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Why Is Wayfair (W) Up 8.6% Since Last Earnings Report?
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A month has gone by since the last earnings report for Wayfair (W - Free Report) . Shares have added about 8.6% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Wayfair due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Wayfair Inc. before we dive into how investors and analysts have reacted as of late.
Wayfair Q3 Earnings & Revenues Beat Estimates, Both Increase Y/Y
Wayfair reported third-quarter 2025 non-GAAP earnings of 70 cents per share, which beat the Zacks Consensus Estimate by 52.17% and increased 218.2% year over year.
Net revenues for the third quarter of 2025 rose 8.1% year over year to $3.1 billion. Excluding the impact of the company’s exit from Germany, revenue growth stood at about 9% year over year. The figure beat the Zacks Consensus Estimate by 3.62%.
Last Twelve Months (LTM) net revenues per active customer increased 6.1% year over year to $578, which beat the Zacks Consensus Estimate by 5.75%.
Further, the active customer base declined. The metric decreased 2.3% year over year to 21.2 million, missing the consensus mark by 3.19%.
Wayfair’s Q3 in Details
Net revenues in the United States (87.5% of total net revenues) increased 8.6% year over year to $2.7 billion. The figure beat the Zacks Consensus Estimate by 4%.
International net revenues (12.5% of total net revenues) increased 4.6% year over year to $389 million. The number surpassed the consensus mark by 3.48%.
Orders per customer (LTM orders delivered divided by active customers) for the quarter were 1.87, up from 1.85 reported in the year-ago quarter. The figure beat the Zacks Consensus Estimate by 3.32%.
The average order value increased from $310 to $317 year over year, which missed the consensus mark by 0.47%.
The total number of delivered orders in the reported quarter was 9.8 million, up 5.4% year over year and surpassed the Zacks Consensus Estimate by 3.98%.
Repeat customers placed 7.9 million orders (80.1% of total orders delivered) in the third quarter, which increased 6.8% year over year.
Additionally, 63% of total delivered orders were placed through mobile devices in the reported quarter compared with 62.9% in the year-ago quarter.
Operating Results of Wayfair
Wayfair’s third-quarter gross profit was $934 million, up 7% year over year, representing a gross margin of 30%, which narrowed 30 basis points (bps) due to a slightly unfavourable mix and higher fulfilment costs.
Adjusted EBITDA was $208 million in the reported quarter, up 74.8% year over year, representing an adjusted EBITDA margin of 6.7%, which expanded 250 bps.
Customer service and merchant fees increased 5.4% year over year to $118 million.
Advertising expenses decreased 6.8% year over year to $330 million. Selling, operations, technology and general and administrative expenses decreased 7.3% year over year to $445 million.
Wayfair reported GAAP operating income of $38 million for the third quarter, marking a strong turnaround from an operating loss of $74 million in the year-ago quarter.
Balance Sheet & Cash Flow of Wayfair
As of Sept. 30, 2025, cash, cash equivalents and short-term investments were $1.2 billion, down from $1.4 billion as of June 30, 2025.
Long-term debt, as of Sept. 30, 2025, was $2.7 billion compared with $2.9 billion as of June 30, 2025.
In the third quarter, net cash used in operations amounted to $155 million compared with $273 million cash from operations in the second quarter.
Wayfair reported non-GAAP free cash flow of $93 million in the third quarter.
Q4 2025 Guidance
For the fourth quarter, Wayfair expects revenues to grow in the mid-single digits year over year, including an estimated 100 basis-point headwind from the closure of its German operations.
By the end of the fourth quarter of 2025, Wayfair anticipates gross margin to range between 30% and 31%.
The company expects customer service and merchant fees to remain just below 4% of net revenues, while advertising expenses are projected to represent 11-12% of net revenues in the fourth quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted 92.31% due to these changes.
VGM Scores
Currently, Wayfair has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Wayfair has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Wayfair (W) Up 8.6% Since Last Earnings Report?
A month has gone by since the last earnings report for Wayfair (W - Free Report) . Shares have added about 8.6% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Wayfair due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Wayfair Inc. before we dive into how investors and analysts have reacted as of late.
Wayfair Q3 Earnings & Revenues Beat Estimates, Both Increase Y/Y
Wayfair reported third-quarter 2025 non-GAAP earnings of 70 cents per share, which beat the Zacks Consensus Estimate by 52.17% and increased 218.2% year over year.
Net revenues for the third quarter of 2025 rose 8.1% year over year to $3.1 billion. Excluding the impact of the company’s exit from Germany, revenue growth stood at about 9% year over year. The figure beat the Zacks Consensus Estimate by 3.62%.
Last Twelve Months (LTM) net revenues per active customer increased 6.1% year over year to $578, which beat the Zacks Consensus Estimate by 5.75%.
Further, the active customer base declined. The metric decreased 2.3% year over year to 21.2 million, missing the consensus mark by 3.19%.
Wayfair’s Q3 in Details
Net revenues in the United States (87.5% of total net revenues) increased 8.6% year over year to $2.7 billion. The figure beat the Zacks Consensus Estimate by 4%.
International net revenues (12.5% of total net revenues) increased 4.6% year over year to $389 million. The number surpassed the consensus mark by 3.48%.
Orders per customer (LTM orders delivered divided by active customers) for the quarter were 1.87, up from 1.85 reported in the year-ago quarter. The figure beat the Zacks Consensus Estimate by 3.32%.
The average order value increased from $310 to $317 year over year, which missed the consensus mark by 0.47%.
The total number of delivered orders in the reported quarter was 9.8 million, up 5.4% year over year and surpassed the Zacks Consensus Estimate by 3.98%.
Repeat customers placed 7.9 million orders (80.1% of total orders delivered) in the third quarter, which increased 6.8% year over year.
Additionally, 63% of total delivered orders were placed through mobile devices in the reported quarter compared with 62.9% in the year-ago quarter.
Operating Results of Wayfair
Wayfair’s third-quarter gross profit was $934 million, up 7% year over year, representing a gross margin of 30%, which narrowed 30 basis points (bps) due to a slightly unfavourable mix and higher fulfilment costs.
Adjusted EBITDA was $208 million in the reported quarter, up 74.8% year over year, representing an adjusted EBITDA margin of 6.7%, which expanded 250 bps.
Customer service and merchant fees increased 5.4% year over year to $118 million.
Advertising expenses decreased 6.8% year over year to $330 million. Selling, operations, technology and general and administrative expenses decreased 7.3% year over year to $445 million.
Wayfair reported GAAP operating income of $38 million for the third quarter, marking a strong turnaround from an operating loss of $74 million in the year-ago quarter.
Balance Sheet & Cash Flow of Wayfair
As of Sept. 30, 2025, cash, cash equivalents and short-term investments were $1.2 billion, down from $1.4 billion as of June 30, 2025.
Long-term debt, as of Sept. 30, 2025, was $2.7 billion compared with $2.9 billion as of June 30, 2025.
In the third quarter, net cash used in operations amounted to $155 million compared with $273 million cash from operations in the second quarter.
Wayfair reported non-GAAP free cash flow of $93 million in the third quarter.
Q4 2025 Guidance
For the fourth quarter, Wayfair expects revenues to grow in the mid-single digits year over year, including an estimated 100 basis-point headwind from the closure of its German operations.
By the end of the fourth quarter of 2025, Wayfair anticipates gross margin to range between 30% and 31%.
The company expects customer service and merchant fees to remain just below 4% of net revenues, while advertising expenses are projected to represent 11-12% of net revenues in the fourth quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted 92.31% due to these changes.
VGM Scores
Currently, Wayfair has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Wayfair has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.