WAYFAIR INC., 10-K filed on 2/19/2026
Annual Report
v3.25.4
Cover - USD ($)
$ in Billions
12 Months Ended
Dec. 31, 2025
Feb. 12, 2026
Jun. 30, 2025
Document Information      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2025    
Document Transition Report false    
Entity File Number 001-36666    
Entity Registrant Name Wayfair Inc.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 36-4791999    
Entity Address, Address Line One 4 Copley Place    
Entity Address, City or Town Boston,    
Entity Address, State or Province MA    
Entity Address, Postal Zip Code 02116    
City Area Code 617    
Local Phone Number 532-6100    
Title of 12(b) Security Class A Common Stock, $0.001 par value    
Trading Symbol W    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction false    
Entity Shell Company false    
Entity Public Float     $ 5.2
Documents Incorporated by Reference
Certain sections of the registrant's definitive Proxy Statement for the 2026 Annual Meeting of Stockholders to be filed with the Securities and Exchange Commission pursuant to Rule 14A not later than 120 days after the end of this fiscal year covered by this Form 10-K are incorporated by reference into Part III of this Form 10-K.
   
Entity Central Index Key 0001616707    
Amendment Flag false    
Current Fiscal Year End Date --12-31    
Document Fiscal Year Focus 2025    
Document Fiscal Period Focus FY    
Class A common stock      
Document Information      
Entity Common Stock, Shares Outstanding   108,769,567  
Class B common stock      
Document Information      
Entity Common Stock, Shares Outstanding   21,978,295  
v3.25.4
Audit Information
12 Months Ended
Dec. 31, 2025
Audit Information [Abstract]  
Auditor Firm ID 238
Auditor Name PricewaterhouseCoopers LLP
Auditor Location Boston, Massachusetts
v3.25.4
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Current assets    
Cash and cash equivalents $ 1,476 $ 1,316
Short-term investments 66 56
Accounts receivable, net 132 155
Inventories 71 76
Prepaid expenses and other current assets 256 274
Total current assets 2,001 1,877
Operating lease right-of-use assets 862 925
Property and equipment, net 516 603
Other non-current assets 61 54
Total assets 3,440 3,459
Current liabilities    
Accounts payable 1,202 1,246
Other current liabilities 927 1,124
Total current liabilities 2,129 2,370
Long-term debt 3,233 2,882
Operating lease liabilities, net of current 835 929
Other non-current liabilities 25 33
Total liabilities 6,222 6,214
Commitments and contingencies (Note 7)
Stockholders' deficit:    
Convertible preferred stock, $0.001 par value per share: 10,000,000 shares authorized and none issued at December 31, 2025 and December 31, 2024 0 0
Additional paid-in capital 2,073 1,751
Accumulated deficit (4,823) (4,510)
Accumulated other comprehensive (loss) income (32) 4
Total stockholders' deficit (2,782) (2,755)
Total liabilities and stockholders' deficit 3,440 3,459
Class A common stock    
Stockholders' deficit:    
Common stock 0 0
Class B common stock    
Stockholders' deficit:    
Common stock $ 0 $ 0
v3.25.4
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Dec. 31, 2025
Dec. 31, 2024
Convertible preferred stock, par value (in dollars per share) $ 0.001 $ 0.001
Convertible preferred stock, shares authorized (in shares) 10,000,000 10,000,000
Convertible preferred stock, shares issued (in shares) 0 0
Class A common stock    
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized (in shares) 500,000,000 500,000,000
Common stock, shares issued (in shares) 108,365,428 100,762,581
Common stock, shares outstanding (in shares) 108,365,428 100,762,581
Class B common stock    
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized (in shares) 164,000,000 164,000,000
Common stock, shares issued (in shares) 21,978,295 24,658,295
Common stock, shares outstanding (in shares) 21,978,295 24,658,295
v3.25.4
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Millions, $ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Statement [Abstract]      
Net revenue $ 12,457 $ 11,851 $ 12,003
Cost of goods sold 8,692 8,277 8,336
Gross profit 3,765 3,574 3,667
Operating expenses:      
Customer service and merchant fees 471 470 557
Advertising 1,425 1,472 1,397
Selling, operations, technology, general and administrative 1,776 1,977 2,447
Impairment and other related net charges 23 37 14
Restructuring and other charges, net 53 79 65
Total operating expenses 3,748 4,035 4,480
Income (loss) from operations 17 (461) (813)
Interest expense, net (119) (29) (17)
Other income (expense), net 31 (21) 1
(Loss) gain on debt extinguishment, net (233) 29 100
Loss before income taxes (304) (482) (729)
Provision for income taxes, net 9 10 9
Net loss $ (313) $ (492) $ (738)
Loss per share      
Basic (in dollars per share) $ (2.44) $ (4.01) $ (6.47)
Diluted (in dollars per shares) $ (2.44) $ (4.01) $ (6.47)
Weighted-average number of shares of common stock outstanding used in computing per share amounts:      
Basic (in shares) 128 123 114
Diluted (in shares) 128 123 114
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Statement of Comprehensive Income [Abstract]      
Net loss $ (313) $ (492) $ (738)
Other comprehensive loss:      
Foreign currency translation adjustments (36) 9 1
Net unrealized gain on available-for-sale investments 0 0 1
Comprehensive loss $ (349) $ (483) $ (736)
v3.25.4
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT - USD ($)
shares in Millions, $ in Millions
Total
Class A and Class B Common Stock
Additional Paid-In Capital
Accumulated Deficit
Accumulated Other Comprehensive (Loss) Income
Beginning balance (in shares) at Dec. 31, 2022   109      
Beginning balance at Dec. 31, 2022 $ (2,550) $ 0 $ 737 $ (3,280) $ (7)
Increase (Decrease) in Stockholders' Equity          
Net loss (738)     (738)  
Other comprehensive income (loss) 2       2
Issuance of common stock upon vesting of RSUs (in shares)   9      
Equity-based compensation 666   666    
Premiums paid for capped calls (87)   (87)    
Ending balance (in shares) at Dec. 31, 2023   118      
Ending balance at Dec. 31, 2023 (2,707) $ 0 1,316 (4,018) (5)
Increase (Decrease) in Stockholders' Equity          
Net loss (492)     (492)  
Other comprehensive income (loss) 9       9
Issuance of common stock upon vesting of RSUs (in shares)   7      
Equity-based compensation 432   432    
Unwind of capped calls 3   3    
Ending balance (in shares) at Dec. 31, 2024   125      
Ending balance at Dec. 31, 2024 (2,755) $ 0 1,751 (4,510) 4
Increase (Decrease) in Stockholders' Equity          
Net loss (313)     (313)  
Other comprehensive income (loss) (36)       (36)
Issuance of common stock upon vesting of RSUs (in shares)   6      
Shares withheld for employee taxes (in shares)   (1)      
Shares withheld for employee taxes (89)   (89)    
Equity-based compensation 362   362    
Unwind of capped calls 49   49    
Ending balance (in shares) at Dec. 31, 2025   130      
Ending balance at Dec. 31, 2025 $ (2,782) $ 0 $ 2,073 $ (4,823) $ (32)
v3.25.4
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash flows from operating activities      
Net loss $ (313) $ (492) $ (738)
Adjustments to reconcile net loss to net cash provided by operating activities:      
Depreciation and amortization 305 387 417
Equity-based compensation expense 335 395 605
Amortization of debt discount and issuance costs 9 9 8
Gain on lease modification (15) 0 0
Impairment and other related net charges 23 37 14
Loss (gain) on debt extinguishment 233 (29) (100)
Other non-cash adjustments 6 (1) (3)
Changes in operating assets and liabilities:      
Accounts receivable, net 29 (35) 132
Inventories 6 (2) 16
Prepaid expenses and other assets 11 10 16
Accounts payable and other liabilities (95) 38 (18)
Net cash provided by operating activities 534 317 349
Cash flows for investing activities      
Purchase of short- and long-term investments (115) (67) (36)
Sale and maturities of short- and long-term investments 101 39 233
Purchase of property and equipment (70) (73) (148)
Site and software development costs (135) (161) (203)
Other investing activities, net 0 0 2
Net cash used in investing activities (219) (262) (152)
Cash flows (for) from financing activities:      
Proceeds from issuance of debt, net of issuance costs 1,383 786 678
Premiums paid for capped call confirmations 0 0 (87)
Payment of principal upon maturity of debt (157) (117) 0
Payments to extinguish debt (1,315) (741) (514)
Payments of taxes related to net share settlement of equity awards (89) 0 0
Unwind of capped calls 49 3 0
Net cash (used in) provided by financing activities (129) (69) 77
Effect of exchange rate changes on cash and cash equivalents (30) 8 2
Net increase (decrease) in cash, cash equivalents and restricted cash 156 (6) 276
Cash, cash equivalents and restricted cash      
Beginning of year 1,320 1,326 1,050
End of year 1,476 1,320 1,326
Supplemental cash flow information:      
Cash paid for interest on long-term debt 139 63 53
Purchase of property and equipment included in accounts payable and other liabilities 10 7 19
Reconciliation of cash, cash equivalents and restricted cash to consolidated balance sheets      
Cash and cash equivalents 1,476 1,316 1,322
Restricted cash included within prepaid expenses and other current assets 0 4 4
Total cash, cash equivalents and restricted cash $ 1,476 $ 1,320 $ 1,326
v3.25.4
Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Description of Business and Basis of Presentation
Wayfair Inc. is the destination for all things home. Through its omni-channel strategy, Wayfair offers visually inspired browsing, compelling merchandising, easy product discovery and attractive prices for over 40 million products from approximately 20 thousand suppliers. These financial statements consolidate the operations and accounts of Wayfair Inc. and its wholly-owned subsidiaries. Unless the context indicates otherwise, “Wayfair,” “the Company,” or similar terms refer to Wayfair Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated.
Use of Estimates
The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as the disclosure of contingent assets and liabilities, at the date of and during the reported period of the consolidated financial statements. Actual results could differ from those estimates.
Cash, Cash Equivalents and Restricted Cash
Wayfair considers all highly liquid investments purchased with an original maturity (at the date of purchase) of three months or less to be the equivalent of cash. Cash equivalents, which consist primarily of money market accounts and certificates of deposits with original maturities of three months or less, are carried at cost, which approximates fair value. Wayfair’s restricted cash is primarily restricted to funds held in collateral, which is recorded within prepaid expenses and other current assets on the consolidated balance sheets.
Investments
Wayfair classifies investments in certificates of deposits and marketable securities with original maturities of greater than three months as short-term investments on the consolidated balance sheets. Short-term investments mature in less than twelve months from the balance sheet date. The cost basis of an investment sold is determined using the specific identification method. Wayfair classifies its debt investments with readily determinable market values as available-for-sale. These investments are classified as investments on the consolidated balance sheets and are carried at fair market value, with unrealized gains and losses reported within accumulated other comprehensive income or loss, within total stockholders’ deficit.
From time to time, Wayfair may enter into equity investments that align with organizational strategies and growth initiatives. Equity investments in companies for which the Company does not have the ability to exercise significant influence are accounted for as equity securities. These are measured at fair value and classified as other non-current assets within the consolidated balance sheets with observable changes recorded within other income or expense, net on the consolidated statements of operations.
Equity Method Investments
Wayfair accounts for investments using the equity method of accounting when the Company has the ability to exercise significant influence, but not controlling financial interest over an investee. The equity method investments are classified as other non-current assets within the consolidated balance sheets and the proportional share of income or loss is recorded within other income or expense, net on the consolidated statements of operations. Equity method investments are reviewed for indicators of impairment on a quarterly basis. An equity method investment is written down to the estimated fair value if there is evidence of a loss in value which is other-than-temporary.
Concentrations of Credit Risk
Financial instruments that subject Wayfair to credit risk consist of cash, cash equivalents, restricted cash, short-term investments and accounts receivable. The risk for cash, cash equivalents and restricted cash is minimized by Wayfair's policy to maintain these balances with major financial institutions of high-credit quality. At times, cash balances may exceed federally insured limits; however, to date, Wayfair has not incurred any losses on these balances. As of December 31, 2025 and 2024, Wayfair had $67 million and $183 million, respectively, in bank deposits located outside of the United States (“U.S.”). The risk for short-term investments is minimized by Wayfair's policy of investing in financial instruments issued by highly-rated financial institutions.
Accounts Receivable, Net
Accounts receivable are stated net of the allowance for credit losses, which are recorded based on historical losses as well as management's expectation of future collections. Uncollectible amounts are written off against the allowance after all collection efforts have been exhausted. Wayfair's exposure to credit loss is minimized through customer risk assessments performed prior to customer checkout and Wayfair's policy of monitoring the creditworthiness of its customers to which it grants credit terms in the normal course of business. Further, management believes credit risk is mitigated since approximately 98.6% of the net revenue recognized for the year ended December 31, 2025 was collected in advance of recognition.
Inventories
Inventories consisting of finished goods are stated at the lower of cost or net realizable value, determined by the first-in, first-out (“FIFO”) method, and consist of product for resale. Inventory costs consist of cost of product and inbound shipping and handling costs. Inventory costs also include direct and indirect labor costs, rent and depreciation expense associated with Wayfair's fulfillment centers. Inventory valuation requires Wayfair to make judgments, based on currently available information, about the likely method of disposition, such as through sales to individual customers, liquidations and expected recoverable values of each disposition category.
Deferred Costs In-Transit
Deferred costs in-transit to customers are recorded in prepaid expenses and other current assets.
Property and Equipment, Net
Property and equipment are stated at cost, net of depreciation. Expenditures for maintenance and repairs are charged to expense as incurred, whereas betterments are capitalized as additions to property and equipment. Depreciation on property and equipment is calculated on the straight-line method over the estimated useful lives of the assets as follows:
ClassRange of Life
(In Years)
Furniture and equipment
3 to 7
Site and software development costs
2
Leasehold improvementsThe lesser of useful life or lease term
Site and Software Development Costs
Wayfair capitalizes certain costs associated with the development of its sites and internal-use software products after the preliminary project stage is complete and until the site enhancements or software is ready for its intended use. Upgrades and enhancements are capitalized if they will result in added functionality. Capitalized costs are amortized over a two-year period. Costs incurred in the preliminary stages of development, after the software is ready for its intended use and for maintenance of internal-use software are expensed as incurred.
Long-Lived Assets
Wayfair reviews long-lived assets for impairment whenever events or changes in circumstances, such as weakened macroeconomic conditions or brand awareness, service discontinuance or technological obsolescence, indicate that the carrying amount of the long-lived asset may not be recoverable. When such events occur, Wayfair compares the carrying amount of the asset to the undiscounted expected future cash flows related to the asset group. If the comparison indicates that the carrying value is not recoverable, the amount of the impairment is calculated as the difference between the excess of the carrying amount over the fair value of the asset. If a readily determinable market price does not exist, fair value is estimated using discounted expected cash flows attributable to the asset or market rate rent assumptions.
Leases
Wayfair generally leases office, retail and warehouse facilities under non-cancellable agreements. Upon each agreement's commencement date, Wayfair determines if the agreement is part of an arrangement that is or that contains a lease, the lease classification and recognizes the right-of-use (“ROU”) assets and lease liabilities for all leases with the exception of leases with terms of 12 months or less. Wayfair has arrangements with lease and non-lease components, and accounts for lease and non-lease components as a single lease component for corporate headquarters offices and field offices. All other lease arrangements for lease and non-lease components are accounted for separately. Operating lease ROU assets are classified in operating lease right-of-use assets within the consolidated balance sheets. Operating lease liabilities are classified as other current liabilities and operating lease liabilities based on when lease payments are due. As of December 31, 2025 and 2024 Wayfair did not have any material finance lease arrangements.
Lease liabilities and their corresponding ROU assets are recorded based on the present value of lease payments over the expected lease term at the lease commencement date. As the implicit rate is generally not readily determinable, Wayfair uses an estimated incremental borrowing rate (“IBR”) based on the information available at the commencement date of the respective lease to determine the present value of future payments. The determination of the IBR requires judgment and is primarily based on publicly available information for companies within the same industry and with similar credit profiles. Wayfair adjusts the rate for the impact of collateralization, the lease term and other specific terms included in each lease arrangement. The IBR is determined at lease commencement and is subsequently reassessed as necessary upon a modification to the lease arrangement. The ROU asset also includes any lease payments made prior to the commencement date and excludes lease incentives and initial direct costs incurred.
Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Lease terms may include options to extend or terminate the lease when it is reasonably certain that Wayfair will exercise that option.
Contingent Liabilities
Certain contingent liabilities that arise in the ordinary course of business activities are accrued for as loss contingencies when losses become probable and are reasonably estimable. If the reasonable estimate of the loss is a range and no amount within the range is a better estimate, the minimum amount of the range is recorded as a liability. After applying judgment, Wayfair does not accrue for contingent losses that are considered to be reasonably possible, but not probable; however, the range of such reasonably possible losses is disclosed.
Foreign Currency Translation
These financial statements are consolidated and presented in the U.S. dollar. Subsidiaries with non-U.S. dollar functional currencies are translated to the U.S. dollar using year-end exchange rates for assets and liabilities and average exchange rates for revenue and expenses. Capital accounts are translated at their historical exchange rates when the capital transaction occurred. Translation adjustments arising from the use of differing exchange rates from period to period are included in other comprehensive income or loss below net income or loss and accumulated other comprehensive income or loss within total stockholders’ deficit. Transaction gains and losses are included in other income or expense, net, which is reflected in net income or loss.
Revenue Recognition
Wayfair generates net revenue primarily through product sales on its family of sites.
Wayfair recognizes net revenue on product sales through Wayfair's family of sites using the gross method when Wayfair has concluded it controls the product before it is transferred to the customer. Wayfair controls products when it is the entity responsible for fulfilling the promise to the customer and takes responsibility for the acceptability of the goods, assumes inventory risk from shipment through the delivery date, has discretion in establishing prices and selects the suppliers of products sold. Wayfair recognizes net revenue from sales of its products upon delivery to the customer. As Wayfair ships a large volume of packages through multiple carriers, actual delivery dates may not always be available; in those cases, we estimate delivery dates using historical data.
Net revenue from product sales includes shipping costs charged to the customer and is recorded net of taxes collected from customers, which are recorded in other current liabilities and are remitted to governmental authorities. Cash discounts and rebates earned by customers at the time of purchase and estimates for sales return allowances are recorded as a deduction to net revenue. Allowances for sales returns are estimated and recorded based on prior returns history, recent trends and projections for returns on sales in the current period. These estimates are based on historical rates of customer returns and allowances as well as the specific identification of outstanding returns that have not yet been received by Wayfair.
Wayfair maintains a membership rewards program: Wayfair Rewards. As part of this program, Wayfair provides customers with benefits for purchases made using its credit card program. In exchange for providing intellectual property as part of its credit card program, Wayfair records net revenue based on spending activity and the profitability of the card portfolio. Spending activity of the underlying accounts represents customer purchases used with their respective cards, and the profitability of the card portfolio is based on the financial performance of the underlying credit portfolio.
Net revenue from contracts with customers is disaggregated by geographic region because this manner of disaggregation best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Refer to Note 13, Segment and Geographic Information, for additional detail.
Wayfair primarily has three types of contractual liabilities: (i) cash collections from its customers prior to delivery of products purchased, which are initially recorded in unearned revenue within other current liabilities, and are recognized as net revenue when the products are delivered, (ii) unredeemed gift cards and site credits, which are initially recorded in unearned revenue within other current liabilities, and are recognized in the period when they are redeemed, and (iii) membership rewards redeemable for future purchases, which are earned by customers on purchases made through Wayfair’s credit card program and are initially recorded in other current liabilities, and recognized as net revenue when redeemed. The portion of gift cards and store credits not expected to be redeemed are recognized as net revenue based on a pattern of historical redemptions, which are substantially within twenty-four months from the date of issuance.
Cost of Goods Sold
Costs of goods sold consists of:
Product Costs: Wayfair capitalizes into inventory the price paid to suppliers for products purchased by Wayfair, direct and indirect labor costs, rent, depreciation and inbound shipping and handling costs. Product costs are offset by rebates Wayfair earns through allowances and supplier incentive programs. Wayfair earns rebates when goods are shipped, and amounts earned and due from suppliers under these rebate programs are included in other current assets and are reflected as a reduction of cost of goods sold. Wayfair receives vendor allowances or discounts from certain vendors. These vendor allowances reduce the carrying cost of the inventory and related cost of goods sold when the inventory is sold. Product costs are also offset by media and merchandising offerings provided to suppliers, which are not considered distinct from the purchase of goods from those suppliers.
Shipping and Fulfillment Costs: Shipping costs include outbound shipping costs, including associated applicable customs duties. Fulfillment costs include costs incurred to operate and staff the fulfillment centers and provide other inbound supply chain services such as ocean freight and drayage. Costs to operate and staff CastleGate and the Wayfair Delivery Network (“WDN”) include rent and depreciation expenses associated with various facilities, costs to receive, inspect, pick, package and prepare customer orders for delivery, and direct and indirect labor costs including compensation, compensation-related benefits and equity-based compensation. Shipping and fulfillment costs are partially offset by fees earned by providing logistic services to suppliers including order fulfillment, warehousing and inbound supply chain services such as ocean freight and drayage through Wayfair's CastleGate business. Fulfillment fees are earned upon completion of preparing customer orders for shipment, warehousing fees are earned upon completion of each storage date and inbound supply chain services are earned on a straight-line basis as the shipments move from origin to destination. Shipping and fulfillment costs were $2.0 billion, $1.9 billion and $1.9 billion, for the years ended December 31, 2025, 2024 and 2023.
Customer Service and Merchant Fees
Customer service and merchant fees consist of labor-related costs, including compensation, compensation-related benefits and equity-based compensation of employees involved in customer service activities, merchant processing fees associated with customer payments made by credit cards and debit cards and other variable fees. Merchant processing fees totaled $280 million, $254 million and $256 million in the years ended December 31, 2025, 2024 and 2023.
Advertising
Advertising consists of direct response performance marketing costs, such as display advertising, paid search advertising, social media advertising, search engine optimization, comparison shopping engine advertising, television advertising, text messages, direct mail, catalog and print advertising. Costs for advertising are expensed as incurred. Prepayments for advertising that has not been incurred are included in prepaid expenses and other current assets, and advertising costs that have been incurred but not paid are included in other current liabilities.
Selling, Operations, Technology, General and Administrative
Selling, operations, technology, general and administrative expenses primarily include labor-related costs, including equity-based compensation, of the operations group, which includes the supply chain and logistics team, the technology team that builds and supports sites, category managers, buyers, site merchandisers, merchants, marketers and the team who executes the advertising strategy and the corporate general and administrative team, which includes human resources, finance, legal and accounting personnel. Also included are administrative and professional service fees which include audit and legal fees, insurance, depreciation, rent and other corporate expenses.
