| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 37 | — | 17.3x | Bottom tier | |
Growth | 37 | 7.5% | 7.1% | Bottom tier | |
Quality | 73 | 21.6% | 4.5% | Top tier | |
Safety | 41 | 5.1x | 2.6x | Around median | |
Capital Return | 21 | 0.00% | 0.06% | Bottom tier | |
Momentum | 85 | 17.4% | -1.6% | Top tier | |
Sentiment | 62 | 17 | 3 | Around median |
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Wayfair Inc. is an online platform for furniture and home goods, serving the mass market through Wayfair and specialized and luxury segments through brands including Perigold. Its model relies on a marketplace in which suppliers hold inventory and set wholesale costs, while Wayfair adds its margins and shipping costs and benefits from its logistics network, supplier advertising programs, and search, personalization, and payment technologies; it is also expanding its physical-store presence without owning the store inventory itself.
In Q2 of fiscal year 2026, revenue reached $3.52 billion, up 7.5% year over year, while U.S. segment revenue increased 8.7% versus a 1.3% decline in the international segment. Wayfair's mass-market business continued to represent the vast majority of revenue, while specialty brands grew by approximately 20% and Perigold by more than 35%. Gross margin was 30.0%, contribution margin was 15.3%, and adjusted earnings before interest, taxes, depreciation, and amortization were $242 million at a 6.9% margin, the company's best margin since 2021.
The business generated $360 million in operating cash flow in Q2 of fiscal year 2026, and with capital expenditures of $59 million, free cash flow reached $301 million, an increase of more than 30% year over year. However, EDGAR data show that losses under accounting standards persist, with a net loss of $305 million during the twelve-month period ended in 2026, following a net loss of $313 million in fiscal year 2025, meaning that the improvement in adjusted earnings and cash flow has not yet translated into sustainable net profitability.
The average analyst target is $112.8, with a Buy consensus and a wide target range between $75 and $135; the average is below the 52-week range high of $119.98, while the highest target exceeds that high. There is no positive price-to-earnings multiple because of the loss during the twelve months ended in 2026, so the valuation depends more heavily on continued revenue growth and on converting the 6.9% adjusted earnings margin in Q2 of fiscal year 2026 into net profitability; meanwhile, Bernstein's increase of its target to $125 on August 14, 2026 reflects an improved outlook following the strong results.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Revenue reached $3.52 billion, up 7.5% year over year, with orders growing 6% and average order value increasing 1.2%. Orders jumped by more than 12% compared with Q1 of fiscal year 2026, the best sequential growth for a second quarter since Q2 of fiscal year 2020. U.S. revenue also grew 8.7%, and the number of active customers increased by more than 3% to approximately 21.7 million customers. This resulted in adjusted earnings before interest, taxes, depreciation, and amortization of $242 million and a 6.9% margin.
Perigold's annual revenue exceeded $400 million, and it grew by more than 35% in Q2 of fiscal year 2026 after growth exceeding 20% in each of 2024 and 2025. Its active customer base is approaching 400 thousand customers, an annual increase of approximately 20%, and each customer spends about three times as much as a typical Wayfair customer. Approximately 40% of its annual customers are people who are entirely new to the Wayfair family of brands. The platform offers approximately 3.5 million products from 1,500 brands, benefiting from Wayfair's shared logistics and technology.
Automated analysis for informational purposes only — not investment advice.
In Q2 of fiscal year 2026, Wayfair generated adjusted earnings before interest, taxes, depreciation, and amortization of $242 million, along with free cash flow of $301 million. However, EDGAR data show a net loss of $305 million during the twelve-month period ended in 2026 and negative earnings per share of approximately $2.33. In Q1 of fiscal year 2026 alone, the net loss was $105 million and negative earnings per share were $0.80. Therefore, operating profitability and liquidity have clearly improved, but net profitability under accounting standards has not yet become sustainable.
Management guided to high-single-digit growth, without assuming any further improvement in the economic environment. It expects a gross margin between 29.5% and 30.5%, leaning toward the lower end due to investments in customer experience and loyalty. It also expects selling, operations, technology, and general expenses between $360 million and $370 million, and an adjusted earnings before interest, taxes, depreciation, and amortization margin between 6% and 7%. Estimated capital expenditures range between $60 million and $70 million.
Perigold used an internal artificial intelligence system to select products, arrange them in rooms, and produce realistic images with automated quality checks and designer oversight. This application reduced the cost of a seasonal image project from approximately $2 million using the traditional method to less than $10 thousand, or by more than 99%. The company also uses the tools to improve product content and merchandising accuracy and to help design advisors find and present products more quickly. The benefit is directly tied to Perigold's catalog of approximately 3.5 million products, which requires high-quality images across a broad assortment.
The company recorded a net loss of $305 million during the twelve-month period ended in 2026, despite improved adjusted earnings and free cash flow. International segment revenue also declined 1.3% in Q2 of fiscal year 2026 due to pressures in Canada and the United Kingdom, while growth depended on an 8.7% increase in the United States. Management expects the Q3 fiscal year 2026 margin to be near the lower end of the 29.5% to 30.5% range as investment in loyalty and customer experience continues. Additional risks include the continued promotional environment, weak housing turnover, and the short operating track record of the new stores.