Wayfair’s luxury and specialty retail brands substantially outpaced the broader business during the second quarter of 2026, with Perigold growing more than 35% as the company generated its strongest quarterly free cash flow since 2020.
Wayfair’s specialty retail brands grew nearly 20% during the quarter, while Perigold, its luxury home brand, grew more than 35%. Management said the performance complements accelerating growth in the core Wayfair business and could support further growth as additional initiatives scale.
Total net revenue increased 7.5% year-over-year to $3.52 billion, while U.S. revenue grew 8.7% to $3.1 billion. Management described the U.S. performance as its strongest year-over-year revenue growth of the post-COVID period.
Orders delivered increased 6% to 10.6 million. Active customers increased 3.3% to 21.7 million, while trailing 12-month revenue per active customer increased 4.2% to $596. Average order value increased to $332 from $328.
Wayfair generated $360 million of operating cash flow and $301 million of free cash flow, up from $230 million of free cash flow a year earlier. The company said it was its strongest free cash flow performance since 2020.
Adjusted EBITDA increased to $242 million from $205 million, while contribution profit reached $539 million. Wayfair nearly reached GAAP breakeven, reporting a net loss of just $1 million for the quarter.
The company ended Q2 with approximately $1.1 billion of cash, cash equivalents and short-term investments and $1.6 billion of total liquidity. Long-term debt declined to $2.80 billion from $3.23 billion at the end of 2025.
KEY QUOTES:
“Q2 marked another strong quarter of share capture and top line momentum, with 7.5% net revenue growth fueled by momentum in orders, which were up by 6% for the period.”
“We saw noteworthy outperformance from our specialty retail brands, which grew by nearly 20% in the second quarter, and Perigold, which grew by more than 35%.”
Niraj Shah, CEO, Co-Founder And Co-Chairman Of Wayfair
