Warby Parker Announces Fourth Quarter and Full Year 2025 Results

NEW YORK--( BUSINESS WIRE)--Warby Parker Inc. (NYSE: WRBY) (“Warby Parker” or the “Company”), a direct-to-consumer lifestyle brand focused on vision for all, today announced financial results for the fourth quarter and full year ended December 31, 2025.

Highlights

“In 2025, we delivered double-digit revenue growth each quarter and achieved our first full year of positive net income while expanding Adjusted EBITDA,” said Dave Gilboa, Co-Founder and Co-CEO. “In a dynamic environment, we leveraged our unmatched value proposition to capture additional market share while giving customers more convenient options to shop with us than ever before.”

“As we look ahead, we are focused on laying the groundwork for accelerating growth. We are moving decisively into Warby Parker’s next act, one defined by groundbreaking innovation and AI that will redefine how our customers experience eyewear and vision care,” added Co-Founder and Co-CEO Neil Blumenthal.

Fourth Quarter 2025 Year-Over-Year Financial Results

Full Year 2025 Year-Over-Year Financial Results

Balance Sheet and Cash Flow Highlights

Share Repurchase Program

In February 2026, the Company’s Board of Directors authorized a share repurchase program to purchase up to $100.0 million of the Company’s Class A common stock (the “Share Repurchase Program”). Repurchases under the Share Repurchase Program may be made in the open market, in privately negotiated transactions, or otherwise, with the amount and timing of repurchases to be determined at the Company’s discretion, depending on market conditions and corporate needs. Open market repurchases will be structured to occur in accordance with applicable federal securities laws, including within the pricing and volume requirements of Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of its shares under this authorization. The Share Repurchase Program does not have a fixed expiration date, does not obligate the Company to acquire any particular amount of Class A common stock, and may be modified, suspended, or terminated at any time at the discretion of the Company’s Board of Directors.

2026 Outlook

For the full year 2026, Warby Parker is providing the following guidance:

“Our healthy balance sheet and strong cash flows allow us to invest in our strategic growth initiatives as we scale our business over time, while maintaining the flexibility to return capital to shareholders,” said Adrian Mitchell, Chief Financial Officer. “I am incredibly energized by Warby Parker’s compelling brand promise. By marrying exceptional style with superior quality and outstanding value, we’ve effectively positioned our business for exciting growth opportunities on the horizon.”

(1) Please see the definitions and reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures in the section titled “Non-GAAP Financial Measures” below.

Webcast and Conference Call

A conference call to discuss Warby Parker’s fourth quarter and full year 2025 results, as well as first quarter and full year 2026 outlook, is scheduled for 8:00 a.m. ET today. To participate, please dial 833-470-1428 from the U.S. or 646-844-6383 from international locations. The conference passcode is 275034. A live webcast of the conference call will be available on the investors section of the Company’s website at investors.warbyparker.com where presentation materials will also be posted prior to the conference call. A replay will be made available online approximately two hours following the live call for a period of 90 days.

About Warby Parker

Warby Parker (NYSE: WRBY) was founded in 2010 with a mission to inspire and impact the world with vision, purpose, and style–without charging a premium for it. Headquartered in New York City, the co-founder-led lifestyle brand pioneers ideas, designs products, and develops technologies that help people see, from designer-quality prescription glasses (starting at $95) and contacts, to eye exams and vision tests available online and in its 323 retail stores across the U.S. and Canada.

Warby Parker aims to demonstrate that businesses can scale, do well, and do good in the world. Ultimately, the brand believes in vision for all, which is why for every pair of glasses or sunglasses sold, they distribute a pair to someone in need through their Buy a Pair, Give a Pair program. To date, Warby Parker has worked alongside its nonprofit partners to distribute more than 20 million glasses to people in need.

