Wayfair continued its winning ways, according to its fiscal Q4 2025 earnings, growing revenue and free cash flow.

Total net revenue at Wayfair increased 6.9% (or $216 million) to reach $3.3 billion. Meanwhile, total net revenue excluding the impact of the company’s exit from the German market grew 7.8% year over year despite the home category contracting in the low single digits.

Adjusted EBITDA grew over 60% to $743 million for the full year. Q4 2025 alone was $224 million, more than double Q4 2024. Free cash flow jumped from $83M in 2024 to $329M in 2025.

Wayfair Rewards members have driven more than 15% of U.S. revenue with more than 1 million members after just one year. And those members convert on furniture at nearly 3x the rate of non-members. Company officials cheered the results and alluded there’s more to come.

“2026 is poised to be a tremendous year for Wayfair,” said chief financial officer Kate Gulliver.

And Niraj Shah, co-founder and CEO, said the company still has plenty of runway.

“The opportunity in front of us is considerable. We’re playing in a category that is nearly $0.5 trillion in the U.S., Canada, and U.K. The space is highly fragmented, filled with either larger players that don’t focus on home goods or pure-play competitors that cannot match our scale,” Shah said on the earnings call.

Wayfair ranks No. 11 in the Top 2000 Database, Digital Commerce 360’s ranking of North American online retailers by annual ecommerce sales. Wayfair is also the highest-ranking Housewares & Home Furnishings retailer in the Top 2000.

How Wayfair grew revenue in Q4 2025

There was also discussion on the earnings call about how Wayfair is leveraging its multichannel muscle. Shah said the strength lies in the company’s laser focus on the home category.

“We are the only one who optimizes it for home,” Shah said. “Because we do, we do not particularly worry about building materials or grocery or a bunch of other categories. We are not in those. So we really are only in home, and everything’s optimized for home.”

He added that Wayfair has a worldwide network of suppliers the company can also leverage.

“We have scale they do not have, so we can help them with ocean freight,” Shah said. “We can help them with fulfillment, we can help them with transportation and delivery — things that they cannot optimize, we can. It really only makes sense for us to do that for items where customers can buy enough volume that we can then predict the demand. Suppliers can put in that quantity. They can turn that inventory.”

And that, he said, benefits customers.

“So the big benefit of multichannel is it allows suppliers to put in a broader breadth of products,” Shah said.

Impact of Wayfair’s growth

While Wayfair is enjoying robust growth, Greg Zakowicz, ecommerce and retail advisor for Omnisend, said giants like Amazon don’t have to panic.

“I don’t think Amazon needs to worry about Wayfair,” Zakowicz told Digital Commerce 360. “There’s room for both. Over the past 18 months, shoppers have leaned into value-based purchases, and Wayfair fits that category for household furnishings. Today, value is a balance between price and quality, and Wayfair has a reputation for higher-quality furniture than Amazon.”

Zakowicz pointed out that Wayfair’s reported 3.6% increase in average order value (AOV) lags behind overall inflation over the past 12 months (4%) and the 4.6% increase in furniture prices reported in November’s national inflation report.

“Given Wayfair’s flat new-customer base, there should be some concerns about growth without relying on current-customer expansion,” Zakowicz said.

Still, Zakowicz said he thinks market conditions remain ripe for Wayfair to continue finding its way.

“I think Wayfair sits in a decent position,” Zakowicz said. “While discretionary purchases are slowing, consumers are investing in more routine home improvements, much like we saw during the pandemic.”

He added that if the economy remains moderately stable, Wayfair should be able to focus on growth by expanding its customer base over the next year.

Stephen O’Farrell, CEO of the Christmas Loft, said he pays close attention to Wayfair’s business model because he operates in the same space.

“Wayfair’s success can’t be attributed to product quantity alone,” O’Farrell said. “What they excel at is focus.”

O’Farrell noted that Wayfair has home furnishings down to a science and goes beyond home as a category.

“This allows them to uniquely inspire and convert shoppers more effectively than others,” O’Farrell said. “Wayfair is headed in the right direction.”

Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports. Here’s last quarter’s update on Wayfair revenue.