Boston, November 4th / PRNewswire / -- Wayfair Inc. ("Wayfair" "we" or "our") (New York Stock Exchange ticker: W), a home goods e-commerce platform, today announced its financial results for the third quarter ending September 30, 2026.

Financial Highlights of the Third Quarter of 2026

• Total net revenue amounted to $3.4 billion, an increase of $303 million, representing a year-on-year growth of 9.7%.
• U.S. net revenue amounted to $3 billion, an increase of $312 million, representing a year-on-year growth of 11.4%.
• International net revenue was $380 million, a decrease of $9 million, representing a year-over-year decline of 2.3%; when calculated using a fixed exchange rate, international net revenue growth decreased by 1.8%.
• Gross profit amounted to $1.012 billion, accounting for 29.6% of total net revenue; non-GAAP contributed $550 million in profit, accounting for 16.1% of net revenue.
• Net profit was 62 million US dollars, and after non-GAAP adjustments, EBITDA amounted to 236 million US dollars.
• Earnings per share diluted to $0.45, non-GAAP adjusted earnings per share diluted to $0.93
• Net cash generated from operating activities was $198 million, and non-GAAP free cash flow was $136 million.
• Cash, cash equivalents, and short-term investments total $1.1 billion; including the available balance of revolving credit lines, the total liquidity is $1.5 billion.

Wayfair, Chief Executive Officer, Co-Founder, and Co-Chairman, Niraj Shah stated: "The third quarter was the strongest growth period for us since the pandemic, with total net revenue increasing by 9.7% year-over-year, and the U.S. business grew by more than 11%. This growth was also well reflected in our profits, with adjusted EBITDA profit margins reaching 6.9%, which is our best performance in the third quarter since 2020."

Shah also states: "At the beginning of this year, we informed everyone that we expected to capture market share in the U.S. market at a pace not seen in recent years. In the third quarter, we achieved double-digit growth in revenue in categories where sales were roughly stable, and we indeed succeeded. The growth came from orders, with orders increasing by 12% year-over-year, and the number of active customers growing by more than 4%. The momentum we have seen in orders and customers leads us to believe that this increase in market share is structural, and we are still in the early stages of this process."

Other highlights of the third quarter

• As of September 30, 2026, the total number of active customers reached 22.2 million, representing a year-on-year increase of 4.7%.
• As of September 30, 2026, over the past 12 months ( LTM ), the net revenue per active customer was $596, representing a year-on-year increase of 3.1%.
• Calculated by dividing the number of orders delivered in the past 12 months by the number of active customers, the average number of orders per customer in the third quarter was 1.90, compared to 1.87 in the third quarter of 2025.
• In the third quarter of 2026, 11 million orders were delivered, representing a year-on-year increase of 12.2%.
• Re-purchasing customers contributed 80.0% of the total orders delivered in the third quarter, and this figure increased to 80.1% in the third quarter of 2025.
• Re-purchasing customers placed 8.8 million orders in the third quarter, a year-on-year increase of 11.4%.
• The average order value in the third quarter was $311, compared to $317 in the third quarter of 2025.
• In the third quarter, 64.4% of orders were placed through mobile devices, compared to 63.0% in the third quarter of 2025.

Live webcast and teleconference

Wayfair will hold a teleconference and webcast at 8 a.m. Eastern Time today to discuss the financial results for the third quarter of 2026. Investors and participants should register in advance through https :// events.q4inc.com / analyst /124710659? pwd = m5JZILpt. Registration will provide instructions on how to join the meeting. The teleconference can also be listened to via the webcast, with the link being https :// events.q4inc.com / attendee /124710659. A replay of the live broadcast will be available shortly after the teleconference ends on Wayfair, on the investor.wayfair.com investor website. Important information may initially be released only through the investor website, so investors should visit that site to obtain relevant details.

About Wayfair

Wayfair is a one-stop destination for home products, and we are committed to making creating the ideal home easier. Whether you are looking for a perfect single item or redesigning an entire space, Wayfair can provide high-quality options for various styles and budgets, offering a smooth experience from inspiration to installation.

