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Warby Parker (WRBY)
NYSE:WRBY
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Warby Parker (WRBY) AI Stock Analysis

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WRBY

Warby Parker

(NYSE:WRBY)

Rating:68Neutral
Price Target:
$29.00
▲(8.17% 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
Warby Parker reported better sales with relatively in-line adjusted gross margin and adjusted EBITDA that came in some 15% ahead of expectations.
Store Growth and 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.
Strategic Partnerships
WRBY is uniquely positioned to benefit from wearable A.I. given its direct-to-consumer expertise combined with Google's partnership.
Negative Factors
Gross Margin Stability
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 Changes
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 (WRBY) vs. SPDR S&P 500 ETF (SPY)

Warby Parker Business Overview & Revenue Model

Company DescriptionWarby 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 MoneyWarby 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 Key Performance Indicators (KPIs)

Any
Any
Store Count
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.
Chart InsightsWarby Parker's aggressive store expansion strategy is evident, with a consistent increase in store count, reaching 300 locations by mid-2025. This growth aligns with their 19% retail revenue increase and strategic initiatives, including shop-in-shops in Target. The earnings call highlights a transformative partnership with Google for AI-powered eyewear, potentially broadening their market. However, challenges like tariff impacts and the phasing out of the home try-on program could affect margins and customer acquisition. The CFO's departure adds uncertainty to their financial leadership.
Data provided by:Main Street Data

Warby Parker Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: 10.33%|
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
Warby Parker's earnings call reflects strong financial performance and strategic growth initiatives, such as its partnership with Google and expansion in retail presence. However, the company faces challenges with tariff impacts and the transition of phasing out the home try-on program. Additionally, the departure of their CFO adds a layer of uncertainty.
Q2-2025 Updates
Positive Updates
Revenue Growth
Warby Parker reported a 14% year-over-year revenue growth in Q2 2025, surpassing guidance expectations.
Eighth Quarter of Customer Growth
The company achieved its eighth consecutive quarter of accelerating active customer growth, ending Q2 with 2.6 million active customers, an increase of 9% on a trailing 12-month basis.
Store Expansion
Warby Parker opened its 300th store in Downtown Manhattan and several shop-in-shops in Target locations, marking significant retail expansion.
AI Partnership with Google
The company announced a long-term partnership with Google to develop AI-powered intelligent eyewear, potentially expanding their total addressable market significantly.
Insurance Business Growth
Warby Parker reported strong growth within its insurance business, with insurance customers spending more and returning more frequently.
Strong Adjusted EBITDA
Adjusted EBITDA in Q2 was $25 million, representing an adjusted EBITDA margin of 11.7%, up from 10.4% in the year-ago period.
Negative Updates
Impact of Tariffs
Tariff-related headwinds impacted the company's gross margin, causing a year-over-year decrease to 54.3% from 56.1%.
Sunset of Home Try-On Program
The decision to sunset the home try-on program could impact customer acquisition channels, although the company plans to reallocate resources to other areas.
Steve Miller's Departure
Steve Miller, the CFO, announced he will step down at the end of the quarter, which might affect financial leadership.
Company Guidance
In the Warby Parker Second Quarter 2025 Earnings Conference Call, the company provided updated guidance and highlighted several key metrics and strategic initiatives. Warby Parker reported a 14% year-over-year revenue growth and expanded adjusted EBITDA margin by 130 basis points, exceeding the high end of their guidance. The company experienced its eighth consecutive quarter of accelerating customer growth, ending Q2 with 2.6 million active customers, a 9% increase on a trailing 12-month basis, and an average revenue per customer up 4.6%. Retail revenue grew 19% year-over-year, and the company opened 11 new stores, reaching a total of 300 locations. Warby Parker also announced a significant milestone of distributing over 20 million pairs of glasses through its Buy Pair, Give a Pair program. The company raised its full-year guidance, projecting net revenue between $880 million and $888 million and adjusted EBITDA between $98 million and $101 million. Looking forward, Warby Parker plans to sunset its home try-on program by the end of the year and continue leveraging AI-driven digital tools and its partnership with Google to develop AI-powered eyewear, marking a transformative step in expanding its total addressable market beyond traditional glasses.

Warby Parker Financial Statement Overview

Summary
Warby Parker's financial performance showcases strong revenue growth and effective cash management, though profitability remains a significant challenge. The company's financial stability is supported by a solid balance sheet and cash reserves, yet ongoing net losses and negative profit margins indicate the need for improved operational efficiency and cost control to achieve sustainable profitability.
Income Statement
65
Positive
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
70
Positive
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
75
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue821.35M771.32M669.76M598.11M540.80M393.72M
Gross Profit447.58M426.83M365.22M341.06M317.75M231.94M
EBITDA9.04M15.75M-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 Assets701.90M676.49M580.31M568.71M440.65M444.75M
Cash, Cash Equivalents and Short-Term Investments286.38M254.16M216.89M208.59M256.42M314.08M
Total Debt228.38M225.35M174.46M173.38M0.000.00
Total Liabilities340.45M336.42M278.52M282.06M154.65M136.34M
Stockholders Equity361.45M340.07M301.79M286.65M286.00M308.41M
Cash Flow
Free Cash Flow52.37M34.71M7.32M-49.81M-80.51M12.69M
Operating Cash Flow116.75M98.74M60.99M10.37M-31.99M32.76M
Investing Cash Flow-64.38M-66.03M-54.67M-60.18M-48.51M-20.07M
Financing Cash Flow-3.82M4.96M2.87M3.29M23.00M245.94M

Warby Parker Technical Analysis

Technical Analysis Sentiment
Positive
Last Price26.81
Price Trends
50DMA
22.82
Positive
100DMA
20.09
Positive
200DMA
21.69
Positive
Market Momentum
MACD
0.58
Negative
RSI
73.27
Negative
STOCH
31.67
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 26.81 is above the 20-day moving average (MA) of 24.14, above the 50-day MA of 22.82, and above the 200-day MA of 21.69, indicating a bullish trend. The MACD of 0.58 indicates Negative momentum. The RSI at 73.27 is Negative, neither overbought nor oversold. The STOCH value of 31.67 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$2.98B-2.67%14.09%80.34%
60
Neutral
HK$18.14B5.30-4.00%3.33%10.16%-17.39%
55
Neutral
$4.87B-4.22%8.81%40.43%
35
Underperform
$9.01M-132.93%22.75%63.41%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WRBY
Warby Parker
26.81
12.72
90.28%
BLCO
Bausch + Lomb Corporation
14.17
-1.93
-11.99%
LUCY
Innovative Eyewear, Inc.
2.00
-1.98
-49.75%

Warby Parker Corporate Events

Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Warby Parker CFO Steve Miller Resigns
Positive
Aug 7, 2025

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.

Product-Related AnnouncementsBusiness Operations and Strategy
Warby Parker Partners with Google for AI Glasses
Positive
May 20, 2025

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.

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.Date of analysis: Aug 14, 2025