NYSE · Consumer Cyclical

Wayfair Inc.

W · Internet Retail

$88.52

▲ 6.93 (8.49%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

F⤢

Gross Profit Margin 30.0%

Operating Margin 0.4%

Net Income Margin -3.6%

Fin. Health

F⤢

Years to Pay Off Debt -34.6 yrs

Working Capital vs Long-Term Debt -$3.4B

Working Capital -$487M

Valuation

D⤢

Price-to-Book N/A (neg. equity)

Cash Flow

C⤢

Free Cash Flow -$106M

Owner Earnings $16M

Profitability

Gross Profit Margin 30.0%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 0.4%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin -3.6%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt -34.6 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$3.4B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital -$487M

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Wayfair Inc.

Wayfair Inc. engages in the e-commerce business in the United States and internationally. It provides online selections of furniture, décor, housewares, and home improvement products through its sites comprising Wayfair, Joss & Main, AllModern, Birch Lane, Perigold, and Wayfair Professional. The company offers its products under the Three Posts and Mercury Row brands. Wayfair Inc. was founded in 2002 and is headquartered in Boston, Massachusetts.

Market Data

Market Cap $11.7B

Enterprise Value $13.6B

P/E (TTM) 23.73

Dividend Yield N/A

Exchange NYSE

Key Margins

Gross Profit 30.0%

Operating Margin 0.4%

Net Margin -3.6%

Company Info

Sector Consumer Cyclical

Industry Internet Retail

Employees 11800

Country United States

Visit website

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025	Q3 2024
Gross Profit %	30.0%▼	30.3%•	N/A
Operating Margin %	0.4%▼	2.1%•	N/A
Net Income %	-3.6%▼	-3.5%•	N/A
Diluted EPS	-0.80▲	-0.89•	N/A

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$2.9B	$3.4B	N/A
Total Debt	$3.6B▼	$4.3B•	N/A
Working Capital	-$487M▼	-$128M•	N/A
Years to Pay Debt	-34.62	-37.04	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	-$106M▼	$145M•	N/A
Owner Earnings	$16M	$12M	N/A
CapEx % of Net Income	N/A	N/A	N/A

Income Statement

	2026	2025	2024
Tax Effect Of Unusual Items	-26,800	-24,990
Tax Rate For Calcs	0	0
Normalized EBITDA	69,000	112,000
Total Unusual Items	-67,000	-119,000
Total Unusual Items Excluding Goodwill	-67,000	-119,000
Net Income From Continuing Operation Net Minority Interest	-105,000	-116,000
Reconciled Depreciation	67,000	71,000
Reconciled Cost Of Revenue	2,051,000	2,327,000
EBITDA	2,000	-7,000
EBIT	-65,000	-78,000
Net Interest Income	-39,000	-36,000
Interest Expense	39,000	36,000
Normalized Income	-64,800	-21,990
Net Income From Continuing And Discontinued Operation	-105,000	-116,000
Total Expenses	2,918,000	3,268,000
Total Operating Income As Reported	-11,000	84,000
Diluted Average Shares	131,000	130,000
Basic Average Shares	131,000	130,000
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	-105,000	-116,000
Net Income Common Stockholders	-105,000	-116,000
Net Income	-105,000	-116,000
Net Income Including Noncontrolling Interests	-105,000	-116,000
Net Income Continuous Operations	-105,000	-116,000
Tax Provision	1,000	2,000
Pretax Income	-104,000	-114,000
Other Income Expense	-78,000	-147,000
Other Non Operating Income Expenses	-11,000		8,000
Special Income Charges	-67,000	-150,000
Other Special Charges	43,000	165,000
Write Off	0	0
Restructuring And Mergern Acquisition	24,000	-15,000
Net Non Operating Interest Income Expense	-39,000	-36,000
Interest Expense Non Operating	39,000	36,000
Operating Income	13,000	69,000
Operating Expense	867,000	941,000
Other Operating Expenses	114,000	125,000
Selling General And Administration	753,000	816,000
Selling And Marketing Expense	329,000	379,000
General And Administrative Expense	424,000	437,000
Other Gand A	424,000	437,000
Gross Profit	880,000	1,010,000
Cost Of Revenue	2,051,000	2,327,000
Total Revenue	2,931,000	3,337,000
Operating Revenue	2,931,000	3,337,000

