Earnings release
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NEWS RELEASE Wayfair Announces Second Quarter 2026 Results, Reports Strongest Free Cash Flow Since 2020 2026-08-04 Q2 Net Revenue of $3.5 billion with 21.7 million Active Customers BOSTON, Aug. 4, 2026 /PRNewswire/ -- Wayfair Inc. ("Wayfair," "we," or "our") (NYSE: W), the destination for all things home, today reported nancial results for its second quarter ended June 30, 2026. Second Quarter 2026 Financial Highlights Total net revenue of $3.5 billion, increased $246 million, up 7.5% year over year U.S. net revenue of $3.1 billion, increased $251 million, up 8.7% year over year International net revenue of $394 million, decreased $5 million, down 1.3% year over year. International Net Revenue Constant Currency Growth was (2.0)% Gross pro t was $1,054 million, or 30.0% of total net revenue. Non-GAAP Contribution Pro t was $539 million, or 15.3% of net revenue Net loss was $1 million and Non-GAAP Adjusted EBITDA was $242 million Diluted loss per share was $0.01 and Non-GAAP Adjusted Diluted Earnings Per Share was $0.95 Net cash provided by operating activities was $360 million and Non-GAAP Free Cash Flow was $301 million Cash, cash equivalents and short-term investments totaled $1.1 billion and total liquidity was $1.6 billion, including availability under our revolving credit facility "Q2 marked another strong quarter of share capture and top line momentum, with 7.5% net revenue growth fueled by momentum in orders, which were up by 6% for the period. We saw the best sequential growth we've seen in a Q2 since the second quarter of 2020. In fact, revenue growth in the US was the best we've seen in the entire post- 1
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COVID period, with nearly 9% year-over-year revenue growth, continuing the high single digit share spread we've held since last fall," said Niraj Shah, CEO, co-founder and co-chairman, Wayfair. "We saw noteworthy outperformance from our specialty retail brands, which grew by nearly 20% in the second quarter, and Perigold, which grew by more than 35%. We are excited to see ramping growth in the Wayfair business and complementing that with outsized growth from our specialty and luxury brands, all building to why we expect to see even further acceleration as our numerous initiatives play out." Other Second Quarter Highlights Active customers totaled 21.7 million as of June 30, 2026, an increase of 3.3% year over year LTM net revenue per active customer was $596 as of June 30, 2026, an increase of 4.2% year over year Orders per customer, measured as LTM orders delivered divided by active customers, was 1.89 for the second quarter of 2026, compared to 1.86 for the second quarter of 2025 Orders delivered in the second quarter of 2026 were 10.6 million, an increase of 6.0% year over year Repeat customers placed 80.2% of total orders delivered in the second quarter of 2026, compared to 80.7% in the second quarter of 2025 Repeat customers placed 8.5 million orders in the second quarter of 2026, an increase of 4.9% year over year Average order value was $332 in the second quarter of 2026, compared to $328 in the second quarter of 2025 64.1% of total orders delivered were placed via a mobile device in the second quarter of 2026, compared to 62.9% in the second quarter of 2025 Key Financial Statement and Operating Metrics Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in millions, except LTM net revenue per active customer, average order value and per share data)Key Financial Statement Metrics: Net revenue $ 3,519 $ 3,273 $ 6,450 $ 6,003Gross profit $ 1,054 $ 984 $ 1,934 $ 1,821Income (loss) from operations $ 104 $ 17 $ 93 $ (105)Net (loss) income $ (1) $ 15 $ (106) $ (98)(Loss) earnings per share Basic $ (0.01) $ 0.11 $ (0.81) $ (0.77)Diluted $ (0.01) $ 0.11 $ (0.81) $ (0.77)Net cash provided by operating activities $ 360 $ 273 $ 308 $ 177 Key Operating Metrics: Active customers(1) 21.7 21.0 21.7 21.0LTM net revenue per active customer (2) $ 596 $ 572 $ 596 $ 572Orders delivered(3) 10.6 10.0 20.0 19.1Average order value (4) $ 332 $ 328 $ 322 $ 315 Non-GAAP Financial Measures: Adjusted Gross Profit $ 1,056 $ 986 $ 1,937 $ 1,825Contribution Profit $ 539 $ 497 $ 979 $ 888Adjusted EBITDA $ 242 $ 205 $ 393 $ 311$ $ $ $ 2
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Free Cash Flow $ 301 $ 230 $ 195 $ 91Adjusted Diluted Earnings per Share $ 0.95 $ 0.87 $ 1.22 $ 1.02 (1) The number of active customers represents the total number of individual customers who have purchased at least once directly from our sitesduring the preceding twelve-month period. The change in active customers in a reported period captures both the inflow of new customers aswell as the outflow of existing customers who have not made a purchase in the last twelve months. We view the number of active customersas a key indicator of our growth.