Financial Data and Key Metrics Changes - Revenue grew by 8% year over year on a reported basis and 9% year over year, excluding the impact of the exit from Germany [26][30] - Adjusted EBITDA increased by more than 70% year over year, with a margin of 6.7%, marking the highest level achieved outside of the pandemic period [5][30] - Contribution margin improved to 15.8%, up 150 basis points year over year, the best result since 2021 [27][30] - Free cash flow improved by more than $100 million compared to the third quarter of last year, reaching $93 million [30] Business Line Data and Key Metrics Changes - U.S. business revenue increased by 9% year over year, while international revenue grew by 5% [26] - Active customers saw sequential growth for the first time since 2023, with orders growing over 5% year over year [7][30] - Average Order Value (AOV) was up roughly 2%, driven by a mix shift towards higher-end brands and B2B [7] Market Data and Key Metrics Changes - The category has moved past a multi-year trend of double-digit declines, inching closer to flat over the course of 2025 [6] - Existing home sales remain at multi-decade lows, but the housing market is expected to improve over time [6][62] Company Strategy and Development Direction - The company is focused on driving profitable growth through market share capture, improving financial strength, and investing in long-term business moats [36][25] - The strategy includes leveraging technology advancements, such as AI and machine learning, to enhance customer experience and operational efficiency [10][12] - The company aims to integrate its catalog into leading AI platforms for seamless transactions, enhancing its competitive position in the market [24][25] Management's Comments on Operating Environment and Future Outlook - Management noted that the current operating environment remains challenging, but the company is not reliant on a recovery in the housing market for growth [6][62] - The company anticipates continued top and bottom line growth, with EBITDA growth expected to outpace revenue growth in 2026 [42][45] - Management expressed confidence in the company's ability to capture market share and drive profitability through ongoing investments in technology and customer experience [62] Other Important Information - The company has completed a significant technology replatforming effort, which is expected to drive future growth and innovation [10][45] - The company is actively working on enhancing its product catalog and customer service through AI-driven solutions [19][20] Q&A Session Summary Question: How is the company anticipating consumer behavior for the holiday season? - Management indicated that they do not expect significant changes in consumer behavior due to tariffs and believe holiday shopping will follow a similar seasonal cadence as in previous years [39][40] Question: What are the expectations for 2026 regarding share gains and gross margin? - Management expects EBITDA growth to outpace revenue growth in 2026, driven by continued investment in core business initiatives and technology improvements [42][45] Question: Is the company at an inflection point for growth? - Management expressed optimism about ongoing share gains and believes the company is well-positioned for future growth, despite the broader industry context [49][51] Question: How has the advertising landscape changed with Amazon's recent actions? - Management noted that Amazon's advertising changes did not significantly impact the company, as it already holds a strong position in its specialized market [64][66] Question: What drove revenue acceleration in the later part of the quarter? - Management attributed revenue growth to structural business initiatives rather than pull forward effects, with strength noted in higher-end brands [70][72]

Repeat customers helped fuel an 8% increase in sales for Wayfair (NYSE:W) during the third quarter, beating Wall Street’s expectations and driving shares up by double-digits in Tuesday’s premarket trading. “The third quarter was a great success,” said Wayfair CEO Niraj ...

Core Insights - Wayfair experienced improved revenue in the third quarter, attributed to an increase in orders as consumers purchased new furniture ahead of impending tariffs [1] Company Summary - The company reported a rise in orders, indicating a positive consumer response and potential growth in market share [1] Industry Summary - The furniture retail industry is likely to see fluctuations due to the impact of new tariffs, influencing consumer purchasing behavior [1]

