Wayfair (W) earnings Q4 2025

wayfairThe retailer announced Thursday that its annual sales rose last year for the first time since 2020, as the online furniture company continued to win over value-seeking consumers.

Wayfair’s revenue grows 5.1% to $12.5 billion in 2025. The gains follow a decline of more than 1% in 2024 from the previous year.

The e-commerce giant also beat Wall Street expectations on both the top and bottom lines in its fiscal fourth quarter, posting better-than-expected adjusted earnings as stronger sales were reflected in the business.

“Q4 capped off a tremendous year for Wayfair,” said co-founder and CEO Niraj Shah. “… We experienced a third consecutive quarter of new customer growth, along with healthy growth in repeat orders, against a category that contracted in the low single digits in the final quarter of the year. 2025 was a year in which we returned to growth and accelerated throughout the year through a set of organic business strategies that may converge in the coming years.”

Here’s how Wayfair performed in the fourth quarter compared to Wall Street expectations, according to a survey of analysts conducted by LSEG:

• Earnings per share: 85 cents versus 66 cents expected
• Revenue: $3.34 billion, expected $3.30 billion

For the three months ended Dec. 31, Wayfair reported a loss of $116 million, or 89 cents per share, compared to a loss of $128 million, or $1.02 per share, a year earlier. Excluding one-time items related to share-based compensation and other one-time charges, Wayfair had earnings of 85 cents per share.

For the second consecutive quarter, Wayfair saw a meaningful increase in revenue. During this period, sales increased approximately 7% to $3.34 billion compared to $3.12 billion, an increase of approximately 7% from the previous year.

Although Wayfair has not reported annual net profit since 2020, it is making gains in adjusted earnings before interest, taxes, depreciation and amortization. During the quarter, Wayfair reported adjusted EBITDA of $224 million, above expectations of $200 million, according to StreetAccount.

“Ultimately this is the culmination of the work we’ve done throughout 2025, which I think has been a really pivotal year for us in terms of proving both our share earnings story and our profit story,” finance chief Kate Gulliver told CNBC in an interview. “This resulted in both an incredibly strong quarter at the top line, where we continued to gain share despite a challenging macro, as well as really nice flow and significant growth on the adjusted EBITDA line.”

The company’s return to revenue growth over the past two quarters has helped its profitability. If sales trends continue, the company expects to see further improvements in its profitability.

Wayfair’s expansion comes during a challenging time for the furniture industry, where tariffs, high interest rates and slowing home sales are weighing on demand for new sofas and kitchen tables. Consumers are still spending on these products, but instead they’re prioritizing the value and lower prices Wayfair can offer through its extensive network of manufacturers.

Average order values ​​during the quarter increased to $301 from $290 in the same period the previous year, while the number of orders delivered increased at a similar pace. While prices are rising in the home goods industry, Wayfair’s volume trends are in line with order values.

Over the past year, Wayfair has focused on improving the customer experience through initiatives like its rewards program and Wayfair verification, which stamps products with the quality the company says it approves of. Gulliver said he is also developing the website.

“The combination of these customer-facing initiatives has helped us, I think, gain share in a category that we still think is quite challenging,” Gulliver said.