Equity-Based Compensation
Wayfair recognizes its equity-based payments to employees and non-employees as gross expense over the service period based on their grant date fair values with actual forfeitures recognized as they occur. Wayfair has restricted common stock, restricted stock units and performance stock units with market-based conditions. Restricted stock values are determined based on the quoted market price of Wayfair’s Class A common stock on the date of grant. The Company recognizes stock-based compensation expense for awards with market conditions over the derived service period of the awards. The estimated fair value and derived service period for the awards with market conditions are calculated using a Monte Carlo simulation. Assumptions used in valuing awards with market conditions include expected volatility.
Income Tax
Income taxes are accounted for under the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases.
Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Wayfair records valuation allowances to reduce deferred income tax assets to the amount that is more likely than not to be realized.
Wayfair determines whether it is more likely than not that a tax position will be sustained upon examination. If it is not more likely than not that a position will be sustained, no amount of benefit attributable to the position is recognized. The tax benefit to be recognized of any tax position that meets the more likely than not recognition threshold is calculated as the largest amount that is more than 50% likely of being realized upon resolution of the contingency.
Wayfair evaluates at the end of each reporting period whether some or all of the undistributed earnings of foreign subsidiaries are permanently reinvested. The position is based upon several factors including management's evaluation of Wayfair and its subsidiaries' financial requirements, the short- and long-term operational and fiscal objectives of Wayfair and the tax consequences associated with the repatriation of earnings.
On July 4, 2025, the One Big Beautiful Bill Act was signed into law in the U.S., which contains a broad range of tax reform provisions affecting businesses. The impacts are not material to operating results for the year ended December 31, 2025.
Earnings or Loss per Share
Wayfair follows the two-class method when computing earnings or loss per share for its two issued classes of common stock - Class A and Class B. Basic earnings or loss per share is computed using the weighted-average number of shares of common stock outstanding during the period. Diluted earnings or loss per share is computed using the weighted-average number of shares of common stock outstanding during the period plus, if dilutive, common stock equivalents outstanding during the period and stock issuable upon conversion of the convertible debt instruments. Wayfair's common stock equivalents consist of shares issuable upon the release of restricted stock units and performance stock units. The dilutive effect of these common stock equivalents is reflected in diluted earnings or loss per share by application of the treasury stock method. The dilutive effect of shares issuable upon conversion of the convertible debt instruments are included in the calculation of diluted earnings or loss per share under the if-converted method.
For periods in which Wayfair has reported net losses, diluted loss per share is the same as basic loss per share, as the effects of common stock equivalents outstanding and shares issuable upon conversion of convertible debt instruments are antidilutive and therefore excluded from the calculation of diluted loss per share.
Wayfair allocates undistributed earnings between the classes on a one-to-one basis when computing earnings or loss per share. As a result, basic and diluted earnings or loss per share per Class A and Class B shares are equivalent.
Adoption of New Accounting Principles
Income Taxes
Wayfair adopted ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, on January 1, 2025 prospectively. The amendment improves income tax disclosure requirements by requiring public entities, on an annual basis, to provide disclosure of defined categories in the income tax rate reconciliation, as well as disclosure of income taxes paid, disaggregated by jurisdiction. The adoption only impacted the Company’s disclosures, prospectively, but did not have an impact on the Company’s results of operations, financial condition, or cash flows. Refer to Note 11, Income Taxes, for additional information.
Disaggregation of Income Statement Expenses
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires disclosure of specific expense categories in the notes to the financial statements. The amendment is effective for annual periods beginning after December 15, 2026, with early adoption permitted. The amendment should be applied prospectively to financial statements issued for reporting periods after the effective date of this ASU or retrospectively to any or all prior periods presented in the financial statements. Wayfair is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements and related disclosures.
Induced Conversions of Convertible Debt Instruments
In November 2024, the FASB issued ASU 2024-04, Debt - Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments, which clarifies the assessment of whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. The amendment is effective for annual periods beginning after December 15, 2025, with early adoption permitted. The amendment can be applied either on a prospective or retrospective basis. Wayfair is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements and related disclosures.
Targeted Improvements to the Accounting for Internal-Use Software
In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which clarifies and modernizes the accounting for costs related to internal-use software, and clarifies the threshold entities apply to begin capitalizing costs. The amendment is effective for annual periods beginning after December 15, 2027, and interim periods within those fiscal years. The amendment can be applied on a fully prospective basis, a modified basis for in-process projects, or on a retrospective basis. Wayfair is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements and related disclosures.
Narrow-Scope Improvements to Interim Reporting
In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. This ASU amends Topic 270, by improving the navigability of the required interim disclosures and clarifying when that guidance is applicable. The amendments also provide additional guidance on what disclosures should be provided in interim reporting periods. Additionally, the amendment requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. ASU 2025-11 is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the disclosure requirements of this standard and the impact on its consolidated financial statements.
v3.25.4
Supplemental Financial Statement Disclosures
12 Months Ended
Dec. 31, 2025
Balance Sheet Components Disclosure [Abstract]  
Supplemental Financial Statement Disclosures Supplemental Financial Statement Disclosures
Accounts Receivable, Net
As of December 31, 2025, accounts receivable was $132 million, net of allowance for credit losses of $27 million. As of December 31, 2024, accounts receivable was $155 million, net of allowance for credit losses of $18 million. The changes in the allowance for credit losses were not material for the year ended December 31, 2025. Management believes credit risk is mitigated for the year ended December 31, 2025, as approximately 98.6% of the net revenue recognized was collected in advance of recognition.
Prepaid Expenses and Other Current Assets
The following table presents the components of prepaid expenses and other current assets as of December 31, 2025 and 2024:
 December 31,
20252024
(in millions)
Prepaid expenses and other current assets:
Deferred costs in transit$36 $32 
Prepaid expenses66 66 
Supplier receivables and credits receivable108 131 
Restricted cash— 
Other current assets46 41 
Total prepaid expenses and other current assets$256 $274 
Other Non-current Assets
The following table presents the components of other non-current assets as of December 31, 2025 and 2024:
December 31,
20252024
(in millions)
Other non-current assets:
Goodwill and intangible assets, net$11 $13 
Long-term investments20 15 
Other non-current assets30 26 
Total other non-current assets$61 $54 
Amortization expense related to intangible assets was $1 million for the years ended December 31, 2025, 2024 and 2023. Goodwill was $0.4 million for the years ended December 31, 2025 and 2024. For the years ended December 31, 2025, 2024 and 2023, no indicators of impairment of goodwill or intangible assets were identified and therefore no impairment has been recorded.
Other Current Liabilities
The following table presents the components of other current liabilities as of December 31, 2025 and 2024:
December 31,
20252024
(in millions)
Other current liabilities:
Unearned revenue$265 $212 
Employee compensation and related benefits51 79 
Current operating lease liabilities (Note 5)
190 174 
Advertising84 100 
Sales tax payable75 70 
Sales return allowance45 49 
Short-term debt (Note 6)39 236 
Other accrued expenses and current liabilities178 204 
Total other current liabilities$927 $1,124 
Contract Liabilities
Contract liabilities included in unearned revenue and other accrued expenses and current liabilities were $265 million and $12 million at December 31, 2025, respectively, and $212 million and $12 million at December 31, 2024, respectively.
During the year ended December 31, 2025, Wayfair recognized $156 million and $11 million of net revenue that was included in unearned revenue and other accrued expenses and current liabilities, respectively, as of December 31, 2024. During the year ended December 31, 2024, Wayfair recognized $136 million and $8 million of net revenue that was included in unearned revenue and other accrued expenses and current liabilities, respectively, as of December 31, 2023. During the year ended December 31, 2023, Wayfair recognized $153 million and $7 million of net revenue that was included in unearned revenue and other accrued expenses and current liabilities, respectively, as of December 31, 2022.
Net revenue from contracts with customers is disaggregated by geographic region because this manner of disaggregation best depicts how the nature, amount, timing and uncertainty of net revenue and cash flows are affected by economic factors. Refer to Note 13, Segment and Geographic Information, for additional information.
Restructuring and Other Charges, net
On March 7, 2025, Wayfair announced a workforce reduction involving approximately 340 members of its Technology team. As a result, during the year ended December 31, 2025, Wayfair incurred $20 million of charges recorded within restructuring charges on the consolidated statements of operations. Wayfair does not expect to incur any further material charges related to this workforce reduction. The charges consisted primarily of one-time employee severance, benefits, relocation and transition costs.
Germany Restructuring
In January 2025, we announced our decision to exit the German market (the “Germany Restructuring”), including a workforce reduction impacting approximately 730 employees. As a result, during the year ended December 31, 2025, Wayfair incurred $48 million of charges recorded within restructuring and other charges, net on the consolidated statements of operations. Wayfair does not expect to incur any further material charges related to this workforce reduction. As of December 31, 2025, the remaining accrual related to the Germany Restructuring is not material. The charges consisted primarily of one-time employee severance, benefits, relocation and transition costs.
During the year ended December 31, 2025, Wayfair recorded impairment charges of $20 million associated with the Germany Restructuring and weakened macroeconomic conditions in connection with our German operations. This is inclusive of $9 million related to operating lease right-of-use (“ROU”) assets, $19 million related to property, plant and equipment, partially offset by a recovery of $8 million related to the termination of its office lease in Germany. Wayfair does not expect to incur any further material charges related to this restructuring.
Lease modifications
During the year ended December 31, 2025, Wayfair recorded a gain on lease modification of $15 million recorded within restructuring and other charges, net on the consolidated statements of operations. The gain is the result of the early exit of a portion of our corporate office location.
On January 30, 2026, Wayfair entered into an agreement to terminate an operating lease for a logistics facility. In connection with the termination, Wayfair made a payment of $27 million which will be recorded as a loss on termination that will be recognized during the quarter ended March 31, 2026. This termination will result in a reduction of our operating lease obligations of $138 million.
v3.25.4
Cash, Cash Equivalents and Restricted Cash, Investments and Fair Value Measurements
12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Cash, Cash Equivalents and Restricted Cash, Investments and Fair Value Measurements
3. Cash, Cash Equivalents and Restricted Cash, Investments and Fair Value Measurements
Investments
As of December 31, 2025 and 2024, Wayfair’s marketable securities, which primarily consisted of corporate bonds and other government obligations that are priced at fair value, were classified as available-for-sale investments. During the years ended December 31, 2025, 2024 and 2023, Wayfair did not have any realized gains or losses. Interest income includes interest earned from cash and cash equivalents and marketable securities. During the years ended December 31, 2025, 2024 and 2023, Wayfair recorded $45 million, $54 million and $47 million of interest income, respectively.

The following table presents details of Wayfair’s investment securities as of December 31, 2025 and December 31, 2024:
 December 31, 2025
 Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
(in millions)
Short-term:    
Investment securities$66 $— $— $66 
Total$66 $— $— $66 
 December 31, 2024
 Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
(in millions)
Short-term:    
Investment securities$56 $— $— $56 
Total$56 $— $— $56 
Fair Value Measurements
Wayfair's financial assets and liabilities are measured at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The three levels of inputs used to measure fair value are as follows:
Level 1—Unadjusted quoted prices in active markets for identical assets or liabilities
Level 2—Unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable or can be corroborated by observable market data for substantially the full-term of the asset or liability
Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the asset or liability
This hierarchy requires Wayfair to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. Wayfair classifies cash equivalents and certificate of deposits within Level 1 because these are valued using quoted market prices. The fair value of Level 1 financial assets is based on quoted market prices of the identical underlying security. Wayfair classifies short-term investments within Level 2 because unadjusted quoted prices for identical or similar assets in markets are not active. Wayfair does not have assets that are classified as Level 3.
The following tables set forth the fair value of Wayfair's financial assets measured at fair value on a recurring basis as of December 31, 2025 and December 31, 2024:
 December 31, 2025
 Level 1Level 2Level 3Total
(in millions)
Cash and cash equivalents:   
Cash$617 $— $— $617 
Cash equivalents859 — — 859 
Total cash and cash equivalents(1)
1,476 — — 1,476 
Short-term investments:   
Investment securities— 66 — 66 
Total$1,476 $66 $— $1,542 
(1)Cash and cash equivalents are included in the tables above; however, they are not measured at fair value on a recurring basis, and their carrying amounts approximate fair value.
 December 31, 2024
 Level 1Level 2Level 3Total
(in millions)
Cash and cash equivalents:   
Cash$461 $— $— $461 
Cash equivalents855 — — 855 
Total cash and cash equivalents1,316 — — 1,316 
Short-term investments:
Investment securities— 56 — 56 
Prepaid expenses and other current assets:
Certificate of deposit (1)
— — 
Total$1,320 $56 $— $1,376 
(1) The certificate of deposit is classified as restricted cash that is primarily restricted to funds held in collateral.
v3.25.4
Property and Equipment, net
12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Property and Equipment, net
4. Property and Equipment, net
The following table summarizes property and equipment, net as of December 31, 2025 and 2024:
 December 31,
 20252024
(in millions)
Furniture and equipment$611 $654 
Site and software development costs964 1,000 
Leasehold improvements671 644 
Construction in progress34 
2,280 2,303 
Less: Accumulated depreciation and amortization(1,764)(1,700)
Property and equipment, net$516 $603 
For the years ended December 31, 2025, 2024 and 2023, depreciation and amortization expense was $304 million, $386 million and $416 million, respectively, of which $190 million, $257 million and $279 million, respectively, was attributable to the amortization expense of site and software development costs. Total costs capitalized of site and software development costs, net of accumulated amortization, totaled $159 million and $201 million as of December 31, 2025 and 2024, respectively.
Impairment and other related net charges
During the year ended December 31, 2025, Wayfair recorded charges of $19 million for the non-cash impairment of fixed assets, related to the Germany Restructuring and weakened macroeconomic conditions in connection with our German operations.
During the year ended December 31, 2024, Wayfair recorded charges of $14 million for the non-cash impairment of fixed assets. This is inclusive of $13 million associated with weakened macroeconomic conditions in connection with our German operations and $1 million related to construction in progress assets at identified U.S. locations.
During the year ended December 31, 2023, Wayfair recorded charges of $9 million for the non-cash impairment of fixed assets, related to construction in progress assets at identified U.S. locations.
v3.25.4
Leases
12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Leases
5. Leases
Wayfair has lease arrangements for warehouses, physical retail locations, WDN facilities, which includes consolidation centers, cross docks and last mile delivery facilities and office spaces. These leases expire at various dates through 2046. Operating lease expense was $236 million, $217 million and $190 million for the years ended December 31, 2025, 2024 and 2023, respectively. Sublease income was $22 million, $6 million and $2 million for the years ended December 31, 2025, 2024 and 2023, respectively.
The following table presents other information related to leases:
Year Ended December 31,
202520242023
(in millions)
Supplemental cash flow information:
Cash payments included in operating cash flows from lease arrangements$235 $236 $195 
Right-of-use assets obtained in exchange for lease obligations$97 $290 $100 
Right-of-use asset amortization$156 $140 $130 
Year Ended December 31,
December 31, 2025December 31, 2024
Additional lease information:
Weighted average remaining lease term7 years7 years
Weighted average discount rate7.96 %7.01 %
Future minimum lease payments under non-cancellable leases as of December 31, 2025 were as follows:
 Amount
(in millions)
2026$226 
2027241 
2028190 
2029142 
2030115 
Thereafter477 
Total future minimum lease payments 1,391 
Less: Imputed interest(366)
Total$1,025 
The following table presents total operating leases liabilities:
December 31,
20252024
(in millions)
Balance sheet line item:
Other current liabilities$190 $174 
Operating lease liabilities, net of current 835 929 
Total operating leases liabilities$1,025 $1,103 
As of December 31, 2025, Wayfair has entered into a $45 million operating lease related to a retail lease that has not yet commenced. As there is no control of the underlying assets during the construction period, Wayfair is not considered the owner of the construction project for accounting purposes. This operating lease will commence during 2026 with a lease term of 16 years.
Impairment and other related net charges
During the year ended December 31, 2025, Wayfair recorded charges of $12 million for lease impairment. This is inclusive of $9 million associated with the Germany Restructuring and weakened macroeconomic conditions in connection with our German operations and $3 million related to changes in sublease market conditions for identified U.S. office locations.
During the years ended December 31, 2024 and 2023, Wayfair recorded net charges of $23 million and $5 million, respectively, primarily related to changes in sublease market conditions for identified U.S. office locations.
v3.25.4
Debt and Other Financing
12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Debt and Other Financing
6. Debt and Other Financing
The following table presents the outstanding principal amount and carrying value of debt and other financing:
December 31, 2025December 31, 2024
Debt InstrumentPrincipal AmountUnamortized Debt DiscountNet Carrying AmountPrincipal AmountUnamortized Debt DiscountNet Carrying Amount
(in millions)
Revolving Credit Facility$— $— 
2025 Notes— — — 237 (1)236 
2026 Notes39 — 39 734 (3)731 
2027 Notes480 (3)477 690 (7)683 
2028 Notes589 (6)583 690 (9)681 
2029 Secured Notes800 (11)789 800 (13)787 
2030 Secured Notes700 (8)692 — — — 
2032 Secured Notes700 (8)692 — — — 
Total Debt$3,272 $3,118 
Short-term debt (1)
39 236 
Long-term debt$3,233 $2,882 

(1) Short-term debt consists of $39 million for the 2026 Notes as of December 31, 2025, and $236 million for the 2025 Notes as of December 31, 2024. Short-term debt and is presented within other current liabilities in the consolidated balance sheets.

Revolving Credit Facility
On March 13, 2025, Wayfair and certain of its subsidiaries (together, the “Guarantors”), and Wayfair LLC, a subsidiary of Wayfair, as borrower (the “Borrower”), entered into that certain amended and restated credit agreement (the “Amended and Restated Credit Agreement”) among Wayfair, the Borrower, the lenders and letter of credit issuers parties thereto and Citibank, N.A., in its capacity as administrative agent, collateral agent and a letter of credit issuer. The Amended and Restated Credit Agreement amends and restates and replaces that certain credit agreement, dated as of March 24, 2021 (as amended, amended and restated, supplemented and/or otherwise modified from time to time prior to entry into the Amended and Restated Credit Agreement), by and among the Borrower, Wayfair, each other credit party from time to time party thereto, each lender from time to time party thereto, Citibank N.A. as the administrative agent for the lenders and letter of credit issuer, and each other letter of credit issuer from time to time party thereto.
The Amended and Restated Credit Agreement provides for a $500 million senior secured revolving credit facility (the “Revolver”) with a maturity of March 13, 2030, subject to a springing earlier maturity in certain circumstances. Debt issuance costs for the Revolver are included in other non-current assets and are amortized to interest expense over the Revolver’s term. As of December 31, 2025, there were no revolving loans outstanding under the Revolver.
Under the Amended and Restated Credit Agreement, the Borrower may, from time to time, request letters of credit, which reduce the availability of credit under the Revolver. Wayfair had $94 million outstanding letters of credit as of December 31, 2025, primarily as security for lease agreements, which reduced the availability of credit under the Revolver. Any amounts outstanding under the Revolver are due at maturity. In addition, subject to the terms and conditions set forth in the Amended and Restated Credit Agreement, the Borrower is required to make certain mandatory prepayments prior to maturity.
The proceeds of the Revolver may be used to finance working capital and for other general corporate purposes. The Borrower’s obligations under the Revolver are guaranteed by the Guarantors. The obligations of the Borrower and the Guarantors are secured by first-priority liens on substantially all of the assets of the Borrower and the Guarantors, including, with certain exceptions, all of the capital stock of Wayfair’s domestic subsidiaries and 65% of the voting capital stock and 100% of the non-voting capital stock of Wayfair’s first-tier foreign subsidiaries.
The Revolver borrowings bear interest through maturity at a variable rate based upon, at the Borrower’s option, (i) with respect to loans denominated in U.S. dollars, either (x) the Adjusted Term SOFR (as defined in the Amended and Restated Credit Agreement) rate or (y) the base rate (which is the highest of (x) the prime rate, (y) one-half of 1.00% in excess of the federal funds effective rate and (z) 1.00% in excess of the one-month Adjusted Term SOFR rate), (ii) with respect to loans denominated in an alternative currency (other than Pounds Sterling), the Adjusted Eurocurrency Rate (as defined in the Amended and Restated Credit Agreement) or (iii) with respect to loans denominated in Pounds Sterling, the RFR (as defined in the Amended and Restated Credit Agreement) rate, plus, in each case, an applicable margin.
As of December 31, 2025, the applicable margin for Adjusted Term SOFR and Adjusted Eurocurrency Rate loans is 1.25% per annum, the applicable margin for base rate loans is 0.25% per annum and the applicable margin for RFR loans is 1.2826% per annum. The applicable margin is subject to specified changes depending on Wayfair’s Consolidated Senior Secured Debt to Consolidated EBITDA Ratio, as defined in the Amended and Restated Credit Agreement.
The Amended and Restated Credit Agreement contains affirmative and negative covenants customarily applicable to senior secured revolving credit facilities, including covenants that, among other things, limit or restrict our ability, subject to negotiated exceptions, to incur additional indebtedness and additional liens on our assets, engage in mergers or acquisitions or dispose of assets, pay dividends or make other distributions, voluntarily prepay other indebtedness, enter into transactions with affiliated persons, make investments, or change the nature of our businesses. The Revolver also contains customary events of default, subject to thresholds and grace periods, including, among others, payment default, covenant default, cross default to other material indebtedness and judgment default. In addition, the Amended and Restated Credit Agreement requires Wayfair to maintain a Consolidated Senior Secured Debt to Consolidated EBITDA Ratio (as defined in the Amended and Restated Credit Agreement) of no more than 4.00 to 1.00, subject to a 0.50 step up following certain permitted acquisitions. Wayfair does not expect any of these restrictions to affect or limit the ability to conduct business in the ordinary course. As of December 31, 2025, Wayfair was in compliance with all covenants.
