Warby Parker (WRBY)
NYSE:WRBY
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Warby Parker
(NYSE:WRBY)
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Rating:69Neutral
Price Target:
$32.00
▲(28.72% Upside)
Action:ReiteratedDate:05/09/26
The score is driven primarily by improving fundamentals with strong cash generation and solid growth, plus bullish technical momentum. This is partially offset by a very demanding valuation and near-term margin headwinds highlighted in the latest guidance and Q1 results.
Positive Factors
Revenue Growth & Scale
Warby Parker has delivered multi-year top-line scaling, growing revenue materially and accelerating recently. That revenue base supports operating leverage, broader distribution economics and the ability to fund store expansion, product innovation and omnichannel investments over the next 2–6 months and beyond.
Negative Factors
Fragile Operating Profitability
Profitability remains thin despite revenue scale, leaving limited room to absorb shocks. Slightly negative EBIT and near-zero net margins reduce buffer for increased marketing, labor or supply-cost pressures, and constrain free cash flow upside if growth or margins deteriorate.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth & Scale
Warby Parker has delivered multi-year top-line scaling, growing revenue materially and accelerating recently. That revenue base supports operating leverage, broader distribution economics and the ability to fund store expansion, product innovation and omnichannel investments over the next 2–6 months and beyond.
Read all positive factors
Warby Parker (WRBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.62B
Dividend YieldN/A
Average Volume (3M)2.31M
Price to Earnings (P/E)204.7
Beta (1Y)1.67
Revenue Growth12.01%
EPS GrowthN/A
CountryUS
Employees2,218
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)0.02
Shares Outstanding106,768,720
10 Day Avg. Volume2,032,282
30 Day Avg. Volume2,312,411
Financial Highlights & Ratios
PEG Ratio-15.10
Price to Book (P/B)7.27
Price to Sales (P/S)3.07
P/FCF Ratio61.11
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue4.01
Enterprise Value/Gross Profit7.52
Enterprise Value/Ebitda99.55
Forecast
1Y Price Target
$29.11Price Target Upside17.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)0.48
Revenue Forecast (FY)$980.80M
Warby Parker Business Overview & Revenue Model
Company Description
Warby Parker Inc. provides eyewear products. It offers eyeglasses, sunglasses, light-responsive lenses, blue-light-filtering lenses, and contact lenses, as well as accessories, including cases, lenses kit with anti-fog spray, pouches, and anti-fog...
How the Company Makes Money
Warby Parker primarily makes money by selling optical products directly to customers through its website/app and company-owned retail stores. Its core revenue stream is the sale of prescription eyeglasses and sunglasses (including frames and lense...
Warby Parker Key Performance Indicators (KPIs)
Any
Store Count
Indicates the number of physical locations, reflecting the company's retail footprint and potential market reach. A growing store count can signal expansion efforts and increased brand presence.
Indicates the number of physical locations, reflecting the company's retail footprint and potential market reach. A growing store count can signal expansion efforts and increased brand presence.
Data provided by:
The Fly
The FlyWarby Parker Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call highlighted clear operational and strategic progress—revenue and EBITDA beats, retail strength, strong exam growth, rising ARPC, improved insurance capture, product innovation, and confirmed full‑year guidance—while acknowledging near‑term margin pressure from tariff and fixed‑cost deleverage, weather disruptions, the Home Try‑On transition, and investments ahead of the AI glasses launch. The positives around top‑line growth, improving customer metrics, liquidity, and a large strategic opportunity with intelligent eyewear outweigh the short‑term headwinds.Positive Updates
Revenue and EBITDA Beat Guidance
Q1 revenue of $242.4M, up 8.3% year-over-year, and adjusted EBITDA of $29.6M (12.2% margin), both above company guidance for the quarter.
Negative Updates
Gross Margin Pressure
Adjusted gross margin was 54.2% in Q1, down 220 basis points year-over-year, driven by deleverage in fixed expenses (doctor headcount, occupancy), tariff costs on glasses, and higher optical lab and shipping costs.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue and EBITDA Beat Guidance
Q1 revenue of $242.4M, up 8.3% year-over-year, and adjusted EBITDA of $29.6M (12.2% margin), both above company guidance for the quarter.
