Wayfair Revenue Jumps 9.7% to $3.42B and Adjusted EPS Rises 33% to $0.93 as U.S. Sales Gain 11.4%
Orders delivered rose 12.2% to 11.0M and active customers grew 4.7% to 22.2M, while gross margin slipped 0.4 points to 29.6%.
Wayfair (W) reported third-quarter 2026 net revenue of $3.42 billion, up 9.7% from a year earlier and above the $3.38 billion analysts expected, and adjusted EPS of $0.93, up 33% from $0.70 and above the $0.79 estimate. Adjusted EBITDA reached $236 million with a 6.9% margin, the company's best third-quarter margin since 2020. U.S. revenue grew 11.4%, and management called Q3 its strongest quarter of growth since the pandemic.
Third-quarter results
| Metric | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| Net revenue | $3,420M | $3,117M | +9.7% |
| U.S. net revenue | $3,040M | $2,728M | +11.4% |
| International net revenue | $380M | $389M | -2.3% |
| Gross margin | 29.6% | 30.0% | -0.4 pts |
| Adjusted EBITDA | $236M | $208M | +13% |
| Adjusted EBITDA margin | 6.9% | 6.7% | +0.2 pts |
| Net income (loss) | $62M | ($99M) | Swing to profit |
| Diluted EPS (GAAP) | $0.45 | ($0.76) | Swing to profit |
| Adjusted diluted EPS | $0.93 | $0.70 | +33% |
| Free cash flow | $136M | $93M | +46% |
International revenue fell 1.8% in constant currency. Contribution profit was $550 million, a 16.1% margin versus 15.8% a year earlier.
Versus expectations
| Metric | Reported | Expected | Difference (our calculation) |
|---|---|---|---|
| Net revenue | $3.42B | $3.38B | +1.2% |
| Adjusted EPS | $0.93 | $0.79 | +17.7% |
| Adjusted EBITDA | $236M | $225M | +4.9% |
| Gross margin | 29.6% | 29.8% | -0.2 pts |
Customers and orders
| Metric | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| Active customers | 22.2M | 21.2M | +4.7% |
| Orders delivered | 11.0M | 9.8M | +12.2% |
| Average order value | $311 | $317 | -$6 |
| LTM revenue per active customer | $596 | $578 | +3.1% |
| Repeat customers' share of orders | 80.0% | 80.1% | -0.1 pts |
| Mobile share of orders | 64.4% | 63.0% | +1.4 pts |
By our calculation, orders grew about 2.6 times as fast as active customers, and average order value fell about 1.9%. Revenue growth therefore came from more orders rather than larger baskets. Chief Executive Niraj Shah said the U.S. gains look structural and that the company is still in the early innings of taking share, in what management described as a roughly flat home furnishings market. The market description is management's, not independent data.
Cash and capital
Operating cash flow was $198 million. Cash and cash equivalents were $1.04 billion at Sept. 30, compared with $1.48 billion at the end of 2025, and total liquidity was about $1.5 billion including revolver availability. Wayfair repurchased $60 million of stock in the first nine months of 2026, with none in the same period a year earlier.
What to watch
- Conference call. Wayfair gave no numeric outlook in its release, so the call is where fourth-quarter holiday trends and margin targets would come out.
- Gross margin. Whether the 0.4-point decline reflects mix, pricing or investment to win share.
- Order quality. Whether average order value stabilizes as order volume grows faster than customers.
- Related coverage. See our reports on Starbucks, Ibotta and Marriott.
Sources: Wayfair's third-quarter 2026 results release on SEC EDGAR. Analyst expectations are consensus figures and may differ by source. Items labeled by our calculation are our own arithmetic. This article is informational only and is not investment advice.
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