Operating margins remain elusive, hovering at a marginal 0.4% in 2026Q1, as SG&A expenses continue to absorb nearly all of the 30% gross profit generated by the business.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Sales/Revenue | 12.66B | 12.46B | 11.85B | 12B | 12.22B | 13.71B | 14.15B | 9.13B | 6.78B | 4.72B | 3.38B | 2.25B | 1.32B | 915.84M | 601.03M |
| Revenue Growth % | 6.8% | 5.11% | -1.27% | -1.76% | -10.87% | -3.09% | 54.98% | 34.63% | 43.6% | 39.66% | 50.25% | 70.58% | 44.02% | 52.38% | - |
| Cost of Goods Sold | 8.85B | 8.69B | 8.28B | 8.34B | 8.8B | 9.81B | 10.03B | 6.98B | 5.19B | 3.6B | 2.57B | 1.71B | 1.01B | 691.6M | 455.88M |
| COGS % of Revenue | - | 69.78% | 69.84% | 69.45% | 72.04% | 71.59% | 70.93% | 76.47% | 76.59% | 76.3% | 76.1% | 75.97% | 76.41% | 75.52% | 75.85% |
| Gross Profit | 3.81B | 3.77B | 3.57B | 3.67B | 3.42B | 3.9B | 4.11B | 2.15B | 1.59B | 1.12B | 807.81M | 540.72M | 311.1M | 224.24M | 145.15M |
| Gross Margin % | 30.08% | 30.22% | 30.16% | 30.55% | 27.96% | 28.41% | 29.07% | 23.53% | 23.41% | 23.7% | 23.9% | 24.03% | 23.59% | 24.48% | 24.15% |
| Gross Profit Growth % | - | 5.34% | -2.54% | 7.35% | -12.3% | -5.28% | 91.5% | 35.33% | 41.82% | 38.5% | 49.39% | 73.81% | 38.73% | 54.49% | - |
| Operating Expenses | 3.67B | 3.75B | 4.04B | 4.48B | 4.8B | 3.98B | 3.75B | 3.08B | 2.06B | 1.35B | 1B | 622.07M | 458.88M | 240.26M | 166.54M |
| OpEx % of Revenue | - | 30.09% | 34.05% | 37.32% | 39.29% | 29.01% | 26.52% | 33.72% | 30.39% | 28.69% | 29.7% | 27.65% | 34.79% | 26.23% | 27.71% |
| Selling, General & Admin | 3.29B | 3.42B | 3.92B | 4.4B | 4.73B | 3.98B | 3.24B | 3.08B | 2.06B | 1.34B | 1B | 622.07M | 458.88M | 239.72M | 166.33M |
| SG&A % of Revenue | - | 27.44% | 33.07% | 36.67% | 38.71% | 29.01% | 22.92% | 33.71% | 30.41% | 28.48% | 29.7% | 27.65% | 34.79% | 26.17% | 27.67% |
| Research & Development | 0 | 0 | 257M | 0 | 224M | 171M | 132M | 82M | 51.3M | 34.5M | 21.6M | 15.3M | 9.9M | 7M | 4.8M |
| R&D % of Revenue | - | - | 2.17% | - | 1.83% | 1.25% | 0.93% | 0.9% | 0.76% | 0.73% | 0.64% | 0.68% | 0.75% | 0.76% | 0.8% |
| Other Operating Expenses | 3M | 330M | -141M | 79M | -154M | -171M | 377.82M | -81.73M | -52.96M | -24.93M | -21.6M | -15.3M | -9.9M | -6.46M | -4.59M |
| Operating Income | 137M | 17M | -461M | -813M | -1.38B | -94M | 360.35M | -929.94M | -473.28M | -235.45M | -196.22M | -81.35M | -147.78M | -16.02M | -21.39M |
| Operating Margin % | 1.08% | 0.14% | -3.89% | -6.77% | -11.33% | -0.69% | 2.55% | -10.19% | -6.98% | -4.99% | -5.8% | -3.62% | -11.2% | -1.75% | -3.56% |
| Operating Income Growth % | - | 103.69% | 43.3% | 41.26% | -1372.34% | -126.09% | 138.75% | -96.49% | -101.01% | -20% | -141.2% | 44.95% | -822.55% | 25.12% | - |
| EBITDA | 428M | 322M | -74M | -396M | -1.01B | 228M | 646.06M | -737.52M | -349.74M | -148.43M | -140.65M | -48.9M | -125.78M | -2.93M | -12.06M |
| EBITDA Margin % | 3.38% | 2.58% | -0.62% | -3.3% | -8.29% | 1.66% | 4.57% | -8.08% | -5.16% | -3.14% | -4.16% | -2.17% | -9.54% | -0.32% | -2.01% |
| EBITDA Growth % | 2575% | 535.14% | 81.31% | 60.91% | -544.3% | -64.71% | 187.6% | -110.88% | -135.62% | -5.54% | -187.59% | 61.12% | -4195.8% | 75.72% | - |
| D&A (Non-Cash Add-back) | 291M | 305M | 387M | 417M | 371M | 322M | 285.71M | 192.42M | 123.54M | 87.02M | 55.57M | 32.45M | 22M | 13.09M | 9.34M |
| EBIT | -85M | -223M | -453M | -712M | -1.29B | -98M | 351.72M | -927M | -473.48M | -234.69M | -196.22M | -81.35M | -147.78M | -16.02M | -21.39M |
| Net Interest Income | -135M | -83M | -29M | -17M | -27M | -32M | -146M | -55M | -28.56M | -9.43M | 694K | 1.28M | 350K | 245K | 234K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 694K | 1.28M | 350K | 245K | 234K |
| Interest Expense | 135M | 83M | 29M | 17M | 27M | 32M | 146M | 55M | 28.56M | 9.43M | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -435M | -323M | -21M | 84M | 65M | -36M | -155.03M | -51.63M | -28.76M | -8.68M | 2.45M | 4M | -139K | 539K | 389K |
| Pretax Income | -298M | -306M | -482M | -729M | -1.32B | -130M | 205.32M | -981.57M | -502.04M | -244.13M | -193.77M | -77.35M | -147.92M | -15.48M | -21M |
| Pretax Margin % | -2.35% | -2.46% | -4.07% | -6.07% | -10.8% | -0.95% | 1.45% | -10.75% | -7.41% | -5.17% | -5.73% | -3.44% | -11.22% | -1.69% | -3.49% |
| Income Tax | 7M | 7M | 10M | 9M | 12M | 1M | 20.32M | 3.01M | 2.04M | 486K | 608K | 95K | 175K | 46K | 50K |
| Effective Tax Rate % | -2.35% | -2.29% | -2.07% | -1.23% | -0.91% | -0.77% | 9.9% | -0.31% | -0.41% | -0.2% | -0.31% | -0.12% | -0.12% | -0.3% | -0.24% |
| Net Income | -305M | -313M | -492M | -738M | -1.33B | -131M | 185M | -984.58M | -504.08M | -244.61M | -194.38M | -77.44M | -148.1M | -15.53M | -21.05M |
| Net Margin % | -2.41% | -2.51% | -4.15% | -6.15% | -10.89% | -0.96% | 1.31% | -10.79% | -7.44% | -5.18% | -5.75% | -3.44% | -11.23% | -1.7% | -3.5% |
| Net Income Growth % | 14.57% | 36.38% | 33.33% | 44.55% | -916.03% | -170.81% | 118.79% | -95.32% | -106.07% | -25.85% | -150.99% | 47.71% | -853.87% | 26.26% | - |
| Net Income (Continuing) | -305M | -313M | -492M | -738M | -1.33B | -131M | 185M | -984.58M | -504.08M | -244.61M | -194.38M | -77.44M | -148.1M | -15.53M | -21.05M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -2.33 | -2.42 | -4.00 | -6.47 | -12.56 | -1.26 | 1.86 | -10.68 | -5.63 | -2.81 | -2.29 | -0.92 | -1.81 | -0.58 | -0.80 |
| EPS Growth % | 18.25% | 39.5% | 38.18% | 48.49% | -896.83% | -167.74% | 117.42% | -89.7% | -100.36% | -22.71% | -148.91% | 49.17% | -212.07% | 27.5% | - |
| EPS (Basic) | - | -2.42 | -4.00 | -6.47 | -12.56 | -1.26 | 1.93 | -10.68 | -5.63 | -2.81 | -2.29 | -0.92 | -1.81 | -0.58 | -0.80 |
| Diluted Shares Outstanding | 131M | 130.34M | 123M | 114M | 106M | 104M | 99.34M | 92.2M | 89.47M | 86.98M | 84.98M | 83.73M | 81.64M | 70.35M | 41.27M |
| Basic Shares Outstanding | 131M | 130.34M | 123M | 114M | 106M | 104M | 95.83M | 92.2M | 89.47M | 86.98M | 84.98M | 83.73M | 81.64M | 70.35M | 41.27M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
High customer acquisition costs
According to quarterly financial data, Wayfair's revenue growth has fluctuated between a 2.0% contraction and an 8.1% expansion over the last ten quarters, reflecting a business model that remains acutely sensitive to discretionary consumer spending cycles and broader macroeconomic headwinds impacting the housing market turnover.
The recent shift toward positive growth rates suggests that the company is successfully navigating a difficult retail environment, yet the lack of consistent, double-digit expansion indicates that the core business may be reaching a saturation point. Investors should monitor whether these growth figures are driven by sustainable organic demand or are merely a byproduct of aggressive promotional activity.
As reported in recent income statements, Wayfair maintains a remarkably consistent gross margin of approximately 30%, a figure that appears structurally capped by the company's drop-ship business model and its reliance on third-party suppliers rather than capturing the full manufacturing value chain inherent in traditional retail.
This 30% margin profile leaves very little room for error, as any increase in logistics costs or promotional discounting directly threatens the company's ability to reach profitability. The lack of margin expansion despite scale suggests that the company may lack the pricing power necessary to offset rising fulfillment and advertising expenses.
Based on the provided financial figures, Wayfair's operating income has struggled to scale meaningfully with revenue, as evidenced by an operating margin that hovered near 0.14% in the most recent quarter, indicating that SG&A expenses continue to absorb nearly all of the gross profit generated by operations.
The company's inability to decouple operating expenses from revenue growth suggests that the business model requires constant, high-level marketing investment to maintain its market position. This persistent overhead burden implies that the company may remain trapped in a cycle of low-margin operations unless it can significantly improve its customer retention and repeat purchase rates.
Analysis of the income statement reveals that Wayfair frequently reports significant stock-based compensation expenses, often exceeding $60 million to $100 million per quarter, which serves to obscure the underlying cash-burn reality and complicates the assessment of the company's true path toward sustainable, GAAP-compliant net income.
The recurring nature of these non-cash charges suggests that the company relies heavily on equity-based incentives to manage its cost structure, which may lead to persistent shareholder dilution over time. Investors should be cautious of headline EPS figures that do not fully account for the dilutive impact of these compensation programs on long-term equity value.
While recent filings indicate a pivot toward operational efficiency, the sustainability of these cost reductions remains questionable, as the company's reliance on massive advertising spend to drive traffic suggests that any meaningful cut to marketing budgets could lead to an immediate and sharp contraction in revenue.
Short-sellers may focus on the fact that the company's recent return to near-break-even operating margins appears to be driven by cost-cutting rather than fundamental improvements in unit economics. This warrants further investigation into whether the company is sacrificing long-term brand equity and customer acquisition channels to satisfy short-term profitability targets.
Quick answers to the most common questions about buying W stock.
For fiscal year 2025, Wayfair Inc. (W) reported total revenue of $12.46B. This represents a 1972.6% increase compared to $601.0M in 2012.
Wayfair Inc. (W) reported a net loss of $313.0M for the fiscal year ending 2025.
Wayfair Inc. (W) reported an operating income of $17.0M, resulting in an operating profit margin of 0.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Wayfair Inc. (W) generated $3.77B in gross profit for the year, representing a gross profit margin of 30.2%. This demonstrates the company's core pricing power and production efficiency.