📊 AI Stock Rating — Summary

Wayfair Inc. reported a revenue of $3.12 billion for the quarter ending September 30, 2025, with a net income of -$99 million and an EPS of -$0.76, indicating some ongoing struggles with profitability. Free cash flow was reported at $128 million, a positive note amidst challenging earnings. Year-over-year growth is not directly provided, but the high revenue suggests substantial turnover. However, the company's net income and EPS point toward continued cost management issues. The balance sheet shows total assets of $3.12 billion against liabilities of $5.88 billion, resulting in a negative equity position of -$2.77 billion, which is concerning in terms of financial stability. With net debt standing at $2.43 billion and cash reserves at $1.012 billion, Wayfair continues to face significant leverage. Despite these challenges, analysts set price targets up to $135, indicating potential upside. While shareholder returns aren't boosted by dividends or significant buybacks, the stock's performance relative to analyst targets may still offer speculative opportunities. The free cash flow and cash position are positive highlights, suggesting some operational liquidity strength.

AI Score Breakdown

Revenue Growth — Score: 7/10

Wayfair's revenue of $3.12 billion signals strong sales, although growth rates are not detailed. The main driver appears to be robust consumer engagement and market reach.

Profitability — Score: 3/10

Continued net losses and negative EPS of -$0.76 highlight profitability challenges. While revenue is high, cost management and efficiency require improvement.

Cash Flow Quality — Score: 6/10

Positive free cash flow of $128 million suggests some operational strength. Liquidity is bolstered by cash reserves of over $1 billion, though shareholder returns are minimal.

Leverage & Balance Sheet — Score: 2/10

Wayfair's negative equity of -$2.77 billion and net debt of $2.43 billion raise concerns about financial resilience and leverage.

Shareholder Returns — Score: 5/10

With no dividends or significant buybacks, shareholder returns rely on stock price performance. Strong market position and analyst price targets provide potential growth optimism.

Analyst Sentiment & Valuation — Score: 5/10

Analyst price targets up to $135 suggest possible upside relative to current valuations, demonstrating some degree of confidence despite financial challenges.

⚠ AI-generated — informational only, not financial advice.