Earnings

Warby Parker Revenue Climbs 10.4% — Higher Costs Leave Net Income At $5.6 Million

The glasses seller kept its adjusted earnings outlook intact as Intelligent Eyewear launch spending pushed quarterly free cash flow below zero.

Matteo Parrino Jonathan Ponciano

Matteo Parrino, Jonathan Ponciano

— 2 min read
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Warby Parker Revenue Climbs 10.4% — Higher Costs Leave Net Income At $5.6 Million

Warby Parker, which designs and sells glasses directly to consumers and provides eye care, grew third-quarter revenue 10.4% to $244.7 million, but net income fell $0.3 million to $5.6 million. The results, released Thursday alongside an SEC filing, paired higher retail pay and technology expenses with preparations for its Intelligent Eyewear launch.

Costs Absorb The Sales Gains

Selling and administrative expenses reached $129.6 million, an increase of $13.2 million from a year earlier. Those costs consumed 53.0% of revenue, compared with 52.5%, as retail compensation and corporate expenses, including technology, outweighed a lower marketing share of sales.

Gross margin improved to 54.4% from 54.1%. Warby Parker credited lower tariffs, shipping savings, optical-laboratory efficiencies and a greater share of progressive lenses and other treatments; growth in eye care and store occupancy expenses offset some of those benefits. Diluted earnings fell to $0.04 per share from $0.05.

The company's adjusted earnings before interest, taxes, depreciation and amortization rose $2.8 million to $28.6 million, with its margin reaching 11.7% versus 11.6%. That measure also excludes costs such as stock-based pay. Warby Parker Chief Financial Officer Adrian Mitchell said adjusted earnings were “exceeding our guidance.”

More Spending Per Customer

Warby Parker counted 2.74 million customer accounts with purchases over the preceding 12 months, up 3.0%. Revenue per customer over that period rose 6.7% to $342—faster than the customer count.

The company sells through its website and stores, offering prescription glasses starting at $95. Its business also includes sunglasses, contact lenses, lens upgrades and eye exams, while its Virtual Vision Test app lets eligible customers renew prescriptions at home.

The store network ended the quarter at 364 locations after 12 net additions. Management plans 50 openings for the full year.

WRBY shares rose about 3% to $26.74 in Friday trading, as of 11:53 a.m. ET. Warby Parker's market value was $3.2 billion at that reading.

Eyewear Launch Enters The Outlook

Warby Parker narrowed its full-year revenue forecast to $966 million–$976 million, or approximately 11%–12% growth over 2025. Management retained its adjusted earnings-before-interest, taxes, depreciation and amortization forecast of $117 million–$119 million; the midpoint implies a 12.2% margin, up 1.3 percentage points year over year.

The outlook now incorporates a modest Intelligent Eyewear revenue contribution together with launch and operating costs. Quarterly operating cash flow was $24.7 million, but free cash flow—cash from operations less purchases of property and equipment—was negative $2.0 million, which the company attributed to Intelligent Eyewear launch investments. Cash and cash equivalents ended the quarter at $287.9 million.

Warby Parker co-founder and co-CEO Dave Gilboa said pre-orders for the first Intelligent Eyewear collection will begin next Thursday. Gilboa said the company would “look forward to delivering customer orders during the holiday season.”

The launch puts Intelligent Eyewear sales and expenses inside the same annual outlook, with the adjusted earnings forecast unchanged.

Sources

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