Wayfair’s stock soared as the company delivered an impressive set of second-quarter results, outpacing analyst expectations and signaling operational strength amid industry challenges. For Q2 2025, Wayfair reported revenue of $3.3 billion—a 5% year-over-year increase and its strongest growth since early 2021. When excluding the impact of its strategic retreat from the German market, revenue growth stood even higher at 6%. This growth was driven by robust performance in the U.S. market, where revenue climbed to $2.9 billion, and modest international gains totaling $399 million.

Profitability metrics also surpassed expectations. Wayfair posted a net income of $15 million and achieved a non-GAAP adjusted EBITDA of $205 million, marking a healthy 6.3% EBITDA margin—its best since 2021. Earnings per share came in at $0.87 on an adjusted basis, more than double analyst forecasts. Free cash flow reached $230 million, further enhancing the company’s balance sheet.

Wayfair reported having 21 million active customers as of June 30, 2025, a year-over-year decrease of 4.5%. However, the company made up for this with increased customer spending: the net revenue per active customer rose by nearly 6% to $572, and repeat customers accounted for over 80% of all orders. Notably, the average order value increased to $328, and nearly two-thirds of orders were placed via mobile devices.

Despite lingering concerns around high debt levels and a declining customer base, Wayfair’s ability to boost revenue, expand margins, and generate strong cash flow was cheered by investors. Following the surprise earnings beat, Wayfair’s stock surged over 12% in pre-market trading, reflecting renewed optimism in the home goods retailer’s turnaround prospects.