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Forward-looking Statements

This press release contains forward-looking statements that are defined under federal and state securities laws. Except for statements regarding historical facts in this press release, all other statements are forward-looking, including our statements regarding investment plans and their expected returns; our plans for growth, including customer, order, and revenue growth in the United States and overseas, as well as growth in market share and growth rates; our future operating results and financial conditions; available liquidity and financing sources; the performance of various brands and business segments; anticipated cost reductions and debt and dilution management measures and their expected outcomes; our business strategy; expected benefits of strategic initiatives; management's plans and objectives for future operations, including physical retail stores and omnichannel strategies; investments in logistics networks; consumer activities and behavior; developments in technology and systems, including our use of artificial intelligence and machine learning technologies and their expected outcomes; and the impact of macroeconomic events, including interest rates, tariffs, and inflation, as well as our responses to such events. In some cases, you can identify forward-looking statements by the words “aim”, “may”, “will”, “should”, “expects”, “plans”, “anticipates”, “continues”, “could”, “intends”, “goals”, “target”, “projects”, “contemplates”, “believes”, “estimates”, “predicts”, or “potential”, or their negative forms or other similar expressions.

Forward-looking statements are based on current expectations of future events. We cannot guarantee that any forward-looking statements will be accurately realized, although we believe our expectations and assumptions to be reasonable. If the underlying assumptions prove to be inaccurate, or if known or unknown risks and uncertainties arise, actual results may differ significantly from our expectations and projections. Therefore, investors are advised not to rely excessively on any forward-looking statements. We recognize that these risks and uncertainties include, but are not limited to, adverse macroeconomic conditions such as economic instability, changes in laws and regulations, and other government actions or policies, including changes related to taxation and new or increased tariffs, as well as potential changes in such laws, regulations, or government actions or policies; export controls, persistent high interest rates and inflation, slowdown in growth or potential recession, disruptions in global supply chains, and other circumstances affecting the retail environment for our products; geopolitical turmoil and conflicts, or threats related to such actions and uncertainties, which could exacerbate other risks such as transportation disruptions or fuel shortages; and other factors affecting consumer spending and preferences; as well as our ability to plan for and respond to the impacts of such circumstances; risks related to our debt and dilution management measures; our ability to manage the impact of restructurings and layoffs; our ability to acquire and retain customers in a cost-effective manner; our ability to increase net revenue; our ability to plan, market, develop, and maintain a strong brand; our ability to expand our customer base; and our ability to expand our business and compete successfully, including risks associated with the expected benefits of strategic initiatives and investments in technology systems (including generative artificial intelligence).For more risks, uncertainties, and other factors that may lead to or contribute to future performance differences, please refer to the cautionary statements in this press release, as well as our most recent 10-K annual report filed with the U.S. Securities and Exchange Commission and other filings and reports. We limit all forward-looking statements to these cautionary statements.

These forward-looking statements are only valid as of the date of issuance of this press release. Except as required by applicable laws, we assume no obligation to publicly update or revise any forward-looking statements contained in this press release due to new information, future events, or other reasons.

Non-GAAP financial indicators

To complement the unaudited consolidated financial statements prepared in accordance with generally accepted accounting principles (“GAAP”), this earnings announcement, the accompanying tables, and the related earnings conference call include several non-GAAP financial indicators, such as adjusted gross profit, adjusted gross margin, contribution profit, contribution margin rate, adjusted EBITDA, adjusted EBITDA margin rate, free cash flow, adjusted diluted earnings per share or loss per share, as well as fixed exchange rate growth in net revenue. We use these non-GAAP indicators in our internal analysis of financial results and believe they can serve as a supplement to the GAAP indicators to help investors assess our core operating performance. We have provided a comparison of these non-GAAP indicators with the most directly comparable GAAP indicators in this earnings announcement.

We define adjusted gross profit as gross profit plus equity incentives included in the cost of sales and related taxes and fees. Gross margin is defined as the proportion of gross profit to net revenue for the same period. The adjusted gross margin is then the proportion of adjusted gross profit to net revenue for the same period. We disclose adjusted gross profit and adjusted gross margin because they are important indicators of business performance. By excluding non-cash equity incentive expenses and related taxes and fees, they can more clearly reflect the underlying level of gross profit. Therefore, we believe these indicators can provide useful information to investors and others, enabling them to understand and evaluate our operating results in the same way that management and the board of directors do.

We define contribution profit as adjusted gross profit minus customer service and merchant fees, minus advertising expenses, plus the equity incentives and related taxes included in customer service and merchant fees. The contribution profit margin is then the proportion of contribution profit to net revenue for the same period. We believe that by making these adjustments to gross profit levels, we can more meaningfully understand the economic impact of orders completed through our platform, as it takes into account the direct costs of generating and serving customer needs and eliminates key cost drivers. Therefore, we believe that contribution profit and contribution profit margin can provide useful information to investors and others, enabling them to understand and evaluate our business results in the same way that management and the board of directors do.

