W Q2 2026 - Preliminary Earnings Alert
Event: Quartr Q2 2026 event
Retrieved: 2026-08-04T14:20:00Z
Comparison mode: aggressive
Scorecard contract: v1
Source status: release=available | financials=release document only | transcript=marked available, not yet read
Consensus scorecard
| Metric / basis |
Quartr actual |
API Ninjas consensus |
Beat/Miss |
Beat/Miss % |
| Revenue / total net revenue |
$3,519.0m |
$3,469.5m |
Beat +$49.5m |
+1.4% |
| EPS / adjusted diluted (non-GAAP) |
$0.95 |
$0.904 |
Beat +$0.046 |
+5.1% |
Reported results and guidance
| Metric (GAAP unless noted) |
Q2 2026 |
Q2 2025 |
Change |
| Total net revenue |
$3,519m |
$3,273m |
+7.5% |
| U.S. net revenue |
$3,125m |
$2,874m |
+8.7% |
| International net revenue |
$394m |
$399m |
−1.3% |
| Gross profit |
$1,054m |
$984m |
+7.1% |
| Gross margin |
30.0% |
30.1% |
−0.1pp |
| Income from operations |
$104m |
$17m |
+$87m |
| Net (loss) income |
$(1)m |
$15m |
−$16m |
| Diluted EPS (GAAP) |
$(0.01) |
$0.11 |
−$0.12 |
| Adjusted diluted EPS (non-GAAP) |
$0.95 |
$0.87 |
+9.2% |
| Adjusted EBITDA (non-GAAP) |
$242m |
$205m |
+18.0% |
| Contribution profit (non-GAAP) |
$539m |
$497m |
+8.5% |
| Operating cash flow |
$360m |
$273m |
+31.9% |
| Free cash flow (non-GAAP) |
$301m |
$230m |
+30.9% |
| Active customers |
21.7m |
21.0m |
+3.3% |
| Orders delivered |
10.6m |
10.0m |
+6.0% |
| Average order value |
$332 |
$328 |
+1.2% |
| LTM revenue per active customer |
$596 |
$572 |
+4.2% |
- No forward revenue, margin, or EPS guidance is contained in the release document; the company hosted its call at 8:00 a.m. ET and any outlook commentary would sit in the transcript.
- Scorecard recap: revenue beat consensus by 1.4% ($3,519m vs. $3,469.5m) and adjusted diluted EPS beat by 5.1% ($0.95 vs. $0.904).
Key bullish aspects
- Revenue growth accelerated to 7.5% with U.S. revenue up 8.7%, which management calls the best post-COVID U.S. growth rate and the best sequential Q2 progression since 2020.
- Operating income rose to $104m from $17m, a $87m swing on $246m of incremental revenue, indicating roughly 35% incremental operating margin on the added volume.
- Adjusted EBITDA of $242m (6.9% of revenue) rose 18.0% and free cash flow of $301m is the highest the company reports since 2020.
- Volume, not price, drove the quarter: orders delivered rose 6.0% and active customers rose 3.3%, with AOV up only 1.2%.
- Specialty retail brands grew nearly 20% and Perigold more than 35% per management commentary in the release.
- Total operating expenses fell to $950m from $967m even as revenue rose, with SOTG&A down to $428m from $465m.
Key bearish aspects
- GAAP results deteriorated: the company posted a $(1)m net loss versus $15m of net income a year earlier, and diluted EPS of $(0.01) versus $0.11.
- The GAAP swing is driven below the operating line: interest expense rose to $39m from $29m, other income of $23m reversed to a $4m expense, and a $59m loss on debt extinguishment replaced a $6m prior-year gain.
- International revenue declined 1.3% and fell 2.0% in constant currency, so all growth is U.S.-sourced.
- Gross margin slipped to 30.0% from 30.1%, so gross profit growth (7.1%) trailed revenue growth (7.5%).
- Repeat-customer order share fell to 80.2% from 80.7%, and the balance sheet still carries a $2,788m total stockholders' deficit with $2,797m of long-term debt.
Key uncertainties
- The $59m first-half loss on debt extinguishment and the $701m settlement of long-term debt in financing activities point to an ongoing liability-management program whose remaining cost and dilution are not quantified in the release.
- Whether the 35% incremental operating margin is durable or reflects timing of advertising and equity-compensation spend: equity-based compensation fell to $72m from $101m year over year, which flatters the operating line but is added back in the adjusted EPS the scorecard uses.
- No guidance is in the release, so the Q3 revenue and margin outlook — and management's framing of tariff and consumer risk — is only available from the call.
- Cash and equivalents fell to $1,065m from $1,476m at year-end 2025 after $599m of first-half financing outflows; the release does not state a target liquidity level.
- Share count rose to 115.5m Class A shares from 108.4m at year-end 2025, so adjusted per-share growth is being earned against a growing denominator.
Market context
- API Ninjas snapshot: $113.10 on NYSE, volume 3,597,642, retrieved 2026-08-04T14:07:28Z (10:07 a.m. ET, roughly 37 minutes into the regular session). This is a single intraday quote, not a complete session or reaction measurement.
Source limitations
- Every actual above comes from the Quartr release document; Quartr standardized financials for this event are not yet populated.
- API Ninjas supplied no actual or difference fields for this event, so the beat/miss is calculated locally as Quartr actual minus API Ninjas estimate. The API row carried no fiscal year or quarter, so the exact ticker-and-event-date match path was used.
- The consensus EPS basis is inferred to be adjusted diluted from the provider's prior-quarter actual ($0.26 for Q1 2026, matching the company's adjusted diluted figure rather than the $(0.80) GAAP figure); aggressive mode selects adjusted diluted EPS regardless.
- Quartr marks a transcript as available for this event but it has not been read for this preliminary report; a post-call update will follow.
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