Warby Parker (WRBY) AI Stock Analysis

• Market Cap: $2.10B
• Dividend Yield: N/A
• Average Volume (3M): 2.17M
• Price to Earnings (P/E): 4531.6
• 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): 0.12
• Shares Outstanding: 105,187,775
• 10 Day Avg. Volume: 3,139,237
• 30 Day Avg. Volume: 2,168,960
• PEG Ratio: 2.09
• Price to Book (P/B): 8.57
• Price to Sales (P/S): 3.78
• P/FCF Ratio: 83.96
• Enterprise Value/Market Cap: 1.63
• Enterprise Value/Revenue: 4.01
• Enterprise Value/Gross Profit: 7.37
• Enterprise Value/Ebitda: 178.61
• 1Y Price Target: $23.45
• Price Target Upside: 34.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $16.50 ▼(-5.12% Downside)

Warby Parker's overall stock score is primarily impacted by its financial performance and technical analysis. The company faces profitability challenges and weak market momentum, reflected in its low valuation score. Despite strong revenue growth and strategic partnerships highlighted in the earnings call, these factors are overshadowed by the financial and technical weaknesses.

Positive Factors

Revenue Growth

Warby Parker's consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Partnership with Google

The partnership with Google positions Warby Parker at the forefront of innovation in eyewear, potentially expanding its market reach and enhancing competitive advantage.

Customer Growth

Sustained customer growth reflects successful customer acquisition and retention strategies, crucial for long-term revenue and market share expansion.

Negative Factors

Profitability Challenges

Ongoing profitability issues could hinder Warby Parker's ability to reinvest in growth and innovation, impacting its long-term financial health.

CFO Transition

The departure of the CFO may lead to strategic and operational uncertainties, affecting financial planning and execution in the near term.

Tariff-Related Headwinds

Tariff impacts on margins could pressure profitability, necessitating cost management and pricing strategies to maintain financial performance.

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

Warby Parker is experiencing moderate revenue growth but continues to face challenges in achieving profitability. The balance sheet shows moderate leverage, but the negative return on equity is concerning. Cash flow generation is under pressure, with a significant decline in free cash flow. The company needs to focus on improving profitability and cash flow generation to enhance its financial health.

Income Statement

Warby Parker has shown a modest revenue growth rate of 3.56% in the TTM, indicating a positive trend. However, the company is struggling with profitability as evidenced by negative net profit and EBIT margins. The gross profit margin remains healthy at 54.49%, but the net profit margin is negative, reflecting ongoing challenges in achieving profitability.

Balance Sheet

The company's debt-to-equity ratio is 0.63, indicating a moderate level of leverage. However, the return on equity is negative, suggesting that the company is not generating sufficient returns on its equity base. The equity ratio stands at 52.28%, showing a reasonable proportion of equity financing.

Cash Flow

Warby Parker's free cash flow has decreased by 27.83% in the TTM, which is a concern. The operating cash flow to net income ratio is 0.86, indicating that operating cash flows are relatively strong compared to net income. However, the free cash flow to net income ratio is 0.45, suggesting limited free cash flow generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	850.58M	771.32M	669.76M	598.11M	540.80M	393.72M
Gross Profit	462.66M	426.83M	365.22M	341.06M	317.75M	231.94M
EBITDA	19.10M	15.75M	-33.44M	-78.03M	-121.70M	-37.26M
Net Income	717.00K	-20.39M	-63.20M	-110.39M	-144.27M	-55.92M
Balance Sheet
Total Assets	706.92M	676.49M	580.31M	568.71M	440.65M	444.75M
Cash, Cash Equivalents and Short-Term Investments	280.36M	254.16M	216.89M	208.59M	256.42M	314.08M
Total Debt	232.53M	225.35M	174.46M	173.38M	0.00	0.00
Total Liabilities	337.30M	336.42M	278.52M	282.06M	154.65M	136.34M
Stockholders Equity	369.63M	340.07M	301.79M	286.65M	286.00M	308.41M
Cash Flow
Free Cash Flow	37.79M	34.71M	7.32M	-49.81M	-80.51M	12.69M
Operating Cash Flow	107.44M	98.74M	60.99M	10.37M	-31.99M	32.76M
Investing Cash Flow	-69.65M	-66.03M	-54.67M	-60.18M	-48.51M	-20.07M
Financing Cash Flow	-8.48M	4.96M	2.87M	3.29M	23.00M	245.94M

Warby Parker Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

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 17.39 is below the 20-day moving average (MA) of 20.40, below the 50-day MA of 24.01, and below the 200-day MA of 22.20, indicating a bearish trend. The MACD of -1.81 indicates Positive momentum. The RSI at 21.75 is Positive, neither overbought nor oversold. The STOCH value of 34.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WRBY.

Warby Parker Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BLCO	56 Neutral	$5.51B	―	-4.69%	―	6.23%	17.53%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
WRBY	45 Neutral	$2.10B	4,531.58	0.20%	―	14.55%	―
LUCY	35 Underperform	$7.18M	-0.48	-83.04%	―	29.30%	70.61%

Warby Parker Corporate Events

Warby Parker Reports Strong Q3 2025 Financial Growth

Warby Parker, Inc. is a direct-to-consumer lifestyle brand specializing in vision products, including prescription glasses and contact lenses, with a unique commitment to social impact through their Buy a Pair, Give a Pair program. In its third quarter of 2025, Warby Parker reported a robust financial performance with a 15% increase in net revenue year-over-year, reaching $221.7 million, and a 9% growth in active customers. The company also saw an improvement in net income to $5.9 million, reflecting a significant enhancement in profitability. Key financial metrics for the quarter include a 4.8% rise in average revenue per customer and an adjusted EBITDA increase to $25.7 million, indicating strong operational discipline. The company opened 15 new stores, bringing the total to 313 locations, and ended the quarter with $280.4 million in cash and cash equivalents. Looking ahead, Warby Parker remains optimistic about its growth trajectory, with plans to continue expanding its store footprint and leveraging AI innovations to enhance customer experiences and product offerings.

Warby Parker’s Earnings Call: Growth and Strategic Moves

Warby Parker’s recent earnings call showcased a positive sentiment, driven by strong financial performance and strategic growth initiatives. The company highlighted its partnership with Google and expansion in retail presence as key growth drivers. However, challenges such as tariff impacts and the phasing out of the home try-on program were noted, alongside the uncertainty brought by the departure of their CFO.

Warby Parker Reports Strong Q2 2025 Results

Warby Parker, Inc. is a direct-to-consumer lifestyle brand specializing in vision care, offering designer-quality prescription glasses, contact lenses, and eye exams through its retail stores and online platform. The company is known for its innovative approach and commitment to social impact, providing a pair of glasses to someone in need for every pair sold.

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.