Warby Parker (WRBY) AI Stock Analysis

• Market Cap: $2.98B
• Dividend Yield: N/A
• Average Volume (3M): 1.84M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.40
• Revenue Growth: 13.94%
• EPS Growth: 74.69%
• Country: US
• Employees: 2,218
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.15
• Shares Outstanding: 104,502,620
• 10 Day Avg. Volume: 1,859,698
• 30 Day Avg. Volume: 1,836,126
• PEG Ratio: -6.69
• Price to Book (P/B): 7.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 65.74
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 0.90
• Enterprise Value/Gross Profit: 6.29
• Enterprise Value/Ebitda: -1.43K
• 1Y Price Target: $22.58
• Price Target Upside: -8.14% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 72 Outperform
• Price Target: $27.00 ▲(9.85%Upside)

Warby Parker's overall score is driven by strong financial performance in revenue growth and cash management, positive momentum in technical indicators, and strategic initiatives highlighted in the earnings call. However, the high negative P/E ratio and overbought technical indicators present risks, with the partnership with Google providing a notable upside potential.

Positive Factors

Financial Investment

Google has committed up to $150M for the partnership, with up to $75M as an equity investment and up to another $75M for Warby Parker's product development and commercialization costs.

Market Potential

The U.S. TAM of Smart Glasses could be $2-4bn by 2030 vs. WRBY's current revenue of ~$800mm LTM.

Partnership with Google

The partnership with Google validates Warby Parker's position in the market and its status as a formidable and growing player in the eyewear industry.

Negative Factors

Earnings and Guidance

The first quarter sales and gross margin miss and full-year guidance reduction likely dampen the emerging bullish thesis focusing on Warby Parker's attractive topline growth and margin expansion opportunity.

Financial Uncertainty

There is continued uncertainty in Warby Parker's growth and profitability profile due to substantial add-backs to adjusted EBITDA and unclear profit and loss implications of its evolving business model.

Market Position

Warby Parker's unclear trajectory and volatile track record, combined with an uncertain macro backdrop, could keep the stock range-bound at current levels.

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 lens spray. The company also offers eye exams and vision tests directly to consumers through its retail stores, website, and mobile apps. As of May 16, 2022, it had 160 retail stores in the United States and Canada. The company was formerly known as JAND, Inc. and changed its name to Warby Parker Inc. in June 2021. Warby Parker Inc. was incorporated in 2009 and is headquartered in New York, New York.

How the Company Makes Money

Warby Parker generates revenue through the sale of eyewear products, including prescription eyeglasses, sunglasses, and contact lenses. The company operates a vertically integrated business model, which allows it to design, produce, and sell its products directly to consumers, thus reducing reliance on intermediaries and keeping prices competitive. Warby Parker also offers an online Home Try-On program, enabling customers to try frames before purchasing. The company's retail stores, which enhance its omnichannel presence, contribute significantly to its sales. Additionally, Warby Parker has developed strategic partnerships and collaborations to expand its product offerings and reach. Revenue is primarily driven by product sales, supported by marketing initiatives and customer loyalty programs.

Warby Parker Financial Statement Overview

Summary

Warby Parker's financial performance is marked by robust revenue growth and effective cash flow management. However, persistent net losses and negative profit margins remain significant challenges for achieving profitability.

Income Statement

Warby Parker has demonstrated consistent revenue growth, with a noticeable increase from $393.7M in 2020 to $795.1M TTM (Trailing-Twelve-Months) as of March 2025. The gross profit margin has remained stable, indicating effective cost management. However, the company has been experiencing persistent net losses, as evidenced by the negative net profit and EBIT margins, which highlight ongoing challenges in achieving profitability.

Balance Sheet

The balance sheet remains relatively strong with a positive equity ratio and a manageable debt-to-equity ratio, as total debt is well-supported by stockholders' equity. The return on equity is negative due to continuous net losses, which is a concern. Nevertheless, the company's substantial cash reserves provide a buffer against financial volatility.

Cash Flow

Warby Parker's cash flow analysis reveals a positive trend in operating cash flow and free cash flow, indicating healthy cash generation capabilities. The free cash flow to net income ratio is favorable, suggesting efficient cash management despite the negative net income. The company is improving its free cash flow position, which is a positive sign for liquidity and potential reinvestment.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	771.32M	669.76M	598.11M	540.80M	393.72M
Gross Profit	426.83M	365.22M	341.06M	317.75M	231.94M
EBITDA	15.75M	-33.44M	-78.03M	-121.70M	-37.26M
Net Income	-20.39M	-63.20M	-110.39M	-144.27M	-55.92M
Balance Sheet
Total Assets	676.49M	580.31M	568.71M	440.65M	444.75M
Cash, Cash Equivalents and Short-Term Investments	254.16M	216.89M	208.59M	256.42M	314.08M
Total Debt	225.35M	174.46M	173.38M	0.00	0.00
Total Liabilities	336.42M	278.52M	282.06M	154.65M	136.34M
Stockholders Equity	340.07M	301.79M	286.65M	286.00M	308.41M
Cash Flow
Free Cash Flow	34.71M	7.32M	-49.81M	-80.51M	12.69M
Operating Cash Flow	98.74M	60.99M	10.37M	-31.99M	32.76M
Investing Cash Flow	-66.03M	-54.67M	-60.18M	-48.51M	-20.07M
Financing Cash Flow	4.96M	2.87M	3.29M	23.00M	245.94M

Warby Parker Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 24.58 is above the 20-day moving average (MA) of 22.51, above the 50-day MA of 21.25, and above the 200-day MA of 21.05, indicating a bullish trend. The MACD of 0.80 indicates Negative momentum. The RSI at 73.67 is Negative, neither overbought nor oversold. The STOCH value of 95.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WRBY.

Warby Parker Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WRBY	72 Outperform	$2.98B	―	-4.25%	―	13.94%	74.69%
BLCO	64 Neutral	$4.91B	―	-5.56%	―	11.94%	-6.98%
Sector *	52 Neutral	$7.46B	-0.04	-63.82%	2.49%	16.43%	<0.01%
LUCY	35 Underperform	$9.61M	―	-132.93%	―	41.99%	47.51%

Warby Parker Corporate Events

Warby Parker Partners with Google for AI Glasses

On May 20, 2025, Warby Parker announced a partnership with Google to develop AI-powered glasses designed for all-day wear, marking Google’s first eyewear partnership for Android XR. Google has committed up to $150 million to the partnership, which includes an equity investment in Warby Parker. This collaboration aims to combine Warby Parker’s eyewear design expertise with Google’s technology to create a new generation of smart glasses, potentially enhancing Warby Parker’s market position and offering innovative products to consumers.

The most recent analyst rating on (WRBY) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Warby Parker stock, see the WRBY Stock Forecast page.