Financial Performance - Q3 2025 net revenue reached $3.1 billion, an increase of $233 million or 8.1% year-over-year[5] - U.S. net revenue was $2.7 billion, an increase of $216 million or 8.6% year-over-year[5] - Net revenue for Q3 2025 was $3,117 million, a 8.1% increase from $2,884 million in Q3 2024[18] - International net revenue for Q3 2025 was $389 million, a 4.6% increase from $372 million in Q3 2024[18] Customer Metrics - Active customers totaled 21.2 million, a decrease of 2.3% year-over-year[6] - Orders delivered in Q3 2025 were 9.8 million, reflecting a growth of 5.4% year-over-year[6] - Repeat customers accounted for 80.1% of total orders delivered in Q3 2025, up from 79.9% in Q3 2024[6] Profitability - Adjusted EBITDA for Q3 2025 was $208 million, up 74.8% from $119 million in Q3 2024[7] - Gross profit was $934 million, representing 30.0% of total net revenue[5] - Gross profit for Q3 2025 reached $934 million, compared to $873 million in Q3 2024, reflecting a 7% increase[18] - Adjusted EBITDA margin for Q3 2025 was 6.7%, compared to 4.1% in Q3 2024[28] - Adjusted EBITDA for the US segment increased to $209 million in Q3 2025, up from $141 million in Q3 2024, representing a growth of 48.2%[29] - International segment reported an Adjusted EBITDA loss of $1 million in Q3 2025, an improvement from a loss of $22 million in Q3 2024[29] Cash Flow - Non-GAAP Free Cash Flow for Q3 2025 was $93 million, compared to a negative $9 million in Q3 2024[7] - Free Cash Flow for the nine months ended September 30, 2025, was $332 million, compared to $155 million in the same period of 2024[20] - Net cash provided by operating activities rose to $155 million in Q3 2025, compared to $49 million in Q3 2024, marking a 216.3% increase[30] Losses and Expenses - The company reported a net loss of $99 million in Q3 2025, compared to a net loss of $74 million in Q3 2024[5] - Operating expenses totaled $896 million in Q3 2025, down from $947 million in Q3 2024, a decrease of 5.4%[18] - The company recorded a loss on debt extinguishment of $99 million in Q3 2025[28] - The company incurred restructuring charges of $3 million in Q3 2025, compared to $68 million in the same quarter of the previous year[30] Shareholder Metrics - Adjusted Diluted Earnings per Share for Q3 2025 was $0.70, up from $0.22 in Q3 2024, reflecting a growth of 218.2%[30] - The weighted average number of shares for diluted loss per share increased to 129 million in Q3 2025 from 123 million in Q3 2024[30] Capital Expenditures - The company’s purchase of property and equipment was $27 million in Q3 2025, compared to $17 million in Q3 2024[30]

Online home goods company Wayfair reported a jump in third-quarter revenue on Tuesday, as it beat Wall Street estimates on the top and bottom lines.The company said total net revenue increased 8.1% year-over-year.Here's how the company performed in its third quarter, compared with what Wall Street was expecting, based on a survey of analysts by LSEG:Earnings per share: 70 cents adjusted vs. 43 cents expectedRevenue: $3.12 billion vs. $3.02 billion expectedWayfair shares climbed 10% in premarket trading.For ...

Accessibility StatementSkip Navigation Other Third Quarter Highlights Key Financial Statement and Operating Metrics | Three | | | | --- | --- | --- | | Months | | | | Ended | Nine Months Ended September 30, | | | September | | | | 30, | | | | 2025 | 2024 2025 2024 | | | (in | | | | millions, | | | | except | | | | LTM net | | | | revenue | | | | per active | | | | customer, | | | | average | | | | ordervalue | | | | and per | | | | share | | | | data) | | | | Key | | | | Financial | | | | Statement | | | | ...

Core Insights - Wayfair (W) is set to release its third-quarter 2025 results on October 28, with expected revenues of $3.01 billion, reflecting a year-over-year growth of 4.2% [1][9] - The consensus estimate for earnings is 46 cents per share, which is an increase of 3 cents from the previous 30 days, compared to 22 cents per share in the same quarter last year [1][9] Performance Overview - Wayfair has exceeded the Zacks Consensus Estimate for earnings in three of the last four quarters, with an average negative surprise of 251.53% [2] - The third quarter is anticipated to show steady revenue growth and operating leverage, driven by effective promotional strategies and operational efficiencies [6] Key Factors Influencing Q3 Results - Sustained customer engagement, improved logistics efficiency, and timely promotional activities are expected to support Wayfair's performance in Q3 2025 [3] - The company entered the quarter with strong momentum, having achieved revenue growth acceleration and positive operating income for the first time in several years [3] Customer Engagement and Sales Strategies - Wayfair's merchandising depth and the growing adoption of CastleGate fulfillment are likely to enhance customer satisfaction and repeat purchases [4] - A significant mid-summer five-day mega sale in late July is expected to have boosted order volumes, site traffic, and customer reactivation [4] Financial Metrics and Profitability - Gross margin is projected to benefit from lower logistics costs and an improved CastleGate mix, while disciplined marketing and operational spending are likely to maintain profitability [5] - The upcoming physical store expansion, including a new location in Denver for 2026, is expected to enhance brand visibility and consumer confidence [5]