Senior Secured Notes
The following table summarizes certain terms related to the Company’s current outstanding senior secured notes (collectively, the “Senior Secured Notes,” together with the “Convertible Notes” (as defined below), the “Notes”):
Senior Secured NotesMaturity DateAnnual Coupon RateAnnual Effective Interest RatePayment Dates for Semi-Annual Interest Payments in Arrears
2029 Secured NotesOctober 31, 20297.250%7.5%April 15 and October 15
2030 Secured NotesSeptember 15, 20307.750%7.9%March 15 and September 15
2032 Secured NotesNovember 15, 20326.750%6.8%May 15 and November 15
On October 8, 2024, Wayfair LLC (the “Issuer”), a subsidiary of Wayfair, issued $800.0 million aggregate principal amount of 7.250% senior secured notes due 2029 (the “2029 Secured Notes”). The 2029 Secured Notes are governed by an indenture between the Issuer, the guarantors named therein (including Wayfair) and U.S. Bank Trust Company, National Association, as trustee and notes collateral agent. The indenture provides, among other things, that the 2029 Secured Notes will be senior secured obligations of the Issuer. Interest on the 2029 Secured Notes is payable semi-annually, in arrears, on April 15 and October 15 of each year, commencing on April 15, 2025, at a rate of 7.250% per annum. The annual effective interest rate of the 2029 Secured Notes is 7.50%. Transaction costs to issue the 2029 Secured Notes were recorded as direct deductions from the related debt liabilities and amortized to interest expense, net using the effective interest method over the terms of the corresponding 2029 Secured Notes. The 2029 Secured Notes will mature on October 31, 2029, unless earlier redeemed, in accordance with their terms or repurchased.
On March 13, 2025, Wayfair LLC (the “Issuer”), a subsidiary of Wayfair, issued $700 million aggregate principal amount of 7.750% senior secured notes due 2030 (the “2030 Secured Notes”). The 2030 Secured Notes are governed by an indenture between the Issuer, the guarantors named therein (including Wayfair) and U.S. Bank Trust Company, National Association, as trustee and notes collateral agent. The indenture provides, among other things, that the 2030 Secured Notes will be senior secured obligations of the Issuer. Interest on the 2030 Secured Notes is payable semi-annually, in arrears, on March 15 and September 15 of each year, commencing on September 15, 2025, at a rate of 7.750% per annum. The annual effective interest rate of the 2030 Secured Notes is 7.90%. Transaction costs to issue the 2030 Secured Notes were recorded as direct deductions from the related debt liabilities and amortized to interest expense, net using the effective interest method over the terms of the corresponding 2030 Secured Notes. The 2030 Secured Notes will mature on September 15, 2030, unless earlier redeemed, in accordance with their terms or repurchased.
On November 7, 2025, Wayfair LLC (the “Issuer”), a subsidiary of Wayfair, issued $700 million aggregate principal amount of 6.750% senior secured notes due 2032 (the “2032 Secured Notes” and, together with the 2029 Secured Notes and the “2030 Secured Notes”, the “Senior Secured Notes,” and the Senior Secured Notes, together with the Convertible Notes (as defined below), the “Notes”). The 2032 Secured Notes are governed by an indenture between the Issuer, the guarantors named therein (including Wayfair) and U.S. Bank Trust Company, National Association, as trustee and notes collateral agent. The indenture provides, among other things, that the 2032 Secured Notes will be senior secured obligations of the Issuer. Interest on the 2032 Secured Notes is payable semi-annually, in arrears, on May 15 and November 15 of each year, commencing on May 15, 2026, at a rate of 6.750% per annum. The annual effective interest rate of the 2032 Secured Notes is 6.80%. Transaction costs to issue the 2032 Secured Notes were recorded as direct deductions from the related debt liabilities and amortized to interest expense, net using the effective interest method over the terms of the corresponding 2032 Secured Notes. The 2032 Secured Notes will mature on November 15, 2032, unless earlier redeemed, in accordance with their terms or repurchased.
Senior Secured Note Indentures
The Senior Secured Notes are governed by separate indentures between the Issuer, the guarantors named therein (including Wayfair) and U.S. Bank Trust Company, National Association, as trustee and notes collateral agent. Each indenture contains covenants that restrict the Issuer’s ability and the ability of its restricted subsidiaries to, among other things, incur additional indebtedness, declare or pay dividends, redeem stock or make other distributions or restricted payments, make certain investments, create certain liens, enter into certain transactions with affiliates, agree to certain restrictions on the ability of the Issuer’s restricted subsidiaries to make certain payments, sell or transfer certain assets and consolidate, merge, sell or otherwise dispose of all or substantially all of the Issuer’s or its restricted subsidiaries’ assets.
These covenants are subject to a number of important limitations, qualifications and exceptions. In addition, certain of these covenants, including the limitation on indebtedness, will cease to apply to the Senior Secured Notes for so long as the Senior Secured Notes have investment grade ratings from any two of the prescribed rating agencies. If a change of control occurs, the Issuer may be required to offer the holders of the Senior Secured Notes an opportunity to sell all or part of their Senior Secured Notes at a purchase price of 101% of the principal amount of such Senior Secured Notes, plus accrued and unpaid interest, if any, to, but excluding, the date of repurchase. In addition, if Wayfair sells assets under certain circumstances, the Issuer may be required to make an offer to purchase a portion of the Senior Secured Notes. As of December 31, 2025, Wayfair was in compliance with all covenants in the indentures.
The indentures provide for customary events of default, which include (subject in certain cases to customary grace and cure periods) nonpayment of principal or interest; breach of other agreements in the indenture; defaults in failure to pay certain other indebtedness; certain events of bankruptcy or insolvency; the failure to pay final judgments in excess of certain amounts of money against the Issuer and its significant subsidiaries; the failure of certain guarantees to be enforceable (other than in accordance with the terms of the indenture); and the assertion by the Issuer, Wayfair or any guarantor that is a significant subsidiary in any pleading that any security interest related to the Senior Secured Notes is invalid or unenforceable.
Convertible Notes
The following table summarizes certain terms related to the Company’s current outstanding convertible notes (collectively, the “Convertible Notes”:
Convertible NotesMaturity DateAnnual Coupon RateAnnual Effective Interest RatePayment Dates for Semi-Annual Interest Payments in Arrears
2026 NotesAugust 15, 20261.000%1.2%February 15 and August 15
2027 NotesSeptember 15, 20273.250%3.6%March 15 and September 15
2028 NotesNovember 15, 20283.500%3.8%May 15 and November 15
In August 2020, Wayfair issued $1.518 billion in aggregate principal amount of 0.625% Convertible Senior Notes due 2025 (the “2025 Notes”), which included the exercise in full of a $198.0 million option granted to the initial purchasers. In connection with the issuance of the 2025 Notes, Wayfair entered into capped calls that covered, initially, the number of shares of Wayfair’s Class A common stock underlying the 2025 Notes, subject to anti-dilution adjustments substantially similar to those applicable to the 2025 Notes (the “2025 Capped Calls”). In September 2022, in connection with the issuance of the 2027 Notes, as defined below, Wayfair repurchased for cash $229 million aggregate principal amount of the 2025 Notes. In May 2023, in connection with the issuance of the 2028 Notes, as defined below, Wayfair repurchased for cash $535 million aggregate principal amount of the 2025 Notes. On November 11, 2024, Wayfair repurchased for cash $518 million aggregate principal amount of the 2025 Notes. On May 9, 2025, Wayfair repurchased for cash $80 million in aggregate principal amount of the 2025 Notes. For more information, see “Partial Extinguishment of Convertible Notes” below. On October 1, 2025, the 2025 Notes matured and Wayfair paid in cash the remaining outstanding principal of $157 million to the holders of the 2025 Notes.
In August 2019, Wayfair issued $948.75 million in aggregate principal amount of 1.000% Convertible Senior Notes due 2026 (the “2026 Notes”), which included the exercise in full of a $123.75 million option granted to the initial purchasers. In connection with the 2026 Notes, Wayfair entered into capped calls that covered, initially, the number of shares of Wayfair’s Class A common stock underlying the 2026 Notes, subject to anti-dilution adjustments substantially similar to those applicable to the 2026 Notes (the “2026 Capped Calls”). On November 11, 2024, Wayfair repurchased for cash $215 million aggregate principal amount of the 2026 Notes. On March 14, 2025, in connection with the issuance of the 2030 Secured Notes, Wayfair repurchased $578 million in aggregate principal amount of the 2026 Notes. On May 9, 2025, Wayfair repurchased for cash $118 million aggregate principal amount of the 2026 Notes. For more information, see “Partial Extinguishment of Convertible Notes” below.
In September 2022, Wayfair issued $690.0 million in aggregate principal amount of 3.250% Convertible Senior Notes due 2027 (the “2027 Notes”), which included the exercise in full of a $90.0 million option granted to the initial purchasers. In connection with the issuance of the 2027 Notes, Wayfair entered into capped calls that covered, initially, the number of shares of Wayfair’s Class A common stock underlying the 2027 Notes, subject to anti-dilution adjustments substantially similar to those applicable to the 2027 Notes (the “2027 Capped Calls”). On November 12, 2025, Wayfair repurchased for cash $210 million aggregate principal amount of the 2027 Notes. For more information, see “Partial Extinguishment of Convertible Notes” below. On February 6, 2026, Wayfair issued a notice to holders of the Company’s 3.25% Convertible Senior Notes due 2027 calling for redemption $250 million principal amount of the outstanding Notes. On March 23, 2026 (the “Redemption Date”), any outstanding Notes that are called for redemption and have not been submitted for conversion will be redeemed for cash at a price equal to the principal amount of such Notes plus accrued and unpaid interest on such Notes to, but excluding, the Redemption Date.
In May 2023, Wayfair issued $690.0 million in aggregate principal amount of 3.500% Convertible Senior Notes due 2028 (the “2028 Notes” and together with the 2025 Notes, 2026 Notes and 2027 Notes, the “Convertible Notes”), which included the exercise in full of a $90.0 million option granted to the initial purchasers. In connection with the issuance of the 2028 Notes, Wayfair entered into capped calls that covered, initially, the number of shares of Wayfair’s Class A common stock underlying the 2028 Notes, subject to anti-dilution adjustments substantially similar to those applicable to the 2028 Notes (the “2028 Capped Calls”). On August 20, 2025, Wayfair repurchased $101 million in aggregate principal amount of the 2028 Notes. For more information, see “Partial Extinguishment of Convertible Notes” below.
Convertible Note Indentures
The Convertible Notes are governed by separate indentures between Wayfair, as issuer, and U.S. Bank National Association, as trustee. The Convertible Notes indentures also include Wayfair LLC, as guarantor. Each indenture contains customary terms and covenants, including that upon certain events of default occurring and continuing, either the trustee or the holders of not less than 25% in aggregate principal amount of the respective Convertible Notes then outstanding may declare the entire principal amount or accreted principal amount, as the case may be, of the respective Convertible Notes plus accrued interest, if any, to be immediately due and payable.
Conversion and Redemption Terms of the Notes
Wayfair's Convertible Notes will mature at their maturity date unless earlier purchased, redeemed or converted. The Convertible Notes’ initial conversion terms are summarized below:
Convertible NotesMaturity DateFree Convertibility DateInitial Conversion Rate per $1,000 PrincipalInitial Conversion PriceRedemption Date
2026 NotesAugust 15, 2026May 15, 20266.7349$148.48August 20, 2023
2027 NotesSeptember 15, 2027June 15, 202715.7597$63.45September 20, 2025
2028 NotesNovember 15, 2028August 15, 202821.8341 $45.80May 20, 2026
The conversion rate is subject to adjustment upon the occurrence of certain specified events, including certain distributions and dividends to all or substantially all of the holders of Wayfair’s Class A common stock, but will not be adjusted for accrued and unpaid interest.
Wayfair will settle any conversions of the Convertible Notes in cash, shares of Wayfair’s Class A common stock or a combination thereof, with the form of consideration determined at Wayfair’s election. The holders of the Convertible Notes may convert all or a portion of such Notes prior to certain specified dates (each, a “Free Convertibility Date”) under the following circumstances (in each case, as applicable to each series of Convertible Notes):
during any calendar quarter (and only during such calendar quarter), if the last reported sale price of Wayfair’s Class A common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day;
during the five-business day period after any ten consecutive trading day period (the “measurement period") in which the trading price (as defined in the applicable indenture) per $1,000 principal amount of the notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of Wayfair’s Class A common stock and the conversion rate on each such trading day;
if Wayfair calls the notes for redemption, at any time prior to 5:00 p.m. (New York City time) (“the close of business”) on the second scheduled trading day immediately preceding the redemption date; and
upon the occurrence of specified corporate events (as set forth in the applicable indenture).
On or after the applicable Free Convertibility Date until the close of business on the second scheduled trading day immediately preceding the applicable maturity date, holders of the Convertible Notes may convert their Convertible Notes at any time.The conditional conversion features of the 2027 Notes and 2028 Notes were triggered during the calendar quarter ended December 31, 2025, therefore the 2027 Notes and 2028 Notes are convertible during the calendar quarter ended March 31, 2026. The conditional conversion features of the 2026 Notes were not triggered during the calendar quarter ended December 31, 2025, therefore, the 2026 Notes are not convertible during the calendar quarter ended March 31, 2026 pursuant to the applicable last reported sales price conditions.
Upon the occurrence of a fundamental change (as defined in the applicable indenture), holders of the applicable series of the Convertible Notes may require Wayfair to repurchase all or a portion of such Notes for cash at a price equal to 100% of the principal amount of such Notes to be repurchased plus any accrued but unpaid interest to, but excluding, the fundamental change repurchase date. Holders of the Convertible Notes who convert their respective Notes in connection with a make-whole fundamental change or a notice of redemption (each as defined in the applicable indenture) may be entitled to a premium in the form of an increase in the conversion rate of the respective Notes.
Wayfair may not redeem the Convertible Notes prior to certain dates (the “Redemption Date”). On or after the applicable Redemption Date, Wayfair may redeem for cash all or part of the applicable series of the Convertible Notes if the last reported sale price of Wayfair’s Class A common stock equals or exceeds 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including at least one of the five trading days immediately preceding the date on which Wayfair provides notice of redemption, during any 30 consecutive trading days ending on, and including the trading day immediately preceding the date on which Wayfair provides notice of the redemption. The redemption price will be either 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest, if any, or the if-converted value if the holder elects to convert their Convertible Notes upon receiving notice of redemption. The Company has not called for redemption or redeemed any of the Convertible Notes as of December 31, 2025.
Accounting for the Convertible Notes
The Convertible Notes are recorded as a single unit within liabilities in the consolidated balance sheets as the conversion features within the Convertible Notes are not derivatives that require bifurcation and the Convertible Notes do not involve a substantial premium. Transaction costs to issue the Convertible Notes were recorded as direct deductions from the related debt liabilities and amortized to interest expense, net using the effective interest method over the terms of the corresponding Convertible Notes.
Partial Extinguishment of Convertible Notes
On March 14, 2025, in connection with the issuance of the 2030 Secured Notes, Wayfair repurchased $578 million in aggregate principal amount of the 2026 Notes. In accounting for the repurchases, Wayfair recorded a $25 million gain on debt extinguishment, representing the difference between the cash paid for principal, plus accrued and unpaid interest and transaction fees of $551 million and the net carrying value of the 2026 Notes of $576 million.
On May 9, 2025, Wayfair used the remaining proceeds from the 2030 Secured Notes offering, together with cash on hand, to repurchase $80 million in aggregate principal amount of the 2025 Notes and $118 million in aggregate principal amount of the 2026 Notes. In accounting for these repurchases, Wayfair recorded a $6 million gain on debt extinguishment, representing the difference between the cash paid for principal, plus accrued and unpaid interest and transaction fees of $191 million and the combined net carrying value of the 2025 Notes and the 2026 Notes of $197 million.
On August 20, 2025, Wayfair repurchased $101 million in aggregate principal amount of the 2028 Notes. In accounting for the repurchases, Wayfair recorded a $99 million loss on debt extinguishment, representing the difference between the cash paid for principal, plus accrued and unpaid interest and transaction fees of $200 million and the net carrying value of the 2028 Notes of $101 million.
On November 12, 2025, Wayfair repurchased $210 million in aggregate principal amount of the 2027 Notes. In accounting for the repurchases, Wayfair recorded a $165 million loss on debt extinguishment, representing the difference between the cash paid for principal, plus accrued and unpaid interest and transaction fees of $375 million and the net carrying value of the 2027 Notes of $210 million.
Conversions of Convertible Notes
During the year ended December 31, 2025, there were no conversions of the Convertible Notes.
Interest Expense
The following table presents total interest expense recognized for the Notes for the years ended December 31:
Year ended December 31,
202520242023
The NotesContractual Interest ExpenseDebt Discount AmortizationTotal Interest ExpenseContractual Interest ExpenseDebt Discount AmortizationTotal Interest ExpenseContractual Interest ExpenseDebt Discount AmortizationTotal Interest Expense
(in millions)
2024 Notes— — — — 
2025 Notes— 
2026 Notes— 11 11 
2027 Notes22 25 22 24 22 24 
2028 Notes23 25 24 27 15 16 
2029 Secured Notes58 61 13 — 13 — — — 
2030 Secured Notes43 44 — — — — — — 
2032 Secured Notes— — — — — — — 
2025 Accreting Notes— — — — — 
Total$156 $$165 $74 $$83 $55 $$63 
Fair Value of the Notes
As of December 31, 2025, the estimated fair value of the 2026 Notes, 2027 Notes, 2028 Notes, 2029 Secured Notes, 2030 Secured Notes and 2032 Secured Notes was $39 million, $804 million, $1,354 million, $835 million, $747 million and $721 million, respectively. The estimated fair values of the Notes was determined through consideration of quoted market prices. The fair values of the Notes are classified as Level 2 as defined in Note 3, Cash, Cash Equivalents and Restricted Cash, Investments and Fair Value Measurements. As of December 31, 2025, the if-converted value of the 2027 Notes and of the 2028 Notes exceeded the principal value by $280 million and $702 million, respectively. As of December 31, 2025, the if-converted value of the 2026 Notes did not exceed the principal value.
Seniority of the Notes
The 2029 Secured Notes, 2030 Secured Notes and 2032 Secured Notes are senior secured debt obligations secured by first-priority liens, which assets also secure the Revolver on a first-priority pari passu basis. The 2029 Secured Notes, 2030 Secured Notes and 2032 Secured Notes are guaranteed, jointly and severally, on a senior basis by the Guarantors. The Convertible Notes are general senior unsecured obligations of Wayfair. The Convertible Notes rank senior in right of payment to any of Wayfair’s future indebtedness that is expressly subordinated in right of payment to the Convertible Notes, rank equal in right of payment to Wayfair’s existing and future unsecured indebtedness that is not so subordinated and are effectively subordinated in right of payment to any of Wayfair’s secured indebtedness to the extent of the value of the assets securing such indebtedness. The Convertible Notes are structurally subordinated to all existing and future indebtedness and liabilities of Wayfair’s subsidiaries.
Capped Calls
The 2027 Capped Calls and 2028 Capped Calls (collectively, the “Capped Calls”) are expected generally to reduce the potential dilution and/or offset the cash payments Wayfair is required to make in excess of the principal amount of the Convertible Notes upon conversion of the Convertible Notes if the market price per share of Wayfair’s Class A common stock is greater than the strike price of the applicable Capped Call (which corresponds to the initial conversion price of the applicable Convertible Notes and is subject to certain adjustments under the terms of the applicable Capped Call), with such reduction and/or offset subject to a cap based on the cap price of the applicable Capped Calls (the “Initial Cap Price”). The Capped Calls can, at Wayfair’s option, remain outstanding until their maturity date, even if all or a portion of the Convertible Notes are converted, repurchased or redeemed prior to such date.
Each of the Capped Calls has an initial cap price per share of Wayfair’s Class A common stock, which represented a premium over the last reported sale price of Wayfair’s Class A common stock on the date the corresponding Convertible Notes were priced (the “Cap Price Premium”), and is subject to certain adjustments under the terms of the corresponding agreements. Collectively, the Capped Calls cover, initially, the number of shares of Wayfair’s Class A common stock underlying the Convertible Notes, subject to anti-dilution adjustments substantially similar to those applicable to the Convertible Notes.
The initial terms for the Capped Calls are presented below:
Capped CallsMaturity DateInitial Cap PriceCap Price Premium
2027 Capped CallsSeptember 15, 2027$97.62100%
2028 Capped CallsNovember 15, 2028$73.28100%
The Capped Calls are separate transactions from the Convertible Notes, are not subject to the terms of the Convertible Notes and will not affect any holder’s rights under the Convertible Notes. Similarly, holders of the Convertible Notes do not have any rights with respect to the Capped Calls. The Capped Calls do not meet the criteria for separate accounting as a derivative as they are indexed to Wayfair's stock and meet the requirements to be classified in equity. The premiums paid for the Capped Calls were included as a net reduction to additional paid-in capital within stockholders’ deficit when they were entered.
2026 Capped Calls Unwind
During the year ended December 31, 2025, Wayfair completed an unwind of the 2026 Capped Calls. The proceeds received from the unwind were included as an increase to additional paid-in-capital within stockholders’ deficit.
v3.25.4
Commitments and Contingencies
12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
7. Commitments and Contingencies
Purchase Obligations
Wayfair has entered into purchase obligations that represent enforceable and legally binding software license and freight commitments. Payments due under these purchase obligations are $243 million in 2026, $209 million in 2027, $197 million in 2028 and no other commitments thereafter. These payments exclude payments for contracts that are able to be canceled, both in full or in part, since they do not represent legally binding arrangements.
Collection of Sales or Other Similar Taxes
Wayfair has historically collected and remitted sales tax based on the locations of its physical operations. The U.S. Supreme Court's decision in South Dakota v. Wayfair, Inc., removed a significant impediment to the enactment of laws imposing sales tax collection obligations on out-of-state e-commerce companies. Several states and other taxing jurisdictions have presented, or indicated that they may present, Wayfair with sales tax assessments. The aggregate assessments received as of December 31, 2025 are not material to Wayfair's business and Wayfair does not expect the Court's decision to have a significant impact on its business.
Legal Matters
From time to time, Wayfair is involved in litigation matters and other legal claims that arise during the ordinary course of business. The Company records a liability when it believes that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. Significant judgment is required to determine both the probability of having incurred a liability and the estimated amount of the liability. The Company does not record a gain contingency until the period in which the contingency is resolved and the gain is realizable or realized.
Litigation and legal claims are inherently unpredictable and claims cannot be predicted with certainty. An unfavorable resolution of any such matter could have a material adverse effect on the Company’s results of operations or financial condition, and regardless of the outcome, these matters can be costly and time consuming, as it can divert management's attention from important business matters and initiatives, negatively impacting Wayfair's overall operations. Wayfair may also find itself at greater risk to outside party claims as it increases its operations in jurisdictions where the laws with respect to the potential liability of online retailers are uncertain, unfavorable, or unclear. However, Wayfair does not currently believe that the outcome of any legal matters will have a material adverse effect on Wayfair’s results of operations or financial condition.