Balance Sheet

	2026	2025	2024
Ordinary Shares Number	131,615	130,344
Share Issued	131,615	130,344
Net Debt	1,927,000	1,796,000
Total Debt	3,635,000	4,297,000
Tangible Book Value	-2,842,000	-2,793,000
Invested Capital	89,000	490,000
Working Capital	-487,000	-128,000
Net Tangible Assets	-2,842,000	-2,793,000
Capital Lease Obligations	704,000	1,025,000
Common Stock Equity	-2,842,000	-2,782,000
Total Capitalization	89,000	451,000
Total Equity Gross Minority Interest	-2,842,000	-2,782,000
Stockholders Equity	-2,842,000	-2,782,000
Gains Losses Not Affecting Retained Earnings	-28,000	-32,000
Other Equity Adjustments	-28,000	-32,000
Retained Earnings	-4,928,000	-4,823,000
Additional Paid In Capital	2,114,000	2,073,000
Total Liabilities Net Minority Interest	5,712,000	6,222,000
Total Non Current Liabilities Net Minority Interest	3,657,000	4,093,000
Other Non Current Liabilities	22,000	25,000
Long Term Debt And Capital Lease Obligation	3,635,000	4,068,000
Long Term Capital Lease Obligation	704,000	835,000
Long Term Debt	2,931,000	3,233,000
Current Liabilities	2,055,000	2,129,000
Other Current Liabilities	961,000	129,000
Current Deferred Liabilities		265,000	212,000
Current Deferred Revenue		265,000	212,000
Current Debt And Capital Lease Obligation		229,000	410,000
Current Capital Lease Obligation		190,000	174,000
Current Debt		39,000	236,000
Other Current Borrowings		39,000	236,000
Pensionand Other Post Retirement Benefit Plans Current		51,000	79,000
Payables And Accrued Expenses	1,094,000	1,455,000
Current Accrued Expenses		178,000	204,000
Payables	1,094,000	1,277,000
Total Tax Payable		75,000	70,000
Accounts Payable	1,094,000	1,202,000
Total Assets	2,870,000	3,440,000
Total Non Current Assets	1,302,000	1,439,000
Other Non Current Assets	59,000	30,000
Investments And Advances		20,000	15,000
Goodwill And Other Intangible Assets		11,000	13,000
Net PPE	1,243,000	1,378,000
Accumulated Depreciation		-1,764,000	-1,700,000
Gross PPE	1,243,000	3,142,000
Leases		671,000	644,000
Construction In Progress		34,000	5,000
Other Properties	1,243,000	862,000
Machinery Furniture Equipment		1,575,000	1,654,000
Current Assets	1,568,000	2,001,000
Other Current Assets	270,000	46,000
Current Deferred Assets		36,000	32,000
Prepaid Assets		66,000	66,000
Inventory	78,000	71,000
Receivables	158,000	240,000
Other Receivables		108,000	135,000
Accounts Receivable	158,000	132,000
Allowance For Doubtful Accounts Receivable	-24,000	-27,000
Gross Accounts Receivable	182,000	159,000
Cash Cash Equivalents And Short Term Investments	1,062,000	1,542,000
Other Short Term Investments	58,000	66,000
Cash And Cash Equivalents	1,004,000	1,476,000
Cash Equivalents	584,000	859,000
Cash Financial	420,000	617,000

Cash Flow

	2026	2025	2024
Free Cash Flow	-106,000	145,000
Repayment Of Debt	-349,000		-858,000
Issuance Of Debt	0	692,000
Capital Expenditure	-54,000	-57,000
Interest Paid Supplemental Data	35,000	41,000
End Cash Position	1,004,000	1,476,000
Beginning Cash Position	1,476,000	1,171,000
Effect Of Exchange Rate Changes	4,000	-2,000
Changes In Cash	-476,000	307,000
Financing Cash Flow	-378,000	174,000
Cash Flow From Continuing Financing Activities	-378,000	174,000
Net Other Financing Charges	-29,000	-361,000	0
Net Issuance Payments Of Debt	-349,000	535,000
Net Long Term Debt Issuance	-349,000	535,000
Long Term Debt Payments	-349,000		-858,000
Long Term Debt Issuance	0	692,000
Investing Cash Flow	-46,000	-69,000
Cash Flow From Continuing Investing Activities	-46,000	-69,000
Net Investment Purchase And Sale	8,000	-12,000
Sale Of Investment	13,000	27,000
Purchase Of Investment	-5,000	-39,000
Net Intangibles Purchase And Sale	-29,000	-32,000
Purchase Of Intangibles	-29,000	-32,000
Net PPE Purchase And Sale	-25,000	-25,000
Purchase Of PPE	-25,000	-25,000
Operating Cash Flow	-52,000	202,000
Cash Flow From Continuing Operating Activities	-52,000	202,000
Change In Working Capital	-116,000	27,000
Change In Payables And Accrued Expense	-63,000	39,000
Change In Payable	-63,000	39,000
Change In Account Payable	-63,000	39,000
Change In Prepaid Assets	-20,000	-7,000
Change In Inventory	-7,000	-1,000
Change In Receivables	-26,000	-4,000
Changes In Account Receivables	-26,000	-4,000
Other Non Cash Items	-8,000		6,000
Stock Based Compensation	67,000	83,000
Asset Impairment Charge	0	0
Depreciation Amortization Depletion	67,000	71,000
Depreciation And Amortization	67,000	71,000
Operating Gains Losses	43,000	165,000
Net Income From Continuing Operations	-105,000	-116,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $2.7B ▲ $2.9B +7.4%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 30.7% ▲ 30.0% -0.6pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 0.5% ▲ 0.4% -0.0pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: -4.1% ▲ -3.6% +0.6pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$2.9B/qtr (≈$11.7B ann.)

