Wayfair Inc. today announced its financial results for the first quarter ended March 31, 2025, reporting net revenue of $2.73 billion, which was flat year-over-year. U.S. net revenue increased by 1.6% to $2.43 billion, while International net revenue decreased by 10.9% to $301 million, primarily due to the strategic exit from the German market.
The company significantly improved its profitability, with Adjusted EBITDA rising to $106 million, or a 3.9% margin, compared to $75 million, or a 2.7% margin, in Q1 2024. The net loss narrowed to $113 million, or $0.89 per share, from $248 million, or $2.06 per share, in the prior year period.
Free Cash Flow improved to negative $139 million from negative $193 million in Q1 2024, reflecting typical Q1 seasonality. Active customers decreased to 21.1 million from 22 million, but average order value increased to $301 from $285.
CEO Niraj Shah highlighted that Wayfair outperformed peers and gained healthy market share in a contracting category, while driving meaningful improvements in profitability. The company's strategy remains focused on disciplined execution, deepening supplier partnerships, and judicious investments in high-ROI growth initiatives, despite ongoing macroeconomic uncertainty and tariff concerns.
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