Company Performance - Wayfair reported quarterly earnings of $0.87 per share, exceeding the Zacks Consensus Estimate of $0.36 per share, and up from $0.47 per share a year ago, representing an earnings surprise of +141.67% [1] - The company posted revenues of $3.27 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.25%, and compared to year-ago revenues of $3.12 billion [2] - Over the last four quarters, Wayfair has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Performance - Wayfair shares have increased approximately 47.2% since the beginning of the year, significantly outperforming the S&P 500's gain of 6.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.13 on revenues of $2.89 billion, and for the current fiscal year, it is $0.69 on revenues of $11.9 billion [7] Industry Outlook - The Internet - Commerce industry, to which Wayfair belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Wayfair's stock performance [5][6]

Financial Data and Key Metrics Changes - The company reported a year-over-year revenue growth of 6%, excluding the impact of Germany, marking the highest growth rate since early 2021 [8] - Adjusted EBITDA margin was over 6%, indicating significant leverage in the business model [8] - Net revenue grew 5% year-over-year, with the U.S. business up over 5% and international segment growing over 3% [28][29] - Free cash flow in the second quarter was $230 million, the strongest since 2020, driven by approximately 20% quarter-over-quarter revenue growth [38] Business Line Data and Key Metrics Changes - Specialty retail brands and Perigold outperformed, with Wayfair Professional posting double-digit growth [11] - Average order value (AOV) growth was driven primarily by product mix, with modest growth in average items per order [10][11] - The introduction of Wayfair Verified and Wayfair Rewards programs has led to improved customer engagement and conversion rates [12][13] Market Data and Key Metrics Changes - The overall market is described as flat to down low single digits, indicating a stabilization after previous declines [50] - The higher-end market is performing better than the mass market, reflecting a trend in consumer behavior [50] Company Strategy and Development Direction - The company aims to balance investing for future growth while maximizing EBITDA and free cash flow [7] - The logistics network, CastleGate, is a key competitive advantage, with a 40% year-over-year increase in total volume using CastleGate forwarding offerings [19][20] - The company is expanding its physical retail presence, with plans for new stores in key markets [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the structural strength of the business, with momentum building from Q1 to Q2 and continuing into Q3 [51] - The focus on improving core elements such as price, selection, availability, and speed of delivery has been a driver of market share gains [51] - The company anticipates continued revenue growth in the mid-single digits for the upcoming quarter, despite challenges from the exit of the German market [40] Other Important Information - The company has a clean balance sheet with $1.4 billion in cash and short-term investments, and $1.8 billion in total liquidity [38] - The adjusted EBITDA margin is expected to be in the 5% to 6% range for Q3 [43] Q&A Session Summary Question: Can you talk about how you think the market grew and how your share gains have shaped up over the past year? - Management noted that the market is better than the last three years but still flat to down low single digits, with no signs of consumer pull forward related to tariffs [47][48][50] Question: How do you think about the long-term profitability ladder? - Management expressed confidence in achieving adjusted EBITDA margins north of 10%, emphasizing the importance of optimizing contribution margin to drive profitability [59][60] Question: Are we at a new normal for flow-through margins? - Management indicated that the current contribution margin is sustainable and reflects the disciplined cost management and revenue growth strategies implemented over the years [68][70] Question: Could you unpack the impact of marketing investments on customer acquisition? - Management highlighted the success of emerging channels like influencers and TikTok, while also trimming ineffective ad spend to improve overall advertising efficiency [72][74] Question: Could you help us understand the progression of revenue growth through the quarter? - Management noted solid revenue growth in Q2, with ongoing customer engagement and order volume building momentum into Q3 [80] Question: Can you comment on revenues from repeat customers versus new customers? - Management confirmed that both new and repeat customer orders are trending positively, contributing to overall share gains [91]

Financial Data and Key Metrics Changes - Year-over-year revenue growth of 6%, excluding the impact of Germany, marks the highest growth rate since early 2021 [7] - Adjusted EBITDA margin of over 6% demonstrates significant leverage in the business model [7] - Gross margin for the quarter came in at 30.1% of net revenue [30] - Adjusted EBITDA dollars generated in the second quarter reached $205 million, with a 6.3% margin on net revenue [38] Business Line Data and Key Metrics Changes - Specialty retail brands and Perigold continue to outperform, with Wayfair Professional posting double-digit growth [11] - Average order value (AOV) growth driven primarily by mix, with modest growth in average items per order [10][11] - The introduction of Wayfair Verified and Wayfair Rewards programs has led to improved customer engagement and conversion rates [12][13] Market Data and Key Metrics Changes - U.S. business revenue grew over 5%, while international segment grew over 3% compared to the same quarter last year [28] - The marketplace model allows for price consistency, contributing to ongoing customer engagement [81] Company Strategy and Development Direction - The company aims to balance investing for future growth while maximizing EBITDA and free cash flow [6] - Focus on enhancing customer experience through technology improvements and logistics capabilities [15][16] - Expansion of physical retail presence with new stores planned in key markets [14] Management's Comments on Operating Environment and Future Outlook - Management noted that the market is stabilizing after several years of decline, with Wayfair gaining structural strength [49][51] - The company is optimistic about continued momentum in revenue growth and profitability, driven by improved operational efficiency [60][64] - Future guidance indicates a continued focus on maintaining adjusted EBITDA margins in the 5% to 6% range for Q3 [44] Other Important Information - Free cash flow in Q2 was $230 million, the strongest since 2020, driven by revenue growth and working capital benefits [39] - The company has a clean balance sheet with no significant debt due until September 2027 [40] Q&A Session Summary Question: Can you talk about how you think the market grew and how your share gains have shaped up over the past year? - Management indicated that the market is flat to down low single digits, but Wayfair has been gaining share due to improvements in price, selection, and delivery speed [49][51] Question: How do you think about long-term profitability? - Management expressed confidence in achieving adjusted EBITDA margins above 10%, emphasizing the importance of optimizing contribution margins [59][60] Question: Could you comment on the revenues from repeat customers versus new customers? - New order growth was noted, with both new and repeat customer metrics trending positively [92] Question: How should we think about pricing changes in the back half of the year? - Management stated that prices have remained consistent, benefiting from the competitive dynamics of the marketplace model [81] Question: Can you provide insights on customer-facing AI initiatives? - The company is enhancing customer experience through GenAI in areas like search results and product descriptions, with more features to come [85][87]

Core Insights - Wayfair reported strong fiscal Q2 2025 results, with revenue of $3.3 billion, surpassing estimates and showing a 5.0% year-over-year increase [1][5] - Adjusted Diluted EPS reached $0.87, significantly exceeding the $0.33 estimate and reflecting an 85.1% growth from Q2 2024 [1][2] - Despite revenue growth, the active customer base declined to 21.0 million, down 4.5% year over year, indicating potential concerns about future demand [1][8] Financial Performance - Revenue (GAAP) was $3.3 billion, exceeding the expected $3.13 billion and up 6.5% from $3.1 billion in Q2 2024 [2][5] - Adjusted EBITDA improved by 25.8% to $205 million, with a margin increase to 6.3% from 5.2% in Q2 2024 [2][6] - Free cash flow rose to $230 million, a 25.7% increase compared to Q2 2024 [2][6] - Gross profit was $984 million, up 4.6% from $941 million in Q2 2024, maintaining a gross margin near 30% [2][5] Customer Metrics - Average order value increased to $328 from $313 in Q2 2024, while last twelve months (LTM) revenue per active customer improved by 5.9% to $572 [7][8] - Repeat customers accounted for 80.7% of delivered orders, down from 81.7% in Q2 2024, indicating a slight decline in customer loyalty [8] - Orders per customer increased slightly to 1.86 from 1.85 in Q2 2024, suggesting more sales from loyal customers but not necessarily more frequent purchases [8] Business Model and Strategy - Wayfair operates an extensive online marketplace with over 30 million products from 20,000 suppliers, allowing for quick responses to consumer trends [3][4] - The company is focusing on enhancing logistics systems, expanding product offerings, and investing in technology and customer service to improve operational efficiency [4][9] - Key measures tracked by management include optimizing average order value and increasing repeat customer share [4] Future Outlook - Management expressed optimism for growth in adjusted EBITDA and free cash flow, with gross margin guidance in the 30–31% range [10] - Investors are advised to monitor trends in active customer counts, average order value, and the impact of loyalty and logistics initiatives [11]

Exhibit 99.1 Wayfair Announces Second Quarter 2025 Results, Reports Highest Revenue Growth and Profitability Since 2021 Q2 Net Revenue of $3.3 billion with 21.0 million Active Customers BOSTON, MA — August 4, 2025 — Wayfair Inc. ("Wayfair," "we," or "our") (NYSE: W), the destination for all things home, today reported financial results for its second quarter ended June 30, 2025. Second Quarter 2025 Financial Highlights "The second quarter was a resounding success, defined by accelerating sales and share gai ...

Core Insights - Wayfair reported a successful second quarter in 2025, with a net revenue of $3.3 billion, marking a year-over-year increase of 5.0% [10]. - The company achieved a 6% revenue growth year-over-year when excluding the impact of its exit from the German market, the highest growth rate since early 2021 [3][10]. - Active customers totaled 21.0 million, a decrease of 4.5% year-over-year, while the LTM net revenue per active customer increased by 5.9% to $572 [11]. Financial Highlights - Net revenue for Q2 2025 was $3,273 million, compared to $3,117 million in Q2 2024 [20]. - Gross profit was $984 million, representing 30.1% of total net revenue [10]. - Net income was $15 million, with a diluted earnings per share of $0.11 [10][20]. - Adjusted EBITDA for the quarter was $205 million, with an adjusted EBITDA margin of 6.3% [10][34]. Operational Metrics - The average order value increased to $328 in Q2 2025 from $313 in Q2 2024 [11]. - Orders delivered remained stable at 10 million for both Q2 2025 and Q2 2024 [11]. - Repeat customers accounted for 80.7% of total orders delivered in Q2 2025, slightly down from 81.7% in Q2 2024 [11]. Cash Flow and Liquidity - Net cash provided by operating activities was $273 million for Q2 2025, compared to $245 million in Q2 2024 [20]. - Free cash flow for the quarter was $230 million, up from $183 million in the same period last year [34]. - The company reported total liquidity of $1.8 billion, including cash, cash equivalents, and availability under its revolving credit facility [10].

Let's have a look at how Benzinga's most-accurate analysts have rated the company in the recent period. Considering buying W stock? Here's what analysts think: Read This Next: Wayfair Inc. W will release earnings results for the second quarter before the opening bell on Monday, Aug. 4. Analysts expect the Boston, Massachusetts-based company to report quarterly earnings at 33 cents per share, down from 47 cents per share in the year-ago period. Wayfair is projected to report quarterly revenue of $3.12 billio ...

Core Insights - Wayfair Inc. is set to open a new large-format retail location in Denver, Colorado, in late 2026, marking its first entry into the Mountain West region [1] - The Denver store will span approximately 140,000 square feet and will feature a comprehensive shopping experience with 19 departments, including furniture, housewares, and design services [2][3] - This store is part of Wayfair's broader strategy to expand its physical retail presence, following the successful openings of stores in Wilmette, IL, Atlanta, GA, and Yonkers, NY [1][2] Company Overview - Wayfair generated $11.9 billion in net revenue for the 12 months ending March 31, 2025, and is headquartered in Boston, Massachusetts [6] - The company aims to provide a seamless shopping experience from inspiration to installation, catering to various styles and budgets [6] Store Features - The Denver store will offer a diverse catalog of Wayfair Verified items, handpicked by product experts, and will include dedicated areas for design services [2] - Customers will have the option to shop in-store and take home many items the same day, with larger purchases delivered quickly [3] - The store will also feature an all-day café called The Porch, providing fresh food and beverages at affordable prices [3] Location Details - The new store will be located at 8298 E. Northfield Blvd., within The Shops at Northfield, a popular open-air shopping destination in Denver [4] - The partnership with Stockdale Capital Partners aims to transform The Shops at Northfield into a dynamic, pedestrian-focused destination [5]

Company Overview - Wayfair (W) is anticipated to report a year-over-year decline in earnings of 27.7%, with expected earnings of $0.34 per share, while revenues are projected to increase by 0.4% to $3.13 billion for the quarter ended June 2025 [3][12]. Earnings Expectations - The earnings report is scheduled for release on August 4, and if the results exceed expectations, the stock may experience upward movement; conversely, a miss could lead to a decline [2][12]. - The consensus EPS estimate has been revised 2.24% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - Wayfair has an Earnings ESP of +5.41%, suggesting a higher likelihood of beating the consensus EPS estimate, supported by a Zacks Rank of 2 (Buy) [12]. - Historical performance shows that Wayfair has beaten consensus EPS estimates in two out of the last four quarters, with a notable surprise of +155.56% in the last reported quarter [13][14]. Industry Context - In the broader Zacks Internet - Commerce industry, Carvana (CVNA) is expected to report earnings of $1.1 per share, reflecting a significant year-over-year increase of 685.7%, with revenues projected at $4.57 billion, up 34.1% [18]. - Carvana's consensus EPS estimate has also been revised 2.2% higher, resulting in an Earnings ESP of +3.74%, indicating a strong likelihood of surpassing the consensus estimate [19].

Sales Event - Wayfair's Black Friday in July sale has commenced, offering discounts of up to 80% across the entire site [1] Promotion - The sale is promoted sitewide [1]