Canada Border Services Agency
The Canada Border Services Agency (“CBSA”) is examining Wayfair’s payment of duties under the Special Import Measures Act (the “CBSA Review”) for goods imported into Canada for the years ended December 31, 2023 and 2022 and part of the year ended December 31, 2021. Periodically, Wayfair receives assessments from the CBSA and Wayfair is required to pay all assessed amounts in order to exercise its appeal rights. Wayfair believes there are substantial factual and legal grounds to appeal and partially recoup these amounts and is exploring other options to mitigate exposure. During the year ended December 31, 2025, in connection with the CBSA Review, Wayfair incurred approximately $14 million to cost of goods sold within the consolidated statements of operations and made payments of approximately $19 million of duties based on assessments received during the year ended December 31, 2025, related to the year ended December 31, 2023. As of December 31, 2025, there were no costs recorded within other current liabilities in the consolidated balance sheets.
The CBSA is also examining Wayfair’s valuation of duties under the Customs Act for goods imported into Canada for the years ended December 31, 2025, 2024, 2023, 2022, 2021 and 2020. During the year ended December 31, 2025, Wayfair recorded a benefit of $45 million to cost of goods sold within the consolidated statements of operations related to the examinations for the years ended December 31, 2025, 2024, 2023 and 2022. The amount recorded includes $42 million that relates to the examinations for the years ended December 31, 2024 and prior. This was related to an overpayment of duties during those years, and the refunds from this audit will primarily be used to offset future normal course custom duties payments and payments due under the CBSA Review.
v3.25.4
Employee Benefit Plans
12 Months Ended
Dec. 31, 2025
Retirement Benefits [Abstract]  
Employee Benefit Plans
8. Employee Benefit Plans
Wayfair has a defined-contribution, incentive savings plan pursuant to Section 401(k) of the Internal Revenue Code. The plan covers all full-time employees who have reached the age of 21 years. Employees may elect to defer compensation up to a dollar limit (as allowable by the Internal Revenue Code), of which up to 4% of an employee's salary will be matched by Wayfair. The amounts deferred by the employee and the matching amounts contributed by Wayfair both vest immediately. The amount expensed under the plan totaled $20 million, $22 million and $35 million in the years ended December 31, 2025, 2024 and 2023, respectively.
v3.25.4
Stockholders' Deficit
12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
Stockholders’ Deficit
9. Stockholders’ Deficit
Preferred Stock
Wayfair authorized 10,000,000 shares of undesignated preferred stock, $0.001 par value per share, for future issuance. As of December 31, 2025, Wayfair had no shares of preferred stock issued or outstanding.
Common Stock
Wayfair authorized 500,000,000 shares of Class A common stock, $0.001 par value per share, and 164,000,000 shares of Class B common stock, $0.001 par value per share, of which 108,365,428 and 100,762,581 shares of Class A common stock and 21,978,295 and 24,658,295 shares of Class B common stock were outstanding as of December 31, 2025 and 2024, respectively. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting and conversion rights. Each share of Class A common stock is entitled to one vote per share and each share of Class B common stock is entitled to ten votes per share. Each share of Class B common stock may be converted into one share of Class A common stock at the option of its holder and will be automatically converted into one share of Class A common stock upon transfer thereof, subject to certain exceptions. In addition, upon the date on which the outstanding shares of Class B common stock represent less than 10% of the aggregate number of shares of the then outstanding Class A common stock and Class B common stock, or in the event of the affirmative vote or written consent of holders of at least 66 2/3% of the outstanding shares of Class B common stock, all outstanding shares of Class B common stock shall convert automatically into Class A common stock. Subject to preferences that may apply to any shares of preferred stock outstanding at the time, the holders of common stock are entitled to receive dividends out of funds legally available if Wayfair's Board of Directors (the “Board”), in its discretion, determines to issue dividends and then only at the times and in the amounts that the Board may determine. Since Wayfair's initial public offering through December 31, 2025, 60,060,119 shares of Class B common stock were converted to Class A common stock.
Stock Repurchase Program
On August 21, 2020, the Board authorized the repurchase of up to $700 million of Wayfair’s Class A common stock in the open market, through privately negotiated transactions, or otherwise, including pursuant to a Rule 10b5-1 plan (the “2020 Repurchase Program”). On August 10, 2021, the Board authorized a new $1.0 billion share repurchase program on the same terms (the “2021 Repurchase Program” and, together with the 2020 Repurchase Program, the “Repurchase Programs”). There is no stated expiration date for the Repurchase Programs. Wayfair will begin repurchasing shares under the 2021 Repurchase Program upon the completion of the 2020 Repurchase Program.
During the years ended December 31, 2025, 2024 and 2023, Wayfair did not repurchase any shares of Class A Common stock under the Repurchase Programs.
v3.25.4
Equity-Based Compensation
12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Equity-Based Compensation
10. Equity-Based Compensation
In April 2023, Wayfair’s stockholders approved the 2023 Incentive Award Plan (the “2023 Plan”) to replace Wayfair’s 2014 Incentive Award Plan, as amended (the “2014 Plan” and, together with the 2023 Plan, the “Incentive Plans”). The Incentive Plans were adopted by the board of directors (the “Board”) to grant cash and equity incentive awards to eligible participants in order to attract, motivate and retain talent. The Incentive Plans are administered by the Board for awards to non-employee directors and by the compensation committee of the Board for other participants and provide for the issuance of equity-based awards including stock options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”), performance stock units (“PSUs”), performance awards and stock payments.
Beginning in April 2025, Wayfair primarily withholds shares of Class A common stock upon vesting of restricted stock units to cover necessary tax withholding obligations as permitted by the 2023 Plan. The value of the withheld shares is classified as a reduction to common stock and additional paid-in capital. Shares subject to awards that are forfeited, expire or are otherwise
terminated without shares being issued, or shares withheld to satisfy tax withholding obligations, will be returned to the pool of shares available for grant and issuance under the 2023 Plan.
Under the 2023 Plan, 20,525,663 shares of Class A common stock initially were available for future award grants. As of December 31, 2025, 6,981,236 shares of Class A common stock remained available for future grant under the 2023 Plan.
Restricted Stock Units
The following table presents activity relating to RSUs for the year ended December 31, 2025:
 SharesWeighted-Average
Grant Date
Fair Value
Unvested at December 31, 2024
2,455,486 $72.11 
RSUs granted5,181,341 $56.93 
RSUs vested (1)
(6,494,439)$56.77 
RSUs forfeited/canceled(322,743)$79.84 
Unvested at December 31, 2025
819,645 $94.73 
(1) The amount of RSUs vested includes shares withheld by Wayfair to cover taxes.
As of December 31, 2025, unrecognized equity-based compensation expense related to RSUs expected to vest over time is $17 million with a weighted-average remaining vesting term of 0.1 years.
The following table summarizes activity for the years ended December 31, 2025, 2024 and 2023:
Year Ended December 31,
202520242023
Weighted average grant date fair value of RSUs$56.93 $54.18 $50.39 
Total fair value of vested RSUs (in millions)$369 $505 $636 
Intrinsic value of RSUs vested (in millions)$333 $406 $532 
As of December 31, 2025, the aggregate intrinsic value of unvested RSUs was $82 million.
Performance Stock Units with Market-Based Conditions
In September 2025, under the 2023 Plan, the Company granted 5,000,000 PSUs to the Company’s Chief Executive Officer (the “CEO Award”). The CEO Award consists of six tranches of PSUs over specified performance periods that each vest based upon the satisfaction of both: (i) the CEO’s continued employment as CEO through the applicable vesting date, and (ii) the achievement of certain stock price hurdles. If the stock price hurdle for a particular tranche of PSUs is not met during the applicable performance period for such tranche, or if the CEO’s service is terminated before achieving such stock price hurdle, no portion of that tranche will vest.
The estimated fair value and derived service period for awards with market conditions are calculated using a Monte Carlo simulation. Expected volatility assumptions applied within the valuation model are derived from the market-based implied volatility levels of the Company’s options at the time of grant. The expected volatility used to estimate the fair value of the CEO Award was 60%.
The following table summarizes activity for the twelve months ended December 31, 2025:
 SharesWeighted-Average
Grant Date
Fair Value
Unvested at December 31, 2024
— $— 
PSUs granted5,000,000 56.11 
PSUs vested— — 
PSUs forfeited/cancelled— — 
Unvested at December 31, 2025
5,000,000 $56.11 
As of December 31, 2025, there was $259 million of unrecognized stock-based compensation expense related to PSUs. The Company expects to recognize this amount over a remaining weighted-average period of 4.1 years.

As of December 31, 2025, the aggregate intrinsic value of unvested PSUs was $502 million.
Equity-based compensation was classified as follows in the consolidated statements of operations for the years ended December 31:
 Year Ended December 31,
 202520242023
(in millions)
Cost of goods sold$$$10 
Customer service and merchant fees14 18 29 
Selling, operations, technology, general and administrative313 368 566 
Total equity-based compensation expense$335 $395 $605 
Equity-based compensation costs capitalized as software costs were $27 million, $37 million and $61 million for the years ended December 31, 2025, 2024 and 2023, respectively.
v3.25.4
Income Taxes
12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes
11. Income Taxes
The components of the provision for income taxes, net for the years ended December 31, 2025, 2024 and 2023 are presented below:
Year Ended December 31,
202520242023
(in millions)
Current:
Federal$— $— $— 
State
Foreign
Deferred:
Federal(1)— — 
State— — — 
Foreign(1)— 
Provision for income taxes, net$$10 $
As previously disclosed for the years ended December 31, 2024 and 2023, prior to the adoption of ASU 2023-09, the actual provision for income taxes, net differs from the expected provision for income taxes computed at the U.S. Federal statutory tax rate of 21% due to the following:
 Year Ended December 31,
 20242023
(in millions)
Provision for income taxes at the federal statutory rate$(101)$(153)
State income tax expense, net of federal impact
Foreign tax rate differential13 17 
Intercompany debt adjustment(242)— 
Uncertain tax positions, net191 — 
Non-deductible equity-based compensation expense10 
Shortfall expense from equity-based compensation15 17 
Change in valuation allowance105 103 
Limitation on officer's compensation
Intangible property basis step-up(7)— 
Intercompany interest
15 15 
Other10 (8)
Provision for income taxes, net$10 $

As further described in Note 1, Summary of Significant Accounting Policies, the company has adopted ASU 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures, on January 1, 2025 prospectively. The following table is a reconciliation of the U.S. federal statutory rate of 21% to Company’s effective rate of the year ended December 31, 2025 in accordance with the guidance in ASU 2023-09:
 Year Ended December 31,
 2025
(in millions, except percentages)
Loss before income taxes$(304)
  Federal statutory tax rate(64)21.0 %
  State and local income taxes, net of federal(national) income tax effect(a)
5(1.7)%
  Foreign tax effects
  Canada
  Valuation allowance(2.6)%
  Other(2)0.7 %
  Total other foreign(4)1.3 %
  Changes in valuation allowances54(17.8)%
  Nontaxable or nondeductible items
  Loss on debt extinguishment
45(14.8)%
  Limitation on officer’s compensation
5(1.6)%
  Other3(1.0)%
  Other adjustments
 Shortfall expense from equity-based compensation
10 (3.3)%
  Interest expense(49)16.1 %
  Other
(2)0.7 %
  Provision for income taxes, net9(3.0)%
(a)State taxes in California and Texas made up the majority of the tax effect in this category
The components of loss before income taxes determined by tax jurisdiction, are as follows:
 Year Ended December 31,
 202520242023
(in millions)
U.S.$(313)$(245)$(495)
Foreign(237)(234)
Total$(304)$(482)$(729)

During the year ended December 31, 2025, the Company paid $4 million in state income taxes, net of refunds received, and $8 million in foreign tax payments. The payments per state and foreign jurisdiction were immaterial for the year ended December 31, 2025.
The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities for the periods presented are as follows:
 December 31,
 20252024
(in millions)
Deferred tax assets:  
Net operating loss carryforwards$911 $809 
Equity-based compensation expense
Intangible property61 60 
Accrued expenses and reserves25 21 
Capitalized technology45 96 
Leases261 283 
Interest expense86 — 
Other43 55 
Gross deferred tax assets1,439 1,331 
Less: Valuation allowance(1,176)(1,042)
Net deferred tax assets263 289 
Deferred tax liabilities:  
Prepaid expenses$(12)$(13)
Property and equipment(27)(42)
Operating lease right-of-use asset(215)(234)
Other(12)(5)
Total deferred tax liabilities(266)(294)
Non-current net deferred tax liabilities$(3)$(5)
The valuation allowance increased by $134 million during 2025. The increase in the valuation allowance is the result of Wayfair establishing a valuation allowance related to the net increase of $102 million in losses and $86 million in interest expense, partially offset by a $51 million reduction of capitalized technology and $3 million of various other assets amounting during the current year.
In determining the need for a valuation allowance, Wayfair has given consideration to the cumulative book income and loss positions of each of its entities as well as its worldwide cumulative income position. Wayfair has evaluated the positive and negative evidence bearing upon the realizability of its deferred tax assets, which are primarily compromised of net operating losses, on a jurisdictional basis. At December 31, 2025, Wayfair has determined that it is more likely than not that Wayfair will not realize the benefits of its deferred tax assets, and as a result, has maintained a full valuation allowance against substantially all of the worldwide net deferred tax assets.
As of December 31, 2025, Wayfair had tax effected federal net operating loss carryforwards of $437 million available to offset future federal tax liabilities. In addition, Wayfair had tax-effected state net operating loss carryforwards of $181 million available to offset future state tax liabilities. Of the tax-effected federal net operating loss carryforwards, $42 million begin to expire in the year ending December 31, 2037, and $395 million do not expire. The tax-effected state net operating loss carryforwards begin to expire in the year ending December 31, 2025. The ability to utilize these federal and state tax attributes may be limited in the future if Wayfair experiences an ownership change pursuant to Internal Revenue Code Section 382. An ownership change occurs when the ownership percentages of 5% or greater stockholders change by more than 50% over a three-year period. Through December 31, 2025, Wayfair is not aware of any ownership changes that would result in a material limitation on its ability to utilize these tax attributes.
As of December 31, 2025, Wayfair also had tax effected foreign net operating loss carryforwards of $293 million available to offset future foreign tax liabilities. Of these, $39 million will begin to expire in the year ending December 31, 2038, and $254 million do not expire.
As of December 31, 2025, Wayfair has not provided for deferred income taxes on the outside bases differences in its foreign subsidiaries since they are indefinitely reinvested, or it is within the control of Wayfair to recognize these basis differences on a tax-free basis. Upon realization of the outside bases differences in the form of dividends or otherwise, Wayfair could be subject to income taxes as well as withholding taxes. The amount of taxes attributable to the outside basis differences, if realized, is expected to be immaterial.
Wayfair establishes reserves for uncertain tax positions based on management's assessment of exposures associated with tax deductions, permanent tax differences and tax credits. A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits (excluding interest and penalties) is as follows:
 Year Ended December 31,
 202520242023
(in millions)
Beginning balance$306 $— $— 
Increases as a result of tax positions taken in the current period— 306 — 
Ending balance$306 $306 $— 
As of December 31, 2025, $1 million of the $306 million of unrecognized tax benefits would affect our effective tax rate, if recognized, and the remaining $305 million would affect our deferred tax accounts and our valuation allowance. Wayfair's policy is to recognize interest and penalties related to unrecognized tax benefits as a component of the provision for income taxes, net. Related to the unrecognized tax benefits noted above, Wayfair did not accrue any penalties and interest during 2025, 2024 or 2023 because it is believed that such additional interest and penalties would be insignificant.
Wayfair's tax jurisdictions include the U.S., the United Kingdom, Ireland, India, and Canada. The statute of limitations with respect to U.S. federal income taxes has expired for years prior to 2022. The relevant U.S. state statutes vary and years prior to 2018 are generally closed. The statute of limitations for foreign income taxes vary, but have expired for years prior to 2018. However, preceding years remain open to examination by U.S. federal and state and foreign taxing authorities to the extent of future utilization of net operating losses generated in each preceding year.
The Organization for Economic Co-operation and Development (“OECD”) has proposed a global minimum tax of 15% of reported profits (“Pillar 2”) that has been agreed upon in principle by over 140 countries. Through 2025, many countries have incorporated Pillar 2 model rule concepts into their domestic laws. Although the model rules provide a framework for applying the minimum tax, countries may enact Pillar 2 slightly differently than the model rules and on different timelines and may adjust domestic tax incentives in response to Pillar 2. Wayfair has estimated the impact of Pillar 2 on our 2024 tax expense to be immaterial. Our deferred tax assets and liabilities are calculated based on the statutory tax rates in the various jurisdictions in which we operate. Our deferred tax assets and liabilities do not reflect the potential impact of Pillar 2 top-up taxes or any other minimum tax regimes for future periods, as such taxes are treated as period costs in accordance with US GAAP. Wayfair is still evaluating the potential consequences of Pillar 2 on longer-term financial positions.
v3.25.4
Loss per Share
12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Loss per Share
12. Loss per Share
The following table presents the calculation of basic and diluted loss per share:
 Year Ended December 31,
 202520242023
(in millions, except per share data)
Numerator:
Numerator for basic and diluted loss per share - net loss
$(313)$(492)$(738)
Denominator:
Denominator for basic and diluted loss per share - weighted-average number of shares of common stock outstanding
128 123 114 
Loss per share   
Basic$(2.44)$(4.01)$(6.47)
Diluted$(2.44)$(4.01)$(6.47)
The potential common shares from anti-dilutive securities excluded from the weighted-average shares of common stock used to calculate diluted loss per share were as follows:
Year Ended December 31,
202520242023
(in millions)
Unvested restricted stock units
Unvested performance stock units— 
Shares related to convertible debt instruments21 31 36 
Total27 33 41 
Wayfair may settle conversions of the Convertible Notes in cash, shares of Wayfair’s Class A common stock or any combination thereof at its election. The Capped Calls are generally expected to reduce the potential dilution of Wayfair's Class A common stock upon any conversion of the Convertible Notes and/or offset the cash payments Wayfair is required to make in excess of the principal amount of the Notes upon conversion of the Convertible Notes to the extent the market price per share of Wayfair’s Class A common stock is greater than the strike price of the Capped Calls (which corresponds to the initial conversion prices of the Convertible Notes, subject to certain adjustments under the terms of the Capped Calls), with such reduction and/or offset capped at the Initial Cap Price.
For more information on the structure of the Notes and the Capped Calls, see Note 6, Debt and Other Financing.
v3.25.4
Segment and Geographic Information
12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment and Geographic Information
13. 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. 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:
 Year Ended December 31,
 202520242023
(in millions)
U.S.InternationalTotalU.S.InternationalTotalU.S.InternationalTotal
Net revenue$10,973$1,484 $12,457$10,373$1,478 $11,851$10,482 $1,521 $12,003 
Less:
Cost of goods sold (1)
7,5581,079 8,6377,1221,095 8,2177,146 1,129 8,275 
Advertising1,254171 1,4251,292180 1,472 1,234 163 1,397 
Other segment items (2)
1,399253 1,6521,388321 1,709 1,658 367 2,025 
Adjusted EBITDA$762$(19)$743$571$(118)$453$444 $(138)$306 
Less: reconciling items (3)
1,056 945 $1,044 
Net loss$(313)$(492)$(738)
(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:
Year Ended December 31,
202520242023
(in millions)
Depreciation and amortization$305 $387 $417 
Equity-based compensation and related taxes345 411 623 
Interest expense, net119 29 17 
Other (income) expense, net(31)21 (1)
Provision for income taxes, net10 
Other:
Impairment and other related net charges (a)
233714 
Restructuring and other charges, net (b)
53 79 65 
Loss (gain) on debt extinguishment, net (c)
233 (29)(100)
Total reconciling items$1,056 $945 $1,044 
(a)
During the year ended December 31, 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 German operations and $3 million associated with changes in sublease market conditions for a technology center in the U.S. During the year ended December 31, 2024, Wayfair recorded net charges of $37 million, inclusive of $34 million associated with weakened macroeconomic conditions in connection with our German operations, $2 million related to changes in sublease market conditions and $1 million related to construction in progress assets at identified U.S. locations. During the year ended December 31, 2023, Wayfair recorded net charges of $14 million, inclusive of $5 million related to consolidation of certain customer service centers and $9 million related to construction in progress assets at identified U.S. locations.
(b)
During the year ended December 31, 2025, Wayfair incurred $53 million of charges consisting primarily of one-time employee severance, benefits, relocation and transition costs. This is inclusive of $48 million related to the Germany Restructuring and $20 million related to the March 2025 workforce reduction. Additionally, Wayfair recorded a gain on lease modification of $15 million, related primarily to the early exit of a portion of our corporate office location. During the year ended December 31, 2024, Wayfair incurred $79 million of charges consisting primarily of one-time employee severance and benefit costs associated with the January 2024 workforce reduction. During the year ended December 31, 2023, Wayfair incurred $65 million of charges consisting primarily of one-time employee severance and benefit costs associated with the January 2023 workforce reductions.
(c)
During the year ended December 31, 2025, Wayfair recorded a $233 million loss on debt extinguishment upon repurchase of $210 million in aggregate principal amount of the 2027 notes, $101 million in aggregate principal amount of the 2028 Notes, $80 million in aggregate principal amount of the 2025 Notes and $696 million in aggregate principal amount of the 2026 Notes. During the year ended December 31, 2024, Wayfair recorded a $29 million gain on debt extinguishment upon repurchase of $518 million in aggregate principal amount of the 2025 Notes, $215 million in aggregate principal amount of the 2026 Notes and the remaining $39 million in aggregate principal amount of the 2025 Accreting Notes. During the year ended December 31, 2023, Wayfair recorded a $100 million gain on debt extinguishment upon repurchase of $83 million in aggregate principal amount of the 2024 Notes and $535 million in aggregate principal amount of the 2025 Notes.

The following table presents long-lived assets attributable to Wayfair's reportable segments reconciled to the consolidated amounts:
 December 31,
2025
December 31,
2024
(in millions)
Geographic long-lived assets:
U.S.$695 $789 
International273 279 
Total reportable segment long-lived assets968 1,068 
Plus: reconciling corporate long-lived assets410 460 
Total long-lived assets$1,378 $1,528 
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:
 December 31,
2025
December 31,
2024
(in millions)
Assets by segment:
U.S.$1,107 $1,245 
International319 328 
Total reportable segment assets1,426 1,573 
Plus: reconciling corporate assets2,014 1,886 
Total assets$3,440 $3,459 
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.
v3.25.4
Insider Trading Arrangements
3 Months Ended
Dec. 31, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.4
Insider Trading Policies and Procedures
12 Months Ended
Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
12 Months Ended
Dec. 31, 2025
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
We recognize the importance of assessing, identifying and managing material risks associated with cybersecurity threats, as our business depends on customers trusting that their shopping experience with us is both reliable and safe. We have integrated cybersecurity risk management into our broader risk management framework through various mechanisms, including (i) our regular enterprise risk management updates to the Audit Committee, (ii) our information technology and security related internal controls and (iii) our global incident response and vulnerability management programs.
