Wayfair Posts Fourth Consecutive Quarter of Revenue Growth Despite Macro Headwinds

Alexa Alix Last Updated: May 5, 2026 3 minutes read Wayfair reported net revenue of $2. 93 billion for Q1 2026, a 7. 4% increase from $2. 73 billion in Q1 2025. The result beat analyst expectations of $2.

89 billion and marks the fourth consecutive quarter of revenue growth for the online home furnishings retailer, which has been rebuilding momentum after two years of revenue contraction. The Numbers US revenue drove the bulk of the growth, reaching $2. 61 billion, up 7. 5% year over year.

International revenue came in at $319 million, up 6% in reported terms but only 1. 7% in constant currency, reflecting the impact of foreign exchange headwinds on Wayfair's UK and Canadian businesses. Active customers grew 1. 4% year over year to 21. 4 million, the first return to active customer growth in several quarters.

Last twelve month revenue per active customer grew 5. 2% to $591, indicating that existing customers are spending more. Average order value rose to $312 from $301 in Q1 2025. Wayfair delivered 9. 4 million orders in the quarter, up 3. 3% year over year. On profitability, adjusted EBITDA reached $151 million, a 5. 2% margin, up from 3.

9% in Q1 2025 and the best first-quarter result in five years. Gross profit came in at $880 million, representing a 30% gross margin. The company still posted a GAAP net loss of $105 million, slightly improved from $113 million in Q1 2025. Free cash flow was negative $106 million. Operating expenses continued to fall.

Selling, operations, technology, general and administrative expenses came in at $356 million, the lowest since Q2 2019, according to CFO Kate Gulliver.

What Is Driving the Growth CEO Niraj Shah attributed the revenue increase to a roughly even split between order growth and average order value expansion, with orders up approximately 3% and AOV up approximately 4% year over year. Repeat customers placed 79.

8% of all orders in the quarter, while new customer orders grew nearly 7%, a positive sign for future retention. Mobile continued to gain share, accounting for 64. 7% of orders versus 63. 4% a year ago.

Wayfair said its supply chain optimization has taken nearly two days off delivery speeds over the past year, which Shah positioned as a key driver of customer satisfaction and share gains in a home furnishings category he described as still under macroeconomic pressure.

“Wayfair has been off to a solid start to the year despite a volatile macroeconomic backdrop,” Shah told investors on the earnings call, referencing the disruption to supply chains and fuel costs stemming from the US and Israel's conflict with Iran, which began February 28.

International Expansion and Way Day Wayfair held its Way Day 2026 sales event from April 25 through 27, after the quarter closed. Shah said the company was “thrilled with the customer engagement” during the event, though no specific metrics were disclosed.

On the international front, Wayfair expanded its Wayfair Rewards loyalty program to Canada in March and to the UK in April. Shah called the home furnishings category across the US, Canada, Ireland, and the UK a half-a-trillion-dollar market, with more than $100 billion of that coming from outside the US.

In Canada, Wayfair achieved its highest non-COVID market share in 2025 and has been marking Canadian-made products through site navigation filters, which drove a 15% increase in customer engagement for that product segment.

In the UK, Wayfair has grown its catalog to more than 6 million products and now delivers 60% of large-parcel orders within two days, with room-of-choice delivery, assembly upon delivery, and post-delivery assembly available as service options.

Wayfair operates its CastleGate logistics network across more than 60 buildings on multiple continents, which Shah said enables inventory positioning in Canadian warehouses alongside cross-border fulfillment from US locations.

The Bigger Picture Wayfair's Q1 result lands at a moment when the home furnishings category remains under pressure from high interest rates, reduced housing transaction activity, and consumer caution on big-ticket discretionary spending. Growing revenue 7.

4% in that environment while simultaneously expanding EBITDA margin to its best Q1 level in five years and returning active customer counts to growth represents meaningful progress for a company that lost revenue in both 2023 and 2024. The stock declined after earnings despite the revenue beat, as the adjusted EPS of $0. 26 missed analyst expectations of $0.

28 by 6. 8% and free cash flow remained deeply negative. Sell-side analysts expect revenue growth of approximately 5% over the next 12 months, suggesting the market sees the current pace of recovery continuing but moderating. Alexa Alix Last Updated: May 5, 2026 3 minutes read