Wayfair Inc. (W) Q2'26 Review Strong Revenue Momentum Across US & Luxury Category As Industry Share Gains Sustain

Equity Research 5 August 2026 | 12:03AM EDT

Wayfair Inc. (W) Q2’26 Review: Strong Revenue Momentum Across US & Luxury Category As Industry Share Gains Sustain

W 12m Price Target: $112.00 Price: $116.08 Downside: 3.5% NEUTRAL Eric Sheridan In its Q2 ’26 earnings report, Wayfair produced operating results | Goldman Sachs & Co. LLC that were ahead of GSe/Street on Adj. EBITDA, as the company Sarah Boulos remained committed toward delivering leverage on fixed costs & | Goldman Sachs & Co. LLC driving cost discipline. With this report, mgmt. framed a few key themes: a) accelerating market share gains and improving topline Emma Huang | Goldman Sachs & Co. LLC momentum, with management highlighting strength in US revenue (+9% YoY), continued order growth (+6% YoY), active customers (+700k YoY), and a sustained high-single digit market share spread Key Data _____________________________________ Market cap: $15.4bn despite a home category backdrop that remains roughly flat; b) Enterprise value: $16.2bn 3m ADTV: $313.4mn continued investment in rewards, customer experience United States enhancements, and physical retail, with management reiterating Americas Internet M&A Rank: 3 that gross margin investments are being largely offset through GS Forecast __________________________________ customer acquisition efficiencies and advertising savings; c) strong 12/25 12/26E 12/27E 12/28E

momentum in high-end brands such as Perigold (+35% YoY) with Revenue ($ mn) New Revenue ($ mn) Old 12,457.0 12,457.0 13,322.4 13,183.9 14,102.2 13,843.4 14,889.7 14,498.6 mgmt. viewing this as a long-term growth vector (noting the EBITDA ($ mn) ,104.0 EBIT ($ mn) business is currently doing ~$400m in sales and continues to grow EPS ($) New ( well ahead of the broader luxury home market); d) growing EPS ($) Old ( P/E (X) NM NM 91.0 59.7 confidence in Wayfair’s long-term margin framework, with Dividend yield (%) -- -- -- -- management highlighting continued fixed-cost leverage, strong free Net debt/EBITDA (X) 2.7 0.9 0.3 (0.3)

cash flow generation, and an increasingly clear path toward EBITDA 3/26 6/26E 9/26E 12/26E margin expansion over time; & e) continued commitment to EPS ($) (

reducing leverage (and potential dilution) – with mgmt repurchasing GS Factor Profile ______________________________ Growth the remainder of 2028 convertible notes in the quarter, and noting a potential shift towards share repurchases going forward. Financial Returns

Multiple Short term, we expect investors to remain focused on how the end demand environment evolves and the health of the consumer across Integrated

the category. In addition, we expect some investor debates to center Percentile 20th 40th 60th 80th 100th on the sustainability of Wayfair’s recent market share gains, the durability of its accelerating revenue trajectory absent further W relative to Americas Coverage W relative to Americas Internet category improvement, and the balance between continued gross margin investment and EBITDA margin trajectory. This earnings Source: Company data, Goldman Sachs Research estimates. See disclosures for details. report goes a long way to validating the operating and strategic approach of the company to scale omnichannel offerings, build

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Goldman Sachs Wayfair Inc. (W)

Wayfair Inc. (W) Balance Sheet ($ mn) _______________________________________ NEUTRAL Rating since Oct 10, 2022 12/25 12/26E 12/27E 12/28E Cash & cash equivalents 1,476.0 2,031.4 2,293.8 2,885.4 Accounts receivable Inventory Ratios & Valuation __________________________________________ Other current assets /25 12/26E 12/27E 12/28E Total current assets 2,001.0 2,589.4 2,878.1 3,496.1 P/E (X) NM NM 91.0…