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Warby Parker
(NYSE:WRBY)
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Rating:61Neutral
Price Target:
$31.00
▲(26.22% Upside)
Action:Reiterated
Date:08/06/26
WRBY’s score is driven primarily by improving fundamentals—strong multi-year revenue growth, healthy gross margins, moderate leverage, and positive operating/free cash flow—alongside favorable price momentum with the stock trading above key moving averages. These strengths are meaningfully offset by a very stretched P/E valuation and the earnings call’s acknowledgement of near-term headwinds (softer traffic, e-commerce drag from Home Try-On, and elevated SG&A/investment intensity), keeping the overall score in the low 60s.
Positive Factors
Omnichannel scale & store expansion
Rapid, sustained store growth and dense geographic coverage create durable distribution and discovery advantages. Proximity to a large share of the U.S. population boosts in‑store conversion, supports eye‑exam cross‑sell and higher average order values, and entrenches an omnichannel flywheel that is hard for pure online competitors to replicate.
Negative Factors
Thin profitability / near breakeven
Near‑breakeven net results leave limited buffer against demand softness or cost inflation. With operating profit only slightly positive, unexpected margin pressure or traffic declines could quickly erode profits and slow return profile improvement, constraining reinvestment capacity and long‑term ROE expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Omnichannel scale & store expansion
Rapid, sustained store growth and dense geographic coverage create durable distribution and discovery advantages. Proximity to a large share of the U.S. population boosts in‑store conversion, supports eye‑exam cross‑sell and higher average order values, and entrenches an omnichannel flywheel that is hard for pure online competitors to replicate.
Read all positive factors
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.
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The Fly
The FlyWarby Parker (WRBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.24B
Dividend YieldN/A
Average Volume (3M)3.27M
Price to Earnings (P/E)401.4
Beta (1Y)1.58
Revenue Growth10.99%
EPS GrowthN/A
CountryUS
Employees4,036
SectorHealthcare
Sector Strength45
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.07
Shares Outstanding107,094,180
10 Day Avg. Volume2,760,970
30 Day Avg. Volume3,268,072
Financial Highlights & Ratios
PEG Ratio-15.07
Price to Book (P/B)7.27
Price to Sales (P/S)3.07
P/FCF Ratio61.11
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$30.00Price Target Upside22.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)0.47
Revenue Forecast (FY)$979.87M
Warby Parker Business Overview & Revenue Model
Company Description
Warby Parker Inc. operates as a purveyor of optical products and related services. Their extensive product line includes prescription eyeglasses, sunglasses, and contact lenses, alongside specialized lens options such as light-responsive (photochr...
How the Company Makes Money
Warby Parker primarily makes money by selling optical products and related services directly to consumers through its website/app and company-operated retail stores. Its core revenue stream is the sale of prescription eyeglasses, where the company...
Warby Parker Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call conveyed a constructive tone: the company delivered solid top-line growth (~10% YoY), meaningful adjusted EBITDA and margin expansion, accelerated retail expansion, strong eye exam and insurance momentum, and is well-funded (tariff refunds and $293M cash) to invest behind the upcoming Intelligent Eyewear launch. Notable challenges include softer traffic, near-term e-commerce headwinds from the Home Try‑On sunset, higher SG&A as the company invests to support launch-scale operations, and operational complexity related to the new intelligent product. Management reaffirmed full-year revenue and adjusted EBITDA guidance, emphasized a prudent outlook that excludes Intelligent Eyewear revenue, and outlined plans (marketing, in-store demos, preorders) to drive customer acquisition in H2. On balance, positive operating and financial progress and a clear plan for launch outweigh the near-term investment and traffic headwinds.Positive Updates
Revenue Growth and Scale
Q2 revenue of $235.5M (rounded to $236M) representing ~9.8% year-over-year growth; reaffirmed full-year revenue guidance of $959M–$976M (~10%–12% YoY growth).
Negative Updates
Traffic and Customer Acquisition Headwinds
Company reported softer-than-desired traffic across the category and lower active customer growth than expected (active customers grew 4.1% over trailing 12 months), prompting stepped-up marketing investments to drive acquisition in H2.
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Q2-2026 Updates
Positive
Negative
Revenue Growth and Scale
Q2 revenue of $235.5M (rounded to $236M) representing ~9.8% year-over-year growth; reaffirmed full-year revenue guidance of $959M–$976M (~10%–12% YoY growth).
