Investing.com -- Wayfair Inc. (NYSE: W) reported first-quarter results that fell short of earnings expectations despite revenue growth, sending shares down 9.9% premarket as investors focused on the bottom-line miss.

The home furnishings retailer posted adjusted earnings per share of $0.26 for the quarter ended March 31, missing the analyst consensus of $0.28. Revenue reached $2.93 billion, beating estimates of $2.89 billion and marking a 7.4% increase from $2.73 billion in the same quarter last year. U.S. revenue rose 7.5% YoY to $2.6 billion, while international revenue increased 6.0% to $319 million.

The stock decline followed the earnings shortfall, despite the company's revenue outperformance and improved profitability metrics. Adjusted EBITDA came in at $151 million, representing a 5.2% margin that the company said was its best first-quarter result in five years.

"Our strong revenue performance in Q1 translated to noteworthy profitability," said Niraj Shah, CEO, co-founder and co-chairman. "Our 5.2% Adjusted EBITDA margin in the first quarter is the best Q1 result we've delivered in five years and approaches what we reported in the first quarter of 2021."

The company reported a net loss of $105 million, or $0.80 per diluted share, compared to a net loss of $113 million, or $0.89 per share, in the prior-year quarter. Non-GAAP contribution profit was $440 million, or 15.0% of net revenue, up from $391 million in the first quarter of 2025.

Wayfair's active customer base grew 1.4% YoY to 21.4 million, marking a return to customer growth. Orders delivered increased 3.3% to 9.4 million, while average order value rose to $312 from $301 in the prior year. The company said it outperformed the home furnishings market by a high single-digit spread during the quarter.