Highly Shorted Wayfair Sinks As Active Customer Decline Raises Red Flags - Wayfair (NYSE:W)

Quarterly Metrics - The company reported fourth-quarter adjusted earnings per share of 85 cents, exceeding the analyst consensus estimate of 66 cents [1] - Quarterly sales reached $3.337 billion, reflecting a 6.9% year-over-year increase, surpassing the expected $3.301 billion [1] - Active customers totaled 21.3 million as of December 31, 2025, marking a 0.5% year-over-year decrease [1] - Total net revenue, excluding the impact of exit from the German market, grew 7.8% year over year [1] U.S. and International Revenue - U.S. net revenue amounted to $2.9 billion, up 7.4% year over year [2] - International net revenue reached $395 million, increasing by 3.7%, with constant-currency growth of 1.3% [2] - Repeat customers accounted for 79.1% of total orders delivered in the fourth quarter, slightly down from 79.4% in the previous year [2] - Average order value was $301 in the fourth quarter, compared to $290 in the same quarter last year [2] Profitability and Cash Position - Quarterly gross profit totaled $1.010 billion, an increase from $941 million [3] - Adjusted EBITDA was $224 million, compared to $96 million a year ago [3] - The company ended the quarter with cash and equivalents of $1.476 billion [3] Outlook - The company expects mid-single-digit year-over-year revenue growth in the first quarter of 2026 [4] - Gross margins are projected to be in the 30%–31% range, likely toward the low end [4] - Adjusted EBITDA is anticipated to be between 4.5% and 5.5% of net revenue [4] Short Interest - The company has a short float of 16.69 million shares, representing 21.44% of its publicly traded float, indicating a high level of short interest among investors [5] - Wayfair shares were down 10.66% at $81.72 at the time of publication [5]