Wayfair Q3 Profit Reaches $62 Million as U.S. Revenue Grows 11.4%

Wayfair reported $62 million in third-quarter net income on November 4, 2026, reversing a $99 million loss a year earlier as double-digit U.S. growth lifted revenue, the home-goods retailer said in its third-quarter earnings release. Diluted earnings per share were $0.45, compared with a $0.76 loss.

Net revenue for the quarter ended September 30, 2026, rose 9.7% to $3.42 billion, a $303 million year-over-year increase. U.S. net revenue grew 11.4% to $3.04 billion, while international revenue declined 2.3% to $380 million. The $312 million domestic increase more than offset the $9 million international decline.

Operating income increased to $106 million from $38 million. The bottom-line comparison also benefited from the absence of a $99 million loss on debt extinguishment recorded in the 2025 quarter; no such charge appeared in 2026. Adjusted EBITDA, which excludes that debt loss along with items including depreciation, equity-based compensation and related taxes, interest and taxes, rose to $236 million from $208 million. Its margin improved to 6.9% from 6.7%, showing earnings growth even with debt-extinguishment losses stripped from both periods.

Order Growth Offsets Smaller Baskets

Orders delivered increased 12.2% to 11.0 million, faster than revenue, while average order value fell to $311 from $317. The combination points to higher volume, rather than larger purchases, as the driver of sales growth. Active customers, defined as shoppers who purchased directly from Wayfair at least once in the preceding 12 months, increased 4.7% to 22.2 million.

Last-twelve-month net revenue per active customer rose 3.1% to $596. Repeat customers placed 8.8 million orders, up 11.4%, and accounted for 80.0% of delivered orders, little changed from 80.1% a year earlier. Wayfair therefore generated more orders from a larger customer base despite the decline in average order value.

CEO Niraj Shah called the quarter Wayfair’s strongest for growth in the post-pandemic period and its best third quarter by adjusted EBITDA margin since 2020.

Shah described the U.S. category as roughly flat and tied his market-share assessment to the operating metrics: “The momentum we have on orders and customers give us confidence that our share gains are structural, and we are still in the early innings.”

U.S. Profit Growth Contrasts With International Losses

At the gross level, profitability did not keep pace with sales. Gross profit rose to $1.012 billion from $934 million, but gross margin slipped to 29.6% from 30.0%. The picture improved after direct demand and service costs. Wayfair’s non-GAAP contribution profit, calculated as adjusted gross profit less customer service and merchant fees and advertising, plus equity-based compensation and related taxes included in customer service and merchant fees, increased to $550 million from $493 million. Its margin rose to 16.1% from 15.8%, while advertising expense increased to $338 million from $330 million.

The segment results show how dependent the consolidated improvement was on the domestic business. U.S. adjusted EBITDA rose to $261 million from $209 million, while the international segment’s adjusted EBITDA loss widened to $25 million from $1 million. Domestic operations therefore supplied the group’s adjusted EBITDA improvement while absorbing a larger international drag.

Cash generation improved alongside earnings. Operating cash flow increased to $198 million from $155 million, while free cash flow rose to $136 million from $93 million. Wayfair defines free cash flow as operating cash flow less purchases of property and equipment and site and software development costs. Cash, cash equivalents and short-term investments totaled $1.1 billion, with total liquidity of $1.5 billion including revolving-credit availability.

The quarter connects Wayfair’s earnings turnaround to stronger U.S. order activity and domestic profitability, but the improvement was not uniform across the company. Gross margin narrowed and the international loss expanded even as cash generation increased. The central question for subsequent results is whether stronger U.S. demand can continue to outweigh those pressures.