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Warby Parker (WRBY) AI Stock Analysis
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Warby Parker
(NYSE:WRBY)
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.
Warby Parker Key Performance Indicators (KPIs)
Store CountIndicates 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.
Warby’s store footprint is expanding steadily and accelerating into 2026—management opened 14 net stores in Q1 and is targeting ~50 for the year—turning retail expansion into predictable drivers of exam growth, higher ARPC and improved in‑network insurance capture. That retail push underpins top‑line durability but also explains near‑term margin pressure from fixed‑cost deleverage and pre‑launch AI‑glasses investments; the key for investors is whether new stores sustain unit economics and drive recurring exam/capture gains faster than incremental SG&A and lab costs.
The FlyWarby Parker (WRBY) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $3.04B
- Dividend Yield
- ―
- Average Volume (3M)
- 2.92M
- Price to Earnings (P/E)
- 374.0
- Beta (1Y)
- 1.44
- Revenue Growth
- 10.99%
- EPS Growth
- ―
- Country
- US
- Employees
- 4,036
- Sector
- Healthcare
- Sector Strength
- 51
- Industry
- Specialty Retail
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 (photochromi...
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 ea...
Warby Parker Earnings Call Summary
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.
Q2-2026 Updates
Positive Updates
Negative 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
Revenue growth is strong ($541M in 2021 to $872M in 2025; $912M TTM) with consistently healthy gross margins (~53–59%). Balance sheet leverage is moderate (debt-to-equity ~0.63 TTM) and operating cash flow is solid ($95M TTM) with positive free cash flow (~$22M TTM). Offsetting these positives, profitability is still thin (near break-even net results) and free cash flow has shown volatility (TTM FCF down ~44% vs. the prior period provided).
Income Statement
56NeutralBalance Sheet
63PositiveCash Flow
58Neutral| 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 | 63.38M | 53.32M | 26.35M | -24.21M | -78.03M | -122.14M |
| 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 |
| 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
Price Trends
Market Momentum
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 24.61 is below the 20-day moving average (MA) of 25.28, below the 50-day MA of 25.14, and below the 200-day MA of 25.16, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 45.93 is Neutral, neither overbought nor oversold. The STOCH value of 31.35 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.
Latest Risks Added
0 New RisksWarby Parker Peers Comparison
Overall Rating
AMZN74Outperform
EBAY71Outperform
RVLV70Outperform
ETSY67Neutral
EYE65Neutral- WRBY61Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| AMZN | 74Outperform | $2.59T | 19.17 | 26.71% | ― | 15.35% | 73.92% |
| EBAY | 71Outperform | $53.40B | 26.05 | 46.11% | 1.00% | 15.33% | -0.34% |
| RVLV | 70Outperform | $1.59B | 21.99 | 14.05% | ― | 10.80% | 59.70% |
| ETSY | 67Neutral | $7.67B | 8.29 | -91.69% | ― | 0.69% | 521.02% |
| EYE | 65Neutral | $1.31B | 26.15 | 5.71% | ― | 7.84% | ― |
| WRBY | 61Neutral | $3.04B | 374.01 | 2.06% | ― | 10.99% | ― |
| Sector * | 51Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| WRBY | Warby Parker, Inc. Class A | 24.61 | 4.84 | 24.48% | |
| AMZN | Amazon.Com, Inc. | 240.35 | -13.65 | -5.37% | |
| EBAY | Ebay Inc | 121.64 | 39.91 | 48.84% | |
| ETSY | Etsy Inc | 88.96 | 27.88 | 45.65% | |
| EYE | National Vision Holdings | 16.59 | -9.79 | -37.11% | |
| RVLV | Revolve Group | 22.43 | 1.13 | 5.31% |
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 06, 2026