#United States #Boston #financial results #Q3 2025 #Wayfair Inc.

Wayfair's Q3 2025 Financial Overview

Wayfair Inc., a premier destination for home goods, reported compelling financial results for its third quarter of 2025, ending on September 30. The company experienced notable growth in both revenue and profitability, indicating a strong rebound in the home retail sector.

Financial Highlights

In Q3 2025, Wayfair's total net revenue achieved an impressive $3.1 billion, marking a 8.1% increase from the previous year, equating to an additional $233 million in revenue. When excluding the impact of exiting the German market, net revenue growth was even more pronounced at 9.0% year over year. U.S. net revenue led the charge with $2.7 billion, representing an 8.6% boost compared to Q3 2024. International net revenue also saw growth, reaching $389 million, up 4.6%.

The company's gross profit was reported at $934 million, maintaining a solid 30.0% of total net revenue. However, Wayfair also noted a net loss of $99 million, with a diluted loss per share of $0.76. Notably, their Non-GAAP Adjusted EBITDA stood at $208 million, boasting a 6.7% margin — the highest outside the pandemic period, indicating robust operational efficiency.

Key Operational Metrics

Wayfair's operational performance continued to shine with several key metrics:

• - Active customers totaled 21.2 million, a slight decrease of 2.3% from the prior year.
• - The latest twelve months (LTM) net revenue per active customer grew by 6.1%, reaching $578.
• - The average order value saw a marginal rise to $317 compared to $310 in Q3 2024.
• - Remarkably, 63.0% of total orders delivered were made via mobile devices, showing an ongoing trend in consumer shopping preferences.

Orders delivered in the third quarter reached 9.8 million, an increase of 5.4% year over year. Repeat customers accounted for 80.1% of total orders, further emphasizing customer loyalty.

Executive Insights

Niraj Shah, CEO and co-founder of Wayfair, expressed optimism regarding the company’s performance, stating, "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, and substantial profitability flow through is powered by a strong contribution margin and fixed cost discipline as our business has returned to growth."

Shah highlighted that their strategic focus on enhancing customer experience and expanding product offerings has played a pivotal role in driving recent success.

Looking Ahead

As Wayfair navigates the evolving retail landscape, the company’s strong liquidity — totaling $1.7 billion — positions it favorably for continued investment in technology and operational enhancements, promising further growth opportunities moving into 2026.

Wayfair remains dedicated to delivering quality home goods, ensuring that customers can easily create their ideal living spaces. With an expanded product range and a seamless shopping experience, Wayfair is poised to strengthen its market presence further while addressing shifts in consumer demand and behavior.

With its resilient financial position, strong growth metrics, and a commitment to innovation, Wayfair shows significant potential to capture new customers and foster loyalty among existing ones as it continues to lead in the home goods sector.