Wayfair (W) earnings Q3 2025
online home goods company wayfair It reported an increase in third-quarter revenue on Tuesday, as it beat Wall Street forecasts on both the top and bottom lines.
Total net revenue increased 8.1% compared to last year, the company said.
Here’s how the company performed in the third quarter compared to Wall Street expectations, according to a survey of analysts conducted by LSEG:
- Earnings per share: 70 cents adjusted, 43 cents expected
- Revenues: 3.12 billion dollars, while the expectation was 3.02 billion dollars
Wayfair shares rose more than 20% in early trading.
For the period ended Sept. 30, Wayfair reported a net loss of $99 million, or 76 cents per share, compared to a loss of $74 million, or 60 cents per share, the year before.
The company’s US revenue increased 8.6% annually to $2.7 billion, while its international revenue increased 4.6% annually to $389 million. Wayfair said its total net revenue, excluding its German exit, rose 9% year over year.
The revenue increase comes as the overall household goods sector has experienced recent difficulties, partly due to rising inflation and falling household turnover during a period of high interest rates. The industry has faced challenges from President Donald Trump’s furniture tariffs, among other taxes; But rates on goods imported from many countries are now lower than what Trump proposed earlier this year.
CFO Kate Gulliver told CNBC that the company does not attribute growth to macro-related factors such as tariffs or interest rates.
“We think that’s really driven by our share gain, and we believe that that actually comes from a combination of factors and initiatives that we launched a year ago that are now starting to bear fruit,” Gulliver said.
These initiatives include what Gulliver calls the company’s “basic recipe” of price, product availability and speed, as well as growth from its loyalty program, site improvement and brick-and-mortar retail. The retailer opened its first department store in Illinois last year to ride the wave of return of brick-and-mortar stores. Based on this success, he plans to: open Another location in Yonkers, New York, in early 2027.
While tariff policy created uncertainty for the company, he said it was able to build on the strength of its model: operating as a marketplace on the back-end and a retailer on the front-end.
Gulliver said Wayfair saw a post-pandemic decline in sales during a “somewhat challenging” time for the home goods category, but the past year brought increased momentum. Despite the tariff fluctuations, Wayfair’s shares have gained nearly 95% this year as of Monday’s close.
CEO Niraj Shah added in the earnings call that the company’s orders delivered this quarter were up 5% compared to last year.
“Our 6.7% Adjusted EBITDA margin marks the highest level achieved outside of the pandemic period in Wayfair history,” Shah said on a call with analysts. “As promised, our business returns to growth, with a significant stream of profitability being delivered through strong contribution margin and fixed cost discipline.”
Wayfair said its active customers reached 21.2 million at the end of the quarter, down 2.3% year over year.
Shah added in a call Tuesday that Wayfair’s growth plan is driven by “factors unique to Wayfair” and “is not dependent on a recovery in the housing market.” He said the company has seen a few isolated examples of early purchases to avoid tariffs, such as a “short-lived” surge in major device sales in early spring.
“We view our outperformance as structural share gains driven by our strong daily execution against the underlying recipe, the early success of new programs we have been able to launch, and the broad gains we have made from our technology team,” Shah said.
