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Investing.com -- Wayfair Inc. shares surged 12.3% after the online home furnishings retailer reported second-quarter results that significantly exceeded analyst expectations, delivering its highest revenue growth and profitability since 2021.
The company posted adjusted earnings of $0.87 per share for the quarter ended June 30, 2025, substantially beating the analyst estimate of $0.33. Revenue rose 5% YoY to $3.27 billion, surpassing the consensus forecast of $3.12 billion. Excluding the impact of Wayfair (NYSE:W)’s exit from the German market, revenue growth was even stronger at 6% YoY.
"The second quarter was a resounding success, defined by accelerating sales and share gain, in tandem with expanding profitability," said Niraj Shah, CEO, co-founder and co-chairman of Wayfair. "Year-over-year revenue growth of 6% - excluding the impact of Germany - marks the highest growth rate we have seen since early 2021."
Wayfair’s U.S. revenue increased 5.3% to $2.9 billion, while international revenue rose 3.1% to $399 million. The company reported a gross profit of $984 million, representing 30.1% of total revenue. Non-GAAP adjusted EBITDA reached $205 million, resulting in a margin of over 6%.
Despite the strong revenue performance, Wayfair’s active customer base decreased 4.5% YoY to 21 million. However, the company saw a 5.9% increase in revenue per active customer, which reached $572 for the trailing twelve months. Average order value also improved to $328 from $313 in the same quarter last year.
The company generated $273 million in operating cash flow and $230 million in free cash flow during the quarter.