Wayfair Inc. (NYSE:W) shares fell Thursday after the company reported its fiscal fourth-quarter 2025 results, as investors reacted to a decline in a key growth indicator — active customers.
Quarterly Metrics
The company reported fourth-quarter adjusted earnings per share of 85 cents, beating the analyst consensus estimate of 66 cents. Quarterly sales of $3.337 billion (+6.9% year over year) outpaced the Street view of $3.301 billion.
Active customers totaled 21.3 million as of December 31, 2025, a decrease of 0.5% year over year.
Total net revenue, excluding the impact of exit from the German market, grew 7.8% year over year.
U.S. net revenue totaled $2.9 billion, rising 7.4% year over year. International net revenue reached $395 million, up 3.7%, with constant-currency growth of 1.3%.
Repeat customers placed 79.1% of total orders delivered in the fourth quarter, compared to 79.4% in the year-ago period.
Average order value was $301 in the fourth quarter, compared to $290 in the year-ago quarter.
Quarterly gross profit totaled $1.010 billion, higher than $941 million. Adjusted EBITDA was $224 million, compared with $96 million a year ago.
“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,” said Niraj Shah, CEO, co-founder, and co-chairman, Wayfair.
The company exited the quarter with cash and equivalents worth $1.476 billion.
Outlook
Wayfair expects mid-single-digit year-over-year revenue growth in the first quarter of 2026, with gross margins projected in the 30%–31% range, likely toward the low end. Adjusted EBITDA is anticipated to come in between 4.5% and 5.5% of net revenue.
Elevated Short Interest
The company has a short float of 16.69 million shares, representing 21.44% of its publicly traded float, indicating a relatively high level of short interest among investors betting against the stock.
W Price Action: Wayfair shares were down 10.66% at $81.72 at the time of publication on Thursday, according to Benzinga Pro data.
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