Digital-first home goods retailer Wayfair reported total net revenue of $3.3bn, a 5% increase year-on-year (YoY) in the second quarter (Q2) of the fiscal year 2025 (FY25).
Revenue growth, excluding the impact from exiting the German market, was 6% YoY.
The US market contributed significantly to the growth, with revenue up 5.3% to $2.9bn.
International revenue also saw an uptick of 3.1% to $399m, with constant currency growth at 2.1%.
Gross profit reached $984m, representing 30.1% of total net revenue. Net income stood at $15m, with non-generally accepted accounting principles (GAAP) adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) at $205m.
The company’s diluted earnings per share were $0.11. Operating activities generated a net cash of $273m, and non-GAAP free cash flow was $230m.
Wayfair ended the quarter with $1.4bn in cash and short-term investments, with total liquidity reaching $1.8bn.
Wayfair CEO, co-founder and co-chairman Niraj Shah stated: “The second quarter was a resounding success, defined by accelerating sales and share gain, in tandem with expanding profitability. As we have discussed over the last few years, we can and will grow profitably, while taking significant share in the market.
“Year-on-year revenue growth of 6% – excluding the impact of Germany – marks the highest growth rate we have seen since early 2021. Our over 6% adjusted EBITDA margin demonstrates the significant leverage in our model, and as previewed in our investor day two years ago, is just the beginning of what we believe we can achieve over time.”
Despite these gains, active customer count decreased 4.5% YoY to 21 million. However, revenue per active customer increased by 5.9% to $572.
Orders per customer slightly rose to 1.86, maintaining orders delivered at 10 million.
Repeat customers accounted for 80.7% of orders – a slight decrease from the previous year’s 81.7%.
The average order value increased to $328, up from $313 in the previous year, with orders placed via a mobile device constituting 62.9% of total orders delivered.
Shah added: “Every dollar we spend solves for the best outcome across our customers, suppliers and Wayfair. Two decades of this approach has taught us that building great things takes time, but when done with thought, care and prudence, can have a payoff well worth the wait.
“You’re seeing some of that this quarter – with years of work we’ve done leading to some of the best growth and profitability flow through our business has seen since the pandemic. We couldn’t be more excited for what lies ahead in 2025 and beyond.”
