Wayfair Inc. (NYSE:W) delivered fourth-quarter results that topped profit expectations, but the market reaction was muted, with shares edging lower in premarket trading as investors weighed the company’s broader performance and outlook.
The online home goods retailer reported adjusted earnings per share of $0.85, comfortably ahead of the $0.68 analysts had forecast. Revenue totaled $3.3 billion, broadly matching consensus estimates and marking a 6.9% increase from the year-ago quarter.
In the U.S., net revenue rose 7.4% year over year to $2.9 billion, while international sales climbed 3.7% to $395 million. Wayfair said that excluding the effect of its withdrawal from Germany, total net revenue would have grown 7.8% compared to the prior year.
“Q4 capped off a tremendous year for Wayfair, with revenue growing 7.8% year-over-year excluding the impact of Germany,” said Niraj Shah, CEO, co-founder and co-chairman of Wayfair. “We had our third consecutive quarter of new customer growth, on top of healthy growth in repeat orders, all in the face of a category that contracted in the low single digits.”
The company posted a net loss of $116 million, or -$0.89 per diluted share, narrowing from a $128 million loss, or -$1.02 per share, a year earlier. Non-GAAP adjusted EBITDA surged to $224 million, more than doubling from $96 million in the fourth quarter of 2024.
Wayfair ended the period with 21.3 million active customers, down 0.5% from the prior year. However, average order value increased to $301 from $290, while net revenue per active customer rose 5.6% to $586.
For full-year 2025, total net revenue reached $12.5 billion, up 5.1% year over year. The company recorded a net loss of $313 million for the year, while generating $534 million in operating cash flow and $329 million in free cash flow.
Commenting on the results, Emarketer senior analyst Zak Stambor said that “Wayfair pushed through a tough environment defined by a sluggish housing market, elevated interest rates, and historically steep tariffs on furniture imports.”
“While tariffs have put real pressure on many home furnishings retailers, Wayfair’s marketplace model has given it more flexibility than its competitors. It’s been able to lean on suppliers to absorb some of those higher costs, shift production, and introduce new products at higher price points to help offset the impact,” added Stambor. “Wayfair’s mix of operational flexibility and sharper demand generation is proving to be a real competitive edge.”