vs > $1.5B annualised revenue

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

0.76x current ratio

vs ≥ 2.0x

❌ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

-$106M

vs Positive

Operating Cash Flow

-$52M

Latest quarter · Buffett's cash reality check

ROIC

1.3%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

⚠ Negative Net Assets

Net Assets: -$2.8B

⚠ Negative Net Assets — total liabilities exceed total assets on paper. This is common in companies that aggressively return capital via buybacks and dividends (Apple, McDonald's, Domino's). It does not indicate insolvency if the business generates strong, consistent free cash flow. Focus on FCF and earnings power rather than balance sheet book value for these companies.

Asset Context — Internet Retail

Platform and internet businesses derive value from network effects, user data, and brand — intangibles that accounting rules don't capitalise. A low or negative Net Assets figure is expected and not a risk signal. ROIC and FCF per share are more relevant valuation anchors.

⚠️ Operating income is positive but net income is negative. This typically reflects below-the-line items: interest expense, impairment charges, tax adjustments, or one-time write-offs. The core business may be healthy — operating margin is a better signal of ongoing profitability here.

Peers & Industry Comparison

Internet Retail — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
W	$88.52	$11.7B	23.73	30.0%	-3.6%	$2.9B
AMZN Amazon.com, Inc.	$244.39	$2,628.9B	31.5	50.6%	12.2%	$742.8B
BABA Alibaba Group Holding Limited	$107.10	$256.9B	16.5	39.8%	10.1%	$1,023.7B
JD JD.com, Inc.	$27.57	$37.2B	20.1	9.3%	1.0%	$1,323.7B
EBAY eBay Inc.	$108.24	$48.1B	25.0	71.8%	17.6%	$11.6B
ETSY Etsy, Inc.	$73.95	$7.0B	28.3	71.6%	9.8%	$2.9B

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

4.01%

Moderate — some alignment with shareholders

Return on Assets (ROA)

-3.7%

Poor — assets are not generating adequate returns

Debt Trend YoY

-15.4% YoY

Debt is declining — management is deleveraging

Leadership Team

Niraj Shah

Co-Founder, Co-Chairman & CEO

Age 51

Pay: $289,568

Jon Blotner

President

Age 44

Pay: $259,616

Kate Gulliver

CFO & Chief Administrative Officer

Age 43

Pay: $260,000

Steven Conine

Co-Founder & Co-Chairman

Age 52

Pay: $84,605

Corey Gilbertson

Vice President of Platforms, Services & Sales

Top Institutional Holders

Institution	% Owned	Shares
FMR, LLC	14.66%	16,277,859
Capital World Investors	12.42%	13,791,783
Blackrock Inc.	5.17%	5,738,678
Renaissance Technologies, LLC	4.48%	4,972,425
Vanguard Capital Management LLC	4.20%	4,663,199
Vanguard Portfolio Management LLC	3.95%	4,388,661
Janus Henderson Group PLC	3.48%	3,866,708
BAILLIE GIFFORD & CO	2.58%	2,862,209

⚠️ Very high beta — extreme price volatility

⚠️ Current ratio below 1 — liquidity risk

Risk Analysis

Beta (Market Risk)

3.02

High volatility — moves more than the market

Short Interest

16.7% of float

Heavy short selling — market has significant bearish bets

Current Ratio

0.76x

Weak liquidity — current liabilities exceed current assets

52-Week Price Range

Low: $47.21 Current: $88.52 High: $119.98

Currently at 57% of 52-week range

Wayfair Inc.

Metric Explanations

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry Comparison

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis