Thanks morning. good Steve and
I bit a end third and how and on of quarter the our is financial a Before fiscal back we expectations the volatility. performance the business provide discuss managing year, context take want latest our more step the details for of tariff-related through to
subject retail XX% resulted have have than more in raised tariffs wholesale of prices. our to year, the who of which China higher beginning are the prices, Since suppliers
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that pay assess Customers require confidence asked price build actively to alternate time being to they and are product. more is right the to
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as Tariffs effect well. are a secondary having
know are is sell. with that almost own multifaceted This cost like the of a widespread marketplace you we unique always we inventory majority As advantage in seeing perhaps increases do in now. exception vast substantial of sole not our model we the is periods being
As a us, suppliers maintain our in communicate pricing cost factoring balance priced. decisions our keeping pricing to between us and wholesale seek market to algorithms higher
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reality advantaged reality industry the to algorithms a new that the as will around business behaviors The the value-added all our builds and stabilize. is be for continue and home platform as data goods
course play this accounting that term as Though the to competitive popular our of focused take the of we in reaction rebalance couple most marketplace preference longer to may drivers. will and widen moat for volatility. always, of quarters Our which shift not near-term many whole customer one on out, process remain our is a will investment steadfastly also only to initiatives this continue price items will
turn to the let's the guidance. Now, QX and of details QX results
billion. to In Retail Our million revenue press presentation $X.X added GAAP investor QX, found approximately sales may include year-over-year. reconciliations Direct grew which investor on In release net in and and site. our are we complements discussion to year-over-year other non-GAAP be our XX% to words, this $XXX
million net the segment in year-over-year. international to Retail Direct up Direct Retail to increased revenue $XXX XX% year-over-year U.S., revenue $X.XXX net billion, the or XX% increased In million. $XXX
Excluding in Direct was in headwinds, XX% foreign up translation terms. currency net constant-currency international year-over-year Retail revenue growth
successful active and repeat Our LTM KPIs and remained in XX% customer acquisition up quarter this behavior. XX.X year-over-year reflecting engagement customers healthy. healthy totaled million
a new customer LTM customer about active sequentially net not In longer slight LTM did North at revenue active per see revenue reflecting In moderation flat order that a the of high America, $XXX. factor orders LTM active experienced earlier. per not Europe cycles tariffs dynamic. And per consideration customer were but referenced where a X.XX. same frequency I are we net average we sequentially, in the reached increased
XX% In the customers orders from consolidated repeat represented quarter of mix. the
financials and I'll in basis on we As P&L, $XX the taxes, totaled QX compensation non-GAAP a equity-based impact move the down which XXXX. referencing be excluding related of remaining million the
is quarter in $XXX to of Our this quarters some lower of primarily or gross past our were reflects in short-term tariff-related the Though XX.X% was U.S. the million than admittedly profit XX% year-over-year. expanded of XX the bit and guidance pressures gross margins the for margins net XX%, points few line a basis Gross revenue. with
or our negative points international mix and ad growth business, is within which QX. ROI Advertising spent due XX.X% to continued to the advertising This operates of our add sales, in percent shift at U.S. approximately higher outpaces a million rate customers levels is XX spend was as threshold. of basis as higher U.S. of net new year-over-year. This continued revenue payback $XXX in
the are decisions that our in in and than as approach scale we Europe marketing highly different U.S. We payback-driven in no spend our is
quarter. the results, you'll analyze see CAC you As or risen that acquisition customer modestly also has average cost the our in of
we will to high-quality remind customers same in on focused acquiring not you engage with who the transact necessarily So we them. I are want that quarter
faster as last the have the net relative approximately on customers average target been to will than advertising bring inception. contribution trend an done has percent acquisition base repeat new ad the continue variable five as grows X% at we the it expect over cost net customer these to This expect as dollars revenue given time. and repeat over a drop that percent customers of continue will a of we in years run Fundamentally, XX-month since cost period the payback as costs We customer a revenue. base to we long-term of our Wayfair's
G&A operations totaled selling QX and in technology $XXX million. expenses non-GAAP Our
a As reminder campus due of as is of and to this the recruiting. much attributable item quarter was third expected heavier quarter line the costs to a hiring timing compensation
added represents and In service in our variable third on is our customer XXXX keeping approximately areas to and with XXX areas The employees logistics are total, accounted in OpEx and cost about teams we quarter previously employees by marketing such the mostly engineering, in-sourcing or as work for we merchandising. staffed roughly partners the of line work XXX in scale. balance done of these employees where business third-party our
