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An online retailer of home goods, Wayfair sells furniture and décor through a family of brands including Wayfair, AllModern, Birch Lane, Joss & Main, and Perigold. It was founded in 2002 by Cornell classmates Niraj Shah and Steve Conine, who started with a single website selling TV stands from a Boston apartment before building hundreds of niche sites under the name CSN Stores (their initials) and rebranding as Wayfair in 2011. The name "Wayfair" has no special meaning—the founders just liked how the two words sounded together.
Wayfair posted $104M operating income in Q2 2026, its largest quarterly profit since 2020.
Wayfair's quarterly reached $104M, the widest since 2020. rose 7.5% to $3,519M and was 3.0% as U.S. growth of 8.7% and lower expenses offset a 1.3% International decline. The company has returned to profitable operations, with of $334M.
Key takeaways
was $104M, up from $17M a year earlier and reversing the $11M loss in Q1, as total operating expenses fell to 27.0% of from 29.6% on lower and reduced .
rose 7.5% to $3,519M, driven by higher order volume and a higher average order value of $332; U.S. grew 8.7% to $3,125M while International declined 1.3% to $394M.
rose 18% to $242M, with margin expanding to 6.9% from 6.3%, reflecting from the expense reduction.
Section summaries
Management's Discussion and Analysis
Q2 net revenue rose 7.5% to $3.5B on higher order volume and AOV; U.S. grew 8.7% while International declined 1.3%.
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Consolidated net increased 7.5% to $3,519 million, driven by higher order volume and a higher of $332.
was 30.0%, down 0.1 point from 30.1% a year earlier, as customer experience investments partially offset supplier services growth.
was $334M, up 28.5% and up from negative $77M in Q1, with of $360M.
stood at $1.1B in cash and short-term investments with total debt of $2.9B; fell 3.0% to $2,797M.
What changed
Q2 2026 returned to positive $334M after the negative $77M Q1 print, settling the flagged watch item from Q1.
Q2 2026 of $104M against the $11M Q1 loss shows the 2025 operating-profit run resumed and widened rather than the loss widening.
at 30.0% held flat versus the 30.0% Q1 figure, with customer experience spend and the absence of a prior-year duty benefit still present as flagged.
International net rose 6.0% in Q1 then fell 1.3% in Q2 to $394M, breaking the stabilization seen after the German exit and reversing the prior rise.
Q1 2026 flagged Q2 against 30.0%; it came in at 30.0%, confirming the pressure did not deepen.
Since the FY2025 annual report, the company posted a Q1 operating loss then a Q2 profit, and swung from negative to $334M; risk factors were restated with no material change from December 31, 2025.
What to watch
Q3 2026 International net after the 1.3% Q2 decline to see if the German-exit stabilization reverses or persists.
Q3 2026 against the $334M Q2 print to see if positive generation holds as capital spend continues.
Q3 2026 against $104M to see if the profit widens or the Q1 loss pattern returns.
Q3 2026 against 30.0% to see if customer experience investments keep it flat as supplier services grow.
U.S. net grew 8.7% to $3,125 million, while International segment net revenue decreased 1.3% to $394 million.
contracted slightly to 30.0% from 30.1% due to customer experience investments, partially offset by supplier services growth.
Total operating expenses as a percentage of net improved to 27.0% from 29.6%, driven by lower equity-based compensation and reduced restructuring charges.
rose 18% to $242 million, with margin expanding to 6.9% from 6.3%, reflecting .
Liquidity remained strong at $1.1 billion in cash and short-term investments, though total debt outstanding was $2.9 billion following new note issuances and redemptions.
Quantitative and Qualitative Disclosures About Market Risk
There have been no significant changes in our exposures to market risk since December 31, 2025. See Part II, Item 7A, Quantitative and Qualitative Disclosures about Market Risk included in our Annual Report on Form 10-K for the year ended December 31, 2025 for a discussion on ou…
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There have been no significant changes in our exposures to market risk since December 31, 2025. See Part II, Item 7A, Quantitative and Qualitative Disclosures about Market Risk included in our Annual Report on Form 10-K for the year ended December 31, 2025 for a discussion on our exposures to market risk.
From time to time, we are involved in litigation matters and other legal claims that arise during the ordinary course of business. Litigation and legal claims are inherently unpredictable and cannot be predicted with certainty. An unfavorable resolution of one or more legal matt…
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From time to time, we are involved in litigation matters and other legal claims that arise during the ordinary course of business. Litigation and legal claims are inherently unpredictable and cannot be predicted with certainty. An unfavorable resolution of one or more legal matters could have a material adverse effect on our results of operations or financial condition, and regardless of the outcome, these matters can be costly and time consuming, as they can divert management's attention from important business matters and initiatives, negatively impacting our overall operations. In addition, we may be at greater risk from outside party claims as we increase our operations in jurisdictions where the laws with respect to the potential liability of online retailers are uncertain, unfavorable or unclear.
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We do not believe that the outcome of any legal matters to which we are presently a party will have a material adverse effect on our results of operations or financial condition.
As of the date of this report, there are no material changes from the risk factors previously disclosed in Part I, Item 1A, Risk Factors, in our Annual Report on Form 10-K for the year ended December 31, 2025.
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As of the date of this report, there are no material changes from the risk factors previously disclosed in Part I, Item 1A, Risk Factors, in our Annual Report on Form 10-K for the year ended December 31, 2025.