10-Q · April 30, 2026
Wayfair reported Q1 2026 results with revenues of $2.93 billion, a notable 7.4% increase year-over-year. The diluted EPS improved to -$0.80, surpassing estimates, while active customers grew to 21.4 million. The company…
Earnings analysis · 10-Q
W earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Wayfair delivered Q2 revenue of $3.519 billion, up 7.5% year over year and above Q1 revenue of $2.931 billion, while operating income reached $104 million versus $17 million a year earlier. Gross margin was essentially…
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Wayfair delivered Q2 revenue of $3.519 billion, up 7.5% year over year and above Q1 revenue of $2.931 billion, while operating income reached $104 million versus $17 million a year earlier. Gross margin was essentially stable at 30.0%, operating cash flow increased to $360 million, and free cash flow increased to $301 million. However, a $59 million debt-extinguishment loss resulted in GAAP diluted EPS of $(0.01), cash and short-term investments declined by $399 million from year-end to $1.143 billion, and International revenue fell 1.3%.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.01
What stood out
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Revenue growth accelerated to 7.5%
Q2 revenue rose $246 million, or 7.5% year over year, to $3.519 billion from $3.273 billion, driven primarily by higher order volume and a higher average order value.
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Material operating leverage
Operating income improved to $104 million from $17 million, lifting calculated operating margin to 3.0% from 0.5%. This also reversed Q1 operating loss of $11 million, or about -0.4% of revenue.
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U.S. segment drove consolidated growth
U.S. revenue increased 8.7% to $3.125 billion, more than offsetting International revenue's 1.3% decline to $394 million.
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Customer and order metrics improved
Active customers increased to 21.7 million from 21.0 million, orders delivered rose to 10.6 million from 10.0 million, and average order value grew to $332 from $328.
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Cash generation strengthened
Q2 operating cash flow was $360 million versus $273 million a year earlier, and free cash flow was $301 million versus $230 million. First-half free cash flow reached $195 million versus $91 million.
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Underlying profitability expanded
Adjusted EBITDA rose to $242 million from $205 million, with adjusted EBITDA margin expanding to 6.9% from 6.3%; adjusted diluted EPS increased to $0.95 from $0.87.
What to watch
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Debt charge kept GAAP earnings negative
GAAP net income was a $1 million loss, versus $15 million of income a year earlier, and GAAP diluted EPS was $(0.01) versus $0.11. The quarter included a $59 million loss on debt extinguishment.
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Liquidity declined amid substantial debt load
Cash and short-term investments fell to $1.143 billion at June 30, 2026 from $1.542 billion at December 31, 2025, while principal indebtedness remained $2.9 billion. Interest expense increased to $39 million from $29 million year over year.
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International business remains in decline
International revenue declined 1.3% to $394 million, and fell 2.0% on a constant-currency basis, contrasting with 8.7% U.S. growth.
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Gross margin modestly compressed
Gross margin edged down to 30.0% from 30.1% as cost of goods sold reached 70.0% of revenue versus 69.9%; management attributed the pressure to customer-experience investments, partly offset by supplier-services growth.
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No formal risk-factor changes; macro risk persists
Item 1A states there were no material changes to risk factors from the 2025 Form 10-K. Nonetheless, management identifies tariffs, inflation and interest rates as ongoing uncertainties, while the company has $82 million of letters of credit reducing its $500 million Revolver availability.
Management's outlook
The 10-Q provides no quantitative revenue or EPS guidance. Management said existing cash, investments, operating cash generation and Revolver availability are expected to meet anticipated cash needs for at least the next 12 months; it also cited continuing macro, tariff, interest-rate and inflation uncertainty.
Earlier filings 4
10-K · February 19, 2026
Wayfair's 2025 10-K emphasizes an omni-channel strategy anchored by its Wayfair brand, investments in logistics (CastleGate, WDN) and AI (launched Muse in 2025), and a U.S.-centric revenue base (U.S. was 88% of…
10-Q · October 28, 2025
Wayfair Inc. reported a strong performance in its third quarter of 2025, showcasing significant revenue growth and an impressive EPS beat. Revenues increased to $3.12 billion, a notable uptick from the previous quarter,…
10-Q · May 1, 2025
Wayfair reported net revenue of $2,730 million for the quarter ended March 31, 2025, essentially flat year‑over‑year (+$1 million) but down versus the prior quarter ($3,121 million in 2024Q4, a decrease of $391…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.