(2) Last twelve months ("LTM") net revenue per active customer represents our total net revenue in the last twelve months divided by our totalnumber of active customers for the same preceding twelve-month period. We view LTM net revenue per active customer as a key indicator ofour customers' purchasing patterns, including their initial and repeat purchase behavior.(3) Orders delivered represent the total orders delivered in any period, inclusive of orders that may eventually be returned. As we ship a largevolume of packages through multiple carriers, actual delivery dates may not always be available; in those cases, we estimate delivery datesusing historical data. We recognize net revenue when an order is delivered, and therefore orders delivered, together with average order value,is an indicator of the net revenue we expect to recognize in a given period. We view orders delivered as a key indicator of our growth.(4) We define average order value as total net revenue in a given period divided by the orders delivered in that period. We view average ordervalue as a key indicator of the mix of products on our sites, the mix of offers and promotions and the purchasing behavior of our customers. Webcast and Conference Call Wayfair will host a conference call and webcast to discuss its second quarter 2026 nancial results today at 8 a.m. (ET). Investors and participants should register for the call in advance by visiting https://events.q4inc.com/analyst/622572405?pwd=UaY8U308. After registering, instructions will be shared on how to join the call. The call will also be available via live webcast at https://events.q4inc.com/attendee/622572405. An archive of the webcast conference call will be available shortly after the call ends on Wayfair's Investor website at investor.wayfair.com. Important information may be disseminated initially or exclusively via the Investor website; investors should consult the site to access this information. About Wayfair Wayfair is the destination for all things home, and we make it easy to create a home that is just right for you. Whether you're looking for that perfect piece or redesigning your entire space, Wayfair o ers quality nds for every style and budget, and a seamless experience from inspiration to installation. The Wayfair family of brands includes: Wayfair: Every style. Every home. AllModern: Modern made simple. Birch Lane: Classic style for joyful living. Joss & Main: The ultimate style edit for home. 3
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Perigold: The destination for luxury home. Wayfair Professional: A one-stop Pro shop. Media Relations Contact: Tara Lambropoulos PR@wayfair.com Investor Relations Contact Ryan Barney IR@wayfair.com Forward-Looking Statements This press release contains forward-looking statements within the meaning of federal and state securities laws. All statements other than statements of historical fact contained in this press release are forward-looking statements, including statements regarding our investment plans and anticipated returns on those investments; our plans for growth, including customer and revenue growth and growth rates; our future results of operations and nancial position; available liquidity and access to nancing sources; performance across our brands and segments; anticipated cost-cutting and liability and dilution management exercises and the expected results of such exercises; our business strategy; anticipated bene ts of our strategic initiatives; plans and objectives of management for future operations, including regarding our physical retail stores and omni-channel strategy; investment in our logistics network; consumer activity and behaviors; developments in our technology and systems, including our use of arti cial intelligence and machine learning technologies and the anticipated results of those developments; and the impact of macroeconomic events, including interest rates, tari s and in ation, and our response to such events. In some cases, you can identify forward-looking statements by terms such as "aim," "may," "will," "should," "expects," "plans," "anticipates," "continues," "could," "intends," "goals," "target," "projects," "contemplates," "believes," "estimates," "predicts" or "potential" or the negative of these terms or other similar expressions. Forward-looking statements are based on current expectations of future events. We cannot guarantee that any forward-looking statement will be accurate, although we believe that we have been reasonable in our expectations and assumptions. Investors should realize that if underlying assumptions prove inaccurate or that known or unknown risks or uncertainties materialize, actual results could vary materially from our expectations and projections. Investors are therefore cautioned not to place undue reliance on any forward-looking statements. We believe that these risks and uncertainties include, but are not limited to, adverse macroeconomic conditions, including economic instability, changes in laws and regulations and other governmental actions or policies, including those related to taxes and new or increased tari s, and the uncertainty surrounding potential changes in such laws and regulations or other potential governmental actions or policies; export controls, sustained higher 4
