v3.26.1
Segment and Geographic Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment and Geographic Information
9. Segment and Geographic Information
Operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated on a regular basis by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. Wayfair’s CODM is its Chief Executive Officer. 
Wayfair's operating and reportable segments are the U.S. and International. These segments reflect the way the CODM allocates resources and evaluates financial performance, which is based upon each segment's Adjusted EBITDA. Adjusted EBITDA is defined as net income or loss before depreciation and amortization; equity-based compensation and related taxes; interest income or expense, net; other income or expense, net; provision or benefit for income taxes, net; non-recurring items; and other items that Wayfair believes are not indicative of core operating performance. These charges are excluded from the evaluation of segment performance because it facilitates reportable segment performance comparisons on a period-to-period basis as these costs may vary independent of business performance. The CODM uses Adjusted EBITDA to assess segment performance by comparing actual results versus forecasted, as well as historical financial information, while deciding how to allocate resources as a benchmark to evaluate operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital.
The accounting policies of the segments are the same as those described in Note 1, Summary of Significant Accounting Policies, included in Part II, Item 8, Financial Statements and Supplementary Data, of Wayfair’s Annual Report on Form 10-K for the year ended December 31, 2025. Wayfair allocates certain operating expenses to the operating and reportable segments, including customer service and merchant fees and selling, operations, technology, general and administrative expenses based on the usage and relative contribution provided to the segments. It excludes from the allocations certain operating expense lines, including depreciation and amortization, equity-based compensation and related taxes, impairment and other related net charges and restructuring and other charges, net, as well as interest income or expense, net, other income or expense, net, gain or loss on debt extinguishment and provision or benefit for income taxes, net. There are no net revenue transactions between Wayfair's reportable segments.
U.S.
The U.S. segment primarily consists of amounts earned through product sales through Wayfair's family of sites in the U.S., together with product sales from Wayfair’s U.S. physical retail stores.
International
The International segment primarily consists of amounts earned through product sales through Wayfair's international sites.
Net revenue from external customers for each group of similar products and services are not reported to the CODM. Separate identification of this information for purposes of segment disclosure is impractical, as it is not readily available and the cost to develop it would be excessive. No individual country outside the U.S. provided greater than 10% of consolidated net revenue.
The following tables present net revenue, significant segment expenses and Adjusted EBITDA attributable to Wayfair’s reportable segments for the periods presented:
Three Months Ended June 30,
20262025
(in millions)
U.S.InternationalTotalU.S.InternationalTotal
Net revenue$3,125 $394 $3,519 $2,874 $399 $3,273 
Less:
Cost of goods sold (1)
2,147 308 2,455 1,971 305 2,276 
Advertising348 44 392 326 46 372 
Other segment items (2)
369 61 430 353 67 420 
Adjusted EBITDA$261 $(19)$242 $224 $(19)$205 
Less: reconciling items (3)
243 190 
Net (loss) income$(1)$15 
Six Months Ended June 30,
20262025
(in millions)
U.S.InternationalTotalU.S.InternationalTotal
Net revenue$5,737$713 $6,450$5,303$700 $6,003
Less:
Cost of goods sold (1)
3,958537 4,4953,657498 4,155
Advertising64279 72163284 716 
Other segment items (2)
715126 841695126 821 
Adjusted EBITDA$422$(29)$393$319$(8)$311
Less: reconciling items (3)
499 409 
Net loss$(106)$(98)
(1)
Cost of goods sold excludes costs that are excluded from Wayfair's evaluation of segment performance. Excluded from Wayfair's evaluation of segment performance and from cost of goods sold are depreciation and amortization and equity-based compensation and related taxes.
(2)
Other segment items include customer service and merchant fees and selling, operations, technology, general and administrative, and exclude any costs that are excluded from Wayfair's evaluation of segment performance. Excluded from Wayfair's evaluation of segment performance and from other segment items are depreciation and amortization, equity-based compensation and related taxes, interest income or expense, net, other income or expense, net, provision or benefit for income taxes, net, non-recurring items and other items that Wayfair believes are not indicative of core operating performance.
(3) The following adjustments are made to reconcile total reportable segments Adjusted EBITDA to consolidated net (loss) income:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(in millions)
Depreciation and amortization$64 $78 $131 $159 
Equity-based compensation and related taxes72 101 143 169 
Interest expense, net39 29 78 52 
Other expense (income), net4 (23)15 (33)
Provision for income taxes, net3 2 4 5 
Other:
Impairment and other related net charges (a)
2 — 2 23
Restructuring and other charges, net (b)
— 9 24 65 
Loss (gain) on debt extinguishment, net (c)
59 (6)102 (31)
Total reconciling items$243 $190 $499 $409 
(a)
During the three and six months ended June 30, 2026, Wayfair recorded $2 million impairment associated with its decision to exit a customer service center in the U.S. During the six months ended June 30, 2025, Wayfair recorded net charges of $23 million, inclusive of $20 million associated with the Germany Restructuring and weakened macroeconomic conditions in connection with our Germany operations and, $3 million related to changes in sublease market conditions for a technology center in the U.S.
(b)
During the six months ended June 30, 2026, Wayfair incurred $24 million of charges related to a loss on termination of an operating lease for a logistics facility. During the three and six months ended June 30, 2025, Wayfair incurred $9 million and $65 million, respectively, of charges consisting primarily of one-time employee severance, benefits, relocation and transition costs. This is inclusive of $46 million related to the Germany Restructuring and $19 million related to the March 2025 workforce reduction. Wayfair does not expect to incur any further material charges related to this workforce reduction.
(c)
During the three and six months ended June 30, 2026, Wayfair recorded a $59 million and $102 million, respectively, loss on debt extinguishment upon repurchase of $145 million in aggregate principal amount of the 2028 Notes. During the three and six months ended June 30, 2025, Wayfair recorded a $6 million and $31 million, respectively, gain on debt extinguishment upon repurchase of $80 million in aggregate principal amount of the 2025 Notes and $696 million in aggregate principal amount of the 2026 Notes.
The following table presents long-lived assets attributable to Wayfair's reportable segments reconciled to the consolidated amounts:
June 30,
2026		December 31,
2025
(in millions)
Geographic long-lived assets:
U.S.$601 $695 
International251 273 
Total reportable segment long-lived assets852 968 
Plus: reconciling corporate long-lived assets382 410 
Total long-lived assets$1,234 $1,378 
U.S. and International long-lived assets consist of property and equipment, net and operating lease ROU assets. Corporate long-lived assets consist of property and equipment, net, including capitalized internal-use software and website development costs, and operating lease ROU assets at corporate facilities.
The following table presents total assets attributable to Wayfair's reportable segments reconciled to consolidated amounts:
June 30,
2026		December 31,
2025
(in millions)
Assets by segment:
U.S.$1,092 $1,107 
International302 319 
Total reportable segment assets1,394 1,426 
Plus: reconciling corporate assets1,584 2,014 
Total assets$2,978 $3,440 
U.S. and International segment assets consist primarily of accounts receivable, net, inventories, prepaid expenses and other current assets, property and equipment, net and operating lease ROU assets. Corporate assets include cash and cash equivalents, short-term investments, long-lived assets at corporate facilities, capitalized internal-use software and website development costs and other non-current assets.