Wayfair Inc (NYSE:W) shares surged about 28% to around $114 on Tuesday after the online home furnishings retailer reported second-quarter results that topped Wall Street expectations, with revenue growth accelerating in the US.
Wayfair reported adjusted earnings per share of $0.95 for the second quarter, ahead of the analyst consensus estimate of $0.87. Net revenue reached $3.52 billion, compared with the $3.45 billion expected by analysts.
Total net revenue increased 7.5% year over year to $3.5 billion, with US revenue rising 8.7% to $3.1 billion. International revenue declined 1.3% to $394 million, while constant-currency international revenue fell 2%.
Gross profit was $1.05 billion, representing 30% of net revenue. Non-GAAP contribution profit was $539 million, or 15.3% of revenue, while adjusted EBITDA was $242 million. Wayfair reported a net loss of $1 million, compared with adjusted diluted earnings per share of $0.95.
The company generated $360 million in operating cash flow and $301 million in non-GAAP free cash flow. Cash, cash equivalents and short-term investments totaled $1.1 billion at the end of the quarter, while total liquidity stood at $1.6 billion, including availability under its revolving credit facility.
Wayfair's orders delivered rose 6% year over year to 10.6 million, while active customers increased 3.3% to 21.7 million. Net revenue per active customer over the last 12 months increased 4.2% to $596, and average order value rose to $332 from $328 a year earlier.
Repeat customers accounted for 80.2% of total orders, down slightly from 80.7% in the second quarter of 2025. Repeat customers placed 8.5 million orders during the quarter, an increase of 4.9% year over year.
Wayfair CEO Niraj Shah wrote that the company saw 7.5% revenue growth in the quarter, driven by a 6% increase in orders. He highlighted the company's US performance, where revenue growth of nearly 9% represented its strongest growth in the post-COVID period.
Shah also highlighted growth among Wayfair's specialty retail brands, which increased nearly 20% in the quarter, while luxury brand Perigold grew more than 35%.
“We are excited to see ramping growth in the Wayfair business and complementing that with outsized growth from our specialty and luxury brands, all building to why we expect to see even further acceleration as our numerous initiatives play out,” Shah said.