Warby Parker (WRBY) AI Stock Analysis

• Market Cap: $3.20B
• Dividend Yield: N/A
• Average Volume (3M): 1.68M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.38
• Revenue Growth: 14.09%
• EPS Growth: 80.34%
• Country: US
• Employees: 2,218
• Sector: Healthcare
• Sector Strength: 51
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.09
• Shares Outstanding: 105,187,775
• 10 Day Avg. Volume: 1,312,881
• 30 Day Avg. Volume: 1,679,690
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 3.20
• Enterprise Value/Gross Profit: 5.88
• Enterprise Value/Ebitda: 290.82
• 1Y Price Target: $26.31
• Price Target Upside: 4.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 68 Neutral
• Price Target: $29.00 ▲(14.81% Upside)

Warby Parker's overall stock score is driven by strong earnings call performance and positive technical indicators. The company's strategic initiatives, such as the partnership with Google, bolster its growth prospects. However, profitability challenges and valuation concerns weigh on the score, highlighting the need for improved financial performance.

Positive Factors

Financial Performance

The company's valuation sees a price target increase to $28, justified by its consistent double-digit growth and expanding margins.

Partnership and Innovation

WRBY is uniquely positioned to benefit from wearable A.I. given its direct-to-consumer expertise combined with Google's partnership.

Store Expansion

The analyst is most encouraged on store growth and sales momentum, highlighting a potential for expansion from 300 stores to 900 in the U.S.

Negative Factors

Gross Margin Risks

The largest risk is any backtracking on gross margin, which needs to be stable to flow through what is seen as meaningful operating leverage opportunity ahead.

Leadership Change

The planned resignation of Steven Miller from the CFO role is unfortunate as he is viewed as a stable pair of hands and the main access point for investors.

Valuation Concerns

The negative stock reaction is likely due to an already-high valuation.

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 demonstrates steady revenue growth and strong cash flow generation, which are positive indicators for future performance. However, the company faces challenges in achieving profitability, as reflected in negative net profit and return on equity. Addressing these profitability issues while maintaining growth and cash flow stability will be crucial for long-term success.

Income Statement

Warby Parker's revenue growth has been consistent, with a 3.3% increase in the TTM period. However, the company is still facing profitability challenges, as indicated by negative net profit and EBIT margins. The gross profit margin remains strong at around 54.5%, suggesting efficient cost management. The company needs to focus on improving its net income to enhance overall profitability.

Balance Sheet

The debt-to-equity ratio is moderate at 0.63, indicating a balanced approach to leveraging. However, the return on equity is negative, reflecting ongoing profitability issues. The equity ratio is stable, suggesting a solid asset base. The company should aim to improve its ROE by enhancing net income.

Cash Flow

Warby Parker shows a positive trend in cash flow, with a 23.43% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is strong, indicating good cash generation relative to net income. The company should continue to focus on maintaining and improving free cash flow to support operations and potential investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	821.35M	771.32M	669.76M	598.11M	540.80M	393.72M
Gross Profit	447.58M	426.83M	365.22M	341.06M	317.75M	231.94M
EBITDA	9.04M	15.75M	-33.44M	-78.03M	-121.70M	-37.26M
Net Income	-9.23M	-20.39M	-63.20M	-110.39M	-144.27M	-55.92M
Balance Sheet
Total Assets	701.90M	676.49M	580.31M	568.71M	440.65M	444.75M
Cash, Cash Equivalents and Short-Term Investments	286.38M	254.16M	216.89M	208.59M	256.42M	314.08M
Total Debt	228.38M	225.35M	174.46M	173.38M	0.00	0.00
Total Liabilities	340.45M	336.42M	278.52M	282.06M	154.65M	136.34M
Stockholders Equity	361.45M	340.07M	301.79M	286.65M	286.00M	308.41M
Cash Flow
Free Cash Flow	52.37M	34.71M	7.32M	-49.81M	-80.51M	12.69M
Operating Cash Flow	116.75M	98.74M	60.99M	10.37M	-31.99M	32.76M
Investing Cash Flow	-64.38M	-66.03M	-54.67M	-60.18M	-48.51M	-20.07M
Financing Cash Flow	-3.82M	4.96M	2.87M	3.29M	23.00M	245.94M

Warby Parker Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 25.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WRBY, the sentiment is Neutral. The current price of 25.26 is below the 20-day moving average (MA) of 25.78, above the 50-day MA of 24.13, and above the 200-day MA of 22.26, indicating a neutral trend. The MACD of 0.55 indicates Positive momentum. The RSI at 49.13 is Neutral, neither overbought nor oversold. The STOCH value of 10.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WRBY.

Warby Parker Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WRBY	68 Neutral	$3.20B	―	-2.67%	―	14.09%	80.34%
BLCO	55 Neutral	$5.18B	―	-4.22%	―	8.81%	40.43%
Sector *	51 Neutral	$7.90B	-0.33	-41.69%	2.23%	23.45%	-1.99%
LUCY	35 Underperform	$8.83M	―	-83.04%	―	29.30%	70.61%

Warby Parker Corporate Events

Warby Parker CFO Steve Miller Resigns

On August 4, 2025, Warby Parker announced that Steve Miller, the Chief Financial Officer, will resign effective October 1, 2025, to pursue opportunities outside the industry. Co-CEO Dave Gilboa will temporarily assume Miller’s roles until a successor is appointed, ensuring a smooth transition. In its second quarter of 2025, Warby Parker reported a 14% increase in net revenue to $214 million and a 9% rise in active customers. The company is expanding its innovative offerings, including a partnership with Google to develop intelligent eyewear, and has raised its financial outlook for the year, reflecting its strong market positioning and growth potential.

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.

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.