Wayfair announced strong second-quarter 2026 financial results, with total net revenue reaching $3.5 billion, a 7.5% increase year-over-year. U.S. net revenue grew by 8.7% to $3.1 billion, marking the best post-COVID growth for the company. Despite a slight decrease in international net revenue, the overall sales momentum was robust, with orders up by 6% for the period.
The company's success was significantly propelled by its luxury and specialty retail brands. Specialty retail brands saw nearly 20% growth, with Perigold, Wayfair’s luxury platform, leading the charge with over 35% growth. Perigold's customer base spends approximately three times more than a typical Wayfair.com shopper annually, highlighting the impact of high-income consumers. This segment has grown by double-digits every year since its launch, including over 20% growth in 2024 and 2025.
Wayfair also reported a net loss of $1 million and diluted loss per share of $0.01, but a non-GAAP Adjusted EBITDA of $242 million and non-GAAP Adjusted Diluted Earnings Per Share of $0.95. Free cash flow was strong at $301 million, the best since 2020. The company's cash, cash equivalents, and short-term investments totaled $1.1 billion, with total liquidity at $1.6 billion.
Looking ahead, Wayfair expects overall company revenue to grow in the high-single digits in the third quarter, with gross margin projected to be between 29.5% and 30.5%. The company is also expanding its brick-and-mortar presence, with two Perigold stores already opened and plans for more, along with a dedicated Perigold loyalty program later this year. These physical stores are already generating higher average order values than online sales.