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interest rates and in ation, slower growth or the potential for recession, disruptions in the global supply chain and other conditions a ecting the retail environment for products we sell, geopolitical disturbances and con icts, or threats of such actions and related uncertainty, which could exacerbate other risks such as shipment disruptions or fuel shortages, and other matters that in uence consumer spending and preferences, as well as our ability to plan for and respond to the impact of these conditions; risks relating to our liability and dilution management exercises; our ability to manage the impacts of our restructurings and workforce reductions; our ability to acquire and retain customers in a cost-e ective manner; our ability to increase our net revenue; our ability to curate, market, grow and maintain strong brands; our ability to grow our customer base; and our ability to expand our business and compete successfully, including risks relating to achieving the anticipated bene ts of strategic initiatives and investments in our technology and systems, including generative AI. A further list and description of risks, uncertainties and other factors that could cause or contribute to di erences in our future results include the cautionary statements herein and in our most recent Annual Report on Form 10-K and in our other lings and reports with the Securities and Exchange Commission. We qualify all of our forward-looking statements by these cautionary statements. These forward-looking statements speak only as of the date of this press release and, except as required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events or otherwise. WAYFAIR INC.CONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited) June 30, December 31, 2026 2025 (in millions, except share and per share data)Assets: Current assets Cash and cash equivalents $ 1,065 $ 1,476Short-term investments 78 66Accounts receivable, net 184 132Inventories 84 71Prepaid expenses and other current assets 274 256Total current assets 1,685 2,001Operating lease right-of-use assets 722 862Property and equipment, net 512 516Other non-current assets 59 61 Total assets $ 2,978 $ 3,440 Liabilities and Stockholders' Deficit: Current liabilities Accounts payable $ 1,317 $ 1,202Other current liabilities 951 927Total current liabilities 2,268 2,129Long-term debt 2,797 3,233Operating lease liabilities, net of current 680 835Other non-current liabilities 21 25Total liabilities 5,766 6,222Commitments and contingencies (Note 5) Stockholders' deficit: $ 5
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Convertible preferred stock, $0.001 par value per share: 10,000,000 shares authorized and none issued at June 30, 2026 and December 31, 2025. — —Class A common stock, par value $0.001 per share, 500,000,000 shares authorized, 115,500,539 and 108,365,428 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively. — —Class B common stock, par value $0.001 per share, 164,000,000 shares authorized, 20,977,914 and 21,978,295 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively. — —Additional paid-in capital 2,166 2,073Accumulated deficit (4,929) (4,823)Accumulated other comprehensive loss (25) (32)Total stockholders' deficit (2,788) (2,782) Total liabilities and stockholders' deficit $ 2,978 $ 3,440 WAYFAIR INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in millions, except per share data)Net revenue (1) $ 3,519 $ 3,273 $ 6,450 $ 6,003Cost of goods sold(2) 2,465 2,289 4,516 4,182Gross profit 1,054 984 1,934 1,821Operating expenses: Customer service and merchant fees (2) 128 121 242 228Advertising 392 372 721 716Selling, operations, technology, general and administrative(2) 428 465 852 894Impairment and other related net charges 2 — 2 23Restructuring and other charges, net — 9 24 65Total operating expenses 950 967 1,841 1,926Income (loss) from operations 104 17 93 (105)Interest expense, net (39) (29) (78) (52)Other (expense) income, net (4) 23 (15) 33(Loss) gain on debt extinguishment (59) 6 (102) 31Income (loss) before income taxes 2 17 (102) (93)Provision for income taxes, net 3 2 4 5 Net (loss) income $ (1) $ 15 $ (106) $ (98) (Loss) earnings per share Basic $ (0.01) $ 0.11 $ (0.81) $ (0.77) Diluted $ (0.01) $ 0.11 $ (0.81) $ (0.77) Weighted-average number of shares of common stock outstanding used in computing per share amounts: Basic 132 128 131 127Diluted 132 129 131 127 (1) The following tables present net revenue attributable to our reportable segments for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in millions)U.S. net revenue $ 3,125 $ 2,874 $ 5,737 $ 5,303 6
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International net revenue 394 399 713 700 Net revenue $ 3,519 $ 3,273 $ 6,450 $ 6,003 (2) Includes equity-based compensation and related taxes as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in millions)Cost of goods sold $ 2 $ 2 $ 3 $ 4Customer service and merchant fees 3 4 5 7Selling, operations, technology, general and administrative 67 95 135 158 Total equity-based compensation and related taxes $ 72 $ 101 $ 143 $ 169 WAYFAIR INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited) Six Months Ended June 30, 2026 2025 (in millions)Cash flows from operating activities: Net loss $ (106) $ (98)Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 131 159Equity-based compensation expense 136 164Amortization of debt discount and issuance costs 4 5Impairment and other related net charges 2 23Loss (gain) on debt extinguishment 102 (31)Other non-cash adjustments (15) 32Changes in operating assets and liabilities: Accounts receivable, net (52) 49Inventories (12) (11)Prepaid expenses and other assets (21) 21Accounts payable and other liabilities 139 (136)Net cash provided by operating activities 308 177 Cash flows for investing activities: Purchase of short- and long-term investments (43) (55)Sale and maturities of short- and long-term investments 31 58Purchase of property and equipment (51) (18)Site and software development costs (62) (68)Net cash used in investing activities (125) (83) Cash flows for financing activities: Proceeds from issuance of debt, net of issuance costs 395 691Payments to extinguish debt (245) (742)Settlement of long-term debt (701) —Payments of taxes related to net share settlement of equity awards (48) (9)Net cash used in financing activities (599) (60)Effect of exchange rate changes on cash and cash equivalents 5 (28)Net (decrease) increase in cash, cash equivalents and restricted cash (411) 6 7
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Cash, cash equivalents and restricted cash Beginning of period $ 1,476 $ 1,320 End of period $ 1,065 $ 1,326 Non-GAAP Financial Measures To supplement our unaudited condensed consolidated nancial statements presented in accordance with generally accepted accounting principles ("GAAP"), this earnings release and the accompanying tables and the related earnings conference call contain certain non-GAAP nancial measures, including Adjusted Gross Pro t, Adjusted Gross Margin, Contribution Pro t, Contribution Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Adjusted Diluted Earnings or Loss per Share and Net Revenue Constant Currency Growth. We use these non-GAAP nancial measures internally in analyzing our nancial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating our core operational performance. We have provided a reconciliation of these non-GAAP nancial measures to the most directly comparable GAAP nancial measure in this earnings release. We calculate Adjusted Gross Pro t as gross pro t plus equity-based compensation and related taxes included in cost of goods sold. Gross margin is de ned as gross pro t as a percentage of net revenue for the same period. Adjusted Gross Margin is calculated as Adjusted Gross Pro t as a percentage of revenue for the same period. We disclose Adjusted Gross Pro t and Adjusted Gross Margin because they are important indicators of our business performance, as they provide visibility into our underlying gross pro tability by excluding the impact of non-cash equity-based compensation expense and related taxes. Accordingly, we believe these metrics provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and the board of directors. We calculate Contribution Pro t as Adjusted Gross Pro t less customer service and merchant fees and less advertising expense, plus equity-based compensation and related taxes included in customer service and merchant fees. Contribution Margin is calculated as Contribution Pro t as a percentage of revenue for the same period. We believe that these adjustments to gross pro tability provide a more meaningful understanding of the economic impact of orders ful lled through our platform, as they incorporate the direct expenses associated with generating and servicing customer demand and isolate key cost drivers. Accordingly, we believe that Contribution Pro t and Contribution Margin o er useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and the board of directors. We calculate Adjusted EBITDA as net income or loss before depreciation and amortization, equity-based compensation and related taxes, interest income or expense, net, other income or expense, net, provision or bene t for income taxes, net, non-recurring items and other items not indicative of our core operating 8
