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Wayfair: Can 6% To 7% EBITDA Targets Hold Amid Demand Headwinds?

Wayfair Inc. reported first quarter 2026 results that showcased modest revenue growth and improving profitability amid a challenging macroeconomic environment. Net revenue increased 7% year-over-year, driven by a 3% order growth and a 4% increase in average order value. Despite headwinds such as elevated energy prices and weather disruptions that dampened consumer spending—particularly in the home furnishings category, which Wayfair estimates declined in the low single digits—the company outperformed the market by a high single-digit margin, highlighting its share gain in a down market. Wayfair’s adjusted EBITDA margin for the quarter reached 5.2%, marking its best Q1 performance in five years and reflecting operational efficiencies and disciplined capital management. The company continued reducing potential dilution by repurchasing convertible bonds equivalent to more than four million shares. Gross margin stood at 30.