Revenue growth stabilized at 7.5% in 2026Q2, while gross margin plateaued at 30.0% and operating margin improved to 3.0% from -8.6% in 2024Q1, yet net losses persist at -$1M in 2026Q2.
Wayfair Inc. (W) annual income statement — 14-year revenue, gross profit & net income history
| 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 | 12.9B | 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 % | 7.46% | 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 | 9.03B | 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 | 3.88B | 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 % | 30.05% | 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 | 3.65B | 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 | 2.34B | 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 | 4M | 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 | 224M | 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 % | 1.74% | 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 | 501M | 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 % | 3.88% | 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 % | 965.96% | 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) | 277M | 305M | 387M | 417M | 371M | 322M | 285.71M | 192.42M | 123.54M | 87.02M | 55.57M | 32.45M | 22M | 13.09M | 9.34M |
| EBIT | -168M | -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 | -145M | -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 | 145M | 83M | 29M | 17M | 27M | 32M | 146M | 55M | 28.56M | 9.43M | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -537M | -323M | -21M | 84M | 65M | -36M | -155.03M | -51.63M | -28.76M | -8.68M | 2.45M | 4M | -139K | 539K | 389K |
| Pretax Income | -313M | -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 % | -2.43% | -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 | 8M | 7M | 10M | 9M | 12M | 1M | 20.32M | 3.01M | 2.04M | 486K | 608K | 95K | 175K | 46K | 50K |
| Effective Tax Rate % | -2.56% | -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 | -321M | -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 % | -2.49% | -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 % | -7% | 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) | -321M | -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) | -2.43 | -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 % | -2.93% | 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 | 132M | 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 | 132M | 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 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
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.
Key Metrics
Top Statement Risk
Persistent net losses despite revenue growth
Metrics are mathematically derived from official filings.
Revenue Growth Stabilizing at Low Single Digits
Wayfair's revenue growth has hovered between 5% and 8% over the past year, with 2026Q2 showing 7.5% growth, suggesting a stable but unspectacular recovery from earlier contractions.
Revenue growth has been consistently positive over the last four quarters, ranging from 5.0% in 2025Q2 to 8.1% in 2025Q3, indicating a stabilization after a period of decline. The sequential pattern shows a slight acceleration in 2026Q2 to 7.5%, but this is still below the double-digit growth rates typical of earlier expansion phases. The durability of this growth is questionable given the cyclical nature of home furnishings and the lack of clear volume versus price mix data.
Gross Margin Plateau at 30%
Gross margin has remained remarkably stable around 30% for the past ten quarters, with 2026Q2 at 30.0%, indicating limited pricing power and intense competition in the online furniture space.
Gross margin has been essentially flat, ranging from 30.0% to 30.7% over the period, showing no significant improvement despite revenue growth. This stability suggests that Wayfair is not gaining pricing power, and any cost savings are being passed through to customers. Compared to peers like RH (44.1%) and WSM (46.2%), Wayfair's gross margin is significantly lower, highlighting a structural disadvantage in its business model.
Operating Leverage Emerging but Fragile
Operating margin improved from -8.6% in 2024Q1 to 3.0% in 2026Q2, driven by SG&A discipline, but the recent quarter's operating income of $104M is still thin relative to revenue.
The company has demonstrated significant operating leverage, with operating margin swinging from -8.6% in 2024Q1 to positive territory in 2025Q2 and beyond. This improvement is largely due to SG&A cost control, as SG&A as a percentage of revenue has declined from over 30% in early 2024 to around 25% in recent quarters. However, the absolute operating income remains modest, and the sustainability of this leverage is uncertain given the competitive pressures and the need for continued investment in technology and marketing.
Net Losses Persist Despite Operational Gains
Despite positive operating income in 2026Q2, net income was -$1M, and cumulative net losses over the past year exceed $300M, indicating that non-operating items and taxes continue to weigh on profitability.
The gap between operating income and net income is notable; for instance, in 2026Q2, operating income was $104M but net income was -$1M, suggesting significant non-operating expenses or tax provisions. Stock-based compensation has been substantial, averaging around $80M per quarter, which may be a contributing factor. The persistent net losses, even when operations are profitable, raise questions about the quality of earnings and the company's ability to achieve sustained profitability.
SG&A Discipline Drives Turnaround
SG&A expenses have been reduced from $975M in 2024Q1 to $753M in 2026Q1, a 23% cut, which has been the primary driver of the operating margin improvement from -8.6% to 3.0%.
The most significant cost line item is SG&A, which has been aggressively managed downward over the past two years. This cost discipline has been the main lever for the operational turnaround, as gross margin has remained flat. However, R&D expenses are not consistently reported, with only one quarter showing $257M in 2024Q4, suggesting that technology investments may be lumpy or embedded in SG&A. Investors should monitor whether further SG&A reductions are possible without impairing growth.
2025Q1 Marks the Turning Point
The inflection occurred in 2025Q1 when operating margin bottomed at -4.5% and then turned positive in 2025Q2, driven by aggressive cost cuts and a return to revenue growth.
The most critical period in the income statement history is the transition from 2025Q1 to 2025Q2, where operating income swung from -$122M to +$17M. This inflection was primarily due to a $43M reduction in SG&A expenses, which more than offset a slight decline in gross margin. The lasting impact is that Wayfair has now posted positive operating income for five consecutive quarters, suggesting that the cost structure is more aligned with the current revenue base. However, the sustainability of this inflection depends on maintaining revenue growth and avoiding a return to aggressive spending.
Short Thesis: Growth Without Profitability
Despite revenue growth, Wayfair has failed to generate consistent net profits, with cumulative net losses of $1.1B over the past ten quarters, and its gross margin lags peers by over 14 percentage points.
A short-seller would argue that Wayfair's revenue growth is not translating into shareholder value, as the company has only achieved one quarter of positive net income (2025Q2) in the past two years. The gross margin of 30% is structurally lower than competitors like RH and WSM, which enjoy 44% and 46% respectively, indicating a lack of pricing power and a commoditized offering. Furthermore, the reliance on SG&A cuts to drive operating leverage is finite, and any reversal in cost discipline could quickly erode the thin operating margins. The persistent net losses, despite operational improvements, suggest that the business model may not be inherently profitable without significant scale or differentiation.