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performance. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by Net Revenue. We disclose Adjusted EBITDA because it is a key measure used by our management and board of directors to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, management uses Adjusted EBITDA as a measure of pro tability, and our references in this earnings release and the related earnings conference call to pro tability (other than references to GAAP gross pro t) are references to Adjusted EBITDA. We believe the exclusion of certain expenses in calculating Adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis as these costs may vary independent of business performance. For instance, we exclude the impact of equity-based compensation and related taxes as we do not consider this item to be indicative of our core operating performance. Investors should, however, understand that equity-based compensation and related taxes will be a signi cant recurring expense in our business and an important part of the compensation provided to our employees. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. We calculate Free Cash Flow as net cash provided by or used in operating activities less net cash used to purchase property and equipment and site and software development costs (collectively, "Capital Expenditures"). We disclose Free Cash Flow because it is an important indicator of our business performance as it measures the amount of cash we generate. Accordingly, we believe that Free Cash Flow provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management. We calculate Adjusted Diluted Earnings or Loss per Share as net income or loss plus equity-based compensation and related taxes, provision or bene t for income taxes, net, non-recurring items, other items not indicative of our core operating performance, and, if dilutive, interest expense associated with convertible debt instruments under the if-converted method divided by the weighted-average number of shares of common stock used in the computation of diluted earnings or loss per share. Accordingly, we believe that these adjustments to our adjusted diluted net income or loss before calculating per share amounts for all periods presented provide a more meaningful comparison between our operating results from period to period. We calculate Net Revenue Constant Currency Growth by translating the current period local currency net revenue by the currency exchange rates used to translate the nancial statements in the comparable prior-year period. We disclose Net Revenue Constant Currency Growth because it is an important indicator of our operating results. Accordingly, we believe that Net Revenue Constant Currency Growth provides useful information to investors and others in understanding and evaluating trends in our operating results in the same manner as our management. We calculate forward-looking non-GAAP nancial measures based on internal forecasts that omit certain amounts that would be included in forward-looking GAAP nancial measures. We do not attempt to provide a reconciliation of forward-looking non-GAAP nancial measures to forward looking GAAP nancial measures because forecasting 9
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the timing or amount of items that have not yet occurred and are out of our control is inherently uncertain and unavailable without unreasonable e orts. Further, we believe that such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of nancial performance. The non-GAAP nancial measures have limitations as analytical tools. We do not, nor do we suggest that investors should consider such non-GAAP nancial measures in isolation from, or as a substitute for, nancial information prepared in accordance with GAAP. Investors should also note that the non-GAAP nancial measures we use may not be the same non-GAAP nancial measures and may not be calculated in the same manner as that of other companies, including other companies in our industry. The following table re ects the reconciliation of gross pro t to Adjusted Gross Pro t and Adjusted Gross Pro t Margin for each of the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in millions, except percentages)Reconciliation of Adjusted Gross Profit: Gross profit $ 1,054 $ 984 $ 1,934 $ 1,821Gross margin 30.0 % 30.1 % 30.0 % 30.3 %Add: Equity-based compensation and related taxes included in cost of goods sold 2 2 3 4 Adjusted Gross Profit $ 1,056 $ 986 $ 1,937 $ 1,825 Adjusted Gross Margin 30.0 % 30.1 % 30.0 % 30.4 % The following table re ects the reconciliation of Adjusted Gross Pro t to Contribution Pro t and Contribution Pro t Margin for each of the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in millions, except percentages)Reconciliation of Contribution Profit: Net revenue $ 3,519 $ 3,273 $ 6,450 $ 6,003Less: Cost of goods sold 2,465 2,289 4,516 4,182Gross profit 1,054 984 1,934 1,821Gross margin 30.0 % 30.1 % 30.0 % 30.3 %Add: Equity-based compensation and related taxes included in cost of goods sold 2 2 3 4Adjusted Gross Profit 1,056 986 1,937 1,825 Adjusted Gross Margin 30.0 % 30.1 % 30.0 % 30.4 %Less: Customer service and merchant fees 128 121 242 228Less: Advertising 392 372 721 716Add: Equity-based compensation and related taxes included in customer service and merchant fees 3 4 5 7 Contribution Profit $ 539 $ 497 $ 979 $ 888 10