We view cybersecurity as a shared responsibility across the company and this integration ensures that cybersecurity considerations are an integral part of our decision-making processes at every level. All employees are required to complete yearly security training, and we periodically perform tabletop exercises with management participation. Further, our cybersecurity, privacy, procurement, legal and other cross-functional teams work together to continuously evaluate and address cybersecurity risks in alignment with our business objectives and operational needs. We use various security tools and processes to help prevent,
identify, escalate, investigate, resolve and recover from identified vulnerabilities and security incidents in a timely manner, including, but not limited to, internal reporting, monitoring and detection tools and a vulnerability identification program.
Recognizing the complexity and evolving nature of cybersecurity threats, Wayfair engages with a range of experts, including external cybersecurity assessors and consultants and internal auditors in evaluating and testing our risk management systems. Working with these experts enables us to leverage specialized knowledge and insights, with a goal of ensuring our cybersecurity strategies and processes remain at the forefront of industry best practices. Our collaboration with these experts includes regular audits, threat assessments and consultation on security enhancements.
In order to mitigate data or security incidents that may originate from third party vendors or suppliers, we conduct both privacy and security assessments to properly identify, prioritize, assess and remediate any third party risks, and require security and privacy addenda to our contracts where applicable.
The nature of our business exposes us to cybersecurity threats and attacks that can lead to the unauthorized acquisition or access, compromise, loss, misuse or theft of our data, including personal information, confidential information or intellectual property. To date risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, have not materially affected the company, including our business strategy, results of operations or financial condition. See Part 1, Item 1A, Risk Factors, in this Annual Report on Form 10-K for a discussion of cybersecurity risks.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]
We recognize the importance of assessing, identifying and managing material risks associated with cybersecurity threats, as our business depends on customers trusting that their shopping experience with us is both reliable and safe. We have integrated cybersecurity risk management into our broader risk management framework through various mechanisms, including (i) our regular enterprise risk management updates to the Audit Committee, (ii) our information technology and security related internal controls and (iii) our global incident response and vulnerability management programs.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
Our Board is ultimately responsible for the risk oversight of the company, including, cybersecurity and privacy risks. Our Board has delegated responsibility for oversight of cybersecurity risks to the Audit Committee. The Audit Committee is composed of board members with diverse expertise including risk management, technology and finance, which we believe equips them to oversee cybersecurity risks effectively. Our Audit Committee is charged with reviewing and discussing our policies with respect to risk assessment and risk management, which includes overseeing our major financial, privacy, security, cybersecurity and technology risk exposures and the steps our management has taken to monitor and control these exposures. At the management level, our Head of Cybersecurity and cybersecurity teams are primarily responsible for identifying, assessing, monitoring and managing our cybersecurity. Our current Head of Cybersecurity has over 20 years of industry experience, including serving as an enterprise Chief Information Security Officer for many years and having extensive experience in developing and leading risk management programs. Additionally, our Head of Cybersecurity holds multiple industry standard security certifications, including CISSP (Certified Information Systems Security Professional) and CISM (Certified Information Security Manager).
The Audit Committee receives reports, briefings and presentations from senior management, including our Head of Cybersecurity, at periodic committee meetings, including, on a rotating basis, in-depth presentations on specific areas of risk and regular enterprise risk management updates.
In addition to our scheduled meetings, our Global Incident Response Plan ensures that significant developments or incidents, even if immaterial to us, are reviewed regularly by a cross-functional team to determine whether further escalation to the Audit Committee is appropriate, ensuring the committee's and the Board’s oversight is timely and responsive. Our Global Incident Response Plan also includes immediate actions to mitigate the impact and long-term strategies for remediation and prevention of future incidents.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] Our Board is ultimately responsible for the risk oversight of the company, including, cybersecurity and privacy risks. Our Board has delegated responsibility for oversight of cybersecurity risks to the Audit Committee.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block]
Our Board is ultimately responsible for the risk oversight of the company, including, cybersecurity and privacy risks. Our Board has delegated responsibility for oversight of cybersecurity risks to the Audit Committee. The Audit Committee is composed of board members with diverse expertise including risk management, technology and finance, which we believe equips them to oversee cybersecurity risks effectively. Our Audit Committee is charged with reviewing and discussing our policies with respect to risk assessment and risk management, which includes overseeing our major financial, privacy, security, cybersecurity and technology risk exposures and the steps our management has taken to monitor and control these exposures. At the management level, our Head of Cybersecurity and cybersecurity teams are primarily responsible for identifying, assessing, monitoring and managing our cybersecurity. Our current Head of Cybersecurity has over 20 years of industry experience, including serving as an enterprise Chief Information Security Officer for many years and having extensive experience in developing and leading risk management programs. Additionally, our Head of Cybersecurity holds multiple industry standard security certifications, including CISSP (Certified Information Systems Security Professional) and CISM (Certified Information Security Manager).
The Audit Committee receives reports, briefings and presentations from senior management, including our Head of Cybersecurity, at periodic committee meetings, including, on a rotating basis, in-depth presentations on specific areas of risk and regular enterprise risk management updates.
In addition to our scheduled meetings, our Global Incident Response Plan ensures that significant developments or incidents, even if immaterial to us, are reviewed regularly by a cross-functional team to determine whether further escalation to the Audit Committee is appropriate, ensuring the committee's and the Board’s oversight is timely and responsive. Our Global Incident Response Plan also includes immediate actions to mitigate the impact and long-term strategies for remediation and prevention of future incidents.
Cybersecurity Risk Role of Management [Text Block]
Our Board is ultimately responsible for the risk oversight of the company, including, cybersecurity and privacy risks. Our Board has delegated responsibility for oversight of cybersecurity risks to the Audit Committee. The Audit Committee is composed of board members with diverse expertise including risk management, technology and finance, which we believe equips them to oversee cybersecurity risks effectively. Our Audit Committee is charged with reviewing and discussing our policies with respect to risk assessment and risk management, which includes overseeing our major financial, privacy, security, cybersecurity and technology risk exposures and the steps our management has taken to monitor and control these exposures. At the management level, our Head of Cybersecurity and cybersecurity teams are primarily responsible for identifying, assessing, monitoring and managing our cybersecurity. Our current Head of Cybersecurity has over 20 years of industry experience, including serving as an enterprise Chief Information Security Officer for many years and having extensive experience in developing and leading risk management programs. Additionally, our Head of Cybersecurity holds multiple industry standard security certifications, including CISSP (Certified Information Systems Security Professional) and CISM (Certified Information Security Manager).
The Audit Committee receives reports, briefings and presentations from senior management, including our Head of Cybersecurity, at periodic committee meetings, including, on a rotating basis, in-depth presentations on specific areas of risk and regular enterprise risk management updates.
In addition to our scheduled meetings, our Global Incident Response Plan ensures that significant developments or incidents, even if immaterial to us, are reviewed regularly by a cross-functional team to determine whether further escalation to the Audit Committee is appropriate, ensuring the committee's and the Board’s oversight is timely and responsive. Our Global Incident Response Plan also includes immediate actions to mitigate the impact and long-term strategies for remediation and prevention of future incidents.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] At the management level, our Head of Cybersecurity and cybersecurity teams are primarily responsible for identifying, assessing, monitoring and managing our cybersecurity. Our current Head of Cybersecurity has over 20 years of industry experience, including serving as an enterprise Chief Information Security Officer for many years and having extensive experience in developing and leading risk management programs. Additionally, our Head of Cybersecurity holds multiple industry standard security certifications, including CISSP (Certified Information Systems Security Professional) and CISM (Certified Information Security Manager).
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] our Head of Cybersecurity and cybersecurity teams are primarily responsible for identifying, assessing, monitoring and managing our cybersecurity. Our current Head of Cybersecurity has over 20 years of industry experience, including serving as an enterprise Chief Information Security Officer for many years and having extensive experience in developing and leading risk management programs. Additionally, our Head of Cybersecurity holds multiple industry standard security certifications, including CISSP (Certified Information Systems Security Professional) and CISM (Certified Information Security Manager).
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]
Our Board is ultimately responsible for the risk oversight of the company, including, cybersecurity and privacy risks. Our Board has delegated responsibility for oversight of cybersecurity risks to the Audit Committee. The Audit Committee is composed of board members with diverse expertise including risk management, technology and finance, which we believe equips them to oversee cybersecurity risks effectively. Our Audit Committee is charged with reviewing and discussing our policies with respect to risk assessment and risk management, which includes overseeing our major financial, privacy, security, cybersecurity and technology risk exposures and the steps our management has taken to monitor and control these exposures. At the management level, our Head of Cybersecurity and cybersecurity teams are primarily responsible for identifying, assessing, monitoring and managing our cybersecurity. Our current Head of Cybersecurity has over 20 years of industry experience, including serving as an enterprise Chief Information Security Officer for many years and having extensive experience in developing and leading risk management programs. Additionally, our Head of Cybersecurity holds multiple industry standard security certifications, including CISSP (Certified Information Systems Security Professional) and CISM (Certified Information Security Manager).
The Audit Committee receives reports, briefings and presentations from senior management, including our Head of Cybersecurity, at periodic committee meetings, including, on a rotating basis, in-depth presentations on specific areas of risk and regular enterprise risk management updates.
In addition to our scheduled meetings, our Global Incident Response Plan ensures that significant developments or incidents, even if immaterial to us, are reviewed regularly by a cross-functional team to determine whether further escalation to the Audit Committee is appropriate, ensuring the committee's and the Board’s oversight is timely and responsive. Our Global Incident Response Plan also includes immediate actions to mitigate the impact and long-term strategies for remediation and prevention of future incidents.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Description of Business and Basis of Presentation
Description of Business and Basis of Presentation
Wayfair Inc. is the destination for all things home. Through its omni-channel strategy, Wayfair offers visually inspired browsing, compelling merchandising, easy product discovery and attractive prices for over 40 million products from approximately 20 thousand suppliers. These financial statements consolidate the operations and accounts of Wayfair Inc. and its wholly-owned subsidiaries. Unless the context indicates otherwise, “Wayfair,” “the Company,” or similar terms refer to Wayfair Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated.
Use of Estimates
Use of Estimates
The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as the disclosure of contingent assets and liabilities, at the date of and during the reported period of the consolidated financial statements. Actual results could differ from those estimates.
Cash, Cash Equivalents and Restricted Cash
Cash, Cash Equivalents and Restricted Cash
Wayfair considers all highly liquid investments purchased with an original maturity (at the date of purchase) of three months or less to be the equivalent of cash. Cash equivalents, which consist primarily of money market accounts and certificates of deposits with original maturities of three months or less, are carried at cost, which approximates fair value. Wayfair’s restricted cash is primarily restricted to funds held in collateral, which is recorded within prepaid expenses and other current assets on the consolidated balance sheets.
Investments
Investments
Wayfair classifies investments in certificates of deposits and marketable securities with original maturities of greater than three months as short-term investments on the consolidated balance sheets. Short-term investments mature in less than twelve months from the balance sheet date. The cost basis of an investment sold is determined using the specific identification method. Wayfair classifies its debt investments with readily determinable market values as available-for-sale. These investments are classified as investments on the consolidated balance sheets and are carried at fair market value, with unrealized gains and losses reported within accumulated other comprehensive income or loss, within total stockholders’ deficit.
From time to time, Wayfair may enter into equity investments that align with organizational strategies and growth initiatives. Equity investments in companies for which the Company does not have the ability to exercise significant influence are accounted for as equity securities. These are measured at fair value and classified as other non-current assets within the consolidated balance sheets with observable changes recorded within other income or expense, net on the consolidated statements of operations.
Equity Method Investments
Equity Method Investments
Wayfair accounts for investments using the equity method of accounting when the Company has the ability to exercise significant influence, but not controlling financial interest over an investee. The equity method investments are classified as other non-current assets within the consolidated balance sheets and the proportional share of income or loss is recorded within other income or expense, net on the consolidated statements of operations. Equity method investments are reviewed for indicators of impairment on a quarterly basis. An equity method investment is written down to the estimated fair value if there is evidence of a loss in value which is other-than-temporary.
Concentrations of Credit Risk
Concentrations of Credit Risk
Financial instruments that subject Wayfair to credit risk consist of cash, cash equivalents, restricted cash, short-term investments and accounts receivable. The risk for cash, cash equivalents and restricted cash is minimized by Wayfair's policy to maintain these balances with major financial institutions of high-credit quality. At times, cash balances may exceed federally insured limits; however, to date, Wayfair has not incurred any losses on these balances. As of December 31, 2025 and 2024, Wayfair had $67 million and $183 million, respectively, in bank deposits located outside of the United States (“U.S.”). The risk for short-term investments is minimized by Wayfair's policy of investing in financial instruments issued by highly-rated financial institutions.
Accounts Receivable, Net
Accounts Receivable, Net
Accounts receivable are stated net of the allowance for credit losses, which are recorded based on historical losses as well as management's expectation of future collections. Uncollectible amounts are written off against the allowance after all collection efforts have been exhausted. Wayfair's exposure to credit loss is minimized through customer risk assessments performed prior to customer checkout and Wayfair's policy of monitoring the creditworthiness of its customers to which it grants credit terms in the normal course of business. Further, management believes credit risk is mitigated since approximately 98.6% of the net revenue recognized for the year ended December 31, 2025 was collected in advance of recognition.
Inventories
Inventories
Inventories consisting of finished goods are stated at the lower of cost or net realizable value, determined by the first-in, first-out (“FIFO”) method, and consist of product for resale. Inventory costs consist of cost of product and inbound shipping and handling costs. Inventory costs also include direct and indirect labor costs, rent and depreciation expense associated with Wayfair's fulfillment centers. Inventory valuation requires Wayfair to make judgments, based on currently available information, about the likely method of disposition, such as through sales to individual customers, liquidations and expected recoverable values of each disposition category.
Deferred Costs In-Transit
Deferred Costs In-Transit
Deferred costs in-transit to customers are recorded in prepaid expenses and other current assets.
Property and Equipment, Net
Property and Equipment, Net
Property and equipment are stated at cost, net of depreciation. Expenditures for maintenance and repairs are charged to expense as incurred, whereas betterments are capitalized as additions to property and equipment. Depreciation on property and equipment is calculated on the straight-line method over the estimated useful lives of the assets as follows:
ClassRange of Life
(In Years)
Furniture and equipment
3 to 7
Site and software development costs
2
Leasehold improvementsThe lesser of useful life or lease term
Site and Software Development Costs
Site and Software Development Costs
Wayfair capitalizes certain costs associated with the development of its sites and internal-use software products after the preliminary project stage is complete and until the site enhancements or software is ready for its intended use. Upgrades and enhancements are capitalized if they will result in added functionality. Capitalized costs are amortized over a two-year period. Costs incurred in the preliminary stages of development, after the software is ready for its intended use and for maintenance of internal-use software are expensed as incurred.
Long-Lived Assets
Long-Lived Assets
Wayfair reviews long-lived assets for impairment whenever events or changes in circumstances, such as weakened macroeconomic conditions or brand awareness, service discontinuance or technological obsolescence, indicate that the carrying amount of the long-lived asset may not be recoverable. When such events occur, Wayfair compares the carrying amount of the asset to the undiscounted expected future cash flows related to the asset group. If the comparison indicates that the carrying value is not recoverable, the amount of the impairment is calculated as the difference between the excess of the carrying amount over the fair value of the asset. If a readily determinable market price does not exist, fair value is estimated using discounted expected cash flows attributable to the asset or market rate rent assumptions.
Leases
Leases
Wayfair generally leases office, retail and warehouse facilities under non-cancellable agreements. Upon each agreement's commencement date, Wayfair determines if the agreement is part of an arrangement that is or that contains a lease, the lease classification and recognizes the right-of-use (“ROU”) assets and lease liabilities for all leases with the exception of leases with terms of 12 months or less. Wayfair has arrangements with lease and non-lease components, and accounts for lease and non-lease components as a single lease component for corporate headquarters offices and field offices. All other lease arrangements for lease and non-lease components are accounted for separately. Operating lease ROU assets are classified in operating lease right-of-use assets within the consolidated balance sheets. Operating lease liabilities are classified as other current liabilities and operating lease liabilities based on when lease payments are due. As of December 31, 2025 and 2024 Wayfair did not have any material finance lease arrangements.
Lease liabilities and their corresponding ROU assets are recorded based on the present value of lease payments over the expected lease term at the lease commencement date. As the implicit rate is generally not readily determinable, Wayfair uses an estimated incremental borrowing rate (“IBR”) based on the information available at the commencement date of the respective lease to determine the present value of future payments. The determination of the IBR requires judgment and is primarily based on publicly available information for companies within the same industry and with similar credit profiles. Wayfair adjusts the rate for the impact of collateralization, the lease term and other specific terms included in each lease arrangement. The IBR is determined at lease commencement and is subsequently reassessed as necessary upon a modification to the lease arrangement. The ROU asset also includes any lease payments made prior to the commencement date and excludes lease incentives and initial direct costs incurred.
Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Lease terms may include options to extend or terminate the lease when it is reasonably certain that Wayfair will exercise that option.
Contingent Liabilities
Contingent Liabilities
Certain contingent liabilities that arise in the ordinary course of business activities are accrued for as loss contingencies when losses become probable and are reasonably estimable. If the reasonable estimate of the loss is a range and no amount within the range is a better estimate, the minimum amount of the range is recorded as a liability. After applying judgment, Wayfair does not accrue for contingent losses that are considered to be reasonably possible, but not probable; however, the range of such reasonably possible losses is disclosed.
Foreign Currency Translation
Foreign Currency Translation
These financial statements are consolidated and presented in the U.S. dollar. Subsidiaries with non-U.S. dollar functional currencies are translated to the U.S. dollar using year-end exchange rates for assets and liabilities and average exchange rates for revenue and expenses. Capital accounts are translated at their historical exchange rates when the capital transaction occurred. Translation adjustments arising from the use of differing exchange rates from period to period are included in other comprehensive income or loss below net income or loss and accumulated other comprehensive income or loss within total stockholders’ deficit. Transaction gains and losses are included in other income or expense, net, which is reflected in net income or loss.
Revenue Recognition
Revenue Recognition
Wayfair generates net revenue primarily through product sales on its family of sites.
Wayfair recognizes net revenue on product sales through Wayfair's family of sites using the gross method when Wayfair has concluded it controls the product before it is transferred to the customer. Wayfair controls products when it is the entity responsible for fulfilling the promise to the customer and takes responsibility for the acceptability of the goods, assumes inventory risk from shipment through the delivery date, has discretion in establishing prices and selects the suppliers of products sold. Wayfair recognizes net revenue from sales of its products upon delivery to the customer. As Wayfair ships a large volume of packages through multiple carriers, actual delivery dates may not always be available; in those cases, we estimate delivery dates using historical data.
Net revenue from product sales includes shipping costs charged to the customer and is recorded net of taxes collected from customers, which are recorded in other current liabilities and are remitted to governmental authorities. Cash discounts and rebates earned by customers at the time of purchase and estimates for sales return allowances are recorded as a deduction to net revenue. Allowances for sales returns are estimated and recorded based on prior returns history, recent trends and projections for returns on sales in the current period. These estimates are based on historical rates of customer returns and allowances as well as the specific identification of outstanding returns that have not yet been received by Wayfair.
Wayfair maintains a membership rewards program: Wayfair Rewards. As part of this program, Wayfair provides customers with benefits for purchases made using its credit card program. In exchange for providing intellectual property as part of its credit card program, Wayfair records net revenue based on spending activity and the profitability of the card portfolio. Spending activity of the underlying accounts represents customer purchases used with their respective cards, and the profitability of the card portfolio is based on the financial performance of the underlying credit portfolio.
Net revenue from contracts with customers is disaggregated by geographic region because this manner of disaggregation best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Refer to Note 13, Segment and Geographic Information, for additional detail.
Wayfair primarily has three types of contractual liabilities: (i) cash collections from its customers prior to delivery of products purchased, which are initially recorded in unearned revenue within other current liabilities, and are recognized as net revenue when the products are delivered, (ii) unredeemed gift cards and site credits, which are initially recorded in unearned revenue within other current liabilities, and are recognized in the period when they are redeemed, and (iii) membership rewards redeemable for future purchases, which are earned by customers on purchases made through Wayfair’s credit card program and are initially recorded in other current liabilities, and recognized as net revenue when redeemed. The portion of gift cards and store credits not expected to be redeemed are recognized as net revenue based on a pattern of historical redemptions, which are substantially within twenty-four months from the date of issuance.
Cost of Goods Sold
Cost of Goods Sold
Costs of goods sold consists of:
Product Costs: Wayfair capitalizes into inventory the price paid to suppliers for products purchased by Wayfair, direct and indirect labor costs, rent, depreciation and inbound shipping and handling costs. Product costs are offset by rebates Wayfair earns through allowances and supplier incentive programs. Wayfair earns rebates when goods are shipped, and amounts earned and due from suppliers under these rebate programs are included in other current assets and are reflected as a reduction of cost of goods sold. Wayfair receives vendor allowances or discounts from certain vendors. These vendor allowances reduce the carrying cost of the inventory and related cost of goods sold when the inventory is sold. Product costs are also offset by media and merchandising offerings provided to suppliers, which are not considered distinct from the purchase of goods from those suppliers.
Shipping and Fulfillment Costs: Shipping costs include outbound shipping costs, including associated applicable customs duties. Fulfillment costs include costs incurred to operate and staff the fulfillment centers and provide other inbound supply chain services such as ocean freight and drayage. Costs to operate and staff CastleGate and the Wayfair Delivery Network (“WDN”) include rent and depreciation expenses associated with various facilities, costs to receive, inspect, pick, package and prepare customer orders for delivery, and direct and indirect labor costs including compensation, compensation-related benefits and equity-based compensation. Shipping and fulfillment costs are partially offset by fees earned by providing logistic services to suppliers including order fulfillment, warehousing and inbound supply chain services such as ocean freight and drayage through Wayfair's CastleGate business. Fulfillment fees are earned upon completion of preparing customer orders for shipment, warehousing fees are earned upon completion of each storage date and inbound supply chain services are earned on a straight-line basis as the shipments move from origin to destination. Shipping and fulfillment costs were $2.0 billion, $1.9 billion and $1.9 billion, for the years ended December 31, 2025, 2024 and 2023.
Customer Service and Merchant Fees
Customer Service and Merchant Fees
Customer service and merchant fees consist of labor-related costs, including compensation, compensation-related benefits and equity-based compensation of employees involved in customer service activities, merchant processing fees associated with customer payments made by credit cards and debit cards and other variable fees. Merchant processing fees totaled $280 million, $254 million and $256 million in the years ended December 31, 2025, 2024 and 2023.
