Wayfair Reports Slight Revenue Increase to $2.73 Billion, Net Loss Improves in Q1 2025

Wayfair Inc. reported its financial results for the first quarter of 2025, revealing a slight increase in net revenue to $2.73 billion, up from $2.73 billion in the same period last year. The company achieved a gross profit of $837 million, compared to $819 million in the prior year. Despite the marginal revenue growth, Wayfair recorded a net loss of $113 million, an improvement from the $248 million loss reported in the first quarter of 2024. This resulted in a loss per share of $0.89, compared to a loss of $2.06 per share in the previous year.

The company noted several operational changes during the quarter, including a restructuring initiative that involved exiting the German market, which contributed to $20 million in impairment charges. Additionally, Wayfair incurred $56 million in restructuring charges, primarily related to workforce reductions. The total operating expenses decreased to $959 million from $1.05 billion a year earlier, reflecting a strategic focus on cost management. Advertising expenses increased by 6.2% to $344 million, indicating a renewed investment in marketing to drive customer engagement.

Wayfair's active customer base decreased to 21 million from 22 million year-over-year, with 80.2% of orders coming from repeat buyers. The average order value rose to $301, up from $285 in the previous year, which contributed to the revenue stability despite lower order volume. The company reported a total of 9 million orders delivered during the quarter, down from 10 million in the same period last year. The U.S. segment saw a 1.6% increase in net revenue, while the International segment experienced a 10.9% decline, primarily due to the exit from Germany.

In terms of liquidity, Wayfair ended the quarter with $1.34 billion in cash and cash equivalents, slightly up from $1.32 billion at the end of 2024. The company also has a $500 million senior secured revolving credit facility, which remains untapped as of March 31, 2025. Looking ahead, Wayfair anticipates continued challenges from macroeconomic pressures, including inflation and changing consumer spending patterns, but remains focused on capturing market share in the online home goods sector. The company plans to leverage its operational efficiencies and marketing strategies to enhance customer acquisition and retention in the coming quarters.