Core Viewpoint - Wayfair reported quarterly earnings of $0.85 per share, exceeding the Zacks Consensus Estimate of $0.64 per share, and showing a significant improvement from a loss of $0.25 per share a year ago, indicating a strong earnings surprise of +32.65% [1] Financial Performance - The company achieved revenues of $3.34 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.48% and reflecting a year-over-year increase from $3.12 billion [2] - Over the last four quarters, Wayfair has consistently surpassed consensus EPS estimates, achieving this four times [2] Stock Performance and Outlook - Wayfair shares have declined approximately 8.9% since the beginning of the year, contrasting with the S&P 500's gain of 0.5% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the sustainability of the recent earnings numbers [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $0.27 on revenues of $2.89 billion, while for the current fiscal year, the estimate is $2.97 on revenues of $13.15 billion [7] - The trend of estimate revisions for Wayfair was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Internet - Commerce industry, to which Wayfair belongs, is currently ranked in the bottom 23% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]

Financial Data and Key Metrics Changes - In Q4 2025, net revenue grew by 6.9% year-over-year on a reported basis and 7.8% year-over-year, excluding the impact from the exit from Germany [19] - Adjusted EBITDA for Q4 reached $224 million, representing a 6.7% margin, more than double the adjusted EBITDA dollars delivered in Q4 2024 [22][23] - For the full year of 2025, adjusted EBITDA dollars grew by over 60% to $743 million, with an improved adjusted EBITDA margin by over 200 basis points [23] Business Line Data and Key Metrics Changes - The U.S. business saw over 7% year-over-year growth, while the international business grew nearly 4% [19] - Contribution margin for Q4 was 15.3%, which was 250 basis points better than Q4 2024 [22] Market Data and Key Metrics Changes - The overall market category is estimated to be nearly $500 billion in the U.S., Canada, and the U.K., with significant fragmentation [6] - The company is experiencing healthy growth in both new customer acquisition and repeat orders, despite a contracting category [5] Company Strategy and Development Direction - The company aims to improve its core offerings of selection, price, availability, and speed of delivery, while also scaling new business initiatives [7] - The launch of new physical retail stores is a key strategy, with plans for stores in Atlanta, Columbus, and Denver, building on the success of the Chicago store [9][10] - The Wayfair Rewards loyalty program is designed to deepen customer loyalty and drive higher spending among members [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to capture market share and drive top-line growth, regardless of macroeconomic conditions [18] - The company is focused on leveraging technology and AI to enhance customer experience and operational efficiency [8][35] Other Important Information - The company ended Q4 with $1.5 billion in cash and $1.9 billion in total liquidity [23] - Free cash flow for Q4 was $145 million, representing a more than 40% year-over-year improvement [24] Q&A Session Summary Question: Inquiry about AI initiatives and partnerships - Management discussed the internal benefits of AI in improving quality, speed, and reducing costs, as well as partnerships with external parties to enhance brand visibility [32][33][34] Question: Long-term margin outlook - Management indicated expectations for continued growth in adjusted EBITDA dollars faster than top-line growth, with a focus on maintaining a contribution margin around 15% [45][50] Question: Performance of physical retail stores - Management confirmed that the Wilmette store has continued to attract new customers and drive growth in the surrounding area, with a CAGR of over 10% since opening [60][61]

