Warby Parker (WRBY) AI Stock Analysis

• Market Cap: $3.23B
• Dividend Yield: N/A
• Average Volume (3M): 3.14M
• Price to Earnings (P/E): 2172.7
• Beta (1Y): 1.54
• Revenue Growth: 14.55%
• EPS Growth: N/A
• Country: US
• Employees: 2,218
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.02
• Shares Outstanding: 106,768,720
• 10 Day Avg. Volume: 4,020,076
• 30 Day Avg. Volume: 3,135,835
• PEG Ratio: -15.10
• Price to Book (P/B): 7.27
• Price to Sales (P/S): 3.07
• P/FCF Ratio: 61.11
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 3.79
• Enterprise Value/Gross Profit: 7.02
• Enterprise Value/Ebitda: 67.59
• 1Y Price Target: $29.44
• Price Target Upside: 11.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 0.48
• Revenue Forecast (FY): $981.81M

• Rating: 60 Neutral
• Price Target: $27.00 ▲(2.70% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is driven primarily by improving fundamentals and a constructive earnings outlook (strong revenue growth, turning cash flows positive, and guidance for further EBITDA margin expansion). Offsetting these positives are a very weak valuation profile (extremely high P/E) and only mixed technical momentum (negative MACD with otherwise neutral indicators).

Positive Factors

Sustained Revenue Scale

Multi-year revenue expansion reflects durable demand for Warby Parker’s vertically integrated, omnichannel model. Scaling revenue supports fixed-cost absorption, funds reinvestment and store growth, and indicates the company can continue capturing share in eyewear over the next 2–6 months.

Improving Cash Generation

Consistent, positive operating and free cash flow provides durable liquidity to fund store openings, product launches, and R&D (including AI glasses) without leaning heavily on debt. Strong cash generation also enables share buybacks and buffers macro shocks over the medium term.

Omnichannel Retail & Clinical Expansion

Aggressive store expansion plus growing clinical services (eye exams increased) deepen customer relationships and raise ARPC, creating durable unit economics advantages. Physical retail infill increases market penetration and creates synergy with online channels over the coming quarters.

Negative Factors

Gross Margin Pressure / Tariffs

Tariff-driven cost increases and shipping and mix shifts are structural margin headwinds that can erode durable profitability. If tariffs or supply-chain costs persist, margin recovery will require sustained pricing power or cost restructuring, challenging near-term margin stability.

Profitability Only Newly Positive

Net income that just turned positive signals earnings fragility: small adverse trends in mix, costs, or traffic could revert profits. Until margins consistently exceed break-even, capital returns and aggressive expansion carry execution risk over the next several quarters.

E‑commerce Transition & Younger‑Customer Softness

Digital program changes and weakened demand among younger, price‑sensitive cohorts create structural risk to online revenue and lifetime value. A sustained shift in customer behavior or slower digital recovery would pressure unit economics and require heavier marketing or product adjustments.

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 primarily generates revenue through the sale of prescription eyeglasses, sunglasses, and contact lenses. Its direct-to-consumer model allows the company to sell products at competitive prices, often significantly lower than traditional optical retailers. Key revenue streams include the sale of frames, lenses, and accessories, as well as the provision of eye exams in its retail locations. Additionally, the company has developed partnerships with various organizations and initiatives that enhance its brand visibility and customer reach. Warby Parker's innovative Home Try-On program, which allows customers to test frames at home before purchasing, also contributes to higher conversion rates and customer satisfaction, ultimately boosting sales.

Warby Parker Financial Statement Overview

Summary

Strong multi-year revenue growth and meaningfully improved cash generation (2025 operating cash flow ~$111M; free cash flow ~$44M). However, profitability is only newly positive and still near break-even (2025 net margin ~0.2%), and leverage is manageable but not conservative (debt-to-equity ~0.63).

Income Statement

Revenue has scaled materially over the period (from $394M in 2020 to $872M in 2025), showing strong top-line momentum. Gross margin remains solid and fairly steady in the mid-to-high 50% range, supporting the business model. However, profitability is still a weak spot: operating results were meaningfully negative in prior years and only recently improved to near break-even, with 2025 net margin just above zero (~0.2%). Overall, the trajectory is improving, but earnings quality and consistency are not yet proven.

Balance Sheet

The balance sheet looks moderately levered with debt at ~$233M against equity of ~$368M in 2025 (debt-to-equity ~0.63), which is manageable but not conservative. Total assets have grown alongside the business, and equity has increased versus earlier years, indicating improving capitalization. The main concern is that shareholder returns have been weak/negative for most of the period, only turning slightly positive in 2025, which limits balance-sheet strength from a profitability standpoint.

