Wayfair Inc.
W Consumer Cyclical Internet Retail
Wayfair Inc.’s revenue for fiscal 2025 (year ended December 2025) was $12.5 billion, up 5.11% from fiscal 2024. In the quarter to June 2026, revenue grew 7.52%, EPS fell 106.9%, free cash flow grew 28.5% and total debt fell 3.02%, each against the same quarter a year earlier. Dividend growth for five consecutive years.
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Wayfair Inc. (W) Altman Z-score
Wayfair Inc.'s Altman Z-score for fiscal 2025 is 2.87, in the grey zone (1.81–2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 2.87 | 1.35 |
| FY2024 | 1.52 | (0.12) |
| FY2023 | 1.63 | 0.48 |
| FY2022 | 1.15 | (3.31) |
| FY2021 | 4.46 | (0.81) |
| FY2020 | 5.27 | 3.01 |
| FY2019 | 2.26 | (1.95) |
| FY2018 | 4.21 | (1.77) |
| FY2017 | 5.97 | 0.50 |
| FY2016 | 5.47 | (2.56) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | (0.04) | — | −0.04 | |
| Retained earnings / total assets | (1.40) | — | −1.96 | |
| EBIT / total assets | 0.00 | — | 0.02 | |
| Market value of equity / total liabilities | 2.07 | — | 1.24 | |
| Sales / total assets | 3.62 | — | 3.62 | |
| Altman Z-score | Grey zone | 2.87 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | −5.25 | ||
Z and Z″ put Wayfair Inc. in different zones: grey zone by Z, distress zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| GLBE Global-e Online Ltd. compare | 8.3× |
| CART Maplebear Inc. compare | 6.2× |
| EBAY eBay Inc. compare | 6.1× |
| CHWY Chewy compare | 5.9× |
| VIPS Vipshop Holdings Limited compare | 3.8× |
| CPNG Coupang, Inc. compare | 3.7× |
| W Wayfair Inc. | 2.9× |
| JD JD.com, Inc. compare | 2.6× |
| ETSY Etsy, Inc. compare | 1.3× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets