Wayfair Posts $62M Profit as Revenue Climbs 9.7% to $3.4B

By Tom Whitfield

Wayfair swung to a $62 million net income in the third quarter, reversing a $99 million loss from the year-ago period, as total net revenue rose 9.7% year over year to $3.4 billion. CEO Niraj Shah on Wednesday called it the retailer's "strongest quarter of growth in the post-pandemic period."

U.S. net revenue grew more than 11% to $3 billion. Operating income reached $106 million, up from $38 million a year earlier. The results beat both analysts' expectations and the company's own forecasts.

What did Shah promise, and did Wayfair deliver?

At the start of 2025, Shah set an explicit target. He told investors Wayfair expected to gain U.S. market share at a pace it had not seen in several years.

"With U.S. revenue growing double digits against a roughly flat category here in Q3, we've done exactly that," Shah said in a statement Wednesday. That gap — double-digit company growth in a flat category — is the clearest evidence of share gains in the release.

Growth came from volume, not bigger baskets. Active customers increased 4.7% to 22.2 million. Orders delivered rose 12.2%. Average order value declined slightly.

How did Wayfair grow without spending more on ads?

Wayfair expanded its customer base without significantly increasing advertising spend, according to GlobalData Managing Director Neil Saunders. Ad spend rose 2.4% year over year — a fraction of revenue growth. As a share of total revenue, advertising fell to 9.9% from 10.6% a year earlier.

The shift matters because online customer acquisition costs run high. Saunders said Wayfair's growing network of physical stores will continue to offset those costs.

The company has made the argument itself. At its Chicago-area location, over half of shoppers are new to the Wayfair brand, Wayfair has previously stated.

In August, Wayfair announced plans to open its 10th store, set for Altamonte Springs, Florida, in 2028. It will join existing and upcoming locations in markets including Atlanta, Denver and Columbus, Ohio.

Why does Wayfair's assortment matter now?

Consumers are delaying or forgoing larger, more expensive remodels, but they still take on smaller projects. That behavior plays to Wayfair's strengths.

"This is particularly helpful for Wayfair as its very broad offer and authority across many categories suits more fragmented and occasional buying patterns," Saunders said.

A retailer positioned across many home categories captures scattered, occasional purchases better than one dependent on big-ticket remodel cycles. Wayfair's breadth turns a fragmented demand environment into an advantage, and its store pipeline gives it a cheaper acquisition channel to keep feeding that demand.