Read all positive updates
Company Guidance
Management reaffirmed full-year 2026 guidance of $959–$976M revenue (~10–12% YoY) and $117–$119M adjusted EBITDA (12.2% margin, ~130 bps YoY expansion), explicitly excluding any Intelligent Eyewear revenue or halo; Q3 guidance is $243–$246M revenue (~10–11% YoY) and $26–$28M adjusted EBITDA (≈11% margin at midpoint). Q2 results included $235.5M revenue (+9.8% YoY), adjusted EBITDA of $32.9M (14.0% margin) and adjusted gross margin of $136.9M (58.1%, +380 bps YoY)—benefited by $11.8M of the $14.4M total tariff refund this year (the balance: $2.6M to be recorded through COGS in H2); $6M of incremental investments were made in Q2 and ~$8.4M of the tariff benefit is expected to fund Q3 investments. Q2 adjusted SG&A was $119.3M (50.6% of revenue, +170 bps); cash was $293M with ~ $7M free cash flow in Q2 (including $3.4M cash collected from tariffs and interest). Operationally, Warby Parker now has 352 stores (29 net openings YTD toward a 50-store 2026 target), ~2/3 of the U.S. population within 30 minutes of a store, eye exams ≈7% of revenue (grew >30% YoY; offered in ~90% of stores), progressive lens penetration 23.4% (up 30 bps), active customers +4.1% TTM, ARPC +6.6% YoY, contacts ≈11% of revenue, and >35M in‑network lives with in‑network business +20% YoY and insurance penetration ~8% (from 7% a year ago); Home Try‑On headwinds are expected to diminish (Q2 ≈2.8 ppt drag, Q3 ≈1.7 ppt, Q4 ≈0.5 ppt).Warby Parker Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
63
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 911.61M | 871.90M | 771.32M | 669.76M | 598.11M | 540.80M |
| Gross Profit | 498.49M | 470.58M | 426.83M | 365.22M | 341.06M | 317.75M |
| EBITDA | 79.21M | 53.32M | 26.35M | -24.21M | -78.03M | -122.05M |
| Net Income | 7.74M | 1.64M | -20.39M | -63.20M | -110.39M | -144.27M |
Balance Sheet | ||||||
| Total Assets | 772.32M | 720.92M | 676.49M | 580.31M | 568.71M | 440.65M |
| Cash, Cash Equivalents and Short-Term Investments | 292.67M | 286.36M | 254.16M | 216.89M | 208.59M | 256.42M |
| Total Debt | 250.98M | 233.15M | 225.35M | 174.46M | 173.38M | 0.00 |
| Total Liabilities | 380.33M | 353.19M | 336.42M | 278.52M | 282.06M | 154.65M |
| Stockholders Equity | 391.99M | 367.73M | 340.07M | 301.79M | 286.65M | 286.00M |
Cash Flow | ||||||
| Free Cash Flow | 21.75M | 43.74M | 34.71M | 7.32M | -49.81M | -80.51M |
| Operating Cash Flow | 95.36M | 110.78M | 98.74M | 60.99M | 10.37M | -31.99M |
| Investing Cash Flow | -73.61M | -67.05M | -66.03M | -54.67M | -60.18M | -48.51M |
| Financing Cash Flow | -15.38M | -12.00M | 4.96M | 2.87M | 3.29M | 23.00M |
Warby Parker Technical Analysis
Negative
24.56
Price Trends
26.56
Negative
25.20
Negative
24.24
Positive
Market Momentum
-0.02
Positive
42.06
Neutral
22.86
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 24.56 is below the 20-day moving average (MA) of 26.32, below the 50-day MA of 26.56, and above the 200-day MA of 24.24, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 42.06 is Neutral, neither overbought nor oversold. The STOCH value of 22.86 is Neutral, 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
25.32
-1.49
-5.56%
BLCO
Bausch + Lomb Corporation
16.76
2.59
18.28%
LUCY
Innovative Eyewear, Inc.
0.73
-1.28
-63.75%
Warby Parker Corporate Events
Executive/Board ChangesShareholder Meetings
Warby Parker Stockholders Back Directors and Executive Pay
Positive
Jun 12, 2026
On June 8, 2026, Warby Parker Inc. held its Annual Meeting of Stockholders, where holders of Class A and higher-voting Class B common stock representing about 95.97% of combined voting power were present or represented by proxy. Stockholders elect...
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.