Wayfair Achieves First Annual Sales Increase Since 2020, Surpasses Furniture Market Growth

• Q4 revenue reached $3.34 billion, up 7% year-over-year, exceeding the $3.30 billion expected by analysts
• Adjusted EBITDA hit $224 million for the quarter, surpassing the $200 million forecast and marking continued profitability improvements
• Wayfair gained market share with three consecutive quarters of new customer growth while the overall furniture category contracted in the low single digits in Q4

Wayfair Returns to Growth, Outperforms Struggling Furniture Market

Key Financial Results:

Wayfair reported its first annual sales increase since 2020, with 2025 revenue rising 5.1% to $12.5 billion, reversing a 1% decline in 2024. Fourth-quarter revenue reached $3.34 billion, up 7% year-over-year and beating Wall Street estimates of $3.30 billion.

The company posted a Q4 net loss of $116 million ($0.89 per share) but significantly improved profitability metrics. Adjusted EBITDA hit $224 million for the quarter, exceeding the $200 million forecast and marking continued operational improvements.

Operational Highlights:

Wayfair achieved its third consecutive quarter of new customer growth while also seeing healthy repeat order increases. Average order values rose to $301 from $290 year-over-year, with order volumes growing at similar rates. The company outperformed the broader furniture market, which contracted in the low single digits during Q4.

Market Context:

The furniture industry faces significant headwinds from tariffs, high interest rates, and sluggish home sales. Despite these challenges, Wayfair is capturing market share by positioning itself as a value-oriented option through its extensive manufacturer network.

Strategic Initiatives:

CEO Niraj Shah credited growth to organic business strategies including an enhanced rewards program, the "Wayfair Verify" quality endorsement system, and website improvements—all focused on customer experience enhancement.

Investment Implications:

While Wayfair hasn't posted annual net profit since 2020, accelerating revenue growth and improving adjusted EBITDA suggest a positive trajectory. The company's ability to gain share in a contracting market demonstrates competitive strength, though profitability remains a key metric to monitor.