Advertising
Advertising
Advertising consists of direct response performance marketing costs, such as display advertising, paid search advertising, social media advertising, search engine optimization, comparison shopping engine advertising, television advertising, text messages, direct mail, catalog and print advertising. Costs for advertising are expensed as incurred. Prepayments for advertising that has not been incurred are included in prepaid expenses and other current assets, and advertising costs that have been incurred but not paid are included in other current liabilities.
Selling, Operations, Technology, General and Administrative
Selling, Operations, Technology, General and Administrative
Selling, operations, technology, general and administrative expenses primarily include labor-related costs, including equity-based compensation, of the operations group, which includes the supply chain and logistics team, the technology team that builds and supports sites, category managers, buyers, site merchandisers, merchants, marketers and the team who executes the advertising strategy and the corporate general and administrative team, which includes human resources, finance, legal and accounting personnel. Also included are administrative and professional service fees which include audit and legal fees, insurance, depreciation, rent and other corporate expenses.
Share-Based Payment Arrangement
Equity-Based Compensation
Wayfair recognizes its equity-based payments to employees and non-employees as gross expense over the service period based on their grant date fair values with actual forfeitures recognized as they occur. Wayfair has restricted common stock, restricted stock units and performance stock units with market-based conditions. Restricted stock values are determined based on the quoted market price of Wayfair’s Class A common stock on the date of grant. The Company recognizes stock-based compensation expense for awards with market conditions over the derived service period of the awards. The estimated fair value and derived service period for the awards with market conditions are calculated using a Monte Carlo simulation. Assumptions used in valuing awards with market conditions include expected volatility.
Income Tax
Income Tax
Income taxes are accounted for under the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases.
Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Wayfair records valuation allowances to reduce deferred income tax assets to the amount that is more likely than not to be realized.
Wayfair determines whether it is more likely than not that a tax position will be sustained upon examination. If it is not more likely than not that a position will be sustained, no amount of benefit attributable to the position is recognized. The tax benefit to be recognized of any tax position that meets the more likely than not recognition threshold is calculated as the largest amount that is more than 50% likely of being realized upon resolution of the contingency.
Wayfair evaluates at the end of each reporting period whether some or all of the undistributed earnings of foreign subsidiaries are permanently reinvested. The position is based upon several factors including management's evaluation of Wayfair and its subsidiaries' financial requirements, the short- and long-term operational and fiscal objectives of Wayfair and the tax consequences associated with the repatriation of earnings.
On July 4, 2025, the One Big Beautiful Bill Act was signed into law in the U.S., which contains a broad range of tax reform provisions affecting businesses. The impacts are not material to operating results for the year ended December 31, 2025.
Earnings or Loss per Share
Earnings or Loss per Share
Wayfair follows the two-class method when computing earnings or loss per share for its two issued classes of common stock - Class A and Class B. Basic earnings or loss per share is computed using the weighted-average number of shares of common stock outstanding during the period. Diluted earnings or loss per share is computed using the weighted-average number of shares of common stock outstanding during the period plus, if dilutive, common stock equivalents outstanding during the period and stock issuable upon conversion of the convertible debt instruments. Wayfair's common stock equivalents consist of shares issuable upon the release of restricted stock units and performance stock units. The dilutive effect of these common stock equivalents is reflected in diluted earnings or loss per share by application of the treasury stock method. The dilutive effect of shares issuable upon conversion of the convertible debt instruments are included in the calculation of diluted earnings or loss per share under the if-converted method.
For periods in which Wayfair has reported net losses, diluted loss per share is the same as basic loss per share, as the effects of common stock equivalents outstanding and shares issuable upon conversion of convertible debt instruments are antidilutive and therefore excluded from the calculation of diluted loss per share.
Wayfair allocates undistributed earnings between the classes on a one-to-one basis when computing earnings or loss per share. As a result, basic and diluted earnings or loss per share per Class A and Class B shares are equivalent.
Adoption of New Accounting Principles
Adoption of New Accounting Principles
Income Taxes
Wayfair adopted ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, on January 1, 2025 prospectively. The amendment improves income tax disclosure requirements by requiring public entities, on an annual basis, to provide disclosure of defined categories in the income tax rate reconciliation, as well as disclosure of income taxes paid, disaggregated by jurisdiction. The adoption only impacted the Company’s disclosures, prospectively, but did not have an impact on the Company’s results of operations, financial condition, or cash flows. Refer to Note 11, Income Taxes, for additional information.
Disaggregation of Income Statement Expenses
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires disclosure of specific expense categories in the notes to the financial statements. The amendment is effective for annual periods beginning after December 15, 2026, with early adoption permitted. The amendment should be applied prospectively to financial statements issued for reporting periods after the effective date of this ASU or retrospectively to any or all prior periods presented in the financial statements. Wayfair is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements and related disclosures.
Induced Conversions of Convertible Debt Instruments
In November 2024, the FASB issued ASU 2024-04, Debt - Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments, which clarifies the assessment of whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. The amendment is effective for annual periods beginning after December 15, 2025, with early adoption permitted. The amendment can be applied either on a prospective or retrospective basis. Wayfair is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements and related disclosures.
Targeted Improvements to the Accounting for Internal-Use Software
In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which clarifies and modernizes the accounting for costs related to internal-use software, and clarifies the threshold entities apply to begin capitalizing costs. The amendment is effective for annual periods beginning after December 15, 2027, and interim periods within those fiscal years. The amendment can be applied on a fully prospective basis, a modified basis for in-process projects, or on a retrospective basis. Wayfair is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements and related disclosures.
Narrow-Scope Improvements to Interim Reporting
In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements. This ASU amends Topic 270, by improving the navigability of the required interim disclosures and clarifying when that guidance is applicable. The amendments also provide additional guidance on what disclosures should be provided in interim reporting periods. Additionally, the amendment requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. ASU 2025-11 is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the disclosure requirements of this standard and the impact on its consolidated financial statements.
v3.25.4
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Schedule of Property and Equipment, net Depreciation on property and equipment is calculated on the straight-line method over the estimated useful lives of the assets as follows:
ClassRange of Life
(In Years)
Furniture and equipment
3 to 7
Site and software development costs
2
Leasehold improvementsThe lesser of useful life or lease term
The following table summarizes property and equipment, net as of December 31, 2025 and 2024:
 December 31,
 20252024
(in millions)
Furniture and equipment$611 $654 
Site and software development costs964 1,000 
Leasehold improvements671 644 
Construction in progress34 
2,280 2,303 
Less: Accumulated depreciation and amortization(1,764)(1,700)
Property and equipment, net$516 $603 
v3.25.4
Supplemental Financial Statement Disclosures (Tables)
12 Months Ended
Dec. 31, 2025
Balance Sheet Components Disclosure [Abstract]  
Schedule of Components of Prepaid Expenses and Other Current Assets
The following table presents the components of prepaid expenses and other current assets as of December 31, 2025 and 2024:
 December 31,
20252024
(in millions)
Prepaid expenses and other current assets:
Deferred costs in transit$36 $32 
Prepaid expenses66 66 
Supplier receivables and credits receivable108 131 
Restricted cash— 
Other current assets46 41 
Total prepaid expenses and other current assets$256 $274 
Schedule of Components of Other Noncurrent Assets
The following table presents the components of other non-current assets as of December 31, 2025 and 2024:
December 31,
20252024
(in millions)
Other non-current assets:
Goodwill and intangible assets, net$11 $13 
Long-term investments20 15 
Other non-current assets30 26 
Total other non-current assets$61 $54 
Schedule of Components of Other Current Liabilities
The following table presents the components of other current liabilities as of December 31, 2025 and 2024:
December 31,
20252024
(in millions)
Other current liabilities:
Unearned revenue$265 $212 
Employee compensation and related benefits51 79 
Current operating lease liabilities (Note 5)
190 174 
Advertising84 100 
Sales tax payable75 70 
Sales return allowance45 49 
Short-term debt (Note 6)39 236 
Other accrued expenses and current liabilities178 204 
Total other current liabilities$927 $1,124 
v3.25.4
Cash, Cash Equivalents and Restricted Cash, Investments and Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Schedule of Marketable Securities
The following table presents details of Wayfair’s investment securities as of December 31, 2025 and December 31, 2024:
 December 31, 2025
 Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
(in millions)
Short-term:    
Investment securities$66 $— $— $66 
Total$66 $— $— $66 
 December 31, 2024
 Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
(in millions)
Short-term:    
Investment securities$56 $— $— $56 
Total$56 $— $— $56 
Schedule of the Fair Value of the Company's Financial Assets Measured at Fair Value on a Recurring Basis Based on the Three-tier Value Hierarchy
The following tables set forth the fair value of Wayfair's financial assets measured at fair value on a recurring basis as of December 31, 2025 and December 31, 2024:
 December 31, 2025
 Level 1Level 2Level 3Total
(in millions)
Cash and cash equivalents:   
Cash$617 $— $— $617 
Cash equivalents859 — — 859 
Total cash and cash equivalents(1)
1,476 — — 1,476 
Short-term investments:   
Investment securities— 66 — 66 
Total$1,476 $66 $— $1,542 
(1)Cash and cash equivalents are included in the tables above; however, they are not measured at fair value on a recurring basis, and their carrying amounts approximate fair value.
 December 31, 2024
 Level 1Level 2Level 3Total
(in millions)
Cash and cash equivalents:   
Cash$461 $— $— $461 
Cash equivalents855 — — 855 
Total cash and cash equivalents1,316 — — 1,316 
Short-term investments:
Investment securities— 56 — 56 
Prepaid expenses and other current assets:
Certificate of deposit (1)
— — 
Total$1,320 $56 $— $1,376 
(1) The certificate of deposit is classified as restricted cash that is primarily restricted to funds held in collateral.
v3.25.4
Property and Equipment, net (Tables)
12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment, net Depreciation on property and equipment is calculated on the straight-line method over the estimated useful lives of the assets as follows:
ClassRange of Life
(In Years)
Furniture and equipment
3 to 7
Site and software development costs
2
Leasehold improvementsThe lesser of useful life or lease term
The following table summarizes property and equipment, net as of December 31, 2025 and 2024:
 December 31,
 20252024
(in millions)
Furniture and equipment$611 $654 
Site and software development costs964 1,000 
Leasehold improvements671 644 
Construction in progress34 
2,280 2,303 
Less: Accumulated depreciation and amortization(1,764)(1,700)
Property and equipment, net$516 $603 
v3.25.4
Leases (Tables)
12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Schedule of Other Information Related to Leases
The following table presents other information related to leases:
Year Ended December 31,
202520242023
(in millions)
Supplemental cash flow information:
Cash payments included in operating cash flows from lease arrangements$235 $236 $195 
Right-of-use assets obtained in exchange for lease obligations$97 $290 $100 
Right-of-use asset amortization$156 $140 $130 
Year Ended December 31,
December 31, 2025December 31, 2024
Additional lease information:
Weighted average remaining lease term7 years7 years
Weighted average discount rate7.96 %7.01 %
Schedule of Future Minimum Lease Payments
Future minimum lease payments under non-cancellable leases as of December 31, 2025 were as follows:
 Amount
(in millions)
2026$226 
2027241 
2028190 
2029142 
2030115 
Thereafter477 
Total future minimum lease payments 1,391 
Less: Imputed interest(366)
Total$1,025 
Schedule of Operating Leases, Balance Sheet Items
The following table presents total operating leases liabilities:
December 31,
20252024
(in millions)
Balance sheet line item:
Other current liabilities$190 $174 
Operating lease liabilities, net of current 835 929 
Total operating leases liabilities$1,025 $1,103 
v3.25.4
Debt and Other Financing (Tables)
12 Months Ended
Dec. 31, 2025
Debt Disclosure [Abstract]  
Schedule of Outstanding Principal and Carrying Value
The following table presents the outstanding principal amount and carrying value of debt and other financing:
December 31, 2025December 31, 2024
Debt InstrumentPrincipal AmountUnamortized Debt DiscountNet Carrying AmountPrincipal AmountUnamortized Debt DiscountNet Carrying Amount
(in millions)
Revolving Credit Facility$— $— 
2025 Notes— — — 237 (1)236 
2026 Notes39 — 39 734 (3)731 
2027 Notes480 (3)477 690 (7)683 
2028 Notes589 (6)583 690 (9)681 
2029 Secured Notes800 (11)789 800 (13)787 
2030 Secured Notes700 (8)692 — — — 
2032 Secured Notes700 (8)692 — — — 
Total Debt$3,272 $3,118 
Short-term debt (1)
39 236 
Long-term debt$3,233 $2,882 

(1) Short-term debt consists of $39 million for the 2026 Notes as of December 31, 2025, and $236 million for the 2025 Notes as of December 31, 2024. Short-term debt and is presented within other current liabilities in the consolidated balance sheets.
Schedule of Convertible Notes
The following table summarizes certain terms related to the Company’s current outstanding senior secured notes (collectively, the “Senior Secured Notes,” together with the “Convertible Notes” (as defined below), the “Notes”):
Senior Secured NotesMaturity DateAnnual Coupon RateAnnual Effective Interest RatePayment Dates for Semi-Annual Interest Payments in Arrears
2029 Secured NotesOctober 31, 20297.250%7.5%April 15 and October 15
2030 Secured NotesSeptember 15, 20307.750%7.9%March 15 and September 15
2032 Secured NotesNovember 15, 20326.750%6.8%May 15 and November 15
The following table summarizes certain terms related to the Company’s current outstanding convertible notes (collectively, the “Convertible Notes”:
Convertible NotesMaturity DateAnnual Coupon RateAnnual Effective Interest RatePayment Dates for Semi-Annual Interest Payments in Arrears
2026 NotesAugust 15, 20261.000%1.2%February 15 and August 15
2027 NotesSeptember 15, 20273.250%3.6%March 15 and September 15
2028 NotesNovember 15, 20283.500%3.8%May 15 and November 15
Wayfair's Convertible Notes will mature at their maturity date unless earlier purchased, redeemed or converted. The Convertible Notes’ initial conversion terms are summarized below:
Convertible NotesMaturity DateFree Convertibility DateInitial Conversion Rate per $1,000 PrincipalInitial Conversion PriceRedemption Date
2026 NotesAugust 15, 2026May 15, 20266.7349$148.48August 20, 2023
2027 NotesSeptember 15, 2027June 15, 202715.7597$63.45September 20, 2025
2028 NotesNovember 15, 2028August 15, 202821.8341 $45.80May 20, 2026
Schedule of Debt Instruments Interest Expense
The following table presents total interest expense recognized for the Notes for the years ended December 31:
Year ended December 31,
202520242023
The NotesContractual Interest ExpenseDebt Discount AmortizationTotal Interest ExpenseContractual Interest ExpenseDebt Discount AmortizationTotal Interest ExpenseContractual Interest ExpenseDebt Discount AmortizationTotal Interest Expense
(in millions)
2024 Notes— — — — 
2025 Notes— 
2026 Notes— 11 11 
2027 Notes22 25 22 24 22 24 
2028 Notes23 25 24 27 15 16 
2029 Secured Notes58 61 13 — 13 — — — 
2030 Secured Notes43 44 — — — — — — 
2032 Secured Notes— — — — — — — 
2025 Accreting Notes— — — — — 
Total$156 $$165 $74 $$83 $55 $$63 
Schedule of Initial Terms for Capped Calls
The initial terms for the Capped Calls are presented below:
Capped CallsMaturity DateInitial Cap PriceCap Price Premium
2027 Capped CallsSeptember 15, 2027$97.62100%
2028 Capped CallsNovember 15, 2028$73.28100%
v3.25.4
Equity-Based Compensation (Tables)
12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Schedule of Activity Relating to Restricted Stock Units
The following table presents activity relating to RSUs for the year ended December 31, 2025:
 SharesWeighted-Average
Grant Date
Fair Value
Unvested at December 31, 2024
2,455,486 $72.11 
RSUs granted5,181,341 $56.93 
RSUs vested (1)
(6,494,439)$56.77 
RSUs forfeited/canceled(322,743)$79.84 
Unvested at December 31, 2025
819,645 $94.73 
(1) The amount of RSUs vested includes shares withheld by Wayfair to cover taxes.
The following table summarizes activity for the years ended December 31, 2025, 2024 and 2023:
Year Ended December 31,
202520242023
Weighted average grant date fair value of RSUs$56.93 $54.18 $50.39 
Total fair value of vested RSUs (in millions)$369 $505 $636 
Intrinsic value of RSUs vested (in millions)$333 $406 $532 
Schedule of Share-Based Payment Arrangement, Performance Shares, Activity
The following table summarizes activity for the twelve months ended December 31, 2025:
 SharesWeighted-Average
Grant Date
Fair Value
Unvested at December 31, 2024
— $— 
PSUs granted5,000,000 56.11 
PSUs vested— — 
PSUs forfeited/cancelled— — 
Unvested at December 31, 2025
5,000,000 $56.11 
Schedule of Equity-Based Compensation
Equity-based compensation was classified as follows in the consolidated statements of operations for the years ended December 31:
 Year Ended December 31,
 202520242023
(in millions)
Cost of goods sold$$$10 
Customer service and merchant fees14 18 29 
Selling, operations, technology, general and administrative313 368 566 
Total equity-based compensation expense$335 $395 $605 
v3.25.4
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Components of Provision for Income Taxes, Net
The components of the provision for income taxes, net for the years ended December 31, 2025, 2024 and 2023 are presented below:
Year Ended December 31,
202520242023
(in millions)
Current:
Federal$— $— $— 
State
Foreign
Deferred:
Federal(1)— — 
State— — — 
Foreign(1)— 
Provision for income taxes, net$$10 $
Schedule of Provision for Income Taxes, Net
As previously disclosed for the years ended December 31, 2024 and 2023, prior to the adoption of ASU 2023-09, the actual provision for income taxes, net differs from the expected provision for income taxes computed at the U.S. Federal statutory tax rate of 21% due to the following:
 Year Ended December 31,
 20242023
(in millions)
Provision for income taxes at the federal statutory rate$(101)$(153)
State income tax expense, net of federal impact
Foreign tax rate differential13 17 
Intercompany debt adjustment(242)— 
Uncertain tax positions, net191 — 
Non-deductible equity-based compensation expense10 
Shortfall expense from equity-based compensation15 17 
Change in valuation allowance105 103 
Limitation on officer's compensation
Intangible property basis step-up(7)— 
Intercompany interest
15 15 
Other10 (8)
Provision for income taxes, net$10 $
The following table is a reconciliation of the U.S. federal statutory rate of 21% to Company’s effective rate of the year ended December 31, 2025 in accordance with the guidance in ASU 2023-09:
 Year Ended December 31,
 2025
(in millions, except percentages)
Loss before income taxes$(304)
  Federal statutory tax rate(64)21.0 %
  State and local income taxes, net of federal(national) income tax effect(a)
5(1.7)%
  Foreign tax effects
  Canada
  Valuation allowance(2.6)%
  Other(2)0.7 %
  Total other foreign(4)1.3 %
  Changes in valuation allowances54(17.8)%
  Nontaxable or nondeductible items
  Loss on debt extinguishment
45(14.8)%
  Limitation on officer’s compensation
5(1.6)%
  Other3(1.0)%
  Other adjustments
 Shortfall expense from equity-based compensation
10 (3.3)%
  Interest expense(49)16.1 %
  Other
(2)0.7 %
  Provision for income taxes, net9(3.0)%
(a)State taxes in California and Texas made up the majority of the tax effect in this category
Schedule of Components of Income Tax Expense (Benefit) Determined by Tax Jurisdiction
The components of loss before income taxes determined by tax jurisdiction, are as follows:
 Year Ended December 31,
 202520242023
(in millions)
U.S.$(313)$(245)$(495)
Foreign(237)(234)
Total$(304)$(482)$(729)
Schedule of Tax Effects of Temporary Differences that Give Rise to Significant Portions of Deferred Tax Assets and Liabilities
The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities for the periods presented are as follows:
 December 31,
 20252024
(in millions)
Deferred tax assets:  
Net operating loss carryforwards$911 $809 
Equity-based compensation expense
Intangible property61 60 
Accrued expenses and reserves25 21 
Capitalized technology45 96 
Leases261 283 
Interest expense86 — 
Other43 55 
Gross deferred tax assets1,439 1,331 
Less: Valuation allowance(1,176)(1,042)
Net deferred tax assets263 289 
Deferred tax liabilities:  
Prepaid expenses$(12)$(13)
Property and equipment(27)(42)
Operating lease right-of-use asset(215)(234)
Other(12)(5)
Total deferred tax liabilities(266)(294)
Non-current net deferred tax liabilities$(3)$(5)
Schedule of Unrecognized Tax Benefits Roll Forward A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits (excluding interest and penalties) is as follows:
 Year Ended December 31,
 202520242023
(in millions)
Beginning balance$306 $— $— 
Increases as a result of tax positions taken in the current period— 306 — 
Ending balance$306 $306 $— 
v3.25.4
Loss per Share (Tables)
12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Schedule of Calculation of Basic and Diluted Loss per Share
The following table presents the calculation of basic and diluted loss per share:
 Year Ended December 31,
 202520242023
(in millions, except per share data)
Numerator:
Numerator for basic and diluted loss per share - net loss
$(313)$(492)$(738)
Denominator:
Denominator for basic and diluted loss per share - weighted-average number of shares of common stock outstanding
128 123 114 
Loss per share   
Basic$(2.44)$(4.01)$(6.47)
Diluted$(2.44)$(4.01)$(6.47)
Schedule of Antidilutive Securities Excluded from Computation of Loss Per Share
The potential common shares from anti-dilutive securities excluded from the weighted-average shares of common stock used to calculate diluted loss per share were as follows:
Year Ended December 31,
202520242023
(in millions)
Unvested restricted stock units
Unvested performance stock units— 
Shares related to convertible debt instruments21 31 36 
Total27 33 41 
v3.25.4
Segment and Geographic Information (Tables)
12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Schedule of Activity Related to Net Revenue and Adjusted EBITDA by Segment
The following tables present net revenue, significant segment expenses and Adjusted EBITDA attributable to Wayfair’s reportable segments for the periods presented:
 Year Ended December 31,
 202520242023
(in millions)
U.S.InternationalTotalU.S.InternationalTotalU.S.InternationalTotal
Net revenue$10,973$1,484 $12,457$10,373$1,478 $11,851$10,482 $1,521 $12,003 
Less:
Cost of goods sold (1)
7,5581,079 8,6377,1221,095 8,2177,146 1,129 8,275 
Advertising1,254171 1,4251,292180 1,472 1,234 163 1,397 
Other segment items (2)
1,399253 1,6521,388321 1,709 1,658 367 2,025 
Adjusted EBITDA$762$(19)$743$571$(118)$453$444 $(138)$306 
Less: reconciling items (3)
1,056 945 $1,044 
Net loss$(313)$(492)$(738)
(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:
Year Ended December 31,
202520242023
(in millions)
Depreciation and amortization$305 $387 $417 
Equity-based compensation and related taxes345 411 623 
Interest expense, net119 29 17 
Other (income) expense, net(31)21 (1)
Provision for income taxes, net10 
Other:
Impairment and other related net charges (a)
233714 
Restructuring and other charges, net (b)
53 79 65 
Loss (gain) on debt extinguishment, net (c)
233 (29)(100)
Total reconciling items$1,056 $945 $1,044 
(a)
During the year ended December 31, 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 German operations and $3 million associated with changes in sublease market conditions for a technology center in the U.S. During the year ended December 31, 2024, Wayfair recorded net charges of $37 million, inclusive of $34 million associated with weakened macroeconomic conditions in connection with our German operations, $2 million related to changes in sublease market conditions and $1 million related to construction in progress assets at identified U.S. locations. During the year ended December 31, 2023, Wayfair recorded net charges of $14 million, inclusive of $5 million related to consolidation of certain customer service centers and $9 million related to construction in progress assets at identified U.S. locations.
