Transcript: Wayfair Q2 2026 Earnings Conference Call

Wayfair (NYSE: W ) released second-quarter financial results and hosted an earnings call on Tuesday.

Read the complete transcript below.

APIs provide real-time access to earnings call transcripts and financial data.

Visit to learn more.

Access the full call at Summary Wayfair Inc reported a 7.5% year-over-year growth in net revenue for Q2, driven by a 6% increase in orders and strong performance in US markets with nearly 9% growth.

Perigold, Wayfair's luxury segment, saw over 35% growth, contributing significantly to the company's revenue and profit expansion, with plans to grow it into a multibillion-dollar business.

The company is leveraging AI for cost-effective marketing and enhancing customer experience, leading to a substantial reduction in production costs and improvements in service delivery.

Financially, Wayfair's EBITDA margin reached 6.9%, the highest since 2021, with a free cash flow of $301 million and significant progress in reducing leverage with a high-yield note issuance.

Future guidance suggests high single-digit revenue growth for Q3, with investments in customer experience and loyalty programs expected to balance out advertising costs.

Management emphasized the strategic focus on expanding physical retail presence, with five new store leases signed for 2027, and continued leveraging of the core platform for cost efficiency.

The company remains optimistic about its growth trajectory despite macroeconomic challenges, particularly in international markets.

Full Transcript Ryan, Investor Relations To differ materially from those projected in any forward-looking statements made today.

Except as required by law, we undertake no obligation to publicly update or revise any of these statements, whether as a result of any new information, future events, or otherwise.

Also, please note that during this call we will discuss certain non-GAAP financial measures as we review the Company's performance, including contribution profit, contribution margin, adjusted EBITDA, adjusted EBITDA margin, and free cash flow.

These non-GAAP financial measures should not be considered replacements for, and should be read together with, GAAP results.

Please refer to the Investor Relations section of our website to obtain a copy of our earnings release and investor presentation, which contain descriptions of our non-GAAP financial measures and reconciliations of non-GAAP measures to the nearest comparable GAAP measures.

This call is being recorded and a webcast will be available for replay on our IR website.

I would now like to turn the call over to Niraj.

Niraj Shah, CEO and Co-founder Thanks, Ryan, and good morning, everyone.

We're pleased to be with you today to discuss our second quarter results.

Q2 marked another strong quarter of share capture and top-line momentum with 7.5% net revenue growth.

Our growth this quarter was fueled by momentum in orders, which were up by 6% for the period.

Compared to Q1, orders were up over 12%, the best sequential growth we've seen in a Q2 since the second quarter of 2020.

AOV grew by 1.2% year over year, continuing a very consistent trend of low- to mid-single-digit growth that we've been seeing for years now.

Active customers also continued its upward trend, growing by more than 3% year over year in Q2.

While there's still some broader macro uncertainty and depressed housing turnover, by our measure this marked the first quarter of flat to slightly positive year-over-year category growth that we've seen in the U.S. since 2021.

Though skewed towards higher growth in the higher-income segments, our U.S. segment accelerated to nearly 9% year-over-year revenue growth, continuing the high-single-digit share spread we've held since last fall.

In fact, revenue growth in the U.S. was the best we've seen in the entire post-COVID period.

In keeping with the often discussed K-shaped recovery, we saw noteworthy outperformance from both our specialty retail brands, which grew by nearly 20% in the second quarter, and Perigold, which grew by more than 35% in the luxury segment.

What is exciting for us is that we are seeing accelerating growth in the Wayfair business and complementing that with outsized growth in the specialty and luxury segments, all building to why we expect to see even further growth acceleration as our numerous initiatives further play out.

Today, I'd like to spend a bit more time digging into Perigold because it's a good example of one of our numerous initiatives, and the momentum we've seen there over the past few years has been tremendous.

I'll start with a bit of history for those less familiar.

We launched Perigold in 2017 with a simple thesis.

The U.S. has roughly 15 million high-income households that together spend more than $100 billion a year on their homes.

Prior to our entry, this customer had no real digital destination that matched the way she actually wants to shop the best design brands in the world.

Names like Century Furniture or Vanguard were locked behind exclusive showrooms, available to the trade only, or scattered across single-style, single-category competitors.