📊 W Key Takeaways
Is Wayfair Inc. (W) a Good Investment?
Wayfair exhibits severe financial distress with negative stockholders' equity of -$2.8B, indicating technical insolvency. The company is burning cash with negative operating and free cash flows of -$52M and -$77M respectively, while liquidity ratios below 1.0 signal inability to meet short-term obligations. Despite modest revenue growth, operational losses and inability to service debt from operations present acute solvency and sustainability risks.
Wayfair Inc. Key Strengths (W)
- Revenue growth of 5.1% YoY demonstrates continued market demand
- Gross margin of 30% is reasonable for retail-catalog sector
- Cash position of $1.0B provides near-term liquidity buffer
W Stock Risks: Wayfair Inc. Investment Risks
- Negative stockholders' equity of -$2.8B represents technical insolvency
- Current and quick ratios of 0.76x and 0.73x indicate liquidity crisis
- Negative operating cash flow of -$52M and free cash flow of -$77M show unsustainable burn
- Unable to achieve profitability: operating income -$11M and net income -$105M despite $2.9B revenue
- Long-term debt of $3.0B with negative interest coverage ratio of -0.1x creates refinancing risk
- Operating losses despite positive gross profit suggest structural operational inefficiency
Key Metrics to Watch
- Operating cash flow trajectory (must turn positive for viability)
- Stockholders' equity recovery path (must return to positive territory)
- Operating margin improvement (currently -0.4%, needs significant recovery)
- Liquidity ratios (current and quick ratios must exceed 1.0x)
- Gross margin sustainability and operating expense control
Wayfair Inc. (W) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
W Profit Margin, ROE & Profitability Analysis
W vs Consumer Sector: How Wayfair Inc. Compares
How Wayfair Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Wayfair Inc. Stock Overvalued? W Valuation Analysis 2026
Based on fundamental analysis, Wayfair Inc. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Wayfair Inc. Balance Sheet: W Debt, Cash & Liquidity
W Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Wayfair Inc.'s revenue has declined by 12% over the 5-year period, indicating business contraction. The most recent EPS of $-6.47 indicates the company is currently unprofitable.
W Revenue Growth, EPS Growth & YoY Performance
W Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $2.7B | -$105.0M | $-0.80 |
| Q3 2025 | $2.9B | -$74.0M | $-0.60 |
| Q2 2025 | $3.1B | $15.0M | $0.11 |
| Q1 2025 | $2.7B | -$113.0M | $-0.89 |
| Q3 2024 | $2.9B | -$74.0M | $-0.60 |
| Q2 2024 | $3.1B | -$42.0M | $-0.34 |
| Q1 2024 | $2.7B | -$248.0M | $-2.06 |
| Q3 2023 | $2.8B | -$163.0M | $-1.40 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Wayfair Inc. Dividends, Buybacks & Capital Allocation
W SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Wayfair Inc. (CIK: 0001616707)
📋 Recent SEC Filings
❓ Frequently Asked Questions about W
What is the AI rating for W?
Wayfair Inc. (W) has an AI grade of D with 88% confidence, based on fundamental analysis of SEC EDGAR filings.
What are W's key strengths?
Claude: Revenue growth of 5.1% YoY demonstrates continued market demand. Gross margin of 30% is reasonable for retail-catalog sector.
What are the risks of investing in W?
Claude: Negative stockholders' equity of -$2.8B represents technical insolvency. Current and quick ratios of 0.76x and 0.73x indicate liquidity crisis.
What is W's revenue and growth?
Wayfair Inc. reported revenue of $2.9B.
Does W pay dividends?
Wayfair Inc. does not currently pay dividends.
Where can I find W SEC filings?
Official SEC filings for Wayfair Inc. (CIK: 0001616707) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is W's EPS?
Wayfair Inc. has a diluted EPS of $-0.80.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is W's fundamental grade?
Based on our AI fundamental analysis in June 2026, Wayfair Inc. has a D grade with 88% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is W stock overvalued or undervalued?
Valuation metrics for W: ROE of N/A (sector avg: 18%), net margin of -3.6% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is W's AI grade for 2026?
Our dual AI analysis gives Wayfair Inc. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is W's free cash flow?
Wayfair Inc.'s operating cash flow is $-52.0M, with capital expenditures of $25.0M. FCF margin is -2.6%.
How does W compare to other Consumer stocks?
Vs Consumer sector averages: Net margin -3.6% (avg: 8%), ROE N/A (avg: 18%), current ratio 0.76 (avg: 1.5).