Financial Data and Key Metrics Changes - Net revenue grew by 6.9% year-over-year on a reported basis and 7.8% year-over-year, excluding the impact from the exit from Germany [19] - Adjusted gross margin for Q4 was 30.3% of net revenue, maintaining a steady range of 30%-31% for over two years [20][21] - Adjusted EBITDA for Q4 reached $224 million, with a margin of 6.7%, more than double the amount from Q4 of 2024 [22][23] - Full year 2025 Adjusted EBITDA dollars grew by over 60% to $743 million, with an improved Adjusted EBITDA margin by over 200 basis points [23] Business Line Data and Key Metrics Changes - The U.S. business saw over 7% year-over-year growth, while the international business grew nearly 4% [19] - Contribution margin for Q4 was 15.3%, which was 250 basis points better than Q4 of 2024 [22] Market Data and Key Metrics Changes - The overall market category contracted in the low single digits for the final quarter of the year, yet the company managed to achieve growth [5] - The total addressable market (TAM) in the U.S., Canada, and the U.K. is nearly $500 billion, with significant fragmentation in the retail space [6] Company Strategy and Development Direction - The company aims to improve its core offerings of selection, price, availability, and speed of delivery, while also inventing and scaling new business initiatives [7] - The launch of new physical retail stores is a key strategy, with plans for stores in Atlanta, Columbus, and Denver, building on the success of the Chicago store [9][10] - The Wayfair Rewards loyalty program is designed to deepen customer loyalty and drive higher spending among members [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to capture market share and drive top-line growth despite a challenging macro environment [18] - The company is focused on leveraging technology and AI to enhance operational efficiencies and improve customer experience [8][35] - Management expects to continue growing Adjusted EBITDA dollars faster than revenue, indicating strong operational leverage [50] Other Important Information - The company ended Q4 with $1.5 billion in cash and $1.9 billion in total liquidity [23] - Free cash flow for Q4 was $145 million, representing a more than 40% year-over-year improvement [24] - The company is committed to reducing leverage while managing dilution, with net leverage now under 2.5x [25] Q&A Session Summary Question: AI initiatives and partnerships - Management discussed the internal benefits of AI, including improved quality, speed, and cost reduction, and highlighted the use of enterprise LLMs to enhance productivity [32][34][35] Question: Long-term margin outlook - Management indicated expectations for continued growth in EBITDA dollars faster than revenue, with incremental margins remaining strong [45][50] Question: Physical retail expansion performance - Management confirmed that the Wilmette store has continued to attract new customers and drive growth in the surrounding area, with a CAGR over 10% since opening [60][62] Question: Multi-channel fulfillment benefits - Management emphasized the importance of logistics infrastructure in providing competitive advantages in technology, marketing reach, and customer service [69]

Financial Data and Key Metrics Changes - In Q4 2025, net revenue grew by 6.9% year-over-year on a reported basis and 7.8% year-over-year, excluding the impact from the exit from Germany [21] - Adjusted EBITDA for Q4 reached $224 million, representing a 6.7% margin, more than double the adjusted EBITDA dollars delivered in Q4 2024 [25] - For the full year of 2025, adjusted EBITDA dollars grew by over 60% to $743 million, with an improved adjusted EBITDA margin by over 200 basis points [25][27] Business Line Data and Key Metrics Changes - The U.S. business saw over 7% year-over-year growth, while the international business grew nearly 4% [21] - Contribution margin for Q4 was 15.3%, which was 250 basis points better than Q4 2024 [24] - The loyalty program, Wayfair Rewards, has over 1 million members, driving more than 15% of Wayfair U.S. revenue [15] Market Data and Key Metrics Changes - The overall market for home goods is nearly $500 billion in the U.S., Canada, and the U.K., with significant fragmentation [6] - The company is experiencing a category contraction in the low single digits for the final quarter of the year, yet it has returned to growth [5] Company Strategy and Development Direction - The company aims to improve its core recipe of selection, price, availability, and speed of delivery, while also inventing and scaling new business initiatives [7][8] - The physical retail portfolio is expanding, with new stores planned in Atlanta, Columbus, and Denver, following the success of the Chicago store [10][11] - The company is leveraging technology and AI to enhance customer experience and operational efficiency [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to capture market share and drive top-line expansion despite macroeconomic challenges [20] - The company anticipates continued growth in adjusted EBITDA and free cash flow in 2026, driven by its strategic initiatives [30] Other Important Information - The company ended Q4 with $1.5 billion in cash and $1.9 billion in total liquidity [25] - The net leverage ratio is now under 2.5x, down from approximately 4x at the end of 2024 [27] Q&A Session Summary Question: AI initiatives and partnerships - Management discussed the internal benefits of AI, including improved quality, speed, and cost reduction, and highlighted the use of enterprise LLMs to enhance productivity [33][36] Question: Long-term margin outlook - Management indicated that they expect to continue growing adjusted EBITDA dollars faster than revenue, with strong incremental margins anticipated [44][50] Question: Physical retail expansion performance - The store in Wilmette has shown continued strong performance, attracting new customers and contributing to overall growth in the area [58][60]

Core Insights - The article discusses five publicly traded companies that exhibit characteristics signaling potential take-private transactions in 2026 due to their depressed valuations and strong cash flows [1] Group 1: Company Profiles - **Wayfair**: Trading at $81.35, down 72% from its five-year high of $292.73, with a market cap of $11.9 billion. Q4 2025 revenue was $3.3 billion, with adjusted EBITDA of $224 million, a 133% year-over-year increase. However, the company reported a $116 million GAAP net loss and has negative shareholders' equity of $2.8 billion. Executives have been selling shares, which raises concerns about a potential LBO [1] - **LKQ**: Trading at $33.22, down 13% over the past year, with a market cap of $8.5 billion. The company generated $387 million in free cash flow in Q3 2025 and has an EV/EBITDA of 9x. Despite a 1.2% decline in overall organic revenue, the Specialty business saw over 9% organic growth. Executive selling at $33.41 in January 2026 is a cautionary signal [1] - **YETI**: Trading at $49.43, 34% below its five-year high of $75, with a market cap of $4.0 billion. Q4 2025 revenue was $538.7 million, but gross margin fell to 58.4% due to tariff pressures. The company has accelerated its buyback program, but tariff-related margin compression poses a near-term risk [1] - **Etsy**: Trading at $44.05, down 81% from its five-year high of $227.27, with a market cap of $4.4 billion and $1.40 billion in cash. Q4 2025 revenue was $881.6 million, missing estimates, while EPS of $0.92 exceeded expectations. The core marketplace saw slight recovery, but active sellers continued to decline [1] - **EPAM Systems**: Trading at $141, down 63% from its five-year high of $376. Q4 2025 revenue was $1.41 billion, growing 12.8% year-over-year, with acquisitions contributing to growth. The company holds $1.30 billion in cash and has no significant debt, making it an attractive LBO candidate [1] Group 2: Market Conditions - Private equity firms currently have a record amount of dry powder, and leveraged buyout financing has improved as interest rates stabilize. Mid-cap public companies with strong brands and cash flows are trading at multi-year lows, creating favorable conditions for take-private activity [1] - The article emphasizes that none of the companies have confirmed any go-private transactions or private equity interest, and the potential for such deals depends on various factors beyond financial metrics, including management willingness and regulatory conditions [2]

Investor Presentation 2026 February 2026 1 Safe Harbor This presentation contains "forward-looking statements" within the meaning of federal and state securities laws. All statements other than statements of historical fact contained in this presentation—including statements regarding our future results of operations and financial position, including our profitability goals, business strategy, plans and objectives of management for future operations and the financial impact, our plans for growth, including ...

Core Insights - The furniture retailer reported better-than-expected sales and adjusted earnings, indicating strong performance in the market [1] - However, a debt extinguishment loss negatively impacted overall profits, highlighting potential financial challenges [1] Sales Performance - The company achieved sales figures that exceeded market expectations, suggesting robust demand for its products [1] - Adjusted earnings also surpassed forecasts, reflecting effective cost management and operational efficiency [1] Financial Impact - The debt extinguishment loss has been a significant factor affecting the company's profitability, which may raise concerns among investors regarding future financial stability [1]

Core Insights - Wayfair narrowed its fourth-quarter loss as revenue increased, primarily due to the growth of its business in the U.S. [1] Revenue Performance - The company experienced a rise in revenue, which contributed to the reduction of its losses in the fourth quarter [1]. Business Growth - The growth of Wayfair's business in the U.S. market was a significant driver behind the improved financial performance [1].

Exhibit 99.1 Wayfair Announces Fourth Quarter and Full Year 2025 Results, Reports Further Share Capture and Strong Profitability Q4 Net Revenue of $3.3 billion with 21.3 million Active Customers BOSTON, MA — February 19, 2026 — Wayfair Inc. ("Wayfair," "we," or "our") (NYSE: W), the destination for all things home, today reported financial results for its fourth quarter and full year ended December 31, 2025. Fourth Quarter 2025 Financial Highlights Full Year 2025 Financial Highlights • Total net revenue of ...

Core Insights - Wayfair's annual sales increased for the first time since 2020, with a revenue growth of 5.1% to $12.5 billion in 2025, following a decline of over 1% in 2024 [1] - The company exceeded Wall Street expectations for both revenue and earnings in its fiscal fourth quarter, reporting adjusted earnings per share of 85 cents compared to an expected 66 cents [2][9] - Wayfair experienced a loss of $116 million, or 89 cents per share, in Q4, an improvement from a loss of $128 million, or $1.02 per share, a year earlier [3] Revenue and Earnings Performance - In Q4, Wayfair's revenue rose to $3.34 billion, up approximately 7% from $3.12 billion a year earlier, marking the second consecutive quarter of revenue growth [4] - The adjusted EBITDA for the quarter was $224 million, surpassing expectations of $200 million [4][5] Customer Growth and Market Position - Wayfair achieved its third consecutive quarter of new customer growth, alongside healthy growth in repeat orders, despite a contracting category in the furniture industry [3] - Average order values increased to $301 from $290 in the previous year, with the number of orders delivered growing at a similar pace [7] Strategic Initiatives - The company has focused on enhancing customer experience through initiatives like a rewards program and product quality verification, which have contributed to market share gains [8] - Wayfair's positioning as a value-oriented retailer has resonated with consumers prioritizing lower prices amid a challenging economic environment for the furniture industry [6]