Wayfair Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total net revenue was $3.42 billion, an increase of $303 million (9.7%) year-over-year.
• U.S. net revenue was $3.04 billion, an increase of $312 million (11.4%) year-over-year.
• International net revenue was $380 million, a decrease of $9 million (2.3%) year-over-year.
• Gross profit was $1.012 billion (29.6% of net revenue), compared to $934 million (30.0%) in the prior year period.
• Non-GAAP Contribution Profit was $550 million (16.1% of net revenue), compared to $493 million (15.8%) in the prior year period.
• Net income was $62 million, compared to a net loss of $99 million in the prior year period.
• Non-GAAP Adjusted EBITDA was $236 million (6.9% margin), compared to $208 million (6.7% margin) in the prior year period.
• Diluted earnings per share was $0.45, compared to a loss of $0.76 in the prior year period.
• Non-GAAP Adjusted Diluted Earnings per Share was $0.93, compared to $0.70 in the prior year period.
• Net cash provided by operating activities was $198 million, compared to $155 million in the prior year period.
• Non-GAAP Free Cash Flow was $136 million, compared to $93 million in the prior year period.
• Cash, cash equivalents, and short-term investments totaled $1.1 billion, with total liquidity of $1.5 billion including the revolving credit facility.
• Long-term debt decreased to $2.572 billion from $3.233 billion as of December 31, 2025.

Guidance and Future Outlook:

• Management expressed confidence that share gains in the U.S. are structural and that the company is in the early innings of growth.
• The company stated it is taking share in the U.S. at a pace not seen in several years.
• Management noted that growth in orders and customers provides confidence in the structural nature of their share gains.

Business Segments and Product Lines:

• U.S. segment Adjusted EBITDA was $261 million, compared to $209 million in the prior year period.
• International segment Adjusted EBITDA was a loss of $25 million, compared to a loss of $1 million in the prior year period.
• Active customers totaled 22.2 million, an increase of 4.7% year-over-year.
• Last twelve months (LTM) net revenue per active customer was $596, an increase of 3.1% year-over-year.
• Orders delivered were 11.0 million, an increase of 12.2% year-over-year.
• Orders per customer (LTM) was 1.90, compared to 1.87 in the prior year period.
• Repeat customers placed 80.0% of total orders delivered, compared to 80.1% in the prior year period.
• Repeat customer orders increased 11.4% year-over-year to 8.8 million.
• Average order value was $311, compared to $317 in the prior year period.
• 64.4% of total orders delivered were placed via mobile device, compared to 63.0% in the prior year period.

Market and Competitive Landscape:

• The company reported taking share in the U.S. market against a roughly flat category during the quarter.
• Management described Q3 as the strongest quarter of growth in the post-pandemic period.
• The company highlighted that growth was driven by both new customer acquisition and increased order frequency.

Risks and Challenges:

• The press release includes standard forward-looking statement risks regarding macroeconomic conditions, interest rates, inflation, tariffs, supply chain disruptions, and geopolitical disturbances.
• Specific risks mentioned include the potential for economic instability, changes in laws and regulations, and the impact of sustained higher interest rates.
• Risks related to liability and dilution management exercises, restructuring, and the ability to acquire and retain customers cost-effectively are noted.
• International revenue declined 2.3% year-over-year, with constant currency growth of (1.8)%.

Management Commentary and Tone:

• Niraj Shah, CEO, stated that Q3 was the strongest quarter of growth in the post-pandemic period, with revenue up 9.7% and U.S. business growing over 11%.
• Management noted that growth flowed through to the bottom line, resulting in an Adjusted EBITDA Margin of 6.9%, the best Q3 result since 2020.
• The tone was confident regarding the structural nature of share gains and the early stage of their growth trajectory.

Other Key Points:

• The company incurred a $102 million loss on debt extinguishment during the nine months ended September 30, 2026, upon the repurchase of $145 million in aggregate principal amount of the 2028 Notes.
• Equity-based compensation and related taxes totaled $66 million for the quarter and $209 million for the nine months ended September 30, 2026.
• The company recorded a $2 million impairment charge related to exiting a U.S. customer service center during the nine months ended September 30, 2026.
• The company incurred $24 million in charges related to the loss on termination of an operating lease for a logistics facility during the nine months ended September 30, 2026.
• Net cash used in financing activities was $782 million for the nine months ended September 30, 2026, primarily driven by debt extinguishment and settlement costs.
• The company repurchased $60 million of common stock during the nine months ended September 30, 2026.