Wayfair Inc. ( W ) surged on Tuesday after the online retailer posted a strong earnings beat and solid revenue growth in the third quarter.

W is testing upper boundaries. See the trading setup here.

The company reported third-quarter adjusted earnings per share of 70 cents, beating the analyst consensus estimate of 43 cents. Quarterly sales of $3.117 billion (+8.1% year over year) outpaced the Street view of $3.014 billion.

Total net revenue, excluding the German market exit, rose 9% year over year.

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U.S. net revenue grew 8.6% to $2.7 billion, up $216 million. International net revenue increased 4.6% to $389 million, or 3.5% on a constant-currency basis.

“We saw orders delivered grow by over 5% year-over-year in the quarter, including new orders now growing mid-single digits for two quarters in a row. This came in tandem with more than 70% year-over-year growth in Adjusted EBITDA,” said Niraj Shah, CEO, co-founder and co-chairman, Wayfair ( W ).

Metrics

Active customers totaled 21.2 million as of Sept. 30, 2025, down 2.3% from a year ago.

Orders per customer ticked up to 1.87 from 1.85 in the prior-year quarter. Repeat customers placed 80.1% of all delivered orders, compared with 79.9% a year earlier. Average order value increased to $317 from $310 in the same quarter last year.

Quarterly gross profit was $934 million, higher than $873 million a year ago. The gross margin was 30%.

Adjusted EBITDA in the quarter under review was $208 million, higher than $119 million a year ago. Adjusted EBITDA margin expanded to 6.7% from 4.1%.

The operating cash flow was $155 million, and the adjusted free cash flow was $93 million.

Cash, cash equivalents, and short-term investments totaled $1.2 billion.

Total liquidity was $1.7 billion, including availability under the revolving credit facility.

Price Action: Wayfair ( W ) shares were up 20.22% at $103.93 at the time of publication on Tuesday. The stock is trading at a new 52-week high, according to Benzinga Pro data.

W’s stock has a 26.46% short position of total float. A strong earnings report has thus resulted in a short squeeze and a drastic upward move.

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