Wayfair Inc. (NYSE:W) stock soared 12.3% following the release of its second-quarter results, which notably outperformed analyst expectations and marked the company’s strongest revenue growth and profitability since 2021.
For the quarter ending June 30, 2025, Wayfair reported adjusted earnings of $0.87 per share, well above the forecasted $0.33. Revenue climbed 5% year-over-year to $3.27 billion, exceeding the consensus estimate of $3.12 billion. When excluding the effect of Wayfair’s (NYSE:W) withdrawal from the German market, revenue growth was even more robust at 6% year-over-year.
“The second quarter was a resounding success, defined by accelerating sales and share gain, in tandem with expanding profitability,” said Niraj Shah, CEO, co-founder, and co-chairman of Wayfair. “Year-over-year revenue growth of 6% – excluding the impact of Germany – marks the highest growth rate we have seen since early 2021.”
U.S. revenue for the period increased 5.3% to $2.9 billion, while international revenue grew 3.1% to $399 million. The company posted a gross profit of $984 million, which accounted for 30.1% of total revenue. Non-GAAP adjusted EBITDA came in at $205 million, representing a margin exceeding 6%.
Despite the solid revenue gains, Wayfair’s active customer count fell 4.5% year-over-year to 21 million. Nevertheless, revenue per active customer increased 5.9%, reaching $572 over the past twelve months. Additionally, the average order value rose to $328 from $313 in the same quarter last year.
During the quarter, the company generated $273 million in operating cash flow and $230 million in free cash flow.
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