Forward-Looking Statements

This press release and the related conference call, webcast and presentation contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements may relate to, but are not limited to, expectations of future operating results or financial performance; expectations regarding the growth of our business, delivering stakeholder value and growing market share; expectations regarding the development of new products; expectations regarding our share repurchase program; our guidance for the quarter ending March 31, 2026, and year ending December 31, 2026; expectations regarding the number of new store openings during the year ending December 31, 2026; and management’s plans, priorities, initiatives and strategies. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “toward,” “will,” or “would,” or the negative of these words or other similar terms or expressions. You should not put undue reliance on any forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all.

Forward-looking statements are based on information available at the time those statements are made and are based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management as of that time with respect to future events. These statements are subject to risks and uncertainties, many of which involve factors or circumstances that are beyond our control, that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this press release may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements. These risks and uncertainties include our ability to manage our future growth effectively; our expectations regarding cost of goods sold, gross margin, channel mix, customer mix, and selling, general, and administrative expenses; potential disruptions to our supply chain; changes to U.S. or other countries’ trade policies and tariff and import/export regulations; our reliance on our information technology systems and enterprise resource planning systems for our business to effectively operate and safeguard confidential information; our ability to invest in and incorporate new technologies into our products and services; risks related to our use of artificial intelligence; our ability to engage our existing customers and obtain new customers; our ability to expand in-network access with insurance providers; planned new retail stores in 2026 and going forward; an overall decline in the health of the economy and other factors impacting consumer spending, such as recessionary conditions, inflation, infectious diseases, government instability, and geopolitical unrest; our ability to compete successfully; our ability to manage our inventory balances and shrinkage; the growth of our brand awareness; our ability to recruit and retain optometrists, opticians, and other vision care professionals; the effects of seasonal trends on our results of operations; our ability to stay in compliance with extensive laws and regulations that apply to our business and operations; our ability to adequately maintain and protect our intellectual property and proprietary rights; our reliance on third parties for our products, operation and infrastructure; our duties related to being a public benefit corporation; the ability of our Co-Founders and Co-CEOs to exercise significant influence over all matters submitted to stockholders for approval; the effect of our multi-class structure on the trading price of our Class A common stock; our ability to collaborate with partners with successful results; our ability to recognize the anticipated benefits from partnerships, including with Google and Samsung; the increased expenses associated with being a public company; and risks related to climate change and severe weather. Additional information regarding these and other risks and uncertainties that could cause actual results to differ materially from the Company's expectations is included in our most recent reports filed with the SEC on Form 10-K and Form 10-Q, which may be obtained by visiting the SEC’s website at www.sec.gov. Except as required by law, we do not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise.

Glossary

Active Customers is defined as unique customer accounts that have made at least one purchase in the preceding 12-month period.

Average Revenue per Customer is defined as the sum of the total net revenues in the preceding 12-month period divided by the current period Active Customers.

Non-GAAP Financial Measures

We use Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Cost of Goods Sold (“Adjusted COGS”), Adjusted Gross Margin, Adjusted Gross Profit, Adjusted Selling, General, and Administrative Expenses (“Adjusted SG&A”), and Free Cash Flow as important indicators of our operating performance. Collectively, we refer to these non-GAAP financial measures as our “Non-GAAP Measures.” The Non-GAAP Measures, when taken collectively with our GAAP results, may be helpful to investors because they provide consistency and comparability with past financial performance and assist in comparisons with other companies, some of which use similar non-GAAP financial information to supplement their GAAP results.

Adjusted EBITDA is defined as net income before interest and other income, taxes, and depreciation and amortization as further adjusted for asset impairment costs, stock-based compensation expense and related employer payroll taxes, amortization of cloud-based software implementation costs, non-cash charitable donations, charges for certain legal matters outside the ordinary course of business, and non-recurring costs such as restructuring costs and major system implementation costs. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by net revenue.

Adjusted COGS is defined as cost of goods sold adjusted for stock-based compensation expense and related employer payroll taxes and non-recurring costs.

Adjusted Gross Profit is defined as net revenue minus Adjusted COGS. Adjusted Gross Margin is defined as Adjusted Gross Profit divided by net revenue.