Our recruits more employees. than made these up campus half XXX of net new
on data the science added graduate to brand and employer engineering campuses. and new MBA, respected have testament from talented built a have programs, highly We undergraduate, strong people undergrad we really
Now turning EBITDA the And negative international U.S. was EBITDA million negative was X.X% adjusted to or negative QX business profitability. Adjusted X.X% net million. million business segment negative $XXX was revenue. or for Adjusted $XX the EBITDA negative margin. of for $XX EBITDA for
negative $XX to slightly X.X% and CapEx was free U.S. from quarter of the in greater investments in our based QX but on level QX CapEx net revenue X% Our and losses the net expectations, for cash activities cash than consistent flow expect Non-GAAP we were in of was anticipated. negative $XXX international capital with of operating $XXX to million run expenditures. revenue. net in approximately million was X% million
long-term short- approximately and we cash, equivalents As of billion of September XXXX XX, $X.X investments. cash and had
XXXX. quarter, half Thus we under the Retail the Direct business revenue Let's our underlying now is closely some moderated monitoring to as growth broadly for we our into has are healthy. just our as see at Though, relative fundamentals trending turn drivers year-over-year gross first guidance QX to far XX%. growth
of also very front is the We holiday us. period right for in positioned feel that well
quarter-to-date guidance full our dose marries performance, philosophy and you of As quarter expectations, prudence. know, healthy a
uncertainty, quarter-to-date As below visibility a setting guidance when especially our makes result, approach typically overall period we in is sense performance for current we growth revenue are this We do. as think a our compromised a quarter, as where every remind tariff-related somewhat up show in mass-market by day. customer are consumer fact business like every we I and you the has the to to that
approximately Retail to Direct dollar a $X.XXX growth million of approximately forecast to growth of billion Direct net $XXX We rate revenue Retail year-over-year to $XXX representing million billion $X.XXX or XX% XX%. of
For Retail U.S. revenue and be range to we Retail in net business, international the the year-over-year. to XX% net XX% growth Direct to up expect forecast year-over-year XX% revenues XX% Direct of
$X.XXX billion basis, the a here structure. total growth we're revenue Recall of forecast On $X.XX be to international a international net for for sourcing represents $XX million net our constant-currency and current forecasting fourth quarter. XX% revenue of We our the other to revenue given between billion in the as and range $X XX% are year-on-year. of majority Canada million that tariffs to well factor
some QX the range upward saw Though, gross continue to XX% we with territory. in XX% again drivers progresses. land margins once to in QX tariff-related and this as variability as mid us and to expect get contend to multiple relates to beyond We dynamics we over it normal the same see as supply expect our of quarter-to-quarter we term longer the chain optimization trade-offs to
real are threshold our seeing. time returns assess opportunities to specific channel-specific whether in increase as advertising We decisions advertising bottoms-up a deleverage the marketing to monitor XX a their net year-over-year will said, on basis of in that and spend they percent team XX-month as payback approach in our XXX markets or decrease points vis-à-vis our they and be of also based by determined channels in ultimately anticipate about revenue,
technology additions first our pace Moving hiring on plans back to of the G&A levels. expense employee core components moderate of will that net OpEx, operations, and or contemplate selling, our half to
focused may out pace on start with it a take a quarter-over-quarter. leverage, towards quarters we those few root operating organization, normalized though to driving play and hiring are As more an expense efforts to take
a negative territory the an margins At range with $XX to the negative level, X.XX% rent fourth $XX quarter the remain EBITDA consolidated million in with adjusted Unutilized range to line to $XX margins expected million quarter. million EBITDA third negative in million in in forecast adjusted is we to translating investments loss. $XX X.XX% to U.S. X% to negative international X.X% and the
for $XX purposes please of million tax amortization expense million. million, related $XX approximately equity-based modeling million approximately compensation $XX assume and outstanding QX, to million and For $XX average XX.X of weighted shares also and to depreciation of
we or can headwinds shorter-term we from tariffs QX, something are In manage. that effectively demonstrated otherwise
several on with drivers take long-term may all these service fast our customers selection and experience. and partners focused exceptional easy a the home seamless goods more to to So of supplier more our to delivery provide months customer we massive an across remain success work classes through, with partnering
Our a will us of reflects compelling a business moving continued ROI but over continue evident are long-term, world, to Though online. an healthy the from retail the and dollars to across competitive we confident for all allow that also balance orientation invest are brick-and-mortar to P&L to structural lines advantages cultivated not become have privileged also Wayfair's we economics increasingly to we sheet in have move to unit disproportionate our the time. of e-commerce capture unique the momentum only the share
before turn Niraj we to questions. to like now your the I'd back take call
