Wayfair Q4 EPS 28% Above Estimates; Active Customers Down 0.5%
Wayfair reported Q4 adjusted EPS of $0.85, beating estimates by $0.19, and revenue rose 6.9% to $3.337 billion year over year. Active customers fell 0.5% to 21.3 million while adjusted EBITDA climbed to $224 million from $96 million, flagging growth concerns despite profitability gains.
1. Q4 Financial Highlights
Wayfair delivered adjusted earnings per share of $0.85 in the fourth quarter, surpassing the consensus estimate of $0.66 by $0.19. Quarterly net revenue reached $3.337 billion, marking a 6.9% year-over-year increase.
2. Customer and Order Metrics
Active customer count declined 0.5% year over year to 21.3 million as of December 31, 2025. Repeat customers accounted for 79.1% of total orders, slightly below last year’s 79.4%, while average order value rose to $301 from $290.
3. Profitability and Cash Position
Gross profit expanded to $1.010 billion from $941 million a year ago. Adjusted EBITDA more than doubled to $224 million compared with $96 million, and the company ended the quarter with $1.476 billion in cash and equivalents.
4. Outlook and Market Sentiment
Wayfair projects mid-single-digit revenue growth and 30%–31% gross margins in Q1 2026, with adjusted EBITDA of 4.5%–5.5% of revenue. The stock faces elevated short interest at 21.44% of float, reflecting bearish investor sentiment.