Core Insights - The Optimist Fund achieved a return of +9.1% in Q3 2025, significantly outperforming its benchmark [5] - The fund's year-to-date return stands at 44.5%, compared to the benchmark's 11.1% [5] - The fund anticipates continued growth opportunities over the next three and a half years, similar to recent performance [4] Fund Performance - The fund's performance over various periods shows significant volatility, with a notable recovery from a -51.4% return in 2022 to 82.9% in 2023 [5] - Compound returns as of September 30, 2025, indicate strong performance across 1-year (61.2%), 2-year (65.6%), and 3-year (61.9%) periods [5] Top Contributors - **Wayfair**: Revenue increased by approximately 5% year-over-year to $3.27 billion, marking its fastest growth since Q1 2021. Adjusted EBITDA reached $205 million, indicating a margin above 6% for the first time since Q2 2021 [7][8][9] - **ThredUp**: Revenue rose 16% year-over-year to $77.7 million, with adjusted EBITDA increasing by around 100%. Active buyers grew by 17% to 1.47 million [10][11][12] - **Carvana**: Retail units sold increased by 41% year-over-year to 143,280 vehicles, with total revenue rising 42% to $4.84 billion. Adjusted EBITDA reached $601 million, reflecting a 12.4% margin [13][14][15] Top Detractors - **Monday.com**: Despite a 27% increase in revenue, the company reduced its second-half 2025 revenue guidance due to weaker performance marketing trends, causing investor concerns [20][21][22] - **Fiverr**: Results were below expectations, leading to a reduction in position size despite maintaining an attractive risk/reward profile [25][26] Portfolio Composition - The top 10 holdings comprise approximately 85% of the portfolio, including ThredUp, Monday.com, Carvana, Uber, Wayfair, DoorDash, First Advantage, Fiverr, Latham Group, and Medpace [27] Notable Changes - The fund exited positions in HelloFresh and Revolve due to management changes and reduced confidence in growth prospects, reallocating capital to more promising opportunities [29][30] Company Insights - **Medpace**: A leading contract research organization (CRO) focused on small and mid-sized biotech companies, showing strong revenue growth of 14.2% year-over-year to $603.3 million [31][18][35] - The company has a disciplined capital allocation strategy, with a history of share repurchases during market downturns, enhancing long-term growth potential [34][35]

Core Insights - Affirm is enhancing its partnership with Wayfair by integrating its buy now, pay later (BNPL) option into Wayfair's checkout process, aiming to improve customer experience during peak shopping periods [1][2][3] Partnership Expansion - The partnership is being expanded ahead of Wayfair's "Way Day" sales event from October 26 to 29 and the upcoming holiday shopping season, with the initial collaboration dating back to 2017 [2] - Affirm's BNPL solution will now be available for consumers at checkout for various brands under Wayfair, including Joss & Main, AllModern, Birch Lane, and Perigold [3] Consumer Benefits - Affirm allows consumers to split purchases into biweekly or monthly payments, with terms extending up to 36 months and rates starting at 0% APR, making it an attractive option for shoppers [5] - The integration of BNPL options is seen as a natural progression to meet the needs of Wayfair shoppers, who value flexible payment solutions [3][4] Market Trends - Research indicates that rising tariffs and inflation have led consumers to seek flexible payment plans, which has helped maintain demand in the retail sector [6] - The trend of early holiday shopping is also noted as consumers aim to budget more effectively amid economic pressures [6] Competitive Landscape - Affirm is not the only player in the BNPL space; competitors like Sezzle are also promoting their payment options to capture demand during the holiday season [7] - The popularity of BNPL services is growing, particularly for larger purchases such as furniture and home décor, with increasing usage both online and in physical stores [7]

This story was originally published on Supply Chain Dive. To receive daily news and insights, subscribe to our free daily Supply Chain Dive newsletter. Wayfair plans to close a plant in Erlanger, Kentucky, in 2026 after deciding to not renew its lease, the retailer told Supply Chain Dive in an email. The facility is set to close on or about Sept. 30, 2026, impacting 215 employees, according to a Worker Adjustment and Retraining Notification Act notice dated Oct. 15. Terminations will occur in phases, sta ...