(b)
During the year ended December 31, 2025, Wayfair incurred $53 million of charges consisting primarily of one-time employee severance, benefits, relocation and transition costs. This is inclusive of $48 million related to the Germany Restructuring and $20 million related to the March 2025 workforce reduction. Additionally, Wayfair recorded a gain on lease modification of $15 million, related primarily to the early exit of a portion of our corporate office location. During the year ended December 31, 2024, Wayfair incurred $79 million of charges consisting primarily of one-time employee severance and benefit costs associated with the January 2024 workforce reduction. During the year ended December 31, 2023, Wayfair incurred $65 million of charges consisting primarily of one-time employee severance and benefit costs associated with the January 2023 workforce reductions.
(c)
During the year ended December 31, 2025, Wayfair recorded a $233 million loss on debt extinguishment upon repurchase of $210 million in aggregate principal amount of the 2027 notes, $101 million in aggregate principal amount of the 2028 Notes, $80 million in aggregate principal amount of the 2025 Notes and $696 million in aggregate principal amount of the 2026 Notes. During the year ended December 31, 2024, Wayfair recorded a $29 million gain on debt extinguishment upon repurchase of $518 million in aggregate principal amount of the 2025 Notes, $215 million in aggregate principal amount of the 2026 Notes and the remaining $39 million in aggregate principal amount of the 2025 Accreting Notes. During the year ended December 31, 2023, Wayfair recorded a $100 million gain on debt extinguishment upon repurchase of $83 million in aggregate principal amount of the 2024 Notes and $535 million in aggregate principal amount of the 2025 Notes.

Schedule of Long-Lived Assets by Geographic Areas
The following table presents long-lived assets attributable to Wayfair's reportable segments reconciled to the consolidated amounts:
 December 31,
2025
December 31,
2024
(in millions)
Geographic long-lived assets:
U.S.$695 $789 
International273 279 
Total reportable segment long-lived assets968 1,068 
Plus: reconciling corporate long-lived assets410 460 
Total long-lived assets$1,378 $1,528 
Schedule of Reconciliation of Assets from Segment to Consolidated
The following table presents total assets attributable to Wayfair's reportable segments reconciled to consolidated amounts:
 December 31,
2025
December 31,
2024
(in millions)
Assets by segment:
U.S.$1,107 $1,245 
International319 328 
Total reportable segment assets1,426 1,573 
Plus: reconciling corporate assets2,014 1,886 
Total assets$3,440 $3,459 
v3.25.4
Summary of Significant Accounting Policies - Narrative (Details)
supplier in Thousands, product in Millions
12 Months Ended
Dec. 31, 2025
USD ($)
supplier
product
class
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Property, Plant and Equipment [Line Items]      
Number of products offered (over) | product 40    
Number of suppliers providing products offered (over) | supplier 20    
Cash and cash equivalents and short-term investments held in banks located outside the U.S. $ 67,000,000 $ 183,000,000  
Collection in advance of recognition (in percent) 98.60%    
Finance lease arrangements $ 0 0  
Cost of goods sold 8,692,000,000 8,277,000,000 $ 8,336,000,000
Merchant processing fees $ 280,000,000 254,000,000 256,000,000
Number of classes of common stock | class 2    
Shipping and Fulfillment      
Property, Plant and Equipment [Line Items]      
Cost of goods sold $ 2,000,000,000.0 $ 1,900,000,000 $ 1,900,000,000
Site and software development costs      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, useful life 2 years    
v3.25.4
Summary of Significant Accounting Policies - Schedule of Property and Equipment, net (Details)
Dec. 31, 2025
Furniture and equipment | Minimum  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, useful life 3 years
Furniture and equipment | Maximum  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, useful life 7 years
Site and software development costs  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, useful life 2 years
v3.25.4
Supplemental Financial Statement Disclosures - Accounts Receivable, Net (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Balance Sheet Components Disclosure [Abstract]    
Accounts receivable, net $ 132 $ 155
Accounts receivable allowance 27 $ 18
Allowance for credit losses $ 0  
Collection in advance of recognition (in percent) 98.60%  
v3.25.4
Supplemental Financial Statement Disclosures - Schedule of Components of Prepaid Expenses and Other Current Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Prepaid expenses and other current assets:    
Deferred costs in transit $ 36 $ 32
Prepaid expenses 66 66
Supplier receivables and credits receivable 108 131
Restricted cash 0 4
Other current assets 46 41
Total prepaid expenses and other current assets $ 256 $ 274
v3.25.4
Supplemental Financial Statement Disclosures - Schedule of Components of Other Noncurrent Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Other non-current assets:    
Goodwill and intangible assets, net $ 11 $ 13
Long-term investments 20 15
Other non-current assets 30 26
Total other non-current assets $ 61 $ 54
v3.25.4
Supplemental Financial Statement Disclosures - Other Noncurrent Assets - Narrative (Details) - USD ($)
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Balance Sheet Components Disclosure [Abstract]      
Amortization expense related to intangible assets $ 1,000,000 $ 1,000,000 $ 1,000,000
Goodwill 400,000 400,000  
Impairment of goodwill or intangible assets $ 0 $ 0 $ 0
v3.25.4
Supplemental Financial Statement Disclosures - Schedule of Components of Other Current Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Other current liabilities:    
Unearned revenue $ 265 $ 212
Employee compensation and related benefits 51 79
Current operating lease liabilities (Note 5) 190 174
Advertising 84 100
Sales tax payable 75 70
Sales return allowance 45 49
Short-term debt (Note 6) 39 236
Other accrued expenses and current liabilities 178 204
Total other current liabilities $ 927 $ 1,124
v3.25.4
Supplemental Financial Statement Disclosures - Contract Liabilities (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Other Current Liabilities [Line Items]      
Unearned revenue $ 265 $ 212  
Unearned revenue      
Other Current Liabilities [Line Items]      
Revenue recognized that was included in deferred revenue 156 136 $ 153
Other current liabilities      
Other Current Liabilities [Line Items]      
Revenue recognized that was included in deferred revenue 11 8 $ 7
Unearned revenue      
Other Current Liabilities [Line Items]      
Unearned revenue 265 212  
Other current liabilities      
Other Current Liabilities [Line Items]      
Unearned revenue $ 12 $ 12  
v3.25.4
Supplemental Financial Statement Disclosures - Restructuring and Other Charges (Details)
$ in Millions
1 Months Ended 3 Months Ended 12 Months Ended
Jan. 30, 2026
USD ($)
Mar. 07, 2025
member
Jan. 31, 2025
employee
Mar. 31, 2026
USD ($)
Dec. 31, 2025
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Restructuring Cost and Reserve [Line Items]              
Impairment of right-of-use assets         $ 12 $ 2 $ 5
Tangible asset impairment charges         19 14 9
Gain on lease modification         15 0 $ 0
Subsequent Event              
Restructuring Cost and Reserve [Line Items]              
Payment for termination of lease $ 27            
Forecast              
Restructuring Cost and Reserve [Line Items]              
Decrease in operating lease liability       $ 138      
Workforce Reduction              
Restructuring Cost and Reserve [Line Items]              
Reduction in workforce employees | member   340          
Incurred cost         20    
Germany Restructuring              
Restructuring Cost and Reserve [Line Items]              
Reduction in workforce employees | employee     730        
Incurred cost         48    
Asset impairment charges         20 34  
Impairment of right-of-use assets         9    
Tangible asset impairment charges         19 $ 13  
Restructuring, termination         $ (8)    
v3.25.4
Cash, Cash Equivalents and Restricted Cash, Investments and Fair Value Measurements - Narrative (Details) - USD ($)
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Fair Value Disclosures [Abstract]      
Debt securities, available-for-sale, realized gain $ 0 $ 0 $ 0
Debt securities, available-for-sale, realized loss 0 0 0
Interest income $ 45,000,000 $ 54,000,000 $ 47,000,000
v3.25.4
Cash, Cash Equivalents and Restricted Cash, Investments and Fair Value Measurements - Schedule of Marketable Securities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Fair Value Disclosures [Abstract]    
Amortized Cost $ 66 $ 56
Gross Unrealized Gains 0 0
Gross Unrealized Losses 0 0
Estimated Fair Value $ 66 $ 56
v3.25.4
Cash, Cash Equivalents and Restricted Cash, Investments and Fair Value Measurements - Schedule of Financial Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Fair value measurements    
Cash and cash equivalents $ 1,476 $ 1,316
Total 1,542 1,376
Investment securities    
Fair value measurements    
Short-term investments 66 56
Cash    
Fair value measurements    
Cash and cash equivalents 617 461
Cash equivalents    
Fair value measurements    
Cash and cash equivalents 859 855
Certificate of deposit    
Fair value measurements    
Prepaid expenses and other current assets   4
Level 1    
Fair value measurements    
Cash and cash equivalents 1,476 1,316
Total 1,476 1,320
Level 1 | Investment securities    
Fair value measurements    
Short-term investments 0 0
Level 1 | Cash    
Fair value measurements    
Cash and cash equivalents 617 461
Level 1 | Cash equivalents    
Fair value measurements    
Cash and cash equivalents 859 855
Level 1 | Certificate of deposit    
Fair value measurements    
Prepaid expenses and other current assets   4
Level 2    
Fair value measurements    
Cash and cash equivalents 0 0
Total 66 56
Level 2 | Investment securities    
Fair value measurements    
Short-term investments 66 56
Level 2 | Cash    
Fair value measurements    
Cash and cash equivalents 0 0
Level 2 | Cash equivalents    
Fair value measurements    
Cash and cash equivalents 0 0
Level 2 | Certificate of deposit    
Fair value measurements    
Prepaid expenses and other current assets   0
Level 3    
Fair value measurements    
Cash and cash equivalents 0 0
Total 0 0
Level 3 | Investment securities    
Fair value measurements    
Short-term investments 0 0
Level 3 | Cash    
Fair value measurements    
Cash and cash equivalents 0 0
Level 3 | Cash equivalents    
Fair value measurements    
Cash and cash equivalents $ 0 0
Level 3 | Certificate of deposit    
Fair value measurements    
Prepaid expenses and other current assets   $ 0
v3.25.4
Property and Equipment, net - Schedule of Property and Equipment (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Property and equipment, net    
Property and equipment, gross $ 2,280 $ 2,303
Less: Accumulated depreciation and amortization (1,764) (1,700)
Property and equipment, net 516 603
Furniture and equipment    
Property and equipment, net    
Property and equipment, gross 611 654
Site and software development costs    
Property and equipment, net    
Property and equipment, gross 964 1,000
Leasehold improvements    
Property and equipment, net    
Property and equipment, gross 671 644
Construction in progress    
Property and equipment, net    
Property and equipment, gross $ 34 $ 5
v3.25.4
Property and Equipment, net - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Property and equipment, net      
Depreciation and amortization $ 304 $ 386 $ 416
Tangible asset impairment charges 19 14 9
Site and software development costs      
Property and equipment, net      
Depreciation and amortization 190 257 279
Capitalized computer software, accumulated amortization $ 159 201  
Construction in progress      
Property and equipment, net      
Tangible asset impairment charges   $ 1 $ 9
v3.25.4
Leases - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Lessee, Lease, Description      
Operating lease expense $ 236 $ 217 $ 190
Sublease income 22 6 2
Lease not yet commenced $ 45    
Operating leases not yet commenced, term of contract (in years) 16 years    
Impairment of right-of-use assets $ 12 2 5
United States Office Locations      
Lessee, Lease, Description      
Impairment of right-of-use assets 3 $ 23 $ 5
Germany Restructuring      
Lessee, Lease, Description      
Impairment of right-of-use assets $ 9    
v3.25.4
Leases - Schedule of Other Information Related to Leases (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Supplemental cash flow information:      
Cash payments included in operating cash flows from lease arrangements $ 235 $ 236 $ 195
Right-of-use assets obtained in exchange for lease obligations 97 290 100
Right-of-use asset amortization $ 156 $ 140 $ 130
Additional lease information:      
Weighted average remaining lease term 7 years 7 years  
Weighted average discount rate 7.96% 7.01%  
v3.25.4
Leases - Schedule of Future Minimum Lease Payments (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Leases [Abstract]    
2026 $ 226  
2027 241  
2028 190  
2029 142  
2030 115  
Thereafter 477  
Total future minimum lease payments 1,391  
Less: Imputed interest (366)  
Total $ 1,025 $ 1,103
v3.25.4
Leases - Schedule of Operating Leases Balance Sheet Location (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Leases [Abstract]    
Other current liabilities $ 190 $ 174
Operating lease liabilities, net of current 835 929
Total operating leases liabilities $ 1,025 $ 1,103
Operating lease, liability, current, statement of financial position [Extensible Enumeration] Other current liabilities Other current liabilities
v3.25.4
Debt and Other Financing - Schedule of Outstanding Principal and Carrying Value (Details) - USD ($)
Dec. 31, 2025
Nov. 12, 2025
Nov. 07, 2025
Oct. 01, 2025
Aug. 20, 2025
Mar. 14, 2025
Mar. 13, 2025
Dec. 31, 2024
Oct. 08, 2024
May 31, 2023
Sep. 30, 2022
Aug. 31, 2020
Aug. 31, 2019
Debt Instrument                          
Long-term debt, total $ 3,272,000,000             $ 3,118,000,000          
Short-term debt 39,000,000             236,000,000          
Long-term debt 3,233,000,000             2,882,000,000          
Convertible Debt | 2025 Notes                          
Debt Instrument                          
Principal Amount 0     $ 157,000,000       237,000,000       $ 1,518,000,000  
Unamortized Debt Discount 0             (1,000,000)          
Long-term debt, total 0             236,000,000          
Short-term debt               236,000,000          
Convertible Debt | 2026 Notes                          
Debt Instrument                          
Principal Amount 39,000,000             734,000,000         $ 948,750,000
Unamortized Debt Discount 0             (3,000,000)          
Long-term debt, total 39,000,000         $ 576,000,000   731,000,000          
Short-term debt 39,000,000                        
Convertible Debt | 2027 Notes                          
Debt Instrument                          
Principal Amount 480,000,000             690,000,000     $ 690,000,000.0    
Unamortized Debt Discount (3,000,000)             (7,000,000)          
Long-term debt, total 477,000,000 $ 210,000,000           683,000,000          
Convertible Debt | 2028 Notes                          
Debt Instrument                          
Principal Amount 589,000,000             690,000,000   $ 690,000,000.0      
Unamortized Debt Discount (6,000,000)             (9,000,000)          
Long-term debt, total 583,000,000       $ 101,000,000     681,000,000          
Senior Notes | 2029 Secured Notes                          
Debt Instrument                          
Principal Amount 800,000,000             800,000,000 $ 800,000,000.0        
Unamortized Debt Discount (11,000,000)             (13,000,000)          
Long-term debt, total 789,000,000             787,000,000          
Senior Notes | 2030 Secured Notes                          
Debt Instrument                          
Principal Amount 700,000,000           $ 700,000,000 0          
Unamortized Debt Discount (8,000,000)             0          
Long-term debt, total 692,000,000             0          
Senior Notes | 2032 Secured Notes                          
Debt Instrument                          
Principal Amount 700,000,000   $ 700,000,000         0          
Unamortized Debt Discount (8,000,000)             0          
Long-term debt, total 692,000,000             0          
Revolving Credit Facility                          
Debt Instrument                          
Long-term debt, total $ 0             $ 0          
v3.25.4
Debt and Other Financing - Narrative (Details)
1 Months Ended 12 Months Ended
Feb. 06, 2026
USD ($)
Nov. 12, 2025
USD ($)
Aug. 20, 2025
USD ($)
May 09, 2025
USD ($)
Mar. 14, 2025
USD ($)
Mar. 13, 2025
USD ($)
Nov. 11, 2024
USD ($)
May 31, 2023
USD ($)
Sep. 30, 2022
USD ($)
Aug. 31, 2020
USD ($)
Aug. 31, 2019
USD ($)
Dec. 31, 2025
USD ($)
day
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Nov. 07, 2025
USD ($)
Oct. 01, 2025
USD ($)
Oct. 08, 2024
USD ($)
Debt Instrument                                  
(Loss) gain on debt extinguishment, net                       $ (233,000,000) $ 29,000,000 $ 100,000,000      
Payment for debt extinguishment                       1,315,000,000 741,000,000 $ 514,000,000      
Long-term debt                       $ 3,272,000,000 3,118,000,000        
Senior Notes                                  
Debt Instrument                                  
Repurchase price, percentage                       101.00%          
Convertible Debt                                  
Debt Instrument                                  
Trading days (whether or not consecutively) | day                       20          
Trading days (consecutive) | day                       30          
Percentage of conversion stock price (in percent)                       130.00%          
During number of business day period (in days)                       5 days          
Consecutive trading day period (after any)                       10 days          
Principal amount of notes                       $ 1,000          
Measurement period percentage (less than) (in percent)                       98.00%          
Redemption price, percentage of principal amount to be redeemed (in percent)                       100.00%          
(Loss) gain on debt extinguishment, net       $ 6,000,000                          
Senior Secured Revolving Credit Facility                                  
Debt Instrument                                  
EBITDA ratio (in percent)           4.00                      
Subject to step-up permitted acquisition ratio (in percent)           50.00%                      
2030 Secured Notes | Senior Notes                                  
Debt Instrument                                  
Face amount           $ 700,000,000           $ 700,000,000 0        
Interest rate, stated percentage (in percent)                       7.75%          
Effective interest rate, percentage (in percent)                       7.90%          
Long-term debt                       $ 692,000,000 0        
Debt, fair value                       747,000,000          
2032 Secured Notes | Senior Notes                                  
Debt Instrument                                  
Face amount                       $ 700,000,000 0   $ 700,000,000    
Interest rate, stated percentage (in percent)                       6.75%          
Effective interest rate, percentage (in percent)                       6.80%          
Long-term debt                       $ 692,000,000 0        
Debt, fair value                       721,000,000          
2029 Secured Notes | Senior Notes                                  
Debt Instrument                                  
Face amount                       $ 800,000,000 800,000,000       $ 800,000,000.0
Interest rate, stated percentage (in percent)                       7.25%         7.25%
Effective interest rate, percentage (in percent)                       7.50%         7.50%
Long-term debt                       $ 789,000,000 787,000,000        
Debt, fair value                       835,000,000          
2025 Notes | Convertible Debt                                  
Debt Instrument                                  
Face amount                   $ 1,518,000,000   $ 0 237,000,000     $ 157,000,000  
Interest rate, stated percentage (in percent)                       0.625%          
Proceeds from convertible debt                   $ 198,000,000.0              
Repurchase of aggregate principal amount       80,000,000     $ 518,000,000 $ 535,000,000 $ 229,000,000     $ 80,000,000          
Long-term debt                       0 236,000,000        
2026 Notes | Convertible Debt                                  
Debt Instrument                                  
Face amount                     $ 948,750,000 $ 39,000,000 734,000,000        
Interest rate, stated percentage (in percent)                       1.00%          
Effective interest rate, percentage (in percent)                       1.20%          
Proceeds from convertible debt                     $ 123,750,000            
Repurchase of aggregate principal amount       118,000,000 $ 578,000,000   $ 215,000,000         $ 696,000,000          
(Loss) gain on debt extinguishment, net         25,000,000                        
Payment for debt extinguishment         551,000,000                        
Long-term debt         $ 576,000,000             39,000,000 731,000,000        
Debt, fair value                       39,000,000          
Converted value exceeded the principal value                       0          
2027 Notes | Convertible Debt                                  
Debt Instrument                                  
Face amount                 690,000,000.0     $ 480,000,000 690,000,000        
Interest rate, stated percentage (in percent)                       3.25%          
Effective interest rate, percentage (in percent)                       3.60%          
Proceeds from convertible debt                 $ 90,000,000.0                
Repurchase of aggregate principal amount   $ 210,000,000                              
(Loss) gain on debt extinguishment, net   165,000,000                              
Payment for debt extinguishment   375,000,000                              
Long-term debt   $ 210,000,000                   $ 477,000,000 683,000,000        
Debt, fair value                       804,000,000          
Converted value exceeded the principal value                       280,000,000          
2027 Notes | Convertible Debt | Subsequent Event                                  
Debt Instrument                                  
Repurchase of aggregate principal amount $ 250,000,000                                
2028 Notes | Convertible Debt                                  
Debt Instrument                                  
Face amount               690,000,000.0       $ 589,000,000 690,000,000        
Interest rate, stated percentage (in percent)                       3.50%          
Effective interest rate, percentage (in percent)                       3.80%          
Proceeds from convertible debt               $ 90,000,000.0                  
Repurchase of aggregate principal amount     $ 101,000,000                 $ 101,000,000          
(Loss) gain on debt extinguishment, net     (99,000,000)                            
Payment for debt extinguishment     200,000,000                            
Long-term debt     $ 101,000,000                 583,000,000 681,000,000        
Debt, fair value                       1,354,000,000          
Converted value exceeded the principal value                       $ 702,000,000          
Indentures | Convertible Debt                                  
Debt Instrument                                  
Default percentage of aggregate principal amount, of notes outstanding (not less than)                       25.00%          
Senior Note Due 2026 and 2025 | Convertible Debt                                  
Debt Instrument                                  
