Warby Parker’s Earnings Call: Growth and Strategic Moves

Warby Parker, Inc. Class A ((WRBY)) has held its Q2 earnings call. Read on for the main highlights of the call.

Warby Parker’s recent earnings call showcased a positive sentiment, driven by strong financial performance and strategic growth initiatives. The company highlighted its partnership with Google and expansion in retail presence as key growth drivers. However, challenges such as tariff impacts and the phasing out of the home try-on program were noted, alongside the uncertainty brought by the departure of their CFO.

Revenue Growth

Warby Parker reported a robust 14% year-over-year revenue growth in Q2 2025, surpassing their guidance expectations. This growth underscores the company’s strong market position and effective strategies in capturing consumer demand.

Eighth Quarter of Customer Growth

The company achieved its eighth consecutive quarter of accelerating active customer growth, ending Q2 with 2.6 million active customers. This represents a 9% increase on a trailing 12-month basis, highlighting Warby Parker’s success in expanding its customer base.

Store Expansion

Warby Parker marked a significant milestone by opening its 300th store in Downtown Manhattan, along with several shop-in-shops in Target locations. This expansion reflects the company’s commitment to increasing its retail footprint and accessibility.

AI Partnership with Google

The announcement of a long-term partnership with Google to develop AI-powered intelligent eyewear is a strategic move that could significantly expand Warby Parker’s total addressable market. This collaboration positions the company at the forefront of innovation in the eyewear industry.

Insurance Business Growth

Warby Parker reported strong growth within its insurance business, with insurance customers spending more and returning more frequently. This segment’s performance indicates a successful strategy in diversifying revenue streams.

Strong Adjusted EBITDA

The company achieved an adjusted EBITDA of $25 million in Q2, representing an adjusted EBITDA margin of 11.7%, up from 10.4% in the previous year. This improvement highlights Warby Parker’s operational efficiency and profitability.

Impact of Tariffs

Tariff-related headwinds impacted Warby Parker’s gross margin, causing a decrease to 54.3% from 56.1% year-over-year. This challenge underscores the external pressures affecting the company’s cost structure.

Sunset of Home Try-On Program

The decision to sunset the home try-on program could impact customer acquisition channels. However, Warby Parker plans to reallocate resources to other areas, indicating a strategic shift in customer engagement.

Steve Miller’s Departure

The announcement of CFO Steve Miller’s departure at the end of the quarter introduces potential uncertainty in financial leadership. The company will need to navigate this transition carefully to maintain investor confidence.

Forward-Looking Guidance

In its forward-looking guidance, Warby Parker raised its full-year projections, expecting net revenue between $880 million and $888 million and adjusted EBITDA between $98 million and $101 million. The company plans to continue leveraging AI-driven digital tools and its partnership with Google to develop AI-powered eyewear, aiming to expand its market beyond traditional glasses. Additionally, Warby Parker will sunset its home try-on program by the end of the year, reallocating resources to support these strategic initiatives.

In summary, Warby Parker’s earnings call reflects a strong financial performance and strategic growth initiatives, despite facing challenges such as tariff impacts and leadership changes. The company’s forward-looking guidance is optimistic, with plans to leverage technology and expand its market presence, positioning Warby Parker for continued success.