BOSTON — Home furnishings retailer Wayfair got a boost in active customers during Q1 while also seeing total net revenue increase by 7.4%.
Total net revenue rose by $201 million to $2.9 billion, with U.S. net revenue accounting for $2.6 million of that total, up 7.5%. International net revenue was up 6% year-over-year to $319 million.
Active customers totaled 21.4 million for the quarter ended March 31—an increase of 1.4% year-over-year. Net revenue per active customer, which was $591, was up 5.2% vs. Q1 2025, while orders per customer rose slightly to 1.88 vs. 1.85 the previous year. Repeat customers placed 79.8% of total orders compared to 80.5% in the same quarter a year ago. Average order value, meanwhile, rose to $312 in Q1, up from $301 in 2025.
“Our strong revenue performance in Q1 translated to noteworthy profitability,” said Niraj Shah, CEO, co-founder and chairman. “Our 5.2% adjusted EBITDA margin in the first quarter is the best Q1 result we’ve delivered in five years and approaches what we reported in the first quarter of 2021.
“Our plan remains consistent: increasingly outperform the category to drive top-line growth, flow that growth through in a manner that maximizes EBITDA dollars and grows them faster than revenue and deploy our excess cash to manage both our upcoming maturities and dilution,” he said.
Adjusted EBITDA was $151 million vs. $106 million in Q1 2025, and net loss was $105 million, down from $113 million previously. Gross profit for the quarter was $880 million, or 30% of total net revenue. Diluted loss per share was 80 cents, down from 89 cents per share. Adjusted diluted earnings per share was 26 cents vs. 10 cents per share in Q1 2025.
“While the home furnishings category experienced a choppy start to the year, we outperformed the market by a high single-digit spread in the first quarter, based on our estimates,” said Shah. “Our scale enables us to deliver a customer experience that is difficult to replicate, supported by years of investment in our core offering, global logistics network and the technology platform.
“We are particularly encouraged by the pace at which our share gains are accelerating and remain excited about the opportunity ahead.”
During the company’s earnings call, Shah noted Wayfair has continued to build its international business, which encompasses Canada, the United Kingdom and Ireland. Market share in Canada reached its highest non-COVID level last year, he said, with Canadian customers having access to nearly all of the 40 million products in Wayfair’s inventory.
The U.K. and Ireland have access to about 6 million items, he said, with the U.K. also experiencing consistent share gains.
Looking at the home furnishings category today, Shah said home “is still bumping along at the bottom. The category isn’t going off the cliff, but it isn’t great.”
He attributed Wayfair’s share gains to its various programs, including Wayfair Verified, Wayfair Rewards and the opening of its stores. The Atlanta location, which recently debuted, “opened stronger than Chicago,” he said.
Noting that the category remains volatile, CFO Kate Gulliver said guidance for Q2 is for mid single-digit year-over-year growth. Gross margin is expected in the range of 29.5% to 30.5% of net revenue and adjusted EBITDA margin between 6% and 7%.