Payment for debt extinguishment       191,000,000                          
Long-term debt       $ 197,000,000                          
Revolving Credit Facility                                  
Debt Instrument                                  
Voting of capital stock percent           65.00%                      
Non -voting of capital Stock percent           100.00%                      
Long-term debt                       $ 0 $ 0        
Revolving Credit Facility | Fed Funds Effective Rate Overnight Index Swap Rate                                  
Debt Instrument                                  
Basis spread (in percent)           1.00%                      
Revolving Credit Facility | Secured Overnight Financing Rate (SOFR)                                  
Debt Instrument                                  
Basis spread (in percent)           1.00%                      
Revolving Credit Facility | Senior Secured Revolving Credit Facility                                  
Debt Instrument                                  
Maximum borrowing capacity           $ 500,000,000                      
Letters of credit outstanding, amount                       $ 94,000,000          
Revolving Credit Facility | Eurocurrency Loans | Secured Overnight Financing Rate (SOFR)                                  
Debt Instrument                                  
Applicable margin (in percent)                       1.25%          
Revolving Credit Facility | Eurocurrency Loans | Base Rate                                  
Debt Instrument                                  
Applicable margin (in percent)                       0.25%          
Revolving Credit Facility | Eurocurrency Loans | Risk Free Rate                                  
Debt Instrument                                  
Applicable margin (in percent)                       1.2826%          
v3.25.4
Debt and Other Financing - Schedule of Non-Accreting Notes (Details)
Dec. 31, 2025
Oct. 08, 2024
Senior Notes | 2029 Secured Notes    
Debt Instrument    
Annual Coupon Rate 7.25% 7.25%
Annual Effective Interest Rate 7.50% 7.50%
Senior Notes | 2030 Secured Notes    
Debt Instrument    
Annual Coupon Rate 7.75%  
Annual Effective Interest Rate 7.90%  
Senior Notes | 2032 Secured Notes    
Debt Instrument    
Annual Coupon Rate 6.75%  
Annual Effective Interest Rate 6.80%  
Convertible Debt | 2026 Notes    
Debt Instrument    
Annual Coupon Rate 1.00%  
Annual Effective Interest Rate 1.20%  
Convertible Debt | 2027 Notes    
Debt Instrument    
Annual Coupon Rate 3.25%  
Annual Effective Interest Rate 3.60%  
Convertible Debt | 2028 Notes    
Debt Instrument    
Annual Coupon Rate 3.50%  
Annual Effective Interest Rate 3.80%  
v3.25.4
Debt and Other Financing - Schedule of Conversion and Redemption Terms of the Notes (Details) - Convertible Debt
12 Months Ended
Dec. 31, 2025
$ / shares
2026 Notes  
Debt Instrument  
Initial Conversion Rate per $1,000 Principal 0.0067349
Initial conversion price (in dollars per share) $ 148.48
2027 Notes  
Debt Instrument  
Initial Conversion Rate per $1,000 Principal 0.0157597
Initial conversion price (in dollars per share) $ 63.45
2028 Notes  
Debt Instrument  
Initial Conversion Rate per $1,000 Principal 0.0218341
Initial conversion price (in dollars per share) $ 45.8
v3.25.4
Debt and Other Financing - Schedule of Debt Instruments Interest Expense (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Debt Instrument      
Interest expense $ 156 $ 74 $ 55
Debt Discount Amortization 9 9 8
Total Interest Expense 165 83 63
2024 Notes | Convertible Debt      
Debt Instrument      
Interest expense 0 1 2
Debt Discount Amortization 0 0 1
Total Interest Expense 0 1 3
2025 Notes | Convertible Debt      
Debt Instrument      
Interest expense 1 4 6
Debt Discount Amortization 0 2 2
Total Interest Expense 1 6 8
2026 Notes | Convertible Debt      
Debt Instrument      
Interest expense 2 9 9
Debt Discount Amortization 0 2 2
Total Interest Expense 2 11 11
2027 Notes | Convertible Debt      
Debt Instrument      
Interest expense 22 22 22
Debt Discount Amortization 3 2 2
Total Interest Expense 25 24 24
2028 Notes | Convertible Debt      
Debt Instrument      
Interest expense 23 24 15
Debt Discount Amortization 2 3 1
Total Interest Expense 25 27 16
2029 Secured Notes | Senior Notes      
Debt Instrument      
Interest expense 58 13 0
Debt Discount Amortization 3 0 0
Total Interest Expense 61 13 0
2030 Secured Notes | Senior Notes      
Debt Instrument      
Interest expense 43 0 0
Debt Discount Amortization 1 0 0
Total Interest Expense 44 0 0
2032 Secured Notes | Senior Notes      
Debt Instrument      
Interest expense 7 0 0
Debt Discount Amortization 0 0 0
Total Interest Expense 7 0 0
2025 Accreting Notes | Convertible Debt      
Debt Instrument      
Interest expense 0 1 1
Debt Discount Amortization 0 0 0
Total Interest Expense $ 0 $ 1 $ 1
v3.25.4
Debt and Other Financing - Schedule of Initial Terms for Capped Calls (Details) - Convertible Debt - Class A common stock
12 Months Ended
Dec. 31, 2025
$ / shares
2027 Capped Calls  
Debt Instrument  
Initial cap price (in dollars per share) $ 97.62
Cap price premium (in percent) 100.00%
2028 Capped Calls  
Debt Instrument  
Initial cap price (in dollars per share) $ 73.28
Cap price premium (in percent) 100.00%
v3.25.4
Commitments and Contingencies (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Loss Contingencies [Line Items]    
Purchase obligations, 2026 $ 243  
Purchase obligations, 2027 209  
Purchase obligations, 2028 197  
Purchase obligation, thereafter 0  
CBSA Review    
Loss Contingencies [Line Items]    
Gain on litigation 45 $ 42
Cost of goods sold | CBSA Review    
Loss Contingencies [Line Items]    
Loss in period 14  
Payments $ 19  
v3.25.4
Employee Benefit Plans (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Employee Benefit Plans      
Age of the full-time employees qualified to participate in the defined contribution plan (in years) 21 years    
Expense related to savings plan recognized $ 20 $ 22 $ 35
Maximum      
Employee Benefit Plans      
Matching contribution by employer as a percentage of employee's considered compensation (in percent) 4.00%    
v3.25.4
Stockholders' Deficit (Details)
12 Months Ended 15 Months Ended
Dec. 31, 2025
vote
$ / shares
shares
Dec. 31, 2024
$ / shares
shares
Dec. 31, 2023
shares
Dec. 31, 2025
$ / shares
shares
Aug. 10, 2021
USD ($)
Aug. 21, 2020
USD ($)
Preferred stock            
Preferred stock, shares authorized (in shares) 10,000,000     10,000,000    
Preferred stock, par value (in dollars per share) | $ / shares $ 0.001     $ 0.001    
Preferred stock, shares outstanding (in shares) 0     0    
Preferred stock, shares issued (in shares) 0     0    
Class A common stock            
Common stock            
Common stock, shares authorized (in shares) 500,000,000 500,000,000   500,000,000    
Common stock, par value (in dollars per share) | $ / shares $ 0.001 $ 0.001   $ 0.001    
Common stock, shares issued (in shares) 108,365,428 100,762,581   108,365,428    
Common stock, shares outstanding (in shares) 108,365,428 100,762,581   108,365,428    
Number of votes each holder is entitled | vote 1          
Class A common stock | 2020 Repurchase Program            
Stock Repurchase Program            
Repurchase authorized amount | $           $ 700,000,000
Class A common stock | 2021 Repurchase Program            
Stock Repurchase Program            
Repurchase authorized amount | $         $ 1,000,000,000.0  
Class A common stock | 2020 Repurchase Program and 2021 Repurchase Program            
Stock Repurchase Program            
Number of shares authorized to be repurchased (in shares) 0 0 0      
Class B common stock            
Common stock            
Common stock, shares authorized (in shares) 164,000,000 164,000,000   164,000,000    
Common stock, par value (in dollars per share) | $ / shares $ 0.001 $ 0.001   $ 0.001    
Common stock, shares issued (in shares) 21,978,295 24,658,295   21,978,295    
Common stock, shares outstanding (in shares) 21,978,295 24,658,295   21,978,295    
Number of votes each holder is entitled | vote 10          
Conversion ratio 1          
Conversion ratio upon transfer 1          
Aggregate number of shares outstanding Class A common stock and Class B common stock that will automatically convert (less than) (in percent) 66.67%          
Number of shares converted into Class A shares (in shares)       60,060,119    
Class B common stock | Maximum            
Common stock            
Aggregate number of shares outstanding Class A common stock and Class B common stock that will automatically convert (less than) (in percent) 10.00%          
v3.25.4
Equity-Based Compensation - Narrative (Details)
$ in Millions
1 Months Ended 12 Months Ended
Sep. 30, 2025
tranche
shares
Dec. 31, 2025
USD ($)
shares
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Apr. 30, 2023
shares
Equity based compensation          
Equity-based compensation costs capitalized   $ 27 $ 37 $ 61  
Restricted stock units          
Equity based compensation          
Unrecognized equity-based compensation   $ 17      
Weighted average remaining vesting term (in years)   1 month 6 days      
Aggregate intrinsic value of stock unvested   $ 82      
RSUs granted (in shares) | shares   5,181,341      
Performance stock units          
Equity based compensation          
Unrecognized equity-based compensation   $ 259      
Weighted average remaining vesting term (in years)   4 years 1 month 6 days      
Aggregate intrinsic value of stock unvested   $ 502      
RSUs granted (in shares) | shares   5,000,000      
Expected volatility   60.00%      
Performance stock units | Chief Executive Officer          
Equity based compensation          
RSUs granted (in shares) | shares 5,000,000        
Number of tranches | tranche 6        
2023 Plan          
Equity based compensation          
Number of shares available for future grant (in shares) | shares   6,981,236     20,525,663
v3.25.4
Equity-Based Compensation - Schedule of Activity Relating to RSU's (Details) - Restricted stock units - $ / shares
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Shares      
Unvested at the beginning of the period (in shares) 2,455,486    
RSUs granted (in shares) 5,181,341    
RSUs vested (in shares) (6,494,439)    
RSUs forfeited/cancelled (in shares) (322,743)    
Unvested at the end of the period (in shares) 819,645 2,455,486  
Weighted-Average Grant Date Fair Value      
Unvested at the beginning of the period (in dollars per share) $ 72.11    
RSUs granted (in dollars per share) 56.93 $ 54.18 $ 50.39
RSUs vested (in dollars per share) 56.77    
RSUs forfeited/cancelled (in dollars per share) 79.84    
Unvested at the end of the period (in dollars per share) $ 94.73 $ 72.11  
v3.25.4
Equity-Based Compensation - Schedule of Weighted Average Grant Date Fair Value of RSUs Vested (Details) - Unvested restricted stock units - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Equity based compensation      
Weighted average grant date fair value of RSUs (in dollars per share) $ 56.93 $ 54.18 $ 50.39
Total fair value of vested RSUs (in millions) $ 369 $ 505 $ 636
Intrinsic value of RSUs vested (in millions) $ 333 $ 406 $ 532
v3.25.4
Equity-Based Compensation - Schedule of Activity Relating to PSUs (Details) - Performance stock units
12 Months Ended
Dec. 31, 2025
$ / shares
shares
Shares  
Unvested at the beginning of the period (in shares) | shares 0
PSU's granted (in shares) | shares 5,000,000
PSUs vested (in shares) | shares 0
PSUs forfeited/cancelled (in shares) | shares 0
Unvested at the end of the period (in shares) | shares 5,000,000
Weighted-Average Grant Date Fair Value  
Unvested at the beginning of the period (in dollars per share) | $ / shares $ 0
PSUs granted (in dollars per share) | $ / shares 56.11
PSUs vested (in dollars per share) | $ / shares 0
PSUs forfeited/cancelled (in dollars per share) | $ / shares 0
Unvested at the end of the period (in dollars per share) | $ / shares $ 56.11
v3.25.4
Equity-Based Compensation - Classified Equity-Based Compensation (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Equity based compensation      
Total equity-based compensation expense $ 335 $ 395 $ 605
Cost of goods sold      
Equity based compensation      
Total equity-based compensation expense 8 9 10
Customer service and merchant fees      
Equity based compensation      
Total equity-based compensation expense 14 18 29
Selling, operations, technology, general and administrative      
Equity based compensation      
Total equity-based compensation expense $ 313 $ 368 $ 566
v3.25.4
Income Taxes - Components of Provision for Income Taxes, Net (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Current:      
Federal $ 0 $ 0 $ 0
State 6 4 3
Foreign 5 2 6
Deferred:      
Federal (1) 0 0
State 0 0 0
Foreign (1) 4 0
Provision for income taxes, net $ 9 $ 10 $ 9
v3.25.4
Income Taxes - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Operating Loss Carryforwards [Line Items]        
Federal statutory tax rate 21.00% 21.00% 21.00%  
State income taxes, net of refunds received $ 4      
Foreign tax payments 8      
Valuation allowance increase (decrease) 134      
Federal net operating loss carryforwards 437      
State net operating loss carryforwards 181      
Operating loss carryforwards, subject to expiration 42      
Operating loss carryforwards not subject to expiration 395      
Foreign operating loss carryforwards 293      
Unrecognized tax benefits would affect effective tax rate 1      
Unrecognized tax benefits 306 $ 306 $ 0 $ 0
Unrecognized tax benefits would affect deferred taxes 305      
Valuation Allowance, Losses        
Operating Loss Carryforwards [Line Items]        
Valuation allowance increase (decrease) 102      
Valuation Allowance, Interest Expense        
Operating Loss Carryforwards [Line Items]        
Valuation allowance increase (decrease) 86      
Valuation Allowance, Capitalized Technology        
Operating Loss Carryforwards [Line Items]        
Valuation allowance increase (decrease) (51)      
Valuation Allowance, Various Other Assets        
Operating Loss Carryforwards [Line Items]        
Valuation allowance increase (decrease) (3)      
Foreign Tax Authority        
Operating Loss Carryforwards [Line Items]        
Operating loss carryforwards, subject to expiration 39      
Operating loss carryforwards not subject to expiration $ 254      
v3.25.4
Income Taxes - Actual Provision For Income Taxes, Net Differs from Expected Provision for Income Taxes (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Reconciliation of the U.S. federal corporate rate to to income before tax expense (benefit), and actual tax      
Provision for income taxes at the federal statutory rate $ (64) $ (101) $ (153)
State income tax expense, net of federal impact 5 4 3
Foreign tax rate differential   13 17
Intercompany debt adjustment   (242) 0
Uncertain tax positions, net   191 0
Non-deductible equity-based compensation expense   4 10
Shortfall expense from equity-based compensation   15 17
Change in valuation allowance   105 103
Limitation on officer's compensation   3 5
Intangible property basis step-up   (7) 0
Intercompany interest   15 15
Other (2) 10 (8)
Provision for income taxes, net $ 9 $ 10 $ 9
v3.25.4
Income Taxes - Reconciliation (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Amount      
Loss before income taxes $ (304) $ (482) $ (729)
Federal statutory tax rate (64) (101) (153)
State and local income taxes, net of federal(national) income tax effect(a) 5 4 3
Changes in valuation allowances   105 103
Other (2) 10 (8)
Foreign tax rate differential   13 17
Loss on debt extinguishment 45    
Limitation on officer’s compensation 5    
Other 3    
Shortfall expense from equity-based compensation 10    
Interest expense (49)    
Provision for income taxes, net $ 9 $ 10 $ 9
Percent      
Federal statutory tax rate 21.00% 21.00% 21.00%
State and local income taxes, net of federal(national) income tax effect(a) (1.70%)    
Other 0.70%    
Loss on debt extinguishment (14.80%)    
Limitation on officer’s compensation (1.60%)    
Other (1.00%)    
Shortfall expense from equity-based compensation (3.30%)    
Interest expense 16.10%    
Provision for income taxes, net (3.00%)    
Canada      
Amount      
Changes in valuation allowances $ 8    
Other $ (2)    
Percent      
Changes in valuation allowances (2.60%)    
Other 0.70%    
Other foreign      
Amount      
Foreign tax rate differential $ (4)    
Percent      
Total other foreign 1.30%    
United States      
Amount      
Changes in valuation allowances $ 54    
Percent      
Changes in valuation allowances (17.80%)    
v3.25.4
Income Taxes - Components of Loss Before Income Taxes Determined by Tax Jurisdiction (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income (loss) from continuing operations:      
U.S. $ (313) $ (245) $ (495)
Foreign 9 (237) (234)
Loss before income taxes $ (304) $ (482) $ (729)
v3.25.4
Income Taxes - Tax Effects of Temporary Differences That Give Rise to Significant Portions of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Deferred tax assets:    
Net operating loss carryforwards $ 911 $ 809
Equity-based compensation expense 7 7
Intangible property 61 60
Accrued expenses and reserves 25 21
Capitalized technology 45 96
Leases 261 283
Interest expense 86 0
Other 43 55
Gross deferred tax assets 1,439 1,331
Less: Valuation allowance (1,176) (1,042)
Net deferred tax assets 263 289
Deferred tax liabilities:    
Prepaid expenses (12) (13)
Property and equipment (27) (42)
Operating lease right-of-use asset (215) (234)
Other (12) (5)
Total deferred tax liabilities (266) (294)
Non-current net deferred tax liabilities $ (3) $ (5)
v3.25.4
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Unrecognized Tax Benefits [Roll Forward]      
Beginning balance $ 306 $ 0 $ 0
Increases as a result of tax positions taken in the current period 0 306 0
Ending balance $ 306 $ 306 $ 0
v3.25.4
Loss per Share - Calculation of Basic and Diluted Loss Per Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Numerator:      
Numerator for basic and diluted loss per share - net loss $ (313) $ (492) $ (738)
Denominator:      
Denominator for basic and diluted loss per share - weighted-average number of shares of common stock outstanding (in shares) 128 123 114
Loss per share      
Basic (in dollars per share) $ (2.44) $ (4.01) $ (6.47)
Diluted (in dollars per shares) $ (2.44) $ (4.01) $ (6.47)
v3.25.4
Loss per Share - Antidilutive Securities (Details) - shares
shares in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share      
Common stock outstanding that have been excluded from the computation of diluted loss per share (in shares) 27 33 41
Unvested restricted stock units      
Antidilutive Securities Excluded from Computation of Earnings Per Share      
Common stock outstanding that have been excluded from the computation of diluted loss per share (in shares) 1 2 5
Unvested performance stock units      
Antidilutive Securities Excluded from Computation of Earnings Per Share      
Common stock outstanding that have been excluded from the computation of diluted loss per share (in shares) 5 0
Shares related to convertible debt instruments      
Antidilutive Securities Excluded from Computation of Earnings Per Share      
Common stock outstanding that have been excluded from the computation of diluted loss per share (in shares) 21 31 36
v3.25.4
Segment and Geographic Information - Net Revenues (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting [Abstract]      
Number Of Reportable Segments Not Disclosed Flag    
Segment Reporting Information      
Net revenue $ 12,457 $ 11,851 $ 12,003
Cost of goods sold 8,637 8,217 8,275
Advertising 1,425 1,472 1,397
Other segment items 1,652 1,709 2,025
Adjusted EBITDA 743 453 306
Less: reconciling items 1,056 945 1,044
Net loss (313) (492) (738)
U.S.      
Segment Reporting Information      
Net revenue 10,973 10,373 10,482
Cost of goods sold 7,558 7,122 7,146
Advertising 1,254 1,292 1,234
Other segment items 1,399 1,388 1,658
Adjusted EBITDA 762 571 444
International      
Segment Reporting Information      
Net revenue 1,484 1,478 1,521
Cost of goods sold 1,079 1,095 1,129
Advertising 171 180 163
Other segment items 253 321 367
Adjusted EBITDA $ (19) $ (118) $ (138)
v3.25.4
Segment and Geographic Information - Reconciling Items (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting [Abstract]      
Depreciation and amortization $ 305 $ 387 $ 417
Equity-based compensation and related taxes 345 411 623
Interest expense, net 119 29 17
Other (income) expense, net (31) 21 (1)
Provision for income taxes, net 9 10 9
Impairment and other related net charges 23 37 14
Restructuring and other charges, net 53 79 65
Loss (gain) on debt extinguishment 233 (29) (100)
Total reconciling items $ 1,056 $ 945 $ 1,044
v3.25.4
Segment and Geographic Information - Footnotes (Details) - USD ($)
$ in Millions
1 Months Ended 12 Months Ended
Nov. 12, 2025
Aug. 20, 2025
May 09, 2025
Mar. 14, 2025
Nov. 11, 2024
May 31, 2023
Sep. 30, 2022
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information                    
Tangible asset impairment charges               $ 19 $ 14 $ 9
Impairment and other related net charges               23 37 14
Impairment of right-of-use assets               12 2 5
Restructuring and other charges, net               53 79 65
Gain on lease modification               15 0 0
Gain (loss) on debt extinguishment               (233) 29 100
Convertible Debt                    
Segment Reporting Information                    
Gain (loss) on debt extinguishment     $ 6              
2024 Notes | Convertible Debt                    
Segment Reporting Information                    
Repurchase of aggregate principal amount                   83
2025 Notes | Convertible Debt                    
Segment Reporting Information                    
Repurchase of aggregate principal amount     80   $ 518 $ 535 $ 229 80    
2026 Notes | Convertible Debt                    
Segment Reporting Information                    
Repurchase of aggregate principal amount     $ 118 $ 578 $ 215     696    
Gain (loss) on debt extinguishment       $ 25            
2028 Notes | Convertible Debt                    
Segment Reporting Information                    
Repurchase of aggregate principal amount   $ 101           101    
Gain (loss) on debt extinguishment   $ (99)                
2027 Notes | Convertible Debt                    
Segment Reporting Information                    
Repurchase of aggregate principal amount $ 210                  
Gain (loss) on debt extinguishment $ 165                  
2025 Accreting Notes | Convertible Debt                    
Segment Reporting Information                    
Repurchase of aggregate principal amount               39    
Construction in progress                    
Segment Reporting Information                    
Tangible asset impairment charges                 1 9
United States Office Locations                    
Segment Reporting Information                    
Impairment of right-of-use assets               3 23 $ 5
Germany Restructuring                    
Segment Reporting Information                    
Asset impairment charges               20 34  
Tangible asset impairment charges               19 $ 13  
Impairment of right-of-use assets               9    
Incurred cost               48    
Workforce Reduction                    
Segment Reporting Information                    
Incurred cost               $ 20    
v3.25.4
Segment and Geographic Information - Long-lived Assets by Segment (Details) - USD ($)
$ in Millions
Dec. 31, 2025
Dec. 31, 2024
Geographic long-lived assets:    
Total long-lived assets $ 1,378 $ 1,528
Total assets 3,440 3,459
Plus: reconciling corporate long-lived assets    
Geographic long-lived assets:    
Total long-lived assets 410 460
Total assets 2,014 1,886
Operating Segments | U.S.    
Geographic long-lived assets:    
Total long-lived assets 695 789
Total assets 1,107 1,245
Operating Segments | International    
Geographic long-lived assets:    
Total long-lived assets 273 279
Total assets 319 328
Segment Reconciling Items    
Geographic long-lived assets:    
Total long-lived assets 968 1,068
Total assets $ 1,426 $ 1,573