Wayfair Inc. Revenue & Financials

Wayfair reported $11.9 billion in net revenue for fiscal year 2024, a 1.3% decline from $12.0 billion in 2023, marking the fourth consecutive year of revenue contraction from the pandemic peak of $14.1 billion in 2020. Gross profit was $3.6 billion at a 30.2% gross margin, down from $3.7 billion in 2023 as lower order volume and macroeconomic pressures compressed margins. The company posted a net loss of $492 million, an improvement from the $738 million loss in 2023 but still far from the $185 million profit achieved in 2020. Loss from operations narrowed to $461 million from $813 million in 2023, reflecting cost reduction efforts and decreased operating expenses. Adjusted EBITDA, which excludes depreciation, amortization, equity-based compensation, and other non-operating items, was $453 million in 2024—a 48% increase from $306 million in 2023 and a significant improvement from the negative $416 million in 2022. This metric suggests that Wayfair's core operations are generating cash, but heavy non-cash charges and restructuring costs prevent GAAP profitability. Diluted loss per share was $4.01 in 2024, improved from $6.47 in 2023. Net cash provided by operating activities was $317 million, down from $349 million in 2023, while free cash flow was $83 million compared to negative $2 million in 2023. Cash, cash equivalents, and short-term investments totaled $1.4 billion as of December 31, 2024, with total liquidity of $1.9 billion including revolving credit facility availability. The U.S. segment generated $10.4 billion in revenue (down 1.0% YoY) with Adjusted EBITDA of $571 million, while the international segment contributed $1.5 billion (down 2.8% YoY) with negative Adjusted EBITDA of $118 million. The company's revenue per active customer improved: LTM net revenue per active customer reached $555 in Q4 2024, up 3.4% from $537 in Q4 2023, indicating that while customer count declined from 22 million to 21 million, existing customers spent more. Average order value increased to $300 for the full year 2024 from $292 in 2023, reflecting successful upselling and category mix shift. Wayfair's balance sheet carries $454 million in inventory, $1.4 billion in cash, and significant lease obligations for its CastleGate network and corporate offices. The company tapped high-yield markets for the first time in 2024, strengthening its balance sheet position according to CEO Niraj Shah. Total operating expenses were $4.0 billion in 2024, including $1.47 billion in advertising, $470 million in customer service and merchant fees, and $1.98 billion in selling, operations, technology, and administrative expenses. Restructuring charges were $79 million in 2024, primarily related to workforce reductions and the Germany exit.