Wayfair (W) Q3 2025 Earnings

Online household goods company Wayfair It reported a jump in third-quarter revenue on Tuesday, beating Wall Street’s top and bottom estimates.

The company said total net revenue increased 8.1% year over year.

Here’s how the company performed in the third quarter, compared to what Wall Street was expecting, based on a survey of analysts conducted by LSEG:

• EPS: 70 cents were revised versus 43 cents expected
• profit: $3.12 billion versus $3.02 billion expected

Wayfair shares rose 10% in pre-market trading.

For the period ending Sept. 30, Wayfair reported a net loss of $99 million, or 76 cents per share, compared with a loss of $74 million, or 60 cents per share, a year earlier.

The company’s U.S. revenues rose 8.6% year-over-year to $2.7 billion, while international revenues rose 4.6% year-over-year to $389 million. Wayfair said its total net revenue excluding its exit from Germany jumped 9% year over year.

The increase in revenue comes at a time when the household goods sector overall has struggled recently, partly due to higher inflation and lower household turnover during a period of rising interest rates. The sector has also faced challenges with furniture tariffs imposed by President Donald Trump, as well as other duties — although rates on imported goods from many countries are now lower than what Trump proposed earlier this year.

Chief Financial Officer Kate Gulliver told CNBC that the company does not attribute the growth to any macro-related factors such as tariffs or interest rates.

“We think that’s really driven by our share gains, and we think that’s really coming from a combination of factors and initiatives that we started over a year ago that are now starting to pay off,” Gulliver said.

These initiatives include what Gulliver calls the company’s “core recipe” — price, product availability and speed — as well as growth from the loyalty program, location improvement and physical retail. The retailer opened its first large store in Illinois last year to ride the wave of the return of brick-and-mortar stores. Building on this success, it plans to open another location in Yonkers, New York, in early 2027.

Although the tariff policy created uncertainty for the company, it said it was able to rely on the strength of its model: acting as a marketplace on the backend and a retailer on the frontend.

Wayfair saw sales decline after the pandemic in what was a “fairly difficult” period for the home goods category, but the past year brought increased momentum, Gulliver said. Despite the tariff fluctuations, Wayfair stock was up nearly 95% this year through Monday’s close.

CEO Neeraj Shah added in the earnings statement that orders delivered by the company for the quarter increased by 5% year-on-year.

“The adjusted EBITDA margin of 6.7% represents the highest level achieved in Wayfair’s history outside of the pandemic,” Shah said on a call with analysts. “As promised, the strong profitability stream is supported by strong contribution margin and fixed cost discipline as our business returns to growth.”

Wayfair said its number of active customers was 21.2 million at the end of the quarter, down 2.3% year over year.

Wayfair’s growth plan is driven by “Wayfair-specific factors” and is not dependent on a recovery in the housing market, Shah added on Tuesday’s call. He said the company has seen some isolated examples of early purchases to avoid tariffs such as a “short-lived” increase in sales of large appliances in the early spring.

“We see our outperformance as structural share capture driven by our strong daily execution against the underlying recipe, the early success of the new programs we’ve been able to launch and from the broad gains we’ve achieved from our technology team,” Shah said.