)
Site and software development costs		(32)		(35)		(94)		(103)
Free Cash Flow		$            136		$               93		$            331		$            184

A reconciliation of the numerator and denominator for diluted earnings or loss per share, the most directly comparable GAAP financial measure, to the numerator and denominator for Adjusted Diluted Earnings or Loss per Share, in order to calculate Adjusted Diluted Earnings or Loss per Share is as follows:

		Three Months Ended September 30,				Nine Months Ended September 30,
		2026		2025		2026		2025
		(in millions, except per share data)
Numerator:
Numerator for basic and diluted earnings (loss) per share - net income (loss)		$             62		$             (99)		$            (44)		$           (197)
Adjustments to net income (loss)
Interest expense associated with convertible debt instruments		2		13		15		40
Equity-based compensation and related taxes		66		92		209		261
Provision for income taxes, net		3		2		7		7
Other:
Impairment and other related net charges		—		—		2		23
Restructuring and other charges, net		—		3		24		68
Loss on debt extinguishment		—		99		102		68
Numerator for Adjusted Diluted Earnings per Share - Adjusted net income (loss)		$            133		$             110		$            315		$             270
Denominator:
Denominator for basic earnings (loss) per share - weighted-average number of shares of common stock outstanding		137		130		133		128
Effect of dilutive securities:
Restricted stock units		1		—		—		—
Denominator for diluted earnings (loss) per share - weighted-average number of shares of common stock outstanding after the effect of dilutive securities		138		130		133		128
Adjustments to effect of dilutive securities:
Restricted stock units		1		—		1		—
Convertible debt instruments		4		26		13		27
Denominator for Adjusted Diluted Earnings per Share - Adjusted weighted-average number of shares of common stock outstanding after the effect of dilutive securities		143		156		147		155
Diluted earnings (loss) per share		$           0.45		$           (0.76)		$          (0.33)		$           (1.54)
Adjusted Diluted Earnings per Share		$           0.93		$            0.70		$           2.14		$            1.73

 

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SOURCE Wayfair Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much did Wayfair's revenue grow in the third quarter of 2026?

Wayfair's third-quarter revenue increased 9.7% year over year to $3.420 billion. U.S. revenue rose 11.4% to $3.040 billion, while international revenue declined 2.3% to $380 million.

Was Wayfair profitable in the third quarter of 2026?

Wayfair reported $62 million in net income, or $0.45 per diluted share, for the third quarter of 2026. That compared with a $99 million net loss, or $0.76 per share, in the third quarter of 2025.

How does Wayfair define active customers in its Q3 2026 results?

Wayfair counts an active customer as an individual who purchased directly from its sites at least once during the preceding twelve months. Changes reflect both new customers and existing customers who have not purchased within that period.

Does Wayfair's Q3 2026 delivered-order count exclude returns?

Wayfair's orders delivered metric includes orders that may eventually be returned. When actual delivery dates are unavailable, the company estimates them using historical data.