Adjusted SG&A is defined as SG&A adjusted for stock-based compensation expense and related employer payroll taxes, non-cash charitable donations, charges for certain legal matters outside the ordinary course of business, and non-recurring costs such as restructuring costs and major system implementation costs.

Free Cash Flow is defined as net cash provided by operating activities minus purchases of property and equipment.

The Non-GAAP Measures are presented for supplemental informational purposes only. A reconciliation of historical GAAP to Non-GAAP financial information is included under “Selected Financial Information” below.

We have not reconciled our Adjusted EBITDA Margin guidance to GAAP net income (loss) margin, or net margin, or Adjusted EBITDA guidance to GAAP net income (loss) because we do not provide guidance for GAAP net margin or GAAP net income (loss) due to the uncertainty and potential variability of stock-based compensation and taxes, which are reconciling items between GAAP net margin and Adjusted EBITDA Margin and GAAP net income (loss) and Adjusted EBITDA, respectively. Because such items cannot be reasonably provided without unreasonable efforts, we are unable to provide a reconciliation of the Adjusted EBITDA Margin guidance to GAAP net margin and Adjusted EBITDA guidance to GAAP net income (loss). However, such items could have a significant impact on GAAP net margin and GAAP net income (loss).

Selected Financial Information

Warby Parker Inc. and Subsidiaries

Consolidated Balance Sheets (Unaudited)

(Amounts in thousands, except par value)

December 31,

2025

2024

Assets

Current assets:

Cash and cash equivalents

286,358

254,161

Accounts receivable, net

3,285

1,948

Inventory

44,512

52,345

Prepaid expenses and other current assets

18,283

17,592

Total current assets

352,438

326,046

Property and equipment, net

187,448

170,464

Right-of-use lease assets

170,805

171,284

Other assets

10,228

8,696

Total assets

720,919

676,490

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

31,979

23,519

Accrued expenses

49,225

51,609

Deferred revenue

33,869

32,358

Current lease liabilities

31,399

20,235

Other current liabilities

3,658

2,633

Total current liabilities

150,130

130,354

Non-current lease liabilities

201,749

205,120

Other liabilities

1,310

943

Total liabilities

353,189

336,417

Commitments and contingencies

Stockholders’ equity:

Common stock, $0.0001 par value; Class A: 750,000 shares authorized at December 31, 2025 and 2024, 106,318 and 102,889 shares issued and outstanding as of December 31, 2025 and 2024, respectively; Class B: 150,000 shares authorized at December 31, 2025 and 2024, 16,130 and 17,961 shares issued and outstanding as of December 31, 2025 and 2024, respectively, convertible to Class A on a one-to-one basis

Additional paid-in capital

1,054,779

1,029,220

Accumulated deficit

(685,580

)

(687,221

)

Accumulated other comprehensive income

(1,481

)

(1,938

)

Total stockholders’ equity

367,730

340,073

Total liabilities and stockholders’ equity

720,919

676,490

Warby Parker Inc. and Subsidiaries

Consolidated Statements of Operations (Unaudited)

(Amounts in thousands, except per share data)

Three Months Ended December 31,

Year Ended December 31,

2025

2024

2023

2025

2024

2023

Net revenue

211,968

190,643

161,855

871,905

771,315

669,765

Cost of goods sold

100,925

87,517

74,789

401,326

344,481

304,541

Gross profit

111,043

103,126

87,066

470,579

426,834

365,224

Selling, general, and administrative expenses

117,895

112,542

108,635

475,915

456,946

437,220

Loss from operations

(6,852

)

(9,416

)

(21,569

)

(5,336

)

(30,112

)

(71,996

)

Interest and other income, net

1,761

2,632

2,417

8,379

10,597

9,232

(Loss) income before income taxes

(5,091

)

(6,784

)

(19,152

)

3,043

(19,515

)

(62,764

)

Provision for (benefit from) income taxes

862

(105

)

1,402

875

433

Net (loss) income

(5,953

)

(6,877

)

(19,047

)

1,641

(20,390

)

(63,197

)

(Loss) earnings per share:

Basic

(0.05

)

(0.06

)

(0.16

)

0.01

(0.17

)

(0.54

)

Diluted

(0.05

)

(0.06

)

(0.16

)

0.01

(0.17

)

(0.54

)

Weighted average shares outstanding:

Basic

123,192

121,409

118,570

122,670

120,385

117,389

Diluted

123,192

121,409

118,570

125,100

120,385

117,389

Warby Parker Inc. and Subsidiaries

Consolidated Statements of Cash Flows (Unaudited)

(Amounts in thousands)

Year Ended December 31,

2025

2024

2023

Cash flows from operating activities

Net income (loss)

1,641

(20,390

)

(63,197

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization

50,280

45,865

38,554

Stock-based compensation

34,536

47,294

70,509

Non-cash charitable contribution

2,821

2,196

3,191

Asset impairment charges

557

816

3,230

Amortization of cloud-based software implementation costs

3,405

3,704

2,895

Change in operating assets and liabilities:

Accounts receivable, net

(1,337

)

(169

)

(345

)

Inventory

7,833

9,889

6,614

Prepaid expenses and other assets

(5,631

)

(3,233

)

(3,276

)

Accounts payable

8,500

689

1,633

Accrued expenses

(2,691

)

9,521

(8,898

)

Deferred revenue

1,511

741

5,989

Lease assets and liabilities

8,272

1,920

4,459

Other liabilities

1,088

(99

)

(367

)

Net cash provided by operating activities

110,785

98,744

60,991

Cash flows from investing activities

Purchases of property and equipment

(67,048

)

(64,032

)

(53,671

)

Investment in optical equipment company

—

(2,000

)

(1,000

)

Net cash used in investing activities

(67,048

)

(66,032

)

(54,671

)

Cash flows from financing activities

Proceeds from stock option exercises

159

2,701

1,036

Shares withheld for taxes on stock-based compensation

(14,390

)

—

Proceeds from shares issued in connection with ESPP

2,204

1,925

1,835

Other financing activity

333

—

Net cash (used in) provided by financing activities

(11,997

)

4,959

2,871

Effect of exchange rates on cash

457

(404

)

(882

)

Net increase in cash and cash equivalents

32,197

37,267

8,309

Cash and cash equivalents

Beginning of year

254,161

216,894

208,585

End of year

286,358

254,161

216,894

Supplemental disclosures

Cash paid for income taxes

776

1,035

419

Cash paid for interest

325

246

227

Non-cash investing and financing activities:

Purchases of property and equipment included in accounts payable and accrued expenses

5,191

4,420

3,647

Warby Parker Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures (Unaudited)

The following table reconciles adjusted EBITDA and adjusted EBITDA margin to the most directly comparable GAAP measure, which is net (loss) income:

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

(unaudited, in thousands)

Net (loss) income

(5,953

)

(6,877

)

1,641

(20,390

)

Adjusted to exclude the following:

Interest and other income, net

(1,761

)

(2,631

)

(8,379

)

(10,596

)

Provision for income taxes

862

1,402

875

Depreciation and amortization expense

13,101

12,332

50,280

45,865

Asset impairment charges

294

557

816

Stock-based compensation expense (1)

6,606

9,036

36,097

48,409

Non-cash charitable donations (2)

—

2,821

2,196

Amortization of cloud-based software implementation costs

1,013

842

3,405

3,704

System implementation costs (3)

710

—

1,883

—

Inventory write-downs (4)

—

2,456

—

Other costs (5)

622

753

3,048

2,232

Adjusted EBITDA

15,246

13,842

95,211

73,111

Adjusted EBITDA Margin

7.2

7.3

10.9

9.5

(1)

Represents expenses related to the Company’s equity-based compensation programs and related employer payroll taxes, which may vary significantly from period to period depending upon various factors including the timing, number, and the valuation of awards granted, and vesting of awards including the satisfaction of performance conditions. For the three and twelve months ended December 31, 2025, the amount includes $0.3 million and $1.6 million of employer payroll costs, respectively, associated with releases of RSUs and option exercises. For the three and twelve months ended December 31, 2024, the amount includes $0.4 million and $1.1 million of employer payroll costs, respectively, associated with releases of RSUs and option exercises.