We define the adjusted EBITDA as the value before deducting depreciation and amortization, equity incentives and related taxes, net interest income or expenses, net other income or expenses, income tax provisions or benefits, non-recurring items, and other items that do not reflect core operating performance. The adjusted EBITDA profit margin is then calculated by dividing the adjusted EBITDA by net revenue. We disclose the adjusted EBITDA because it is a key indicator used by management and the board of directors to evaluate operating performance, formulate future business plans, and make strategic decisions regarding capital allocation. In particular, management uses the adjusted EBITDA as a measure of profitability, and the profitability mentioned in this earnings announcement and related teleconferences (except for the gross profit of GAAP) refers to the adjusted EBITDA. We believe that excluding certain expenses when calculating the adjusted EBITDA helps to compare operating performance across periods, as these costs may vary independently of business performance. For example, we exclude the impact of equity incentives and related taxes because we do not consider this item to reflect core operating performance. However, investors should understand that equity incentives and related taxes will be an important and ongoing expense in our business and also an important component of compensation for our employees. Therefore, we believe that the adjusted EBITDA can provide useful information to investors and others, enabling them to understand and evaluate our operating results in the same way that management and the board of directors do.

We define free cash flow as the net cash generated or used from operating activities, minus the net cash used for purchasing fixed assets and website and software development costs (collectively referred to as "capital expenditures"). We disclose free cash flow because it is an important indicator of business performance and reflects our ability to generate cash. Therefore, we believe that free cash flow can provide useful information to investors and others, enabling them to understand and evaluate our operating results in the same way that management does.

We define adjusted diluted earnings per share or loss as net profit or net loss, plus equity incentives and related taxes and fees, income tax provisions or benefits, non-recurring items, other items that do not reflect core operating performance, and in cases of dilution effects, interest expenses related to convertible debt instruments calculated using the hypothetical conversion method. This is then divided by the weighted average number of common shares used to calculate diluted earnings per share or loss. Therefore, we believe that making these adjustments to the adjusted diluted net profit or loss before calculating the per-share amount allows for a more meaningful comparison of operating results across different periods.

We define fixed exchange rate growth in net revenue as the result of converting the current period's net revenue in local currency to the same exchange rate used in the financial statements of the previous year. We disclose fixed exchange rate growth in net revenue because it is an important indicator for measuring business performance. Therefore, we believe this indicator can provide useful information to investors and others, enabling them to understand and assess our business trends in the same way that management does.

We calculate forward-looking non-GAAP financial indicators based on internal forecasts. These forecasts do not include certain amounts that will be included in future GAAP financial indicators. We do not attempt to reconcile forward-looking non-GAAP financial indicators with forward-looking GAAP financial indicators, as forecasting the timing or amount of items that have not yet occurred and are beyond our control is inherently uncertain, and such reconciliation cannot be achieved without unreasonable effort. Furthermore, we believe that such reconciliation would imply a level of precision and certainty that could confuse investors. These items may have a significant impact on the GAAP financial performance indicators.

Non-GAAP financial indicators have their limitations as analytical tools. We do not, nor do we recommend, that investors view these non-GAAP financial indicators in isolation, or use them to replace the financial information prepared according to GAAP. Investors should also be aware that the non-GAAP financial indicators we use may differ from those used by other companies (including those in the same industry), or may have different calculation methods.

The following table reflects the reconciliation of gross profit, adjusted gross profit, and adjusted gross margin for each period shown:

The following table reflects the reconciliation of adjusted gross profit with contributed profit and the contributed profit margin:

The following table reflects the reconciliation of net profit (loss) with the adjusted EBITDA and adjusted EBITDA profit margins:

The following table lists the adjusted EBITDA for each business segment, as well as the reconciliation of net profit or loss with the adjusted EBITDA, which has already been presented in the aforementioned table:

The following table presents the reconciliation of net cash generated or used from operating activities and free cash flow:

To calculate the adjusted diluted earnings per share or loss, the direct comparable financial indicator of GAAP – diluted earnings per share or loss – the comparison between the numerator and denominator of this indicator and those of the adjusted diluted earnings per share or loss is as follows: