Wayfair

Wayfair (W) Q1 2025 Earnings

Reported May 1, 2025 at 7:06 AM ET · SEC Source

Q1 25 EPS

$0.10

BEAT +150.86%

Est. $-0.20

Q1 25 Revenue

$2.73B

BEAT +0.82%

Est. $2.71B

vs S&P Since Q1 25

+134.6%

BEATING MARKET

W +168.4% vs S&P +33.8%

Market Reaction

Did W Beat Earnings? Q1 2025 Results

Wayfair delivered a sharper-than-expected profit in the first quarter of 2025, posting non-GAAP adjusted diluted EPS of $0.10 against a consensus estimate of negative $0.20, a beat of 150.86%, while revenue of $2.73 billion edged past the $2.71 billi… Read more Wayfair delivered a sharper-than-expected profit in the first quarter of 2025, posting non-GAAP adjusted diluted EPS of $0.10 against a consensus estimate of negative $0.20, a beat of 150.86%, while revenue of $2.73 billion edged past the $2.71 billion estimate by 0.82% and held essentially flat year over year. The headline numbers were driven primarily by aggressive cost discipline, with selling, operations, technology, general and administrative expenses falling by $105 million and equity-based compensation declining $59 million, helping narrow the net loss to $113 million from $248 million a year ago and lifting Adjusted EBITDA to $106 million at a 3.9% margin. The quarter carried notable one-time weight, including $56 million in restructuring charges tied largely to Wayfair's ongoing exit from Germany and a March workforce reduction. Active customers slipped 5.4% to 21.1 million, though average order value climbed to $301 from $285. Looking ahead, management flagged tariff uncertainty as a persistent headwind but expressed confidence in its flexible platform and disciplined investment approach to sustain market share gains amid continued category contraction.

Key Takeaways

  • Market share gains in a contracting home goods category
  • U.S. net revenue grew 1.6% year over year against an estimated declining category
  • Average order value increased to $301 from $285 year over year
  • LTM net revenue per active customer increased 4.7% to $562
  • Significant reduction in equity-based compensation and SG&A expenses
  • Adjusted EBITDA margin expanded to 3.9% from 2.7% year over year
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W YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

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W Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26
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W Revenue by Geography

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“Despite persistent category volatility which marked a fourth consecutive year beginning with contraction, we were able to once again outperform our peers and take healthy market share while driving meaningful improvements in profitability. Year-over-year growth excluding the impact of Germany came in nicely positive - driven by the US business up 1.6% against a category that we estimate declined over the same time frame. Tariffs are clearly top of mind for everyone - while there's a lot of uncertainty in the broader economy, we have direct line of sight and strong conviction on what we need to do for both our customers and our suppliers.”

— Niraj Shah, Q1 2025 Earnings Press Release