Wayfair (W) Q2 2026 earnings summary

Executive summary

• Q2 2026 net revenue grew 7.5% year-over-year to $3.52 billion, with U.S. revenue up 8.7% and international down 1.3%.

• Orders increased 6% year-over-year, active customers rose 3.3% to 21.7 million, and average order value reached $332.

• Specialty retail brands grew nearly 20%, and luxury brand Perigold exceeded 35% growth, surpassing $400M in annual sales.

• Adjusted EBITDA was $242 million (6.9% margin), up from $205 million a year ago, reflecting improved operational efficiency.

• Management remains confident in accelerating top-line growth and expanding profitability as initiatives mature.

Financial highlights

• Gross profit was $1.05 billion (30.0% margin); contribution margin was 15.3%.

• Free cash flow was $301 million, the highest since 2020, and operating cash flow was $360 million.

• Net loss for Q2 2026 was $1 million; adjusted diluted EPS was $0.95.

• Cash, cash equivalents, and short-term investments totaled $1.1 billion; total liquidity was $1.6 billion.

• Stock-based compensation declined 40% over two years.

Outlook and guidance

• Q3 2026 revenue is expected to grow at a high-single-digit rate, with gross margin guided to 29.5%-30.5%, likely at the lower end.

• Adjusted EBITDA margin expected in the 6%-7% range; CapEx projected at $60M-$70M; equity-based compensation at $65M-$75M.

• Management remains focused on disciplined advertising spend and operational efficiency to drive profitability.

• The company expects to continue navigating macroeconomic headwinds, including inflation and interest rates, but maintains a positive long-term outlook for online home goods retail.