Wayfair Inc (NYSE:W) posted fourth quarter revenue growth that exceeded Wall Street expectations, but saw its shares drop about 11% amid concerns over customer growth.
For Q4, Wayfair reported net revenue of $3.34 billion, slightly above the $3.3 billion expected by analysts, representing a 6.9% increase from the prior year.
US revenue totaled $2.9 billion, up 7.4% year over year, while international revenue reached $395 million, up 3.7% from the prior year.
Adjusted earnings per share came in at $0.85, beating the consensus estimate of $0.66.
Gross profit for the quarter was $1.0 billion, or 30.3% of net revenue, and non-GAAP contribution profit was $511 million, or 15.3% of revenue. The company reported a net loss of $116 million, with non-GAAP adjusted EBITDA of $224 million.
Despite the revenue gains, Wayfair’s total active customers slightly declined to 21.3 million, down 0.5% from the previous year.
"Q4 capped off a tremendous year for Wayfair, with revenue growing 7.8% year-over-year excluding the impact of Germany,” Wayfair CEO Niraj Shah said in a statement. “We had our third consecutive quarter of new customer growth, on top of healthy growth in repeat orders, all in the face of a category that contracted in the low single digits for the final quarter of the year.
For the full year, Wayfair reported net revenue of $12.5 billion, up 5.1% from 2024, with US revenue of $11 billion and international revenue of $1.5 billion.
Full-year gross profit totaled $3.8 billion, and non-GAAP contribution profit reached $1.9 billion. The company posted a net loss of $313 million for 2025, while non-GAAP adjusted EBITDA was $743 million. Non-GAAP adjusted diluted earnings per share were $2.60.