The earnings call highlighted Wayfair's strategic growth in the U.S. market, significant improvements in supplier advertising and cost efficiency, and a solid financial position. However, challenges remain with flat revenue growth, negative free cash flow, and temporary margin pressures from CastleGate. The company's strategic initiatives and strong financial footing suggest resilience in navigating current market conditions.

Company Guidance -

Q2 2025

During the Wayfair First Quarter 2025 Earnings Release and Conference Call, the company provided guidance for the second quarter of 2025, indicating an expected gross margin range of 30% to 31%, customer service and merchant fees just below 4%, and advertising expenses between 12% and 13%. Selling, operations, technology, general, and administrative expenses are projected to be between $360 million and $370 million. With an assumption of flat net revenue year-over-year, Wayfair anticipates an adjusted EBITDA margin of 4% to 5%. The company also expects equity-based compensation and related taxes of approximately $70 million to $90 million, depreciation and amortization of $75 million to $80 million, net interest expense of around $30 million, and capital expenditures in the range of $60 million to $70 million.

U.S. Business Growth Amidst Market Contraction

Year-over-year growth, excluding Germany, came in positively at 1%, driven by the U.S. business up 1.6% against a contracting market.

Supplier Advertising Business Expansion

Supplier advertising business grew by more than 50% in 2024 to over 150 basis points of revenue penetration, with a roadmap to reach 300 to 400 basis points.

Strong Financial Position

Wayfair issued a $700 million high-yield bond and refinanced its revolving credit facility, reducing 2025 and 2026 maturities and maintaining a healthy cash position with $1.4 billion in cash and $1.8 billion in total liquidity.

Significant Cost Efficiency Improvements

SOTG&A expenses were down by $50 million compared to the previous year, reflecting the company's cost efficiency efforts.

Positive Adjusted EBITDA

Generated $106 million of adjusted EBITDA in the first quarter, with a 3.9% margin on net revenue.

Wayfair (W) Earnings, Revenues Date & History

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W Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Aug 04, 2025	2025 (Q2)	0.33 / -	0.47	―	―	―
May 01, 2025	2025 (Q1)	-0.21 / 0.10	-0.32	131.25% (+0.42)	―
Feb 20, 2025	2024 (Q4)	>-0.01 / -0.25	-0.11	-127.27% (-0.14)
Nov 01, 2024	2024 (Q3)	0.13 / 0.22	-0.13	269.23% (+0.35)
Aug 01, 2024	2024 (Q2)	0.48 / 0.47	0.21	123.81% (+0.26)
May 02, 2024	2024 (Q1)	-0.31 / -0.32	-1.13	71.68% (+0.81)	―
Feb 22, 2024	2023 (Q4)	-0.15 / -0.11	-1.71	93.57% (+1.60)	―
Nov 01, 2023	2023 (Q3)	-0.47 / -0.13	-2.11	93.84% (+1.98)	―
Aug 03, 2023	2023 (Q2)	-0.73 / 0.21	-1.94	110.82% (+2.15)	―
May 04, 2023	2023 (Q1)	-1.71 / -1.13	-1.96	42.35% (+0.83)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

W Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
May 01, 2025	$30.16	$31.23	+3.55%
Feb 20, 2025	$46.33	$46.06	-0.58%
Nov 01, 2024	$42.83	$40.15	-6.26%
Aug 01, 2024	$54.43	$50.01	-8.12%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.