Wayfair (W) Q4 2025 earnings

WayfairThe retailer announced Thursday that its annual sales grew last year for the first time since 2020 as the online furniture company continues to attract value-seeking consumers.

In 2025, Wayfair’s revenue grew 5.1% to $12.5 billion. The gains follow a decline of more than 1% year-on-year in 2024.

The e-commerce giant also beat Wall Street expectations at the top and bottom of its fiscal fourth quarter and delivered better-than-expected adjusted earnings with stronger sales flowing into the business.

“The fourth quarter capped an amazing year for Wayfair,” said co-founder and CEO Neeraj Shah. “…We saw a third straight quarter of new customer growth, as well as healthy growth in repeat orders, all in the face of a category that shrank by low single digits last quarter. 2025 was the year we returned to growth and accelerated throughout the year with a number of organic business strategies that could compound for years to come.”

Despite sales growth and better-than-expected results, Wayfair shares fell more than 10% in pre-market trading Thursday.

Here’s what Wayfair did in the fourth quarter compared to what Wall Street expected, based on a survey of analysts conducted by LSEG:

• Earnings per share: 85 cents adjusted versus 66 cents expected
• Revenue: $3.34 billion versus $3.30 billion expected

In the three-month period ended Dec. 31, Wayfair reported a loss of $116 million, or 89 cents per share, compared with a loss of $128 million, or $1.02 per share, a year earlier. Excluding one-time items related to stock-based compensation and other one-time charges, Wayfair saw earnings per share of 85 cents.

For the second quarter in a row, Wayfair saw a significant increase in revenue. During this period, sales rose to $3.34 billion, up about 7% from $3.12 billion the previous year.

While Wayfair hasn’t posted an annual net profit since 2020, it is seeing gains in its adjusted EBITDA. During the quarter, Wayfair reported adjusted EBITDA of $224 million, beating expectations of $200 million, according to StreetAccount.

“Ultimately, this is the culmination of the work throughout 2025, which I think was a really pivotal year for us in proving the stock’s earnings story and our earnings story,” CFO Kate Gulliver told CNBC in an interview. “That led to an incredibly strong quarter on the top line, where we continued to gain share despite the macro challenges, and then really good flow and significant growth in the adjusted EBITDA line.”

The company’s return to revenue growth over the last two quarters has helped its profitability. If sales trends continue, the company expects to see further improvements in its bottom line.

Wayfair’s growth comes during a difficult time for the furniture industry, as tariffs, high interest rates and sluggish home sales impact demand for new sofas and kitchen tables. Consumers are still spending on these goods, but are instead prioritizing value and low prices, which Wayfair is able to offer through its extensive network of manufacturers.

During the quarter, average order values ​​rose to $301, compared to $290 in the same period last year, while the number of orders delivered grew at a similar pace. While prices have risen across the home goods sector, Wayfair’s volume trends are in line with their order values.

Over the past year, Wayfair has focused on improving its customers’ experience through its rewards program and initiatives like Wayfair Vere, which stamps products that have the quality the company says it stands for. Gulliver said he also improved his website.

“I think the combination of these customer-facing initiatives has helped us participate in what we believe is still a challenging category,” Gulliver said.