Wayfair shares jump 10.8% after Q3 profit tops estimates
Wayfair shares rose 10.8% in regular trading. Adjusted earnings of 93 cents per share topped the 80 cents consensus estimate, and revenue of $3.42 billion was in line with the $3.44 billion consensus estimate.
Key takeaways
- Wayfair (W) reported third-quarter 2026 net revenue of $3.42 billion, up 9.7% from a year earlier. Adjusted earnings were 93 cents per share, against the 80 cents consensus estimate. U.S. net revenue rose 11.4%, the company said Nov. 4.
Wayfair (W) shares rose 10.8% in regular trading as of 3:59 p.m. ET, from a regular-session close of $111.32. The company topped third-quarter profit estimates and grew U.S. revenue by more than 11%, it said Nov. 4 in its results release.
Here's how the company did:
- Revenue: $3.42 billion vs. $3.12 billion a year earlier
- Adjusted EPS: 93 cents vs. 70 cents a year earlier, 80 cents expected
- Diluted EPS: 45 cents vs. a loss of 76 cents a year earlier
Total net revenue was $3.42 billion, up 9.7% from a year earlier and in line with the $3.44 billion consensus estimate.
Adjusted diluted earnings were 93 cents per share, topping the 80 cents consensus estimate. Net income was $62 million, compared with a loss of $99 million a year earlier.
U.S. and international results
U.S. net revenue was $3.04 billion, up 11.4% from a year earlier. The company said orders in the U.S. rose 12% and active customers grew more than 4%.
International net revenue was $380 million, down 2.3% from a year earlier. International constant currency growth was negative 1.8%.
The company's CEO, co-founder and co-chairman Niraj Shah said: "Q3 was our strongest quarter of growth in the post-pandemic period, with total net revenue up 9.7% year-over-year and our U.S. business growing over 11%."
Orders delivered rose 12.2% to 11.0 million. Average order value was $311, compared with $317 a year earlier.
Margins and profitability
Gross profit was $1.01 billion, or 29.6% of net revenue. Adjusted EBITDA was $236 million, an Adjusted EBITDA Margin of 6.9%, which the company said was its best third quarter since 2020.
Cash and liquidity
Net cash provided by operating activities was $198 million. Free cash flow was $136 million.
Cash, cash equivalents and short-term investments totaled $1.1 billion. Total liquidity was $1.5 billion, including availability under the company's revolving credit facility.
Active customers totaled 22.2 million as of Sept. 30, up 4.7% from a year earlier.