And right now we are 2 minutes away from the end of the trading day. Romaine Bostick here with Scarlet Fu taking you through to that closing bell with a global simulcast. It starts now.Carol Massar in the radio booth Matt Miller in today for Tim Stenovec as we welcome our audiences across all of our platforms television, radio and our partnership with YouTube, a phenomenal day. Carol Massar was a recoup some of the phenomenal losses from last Friday. It's kind of amazing because Friday, I mean, it just felt ...

Revenue and Customer Metrics - For the three months ended June 30, 2025, net revenue increased by $156 million, or 5.0%, compared to the same period in 2024, primarily due to higher average order value [104]. - As of June 30, 2025, the company had 21 million active customers, with 80.6% of orders coming from repeat buyers during the same period [94]. - U.S. net revenue increased by 5.3% to $2,874 million, while International net revenue increased by 3.1% to $399 million compared to the same period in 2024 [106]. - For the three months ended June 30, 2025, net revenue was $6,003 million, an increase of $157 million or 2.7% compared to the same period in 2024 [131]. - U.S. net revenue increased by 3.6% to $5,303 million, while International net revenue decreased by 3.4% to $700 million, primarily due to the exit of the German business [132][133]. Profitability and Financial Performance - The company's gross profit for the three months ended June 30, 2025, was $984 million, up from $941 million in the same period in 2024 [102]. - Adjusted EBITDA for the three months ended June 30, 2025, was $205 million, compared to $163 million for the same period in 2024, reflecting improved operational efficiency [102]. - Free Cash Flow for the three months ended June 30, 2025, was $230 million, an increase from $183 million in the same period in 2024 [102]. - Net income for the three months ended June 30, 2025, was $15 million, a recovery from a net loss of $42 million in the same period of 2024 [185]. - Adjusted Diluted Earnings per Share for the three months ended June 30, 2025, was $0.87, compared to $0.47 in the same period of 2024, representing an 85.1% increase [198]. Expenses and Cost Management - Cost of goods sold increased by $113 million, or 5.2%, to $2,289 million for the three months ended June 30, 2025, due to higher net revenue [107]. - Total operating expenses for the six months ended June 30, 2025, decreased by 5.1% to $1,926 million, driven by reductions in customer service and administrative costs [139]. - Advertising expenses for the three months ended June 30, 2025, increased by $7 million or 1.9%, reflecting a strategic response to market conditions [115]. - Restructuring charges increased by $9 million or 100.0% for the three months ended June 30, 2025, totaling $9 million, primarily due to one-time employee severance and transition costs [120][121]. - Total selling, operations, technology, general and administrative expenses decreased by $79 million, or 9.7%, to $735 million for the six months ended June 30, 2025, compared to the same period in 2024 [145]. Cash Flow and Liquidity - Cash flows provided by operating activities increased by $71 million to $177 million for the six months ended June 30, 2025, compared to $106 million in the same period in 2024 [172][174]. - Free Cash Flow for the six months ended June 30, 2025, was $91 million, compared to a negative $10 million in the same period of 2024, indicating a significant improvement [190]. - As of June 30, 2025, total liquidity was $1.4 billion, including cash and cash equivalents of $1.3 billion and short-term investments of $52 million [161]. - The company had $3.1 billion in principal amount of indebtedness outstanding as of June 30, 2025 [163]. - Cash flows used in financing activities increased by $63 million to $742 million for debt extinguishment, offset by $691 million from debt issuance during the six months ended June 30, 2025 [177]. Market Conditions and Strategic Outlook - The company expects to continue monitoring macroeconomic conditions and their potential impact on consumer behavior and business operations [96]. - The exit of the German business has impacted international revenue growth, with a constant currency growth of 2.1% for international net revenue [105]. - There have been no significant changes in the company's exposures to market risk since December 31, 2024 [202]. Accounting and Reporting - The company does not engage in any off-balance sheet activities, ensuring transparency in its financial reporting [178]. - There have been no material changes to the company's critical accounting policies and estimates since December 31, 2024 [200]. - For detailed information on recent accounting pronouncements, refer to Note 1 in the Quarterly Report on Form 10-Q [201].

Core Insights - Wayfair reported a revenue of $3.3 billion for the quarter, marking a 5% increase and the strongest performance in four years [2] - The company's CEO, Niraj Shah, highlighted a focus on technology-driven innovation, particularly through AI initiatives like Decorify and Muse, which enhance customer engagement and personalization [3] - Wayfair is observing a rising but still small percentage of site traffic coming from AI platforms like OpenAI's ChatGPT, prompting the company to optimize interactions with these platforms [4] AI Initiatives - The introduction of the "Discover" tab in Wayfair's app features AI-curated content aimed at increasing customer engagement [3] - Shah noted that various AI platforms are exploring shopping functionalities, which could pose a competitive threat beyond traditional search engines [5] - The company is actively working on strategies to ensure its visibility and relevance in the evolving eCommerce landscape influenced by AI [4][5] Physical Expansion - Wayfair plans to expand its physical presence with new stores in Atlanta, New York, and Denver, following successful performance in its Chicago location [6]

Group 1 - Wayfair Inc's stock increased by 7.3% to $69.96, reaching a 52-week high of $73.79 [1] - The company's second-quarter earnings and revenue exceeded estimates, with revenue growth at its highest since 2021, marking the quarter as a "resounding success" according to CEO Niraj Shah [1] - Year-to-date, Wayfair's stock is up 56.8%, having more than doubled in price from May to July [2] Group 2 - The stock has shown significant upward momentum since early April, with close support at the 20-day moving average since late April [2] - Short interest in Wayfair has increased, now representing 23.8% of the stock's available float, which may have contributed to today's gains [2] - Trading activity has surged, with 13,000 calls and 8,124 puts exchanged, indicating a higher than usual interest in options [3]

Core Insights - Wayfair reported $3.27 billion in revenue for Q2 2025, a 5% year-over-year increase, with an EPS of $0.87 compared to $0.47 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $3.14 billion by 4.25%, and the EPS surpassed the consensus estimate of $0.36 by 141.67% [1] Financial Performance Metrics - Orders Delivered: 10 million, exceeding the average estimate of 9.65 million [4] - Average Order Value: $328.00, compared to the average estimate of $323.46 [4] - Active Customers: 21 thousand, slightly below the average estimate of 22.03 million [4] - LTM Orders Per Customer: $1.86, above the average estimate of $1.79 [4] - LTM Net Revenue per Active Customer: $572.00, exceeding the average estimate of $529.01 [4] - Orders by Repeat Customers: 80.7%, slightly above the estimated 80.5% [4] - Orders From Repeat Customers: 8.1 thousand, compared to the average estimate of 7.77 thousand [4] - Geographic Net Revenue - International: $399 million, surpassing the average estimate of $355.9 million, with a year-over-year change of 3.1% [4] - Geographic Net Revenue - United States: $2.87 billion, exceeding the average estimate of $2.77 billion, with a year-over-year change of 5.3% [4] Stock Performance - Wayfair shares have returned +14.8% over the past month, outperforming the Zacks S&P 500 composite's +0.6% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for near-term outperformance against the broader market [3]

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 ...