Warby Parker (WRBY)
NYSE:WRBY
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Warby Parker
(NYSE:WRBY)
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Rating:60Neutral
Price Target:
$21.50
▲(5.76% Upside)
Action:ReiteratedDate: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
Warby Parker has materially scaled top-line sales over several years, demonstrating durable demand and successful customer acquisition across channels. Sustained revenue growth supports capacity to invest in stores, tech, and product expansion, reducing single-channel risk and strengthening long-term competitive positioning.
Negative Factors
Gross Margin Pressure
Sustained margin headwinds from tariffs, higher doctor headcount, expedited shipping and a shift toward lower‑margin contacts and frames can compress long‑term profitability. These structural cost and mix pressures require either price increases or operational offsetting to sustain margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Scale
Warby Parker has materially scaled top-line sales over several years, demonstrating durable demand and successful customer acquisition across channels. Sustained revenue growth supports capacity to invest in stores, tech, and product expansion, reducing single-channel risk and strengthening long-term competitive positioning.
Read all positive factors
Warby Parker (WRBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.49B
Dividend YieldN/A
Average Volume (3M)3.22M
Price to Earnings (P/E)―
Beta (1Y)1.57
Revenue Growth14.55%
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. Volume2,799,837
30 Day Avg. Volume3,224,114
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 Cap0.98
Enterprise Value/Revenue2.79
Enterprise Value/Gross Profit5.18
Enterprise Value/Ebitda49.84
Forecast
1Y Price Target
$28.00Price Target Upside37.73% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)0.48
Revenue Forecast (FY)$981.29M
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 makes money primarily by selling eyewear and vision-related products directly to customers through its website/app and company-owned retail stores. Its core revenue stream is the sale of prescription eyeglasses (frames and lenses) and...
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:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call presented a largely constructive operating and financial picture: the company delivered double-digit revenue growth, its first full year of net income profitability, accelerating free cash flow, meaningful adjusted EBITDA improvement, and an aggressive store expansion and AI strategy backed by strong partnerships. However, near-term pressures were highlighted, including margin headwinds from tariffs and mix shift, softer demand among younger consumers, weather-driven retail disruptions in Q1, and e-commerce impacts from phasing out the home try-on program. Management provided conservative 2026 guidance (10%–12% revenue growth and EBITDA margin expansion) and excluded any AI glasses revenue, positioning the company for upside if execution and market demand for AI products materialize. Overall, the positives in growth, profitability, balance sheet strength, and strategic initiatives outweigh the short-term operational and macro uncertainties discussed on the call.Positive Updates
Full-Year and Quarterly Revenue Growth
Fiscal 2025 revenue of $871.9M, up 13% year-over-year; Q4 2025 revenue of $212M, up 11.2% year-over-year. Retail revenue grew 17.3% for the year and 15.2% in Q4.
Negative Updates
Gross Margin Pressure
Full-year adjusted gross margin fell to 54.4%, down 110 basis points YoY; Q4 adjusted gross margin 52.5%, down 170 basis points YoY. Drivers included tariff-related headwinds, increased doctor headcount, expedited customer shipping costs, and mix shift into lower-price frames and higher contacts penetration.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year and Quarterly Revenue Growth
Fiscal 2025 revenue of $871.9M, up 13% year-over-year; Q4 2025 revenue of $212M, up 11.2% year-over-year. Retail revenue grew 17.3% for the year and 15.2% in Q4.
Read all positive updates
Company Guidance
Warby Parker guided 2026 revenue of $959–$976 million (about +10–12% YoY) and adjusted EBITDA of $117–$119 million (a 12.2% margin, ~+130 bps YoY), with gross margin expected roughly in line with 2025 (~54.4%), marketing in the low‑teens % of revenue, and e‑commerce growth in the low single digits; the company reiterated that this outlook excludes any AI‑glasses revenue but includes the operating and capital spend to launch them. For Q1 2026 it guided $238–$240 million in revenue and $27–$28 million adjusted EBITDA (~11.5% margin), noting quarter‑to‑date mid‑single‑digit top‑line growth and weather‑related retail headwinds concentrated on the East Coast. The plan contemplates ~50 new store openings in 2026 (323 stores at year‑end 2025; long‑term potential ≥900), continued scaling of eye exams (up 37% in 2025 to ~6% of sales), higher insurance penetration (in‑network ~8% in 2025, ~40% YoY dollar growth), and disciplined capital allocation supported by $286M cash, $44M free cash flow in 2025, a $120M credit facility (expandable to $175M), and a Board‑authorized share repurchase program up to $100M.Warby Parker Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
60
Neutral
Cash Flow
72
Positive
| 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
Negative
20.33
Price Trends
24.63
Negative
23.43
Negative
23.83
Negative
Market Momentum
-0.69
Positive
36.68
Neutral
17.21
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WRBY, the sentiment is Negative. The current price of 20.33 is below the 20-day moving average (MA) of 24.36, below the 50-day MA of 24.63, and below the 200-day MA of 23.83, indicating a bearish trend. The MACD of -0.69 indicates Positive momentum. The RSI at 36.68 is Neutral, neither overbought nor oversold. The STOCH value of 17.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
20.33
1.66
8.89%
BLCO
Bausch + Lomb Corporation
15.37
1.24
8.78%
LUCY
Innovative Eyewear, Inc.
1.08
-1.66
-60.58%
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.