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Contribution Margin 15.3 % 15.2 % 15.2 % 14.8 % The following table re ects the reconciliation of net (loss) income to Adjusted EBITDA and Adjusted EBITDA margin for each of the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in millions, except percentages)Reconciliation of Adjusted EBITDA: Net (loss) income $ (1) $ 15 $ (106) $ (98)Depreciation and amortization 64 78 131 159Equity-based compensation and related taxes 72 101 143 169Interest expense, net 39 29 78 52Other expense (income), net 4 (23) 15 (33)Provision for income taxes, net 3 2 4 5 Other: Impairment and other related net charges(1) 2 — 2 23 Restructuring and other charges, net(2) — 9 24 65 Loss (gain) on debt extinguishment(3) 59 (6) 102 (31) Adjusted EBITDA $ 242 $ 205 $ 393 $ 311 Net revenue $ 3,519 $ 3,273 $ 6,450 $ 6,003Net (loss) income margin — % 0.5 % (1.6) % (1.6) %Adjusted EBITDA Margin 6.9 % 6.3 % 6.1 % 5.2 % (1) During the three and six months ended June 30, 2026, we recorded $2 million impairment associated with our decision to exit a customerservice center in the U.S. During the six months ended June 30, 2025, we recorded net charges of $23 million, inclusive of $20 millionassociated with the Germany Restructuring and weakened macroeconomic conditions in connection with our Germany operations and, $3million related to changes in sublease market conditions for a technology center in the U.S.(2) During the six months ended June 30, 2026, we incurred $24 million of charges related to a loss on termination of an operating lease for alogistics facility. During the three and six months ended June 30, 2025, we incurred $9 million and $65 million, respectively, of chargesconsisting primarily of one-time employee severance, benefits, relocation and transition costs. This is inclusive of $46 million related to theGermany Restructuring and $19 million related to the March 2025 workforce reduction. We do not expect to incur any further material chargesrelated to this workforce reduction.(3) During the three and six months ended June 30, 2026, we recorded a $59 million and $102 million, respectively, loss on debt extinguishmentupon repurchase of $145 million in aggregate principal amount of the 2028 Notes. During the three and six months ended June 30, 2025, werecorded a $6 million and $31 million, respectively, gain on debt extinguishment upon repurchase of $80 million in aggregate principal amountof the 2025 Notes and $696 million in aggregate principal amount of the 2026 Notes. The following table presents Adjusted EBITDA attributable to our segments, and the reconciliation of net income or loss to Adjusted EBITDA is presented in the preceding table: Three Months Ended June 30, Six Months Ended June 30, 11
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2026 2025 2026 2025 (in millions)Segment Adjusted EBITDA: US $ 261 $ 224 $ 422 $ 319International (19) (19) (29) (8) Adjusted EBITDA $ 242 $ 205 $ 393 $ 311 The following table presents a reconciliation of net cash provided by or used in operating activities to Free Cash Flow for each of the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in millions)Net cash provided by operating activities $ 360 $ 273 $ 308 $ 177Purchase of property and equipment (26) (13) (51) (18)Site and software development costs (33) (30) (62) (68) Free Cash Flow $ 301 $ 230 $ 195 $ 91 A reconciliation of the numerator and denominator for diluted earnings or loss per share, the most directly comparable GAAP nancial measure, to the numerator and denominator for Adjusted Diluted Earnings or Loss per Share, in order to calculate Adjusted Diluted Earnings or Loss per Share is as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in millions, except per share data)Numerator: Numerator for basic and diluted (loss) earnings per share - net (loss) income $ (1) $ 15 $ (106) $ (98)Adjustments to net (loss) income Interest expense associated with convertible debt instruments 4 13 11 27Equity-based compensation and related taxes 72 101 143 169Provision for income taxes, net 3 2 4 5Other: Impairment and other related net charges 2 — 2 23Restructuring and other charges, net — 9 24 65Loss (gain) on debt extinguishment 59 (6) 102 (31)Numerator for Adjusted Diluted Earnings per Share - Adjusted net (loss) income $ 139 $ 134 $ 180 $ 160 Denominator: Denominator for basic (loss) earnings per share - weighted-average number of shares of common stock outstanding 132 128 131 127Effect of dilutive securities: Restricted stock units — 1 — —Denominator for diluted (loss) earnings per share - weighted-average number of shares of common stock outstanding after the effect of dilutive securities 132 129 131 127Adjustments to effect of dilutive securities: Restricted stock units 1 — — —Convertible debt instruments 14 27 16 30Denominator for Adjusted Diluted Earnings per 12
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Share - Adjusted weighted-average number of shares of common stock outstanding after the effect of dilutive securities 147 156 147 157 Diluted (loss) earnings per share $ (0.01) $ 0.11 $ (0.81) $ (0.77) Adjusted Diluted Earnings per Share $ 0.95 $ 0.87 $ 1.22 $ 1.02 View original content to download multimedia:https://www.prnewswire.com/news-releases/wayfair-announces- second-quarter-2026-results-reports-strongest-free-cash- ow-since-2020-302841629.html SOURCE Wayfair Inc. 13