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Research Alert: Wayfair: Solid Q1 With Active Customer Growth And Strong Margins

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

Wayfair delivered solid Q1 results with revenue of $2.931B (+7% Y/Y), beating consensus by $43M, while adjusted EBITDA of $151M (+42% Y/Y) exceeded the $146M estimate. Adjusted EBITDA margins of 5.2% (+130 bps Y/Y) marked the best Q1 performance since 2021, with active customers returning to growth (+1.4% Y/Y to 21.4M) for the first time in nearly two years. The company continues to gain market share despite challenging macroeconomic conditions, outperforming the broader home furnishings category by a high-single-digit spread. Management will provide Q2 guidance on the earnings call, with expectations for a cautiously optimistic outlook given ongoing market share gains. We expect continued progress toward the long-term 10%+ margin target, with revenue growth flowing efficiently to profitability. Customer engagement metrics improved with LTM revenue per active customer rising 5.2% Y/Y to $591 and orders per customer increasing to 1.88 from 1.85, indicating stronger purchasing frequency among the existing base.

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