Q1 Net Revenue of $2.7 billion with 21.1 million Active Customers
BOSTON, May 1, 2025 -- Wayfair Inc. ("Wayfair," "we," or "our") (NYSE: W), the destination for all things home, today reported financial results for its first quarter ended March 31, 2025.
First Quarter 2025 Financial Highlights
- Total net revenue of $2.7 billion, increased $1 million, or was close to flat, year over year
- U.S. net revenue of $2.4 billion, increased $38 million, up 1.6% year over year
- International net revenue of $301 million, decreased $37 million, down 10.9% year over year. International Net Revenue Constant Currency Growth was (7.1)%
- Gross profit was $837 million, or 30.7% of total net revenue
- Net loss was $113 million and Non-GAAP Adjusted EBITDA was $106 million
- Diluted loss per share was $0.89 and Non-GAAP Adjusted Diluted Earnings Per Share was $0.10
- Net cash used in operating activities was $96 million and Non-GAAP Free Cash Flow was ($139) million
- Cash, cash equivalents and short-term investments totaled $1.4 billion and total liquidity was $1.8 billion, including availability under our revolving credit facility
"Despite persistent category volatility which marked a fourth consecutive year beginning with contraction, we were able to once again outperform our peers and take healthy market share while driving meaningful improvements in profitability. Year-over-year growth excluding the impact of Germany came in nicely positive - driven by the US business up 1.6% against a category that we estimate declined over the same time frame. Tariffs are clearly top of mind for everyone - while there's a lot of uncertainty in the broader economy, we have direct line of sight and strong conviction on what we need to do for both our customers and our suppliers," said Niraj Shah, CEO, co-founder and co-chairman, Wayfair.
Shah continued, "As we look ahead, our strategy remains clear: continue gaining share through disciplined execution, deepen our partnerships with suppliers, and invest judiciously in high-ROI growth initiatives. We've deliberately built a platform that thrives in dynamic conditions: flexible, resilient, and efficient. With strong momentum, a healthy balance sheet, and a sharpened operating model, we're confident in our ability to navigate what's ahead and emerge even stronger."
Other First Quarter Highlights
- Active customers totaled 21.1 million as of March 31, 2025, a decrease of 5.4% year over year
- LTM net revenue per active customer was $562 as of March 31, 2025, an increase of 4.7% year over year
- Orders per customer, measured as LTM orders divided by active customers, was 1.85 for the first quarter of 2025, compared to 1.84 for the first quarter of 2024
- Orders delivered in the first quarter of 2025 were 9.1 million, a decrease of 5.2% year over year
- Repeat customers placed 80.5% of total orders delivered in both of the first quarters of 2025 and 2024
- Repeat customers placed 7.3 million orders in the first quarter of 2025, a decrease of 5.2% year over year
- Average order value was $301 in the first quarter of 2025, compared to $285 in the first quarter of 2024
- 63.4% of total orders delivered were placed via a mobile device in the first quarter of 2025, compared to 63.1% in the first quarter of 2024
Key Financial Statement and Operating Metrics
Three Months Ended March 31, | ||||
2025 | 2024 | |||
(in millions, except LTM net | ||||
Key Financial Statement Metrics: | ||||
Net revenue | $ 2,730 | $ 2,729 | ||
Gross profit | $ 837 | $ 819 | ||
Loss from operations | $ (122) | $ (235) | ||
Net loss | $ (113) | $ (248) | ||
Loss per share: | ||||
Basic | $ (0.89) | $ (2.06) | ||
Diluted | $ (0.89) | $ (2.06) | ||
Net cash used in operating activities | $ (96) | $ (139) | ||
Key Operating Metrics: | ||||
Active customers (1) | 21 | 22 | ||
LTM net revenue per active customer (2) | $ 562 | $ 537 | ||
Orders delivered (3) | 9 | 10 | ||
Average order value (4) | $ 301 | $ 285 | ||
Non-GAAP Financial Measures: | ||||
Adjusted EBITDA | $ 106 | $ 75 | ||
Free Cash Flow | $ (139) | $ (193) | ||
Adjusted Diluted Earnings (Loss) per Share | $ 0.10 | $ (0.32) | ||
(1) | The number of active customers represents the total number of individual customers who have purchased at least once directly from our sites during the preceding twelve-month period. The change in active customers in a reported period captures both the inflow of new customers as well as the outflow of existing customers who have not made a purchase in the last twelve months. We view the number of active customers as a key indicator of our growth. |
(2) | LTM net revenue per active customer represents our total net revenue in the last twelve months divided by our total number of active customers for the same preceding twelve-month period. We view LTM net revenue per active customer as a key indicator of our customers' purchasing patterns, including their initial and repeat purchase behavior. |
(3) | Orders delivered represent the total orders delivered in any period, inclusive of orders that may eventually be returned. As we ship a large volume of packages through multiple carriers, actual delivery dates may not always be available, and as such we estimate delivery dates based on historical data. We recognize net revenue when an order is delivered, and therefore orders delivered, together with average order value, is an indicator of the net revenue we expect to recognize in a given period. We view orders delivered as a key indicator of our growth. |
(4) | We define average order value as total net revenue in a given period divided by the orders delivered in that period. We view average order value as a key indicator of the mix of products on our sites, the mix of offers and promotions and the purchasing behavior of our customers. |
Webcast and Conference Call
Wayfair will host a conference call and webcast to discuss its first quarter 2025 financial results today at 8 a.m. (ET). Investors and participants should register for the call in advance by visiting https://registrations.events/direct/Q4I569320. After registering, instructions will be shared on how to join the call. The call will also be available via live webcast at https://events.q4inc.com/attendee/886978538. An archive of the webcast conference call will be available shortly after the call ends on Wayfair's Investor website at investor.wayfair.com. Important information may be disseminated initially or exclusively via the Investor website; investors should consult the site to access this information.
About Wayfair
Wayfair is the destination for all things home, and we make it easy to create a home that is just right for you. Whether you're looking for that perfect piece or redesigning your entire space, Wayfair offers quality finds for every style and budget, and a seamless experience from inspiration to installation.
The Wayfair family of brands includes:
- Wayfair: Every style. Every home.
- AllModern: Modern made simple.
- Birch Lane: Classic style for joyful living.
- Joss & Main: The ultimate style edit for home.
- Perigold: The destination for luxury home.
- Wayfair Professional: A one-stop Pro shop.
Wayfair generated $11.9 billion in net revenue for the twelve months ended March 31, 2025 and is headquartered in Boston, Massachusetts with global operations.
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