Wayfair Inc., the e-commerce leader for home goods, has announced financial results for the first quarter ended 31 March 2025, showing stable overall revenue alongside positive performance in the U.S. market and improved profitability metrics.
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Financial Summary:
Wayfair reported total net revenue of $2.7 billion, a slight increase of $1 million year-over-year. U.S. net revenue rose by 1.6% to $2.4 billion, while international net revenue declined by 10.9% to $301 million, with constant currency international growth at -7.1%. Gross profit stood at $837 million, representing 30.7% of total net revenue.
The company posted a net loss of $113 million for the quarter, significantly reduced from a $248 million loss in Q1 2024. Adjusted EBITDA reached $106 million, a marked increase from $75 million the previous year. Diluted loss per share was $0.89, while Non-GAAP adjusted diluted earnings per share came in at $0.10.
Net cash used in operating activities totalled $96 million, with Free Cash Flow at negative $139 million. The company held $1.4 billion in cash, cash equivalents, and short-term investments, with total liquidity of $1.8 billion including credit facility access.
CEO, co-founder, and co-chairman Niraj Shah highlighted Wayfair's ability to outperform despite challenging conditions: '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.'
Shah addressed concerns around tariffs and economic uncertainty, adding: '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.'
Looking ahead, Shah emphasised the company's resilient strategy: '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.'
Operational Metrics:
- Active customers totalled 21.1 million, a decrease of 5.4% YoY.
- Net revenue per active customer rose 4.7% to $562.
- Orders delivered fell 5.2% to 9.1 million.
- Average order value increased from $285 to $301.
- 63.4% of orders were placed via mobile, up from 63.1%.
- Repeat customers contributed 80.5% of total orders.
More information:
Wayfair
IR@wayfair.com
www.investor.wayfair.com