Cash Flow

Cash generation has improved meaningfully. Operating cash flow rose from negative in 2021 to a strong ~$111M in 2025, and free cash flow turned decisively positive (about ~$44M in 2025) with solid growth year-over-year. Earlier years showed volatility, including notably negative free cash flow in 2021–2022, but the last three years demonstrate a clearer positive trend. A remaining watch item is that free cash flow is not consistently high relative to operating cash flow, suggesting ongoing reinvestment needs and/or working-capital swings.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	871.90M	771.32M	669.76M	598.11M	540.80M
Gross Profit	470.58M	426.83M	365.22M	341.06M	317.75M
EBITDA	53.32M	15.75M	-33.44M	-78.03M	-121.70M
Net Income	1.64M	-20.39M	-63.20M	-110.39M	-144.27M
Balance Sheet
Total Assets	720.92M	676.49M	580.31M	568.71M	440.65M
Cash, Cash Equivalents and Short-Term Investments	286.36M	254.16M	216.89M	208.59M	256.42M
Total Debt	233.15M	225.35M	174.46M	173.38M	0.00
Total Liabilities	353.19M	336.42M	278.52M	282.06M	154.65M
Stockholders Equity	367.73M	340.07M	301.79M	286.65M	286.00M
Cash Flow
Free Cash Flow	43.74M	34.71M	7.32M	-49.81M	-80.51M
Operating Cash Flow	110.78M	98.74M	60.99M	10.37M	-31.99M
Investing Cash Flow	-67.05M	-66.03M	-54.67M	-60.18M	-48.51M
Financing Cash Flow	-12.00M	4.96M	2.87M	3.29M	23.00M

Warby Parker Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 26.29 is above the 20-day moving average (MA) of 23.76, above the 50-day MA of 25.20, and above the 200-day MA of 23.44, indicating a bullish trend. The MACD of -0.21 indicates Negative momentum. The RSI at 57.51 is Neutral, neither overbought nor oversold. The STOCH value of 72.30 is Neutral, 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	60 Neutral	$3.23B	2,172.73	0.46%	―	14.55%	―
BLCO	60 Neutral	$6.52B	-18.07	-4.69%	―	6.23%	17.53%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
LUCY	43 Neutral	$5.99M	-0.43	-74.10%	―	53.22%	72.69%

Warby Parker Corporate Events

Warby Parker Announces Buyback Amid Profitable Growth Milestone

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 per customer to $324. The company achieved its first full year of positive net income at $1.6 million, expanded Adjusted EBITDA by 30.2% to $95.2 million with a 10.9% margin, and delivered its third consecutive year of positive operating and free cash flow, while ending 2025 with $286.4 million in cash and opening 47 net new stores to reach 323 locations.

Management highlighted that gross margin fell to 54.0% for 2025, pressured by tariffs, higher doctor headcount, contact lens mix, and shipping costs, though partially offset by selective price increases and greater penetration of progressives and lens enhancements. SG&A as a percentage of revenue declined materially due to cost leverage, operational efficiencies, and lower stock-based compensation, supporting margin improvement and signaling increased operating discipline as Warby Parker seeks to capture additional market share in a competitive, dynamic environment.

The board also authorized a share repurchase program of up to $100 million in Class A common stock in February 2026, providing a new capital return lever alongside ongoing investments in growth, including a planned pipeline of new stores. This move, enabled by a strong balance sheet and cash generation, underscores management’s confidence in the company’s long-term prospects and offers potential support for the stock, while preserving flexibility as the program has no fixed expiration and can be adjusted at the board’s discretion.

Co-founders Dave Gilboa and Neil Blumenthal framed 2025 as a pivotal year, noting that Warby Parker sustained double-digit revenue growth each quarter while transitioning to profitability and enhancing Adjusted EBITDA. They signaled a strategic push into a “next act” centered on innovation and AI to reshape the eyewear and vision-care experience, positioning the brand for accelerated growth as it continues to marry style, quality, and value with technology-driven customer experiences.

The most recent analyst rating on (WRBY) stock is a Buy with a $32.00 price target. To see the full list of analyst forecasts on Warby Parker stock, see the WRBY Stock Forecast page.

Warby Parker Appoints Adrian Mitchell as New CFO

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 on February 9, 2026, installs Mitchell as the company’s principal financial and accounting officer under a compensation package combining base salary, equity awards, and performance-based stock units.

Mitchell, formerly Chief Operating Officer and Chief Financial Officer at Macy’s Inc. and a past executive at Crate & Barrel, Arhaus, Target, McKinsey, and Boston Consulting Group, brings more than 25 years of experience leading large consumer brands and driving digital and operational transformation. Warby Parker frames his appointment as a way to bolster financial discipline and operating expertise as it pursues profitable growth, expands retail and product offerings, and deepens its push into new categories such as AI-enabled glasses, with implications for long-term shareholder value and execution of its mission-driven strategy.

The most recent analyst rating on (WRBY) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on Warby Parker stock, see the WRBY Stock Forecast page.

Warby Parker Partners with Google on AI Glasses

Warby Parker and Google have announced their collaboration on developing lightweight AI glasses, which are expected to launch in 2026. This partnership marks a significant step in Warby Parker’s product innovation strategy, potentially impacting its market position and offering new opportunities for stakeholders in the tech and eyewear industries.

The most recent analyst rating on (WRBY) stock is a Hold with a $20.50 price target. To see the full list of analyst forecasts on Warby Parker stock, see the WRBY Stock Forecast page.