(2)

Represents charitable expense recorded in connection with the donation of 178,572 shares of Class A common stock in both May 2025 and May 2024 to the Warby Parker Impact Foundation.

(3)

Represents costs related to the implementation of major new enterprise software systems.

(4)

Represents one-time inventory write-downs primarily related to the decision in the second quarter of 2025 to sunset our Home-Try On program at the end of 2025.

(5)

Primarily represents restructuring costs incurred in the second quarter of 2025 and the fourth quarter of 2024 and charges for certain legal matters outside the ordinary course of business.

Warby Parker Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures (Unaudited)

The following table presents our non-GAAP, or adjusted, financial measures for the periods presented as a percentage of revenue. Each cost and operating expense is adjusted for stock-based compensation expense and related employer payroll taxes, non-cash charitable donations, charges for certain legal matters outside the ordinary course of business, and non-recurring costs such as restructuring costs and major system implementation costs.

Reported

Adjusted

Reported

Adjusted

Three Months Ended

December 31,

Three Months Ended

December 31,

Year Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

2025

2024

2025

2024

(unaudited, in thousands)

Cost of goods sold

100,925

87,517

100,623

87,262

401,326

344,481

397,685

343,416

% of revenue

47.6

45.9

47.5

45.8

46.0

44.7

45.6

44.5

Gross profit

111,043

103,126

111,345

103,381

470,579

426,834

474,220

427,899

% of revenue

52.4

54.1

52.5

54.2

54.0

55.3

54.4

55.5

Selling, general, and administrative expenses

117,895

112,542

110,259

103,008

475,915

456,946

433,251

405,174

% of revenue

55.6

59.0

52.0

54.0

54.6

59.2

49.7

52.5

Warby Parker Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures (Unaudited)

The following table reflects a reconciliation of each non-GAAP, or adjusted, financial measure to its most directly comparable financial measure prepared in accordance with GAAP:

Three Months Ended

December 31,

Year Ended

December 31,

2025

2024

2025

2024

(unaudited, in thousands)

Cost of goods sold

100,925

87,517

401,326

344,481

Adjusted to exclude the following:

Stock-based compensation expense (1)

302

255

1,185

1,065

Inventory write-downs (2)

—

2,456

—

Adjusted Cost of Goods Sold

100,623

87,262

397,685

343,416

Gross profit

111,043

103,126

470,579

426,834

Adjusted to exclude the following:

Stock-based compensation expense (1)

302

255

1,185

1,065

Inventory write-downs (2)

—

2,456

—

Adjusted Gross Profit

111,345

103,381

474,220

427,899

Selling, general, and administrative expenses

117,895

112,542

475,915

456,946

Adjusted to exclude the following:

Stock-based compensation expense (1)

6,304

8,781

34,912

47,344

Non-cash charitable donations (3)

—

2,821

2,196

System implementation costs (4)

710

—

1,883

—

Other costs (5)

622

753

3,048

2,232

Adjusted Selling, General, and Administrative Expenses

110,259

103,008

433,251

405,174

Net cash provided by operating activities

23,254

19,912

110,785

98,744

Purchases of property and equipment

(15,120

)

(17,721

)

(67,048

)

(64,032

)

Free Cash Flow

8,134

2,191

43,737

34,712

(1)

(2)

Represents charitable expense recorded in connection with the donation of 178,572 shares of Class A common stock in both May 2025 and May 2024 to the Warby Parker Impact Foundation.

(3)

Represents costs related to the implementation of major new enterprise software systems.

(4)

Represents one-time inventory write-downs primarily related to the decision in the second quarter of 2025 to sunset our Home-Try On program at the end of 2025.

(5)

Primarily represents restructuring costs incurred in the second quarter of 2025 and the fourth quarter of 2024 and charges for certain legal matters outside the ordinary course of business.