Wayfair Swings to Profit in Q3 as U.S. Revenue Surges

黃黃郁婷 產業線記者2026-11-05 08:06

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30-second brief

Wayfair's third-quarter total revenue rose 9.7% year over year to $3.42 billion, with the U.S. market up 11.4% to $3.0 billion, net income of $62 million swinging from loss to profit, active customers and orders both rising, and profit margin hitting its best since 2020.

Revenue Beats Expectations with Double-Digit U.S. Growth

Online home goods retailer Wayfair reported third-quarter results, with total revenue up 9.7% year over year to $3.42 billion, above the market consensus of $3.38 billion, marking its strongest growth since the pandemic. U.S. net revenue stood out, surging 11.4% to $3.0 billion. While the overall U.S. home goods market saw slowing, flat growth, Wayfair still delivered double-digit growth, showing continued market share expansion and momentum outpacing the broader industry.

Swings to Profit as Earnings and Margins Improve

On profitability, Wayfair posted net income of $62 million, or $0.45 per share, a sharp improvement from a net loss of $99 million, or $0.76 per share, a year earlier. Adjusted earnings per share reached $0.93, well above analysts' estimate of $0.79. The improvement was also reflected in margins, with adjusted EBITDA margin reaching 6.9%, its best third-quarter performance since 2020, indicating improved operating efficiency.

Customers and Orders Rise as CEO Points to Share Gains

The growth momentum came mainly from increases in active customers and order volume. As of the third quarter, active customers grew 4.7% to 22.2 million, while orders delivered in the quarter rose 12.2% to about 11 million. CEO Niraj Shah said the third quarter was the strongest growth quarter since the pandemic, with U.S. business up more than 11%, demonstrating structural market share growth. He said that even as the overall home goods category slowed, Wayfair was still able to deliver double-digit growth and capture market share.

Price Target Raised as Brick-and-Mortar Expansion Continues

Citing Wayfair's market share expansion, U.S. financial services firm Truist raised its price target on the stock to $33 from $23. Beyond its online business, Wayfair is also actively expanding its physical footprint, having opened its first physical store in 2024 and planning to open another store in Cherry Hill, New Jersey, in 2028, continuing to deepen its market presence across both online and offline channels.

FAQ

How did Wayfair perform on revenue in the third quarter?

Wayfair's third-quarter total revenue rose 9.7% year over year to $3.42 billion, above the market consensus of $3.38 billion; U.S. net revenue grew 11.4% to $3.0 billion.

Did Wayfair swing to profit in the third quarter?

Yes. Wayfair posted third-quarter net income of $62 million, or $0.45 per share, compared with a net loss of $99 million, or $0.76 per share, a year earlier; adjusted earnings per share were $0.93, beating the $0.79 estimate, with adjusted EBITDA margin reaching 6.9%.

What drove Wayfair's growth and what are its future plans?

The momentum came from a 4.7% year-over-year increase in active customers to 22.2 million and a 12.2% increase in orders delivered to about 11 million. Truist raised its price target to $33 from $23, and the company, having opened its first physical store in 2024, plans to open another store in Cherry Hill, New Jersey, in 2028.