Wayfair Inc. (NYSE: W), a leading destination for all things home, has reported its financial results for the fourth quarter and full year ended December 31, 2025. The company's total net revenue for the fourth quarter was $3.3 billion, reflecting a 6.9% year-over-year increase. Excluding the impact of its exit from the German market, total net revenue grew 7.8% year over year.
In terms of specific financial highlights, the company's gross profit was $1.0 billion, or 30.3% of total net revenue. The non-GAAP contribution profit was $511 million, representing 15.3% of net revenue. Net loss for the quarter was $116 million, while non-GAAP adjusted EBITDA stood at $224 million. Furthermore, net cash provided by operating activities was $202 million, and non-GAAP free cash flow was $145 million.
For the full year 2025, total net revenue increased by 5.1% year over year to $12.5 billion. Excluding the impact of the German market exit, total net revenue grew 6.1% year over year. The company's U.S. net revenue reached $11.0 billion, reflecting a 5.8% year-over-year increase. International net revenue amounted to $1.5 billion, up 0.4% year over year. Gross profit for the full year was $3.8 billion, or 30.2% of total net revenue. The non-GAAP contribution profit was $1.9 billion, or 15.2% of net revenue. The net loss for the full year was $313 million, while non-GAAP adjusted EBITDA was $743 million. The company reported net cash provided by operating activities of $534 million and non-GAAP free cash flow of $329 million.
In terms of key operating metrics, the number of active customers totaled 21.3 million as of December 31, 2025, reflecting a decrease of 0.5% year over year. However, the LTM net revenue per active customer increased by 5.6% year over year to $586. Orders delivered in the fourth quarter of 2025 totaled 11.1 million, representing a 3.7% increase year over year. Notably, repeat customers placed 79.1% of total orders delivered in the fourth quarter of 2025.
Looking at the company's financial statement metrics, net revenue for the fourth quarter of 2025 amounted to $3.3 billion, up from $3.1 billion in the same period in 2024. Additionally, the average order value increased to $301 in the fourth quarter of 2025, compared to $290 in the fourth quarter of 2024.
Overall, Wayfair's CEO, Niraj Shah, highlighted the company's growth and acceleration throughout the year, emphasizing the overwhelming share capture and strong flow through of growth to the bottom line. The company expects its topline growth and flow through to adjusted EBITDA to be the foundation of its story for years to come.
The market has reacted to these announcements by moving the company's shares -2.76% to a price of $114.99. For the full picture, make sure to review Wayfair's 8-K report.
