Core Viewpoint - Wayfair's recent earnings report shows significant growth in earnings and revenues, indicating a positive trend for the company despite a slight decline in active customers [2][3][4]. Financial Performance - Wayfair reported Q3 2025 non-GAAP earnings of 70 cents per share, exceeding estimates by 52.17% and increasing 218.2% year over year [2]. - Net revenues for Q3 2025 rose 8.1% year over year to $3.1 billion, beating estimates by 3.62% [2]. - Gross profit for Q3 was $934 million, up 7% year over year, with a gross margin of 30% [7]. Customer Metrics - Last Twelve Months (LTM) net revenues per active customer increased 6.1% year over year to $578, surpassing estimates by 5.75% [3]. - The active customer base declined 2.3% year over year to 21.2 million, missing the consensus mark by 3.19% [3]. - Orders per customer increased to 1.87, up from 1.85 in the previous year, beating estimates by 3.32% [5]. Operational Efficiency - Adjusted EBITDA for Q3 was $208 million, up 74.8% year over year, with an adjusted EBITDA margin of 6.7%, expanding 250 basis points [7]. - Advertising expenses decreased 6.8% year over year to $330 million, while general and administrative expenses decreased 7.3% to $445 million [8][9]. Balance Sheet and Cash Flow - As of September 30, 2025, cash and short-term investments were $1.2 billion, down from $1.4 billion [10]. - Long-term debt decreased to $2.7 billion from $2.9 billion [10]. - Non-GAAP free cash flow for Q3 was reported at $93 million [10]. Future Guidance - For Q4 2025, Wayfair expects revenue growth in the mid-single digits year over year, factoring in a 100 basis-point headwind from exiting the German market [11]. - Gross margin is anticipated to range between 30% and 31% by the end of Q4 2025 [12]. Market Sentiment - There has been a notable upward trend in estimates, with a 92.31% shift in consensus estimates over the past month [13]. - Wayfair currently holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [15].