Wayfair Swings to $62 Million Profit on Its Strongest Sales Growth Since the Pandemic

Key figures: Q3 revenue $3.42 billion (+9.7%) · U.S. revenue +11.4% · Net income $62 million (vs. $99 million loss) · Orders 11.0 million (+12.2%)

Boston-based Wayfair swung to a $62 million third-quarter profit from a $99 million loss a year earlier, the online home-goods retailer reported before the market opened on Wednesday, Nov. 4. Wayfair earnings came in at 45 cents per diluted share on revenue of $3.42 billion, up 9.7% from $3.12 billion, according to the company’s results release.

U.S. revenue rose 11.4%, or $312 million, to about $3.0 billion. International revenue went the other way, slipping 2.3% to $380 million. In constant currency, the international decline was 1.8%.

Wayfair beat Wall Street forecasts

On an adjusted basis, Wayfair earned 93 cents a share, compared with the 79 cents analysts expected in an LSEG survey cited by CNBC. Revenue also topped the $3.38 billion consensus. CNBC reported that the quarter was the company’s strongest for sales growth since the pandemic, and that Chief Financial Officer Kate Gulliver attributed the gains largely to taking market share in a sluggish housing market.

Shares still fell about 3% in premarket trading, Investing.com reported, as the average amount customers spent per order declined.

More orders, smaller baskets

Wayfair delivered 11.0 million orders in the quarter, up from 9.8 million. Active customers reached 22.2 million as of Sept. 30, an increase of 4.7%, and trailing-12-month revenue per active customer rose 3.1% to $596. Repeat customers placed 8.8 million orders, or 80.0% of the total, close to 80.1% a year ago. Mobile devices accounted for 64.4% of orders, up from 63.0%.

The average order value moved the opposite way, falling to $311 from $317. That gap between order growth and basket size is the main tension in the report: the company is winning more transactions, but each one is a little smaller.

By the numbers: margins and cash

Gross profit rose to $1.012 billion from $934 million, holding gross margin at 29.6% of revenue. Operating income nearly tripled to $106 million from $38 million. Adjusted EBITDA, a non-GAAP measure, rose to $236 million from $208 million, a 13.5% gain by TBR’s calculation from the company’s figures.

Cash generation improved more sharply. Operating cash flow was $198 million, up from $155 million, and non-GAAP free cash flow rose to $136 million from $93 million, an increase of about 46%, by TBR’s calculation. Wayfair ended the quarter with $1.1 billion in cash, cash equivalents and short-term investments and $1.5 billion in total liquidity, including its revolving credit line.

For the first nine months of 2026, revenue totaled $9.87 billion, up 8.2% from $9.12 billion, by TBR’s calculation. Wayfair still shows a net loss of $44 million for that period, narrower than its $197 million loss a year earlier.

On the earnings call, according to a transcript published by The Motley Fool, management said advertising spending was $338 million, or 9.9% of revenue, the first time that ratio has been in single digits since 2021. The company guided to high-single-digit revenue growth in the fourth quarter and an adjusted EBITDA margin of 6% to 7%.

What it means for Boston

Wayfair is one of the largest public companies headquartered in Boston, and its report is part of a crowded week of third-quarter earnings from Boston companies. The retailer is also preparing new office space; we reported last month on Wayfair’s buildout permit at 500 Boylston Street. Its results also offer a read on household spending on big-ticket home goods, a part of consumer spending closely tied to the housing market. For more local coverage, see our Boston business news page.

Sources

• Wayfair, “Wayfair Announces Third Quarter 2026 Results, Reports Double Digit U.S. Revenue Growth,” Nov. 4, 2026
• CNBC, “Wayfair sales jump 10% as furniture retailer says it’s winning share of sluggish market,” Nov. 4, 2026
• Investing.com, “Wayfair shares fall 3% in premarket trading despite Q3 revenue, earnings beat,” Nov. 4, 2026

Additional sources

• The Motley Fool, Wayfair Q3 2026 earnings call transcript, Nov. 4, 2026
• U.S. Securities and Exchange Commission, Wayfair Inc. filings on EDGAR