Wayfair narrowed its fourth-quarter loss and delivered its first full-year sales increase since 2020, as higher order values and repeat purchases helped offset a sluggish home category backdrop.
The online home furnishings retailer reported a net loss of $116 million, or $0.89 per share, for the quarter ended Dec. 31, compared with a loss of $128 million, or $1.02 per share, a year earlier.
Excluding equity-based compensation and other one-time items, adjusted earnings per share totaled $0.85, ahead of analyst estimates of $0.66.
Net revenue rose 6.9% year over year to $3.34 billion, surpassing expectations of $3.30 billion. U.S. net revenue increased 7.4% to $2.9 billion, while international revenue climbed 3.7% to $395 million.
Average order value reached $301 in the fourth quarter, up from $290 a year earlier. Repeat customers placed 8.8 million orders during the period, a 3.5% increase year over year, and accounted for 79.1% of total delivered orders.
The company ended the quarter with 21.3 million active customers, down 0.5% from the prior year.
For fiscal 2025, Wayfair posted total net revenue of $12.5 billion, up 5.1% from 2024, marking its first annual sales gain in five years. The company recorded a net loss of $313 million for the year.
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Wayfair generated $534 million in operating cash flow and $329 million in free cash flow in 2025.
CEO and co-founder Niraj Shah said the fourth quarter capped a “tremendous year,” noting revenue growth of 7.8% year over year excluding the impact of Germany.
He highlighted three consecutive quarters of new customer growth alongside gains in repeat orders, despite what he described as a home category that contracted in the low single digits in the final quarter.
Shah said 2025 marked a return to growth driven by organic strategies aimed at capturing market share and improving profitability, adding that the company expects topline growth and flow-through to adjusted EBITDA to underpin its performance going forward.
Wayfair operates a portfolio of brands including Wayfair, AllModern, Perigold, Birch Lane, Joss & Main and Wayfair Professional.
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