Read all positive updates
Company Guidance
Warby Parker reaffirmed full‑year 2026 guidance of $959M–$976M revenue (≈10%–12% YoY) and adjusted EBITDA of $117M–$119M (a 12.2% adjusted EBITDA margin across the range, ~130 bps margin expansion YoY), and guided Q2 revenue of $235M–$238M (≈10%–11% YoY) with Q2 adjusted EBITDA of $27M–$29M (≈12% margin at the midpoint); the outlook excludes any AI‑glasses revenue but does include known pre‑ and post‑launch costs for the AI glasses program. These targets follow a Q1 that beat guidance with $242.4M revenue (+8.3% YoY), $29.6M adjusted EBITDA (12.2% margin), adjusted gross margin of 54.2% (‑220 bps YoY), adjusted SG&A $117.1M (48.3% of revenue), marketing at 11.6% of revenue (‑90 bps YoY), and operating metrics including 2.7M active customers (+4.8% TTM), average revenue per customer +6.9% YoY, exams +30% YoY, e‑commerce expected to grow low single digits, contacts ≈10% of revenue, in‑network insurance penetration ≈10% (vs ≈8% prior year), cash of $288M, ~ $8M Q1 free cash flow, $100M buyback authorization, a $120M credit facility (expandable to $175M, $4M drawn), and a $75M reimbursement arrangement with Google to support AI‑glasses investments.Warby Parker Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
60
Neutral
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 890.57M | 871.90M | 771.32M | 669.76M | 598.11M | 540.80M |
| Gross Profit | 475.64M | 470.58M | 426.83M | 365.22M | 341.06M | 317.75M |
| EBITDA | 35.92M | 53.32M | 15.75M | -33.44M | -78.03M | -121.70M |
| Net Income | 1.35M | 1.64M | -20.39M | -63.20M | -110.39M | -144.27M |
Balance Sheet | ||||||
| Total Assets | 736.41M | 720.92M | 676.49M | 580.31M | 568.71M | 440.65M |
| Cash, Cash Equivalents and Short-Term Investments | 288.25M | 286.36M | 254.16M | 216.89M | 208.59M | 256.42M |
| Total Debt | 237.63M | 233.15M | 225.35M | 174.46M | 173.38M | 0.00 |
| Total Liabilities | 360.60M | 353.19M | 336.42M | 278.52M | 282.06M | 154.65M |
| Stockholders Equity | 375.81M | 367.73M | 340.07M | 301.79M | 286.65M | 286.00M |
Cash Flow | ||||||
| Free Cash Flow | 38.90M | 43.74M | 34.71M | 7.32M | -49.81M | -80.51M |
| Operating Cash Flow | 105.94M | 110.78M | 98.74M | 60.99M | 10.37M | -31.99M |
| Investing Cash Flow | -67.03M | -67.05M | -66.03M | -54.67M | -60.18M | -48.51M |
| Financing Cash Flow | -15.86M | -12.00M | 4.96M | 2.87M | 3.29M | 23.00M |
Warby Parker Technical Analysis
Positive
24.86
Price Trends
23.24
Positive
24.01
Positive
23.82
Positive
Market Momentum
-0.09
Negative
60.39
Neutral
87.45
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WRBY, the sentiment is Positive. The current price of 24.86 is above the 20-day moving average (MA) of 22.01, above the 50-day MA of 23.24, and above the 200-day MA of 23.82, indicating a bullish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 60.39 is Neutral, neither overbought nor oversold. The STOCH value of 87.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WRBY.
Warby Parker Risk Analysis
Warby Parker disclosed 66 risk factors in its most recent earnings report. Warby Parker reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Warby Parker Peers Comparison
UnderperformOutperform
Sector (51)
WRBY
Warby Parker
29.55
10.67
56.51%
BLCO
Bausch + Lomb Corporation
16.18
4.29
36.08%
LUCY
Innovative Eyewear, Inc.
1.03
-0.84
-44.92%
Warby Parker Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Warby Parker Announces Buyback Amid Profitable Growth Milestone
Positive
Feb 26, 2026
On February 26, 2026, Warby Parker reported fourth quarter and full-year 2025 results showing net revenue up 13.0% to $871.9 million for the year and 11.2% in the quarter, supported by 7.0% active customer growth and a 5.7% rise in average revenue...
Business Operations and StrategyExecutive/Board Changes
Warby Parker Appoints Adrian Mitchell as New CFO
Positive
Feb 9, 2026
On February 4, 2026, Warby Parker’s board appointed veteran retail executive Adrian Mitchell as Chief Financial Officer, effective February 10, 2026, with Co‑Founder Dave Gilboa continuing as Co‑CEO. The move, announced publicly ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.