Wayfair's Q2 Performance Ahead Of Expectations

Wayfair Inc. ("Wayfair," "we," or "our") (NYSE: W), the destination for all things home, today reported financial results for its second quarter ended June 30, 2025.

Second Quarter 2025 Financial Highlights

• Total net revenue of $3.3 billion, increased $156 million, up 5.0% year over year. Total net revenue excluding the impact of our exit from the German market grew 6.0% year over year
• U.S. net revenue of $2.9 billion, increased $144 million, up 5.3% year over year
• International net revenue of $399 million, increased $12 million, up 3.1% year over year. International Net Revenue Constant Currency Growth was 2.1%
• Gross profit was $984 million, or 30.1% of total net revenue
• Net income was $15 million and Non-GAAP Adjusted EBITDA was $205 million
• Diluted earnings per share was $0.11 and Non-GAAP Adjusted Diluted Earnings Per Share was $0.87
• Net cash provided by operating activities was $273 million and Non-GAAP Free Cash Flow was $230 million
• Cash, cash equivalents and short-term investments totaled $1.4 billion and total liquidity was $1.8 billion, including availability under our revolving credit facility

"The second quarter was a resounding success, defined by accelerating sales and share gain, in tandem with expanding profitability. As we have discussed over the last few years, we can and will grow profitably, while taking significant share in the market. Year-over-year revenue growth of 6% - excluding the impact of Germany - marks the highest growth rate we have seen since early 2021. Our over 6% Adjusted EBITDA margin demonstrates the significant leverage in our model, and as previewed in our investor day two years ago, is just the beginning of what we believe we can achieve over time," said Niraj Shah, CEO, co-founder and co-chairman, Wayfair.

Shah continued, "Every dollar we spend solves for the best outcome across our customers, suppliers, and Wayfair. Two decades of this approach has taught us that building great things takes time, but when done with thought, care and prudence, can have a payoff well worth the wait. You're seeing some of that this quarter - with years of work we've done leading to some of the best growth and profitability flow through our business has seen since the pandemic. We couldn't be more excited for what lies ahead in 2025 and beyond."

Other Second Quarter Highlights 

• Active customers totaled 21.0 million as of June 30, 2025, a decrease of 4.5% year over year
• LTM net revenue per active customer was $572 as of June 30, 2025, an increase of 5.9% year over year
• Orders per customer, measured as LTM orders divided by active customers, was 1.86 for the second quarter of 2025, compared to 1.85 for the second quarter of 2024
• Orders delivered in the second quarter of both 2025 and 2024 were 10.0 million
• Repeat customers placed 80.7% of total orders delivered in the second quarter of 2025, compared to 81.7% in the second quarter of 2024
• Repeat customers placed 8.1 million orders in the second quarter of both 2025 and 2024
• Average order value was $328 in the second quarter of 2025, compared to $313 in the second quarter of 2024
• 62.9% of total orders delivered were placed via a mobile device in the second quarter of 2025, compared to 63.7% in the second quarter of 2024

Key Financial Statement and Operating Metrics

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) 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, and as such we estimate delivery dates based on 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.

Wayfair generated $12.0 billion in net revenue for the twelve months ended June 30, 2025 and is headquartered in Boston, Massachusetts with global operations.

Source : Wayfair

Image : Wayfair

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