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][29] - Adjusted EBITDA increased by more than 70% year-over-year, achieving a margin of 6.7%, the highest level outside of the pandemic period [6][29] - Contribution margin improved to 15.8%, up 150 basis points year-over-year, marking the best result since 2021 [27][29] 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 [9][29] - Average Order Value (AOV) rose approximately 2% in Q3, driven by a mix shift towards higher-end brands and B2B [9] Market Data and Key Metrics Changes - The overall category has moved past a multi-year trend of double-digit declines, inching closer to flat growth in 2025 [8][9] - Existing home sales remain at multi-decade lows, but the category is showing signs of stabilization [7][8] Company Strategy and Development Direction - The company is focused on driving share capture and profitability through strong execution and technology advancements [6][11] - Investments in AI and machine learning are aimed at enhancing customer experience and operational efficiency [12][15] - The strategy includes a dual-prompt approach to integrate the catalog into leading AI platforms while maintaining a strong presence on its own site [24][25] Management's Comments on Operating Environment and Future Outlook - Management believes that the current sluggish housing market does not significantly impact their growth strategy, which is driven by company-specific factors [8][9] - The company anticipates continued top and bottom line growth, with EBITDA growth expected to outpace revenue growth in 2026 [43][45] - There is optimism about the industry backdrop improving, with expectations for a gradual recovery in purchasing behavior [64][65] Other Important Information - The company ended the quarter with $1.2 billion in cash and short-term investments, and $1.7 billion in total liquidity [29] - Free cash flow improved by over $100 million compared to the same quarter last year, reaching $93 million [29] Q&A Session Summary Question: How is the company anticipating consumer behavior for the holiday season? - Management does not expect significant changes in consumer behavior due to tariffs and believes holiday shopping will follow traditional patterns [40][41] Question: What are the expectations for 2026 regarding share gains and gross margin? - The company aims for EBITDA growth to outpace revenue growth, driven by improvements in core offerings and new programs [42][43][46] Question: Is the business at an inflection point for growth? - Management remains optimistic about continued growth momentum and believes benefits from technology investments will contribute positively [50][52] Question: How does the company view the impact of Amazon's advertising changes? - The company does not see a significant impact from Amazon's advertising changes, as it already holds a strong market position [66][70] Question: What drove revenue acceleration in the later part of the quarter? - Revenue growth was attributed to structural business initiatives rather than pull forward effects, with strength noted in higher-end brands [75][78]