Warby Parker (NYSE:WRBY) Announces Earnings Results

Key Points

• Warby Parker reported quarterly revenue of $244.7 million, up 10.4% year over year and roughly in line with estimates, but EPS of $0.04 missed the $0.09 consensus.
• The company cited soft eyewear demand and store traffic, and narrowed its full-year revenue growth outlook to 11%–12%; higher launch and marketing costs are expected to pressure near-term profitability.
• Warby Parker expects deliveries of its new Intelligent Eyewear to begin in mid-December, with the product potentially becoming a larger growth driver as production scales.

Warby Parker (NYSE:WRBY - Get Free Report) issued its quarterly earnings data on Thursday. The company reported $0.04 EPS for the quarter, missing analysts' consensus estimates of $0.09 by ($0.05), FiscalAI reports. The firm had revenue of $244.74 million during the quarter, compared to analyst estimates of $244.92 million. Warby Parker had a return on equity of 3.36% and a net margin of 0.85%. The business's quarterly revenue was up 10.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.05 EPS.

Here are the key takeaways from Warby Parker's conference call:

• Warby Parker reported Q3 revenue of $244.7 million, up 10.4%, and adjusted EBITDA of $28.6 million, with an 11.7% margin that slightly exceeded last year’s level. Adjusted gross margin improved 40 basis points to 54.6%, supported by lower tariffs and operating efficiencies.
• The company cited continued softness in eyewear industry units and store traffic, with pressure particularly among cash-pay customers; active-customer growth moderated. It narrowed full-year revenue growth guidance to 11%–12%, while noting that Q4 guidance includes higher launch and marketing expenses.
• Warby Parker expects its Intelligent Eyewear launch to begin contributing modestly in Q4, with customer deliveries starting in mid-December, and sees the product as a potential growth driver as production scales in 2027. Executives emphasized the opportunity but did not provide specific 2027 sales targets or pricing on the call.
• Several core growth initiatives showed momentum: e-commerce revenue grew 5%, eye exams increased 30%, and insurance revenue grew 22% year over year. The company also opened 41 net new stores year to date and remains on track for 50 openings in 2026.

Warby Parker Stock Performance

Shares of NYSE:WRBY traded down $0.45 during trading on Friday, reaching $25.63. 5,095,052 shares of the stock were exchanged, compared to its average volume of 2,662,640. Warby Parker has a 12-month low of $16.26 and a 12-month high of $31.00. The firm's 50-day moving average price is $24.91 and its 200 day moving average price is $25.12. The firm has a market cap of $2.77 billion, a price-to-earnings ratio of 427.25, a price-to-earnings-growth ratio of 6.47 and a beta of 1.95.

Key Warby Parker News

Here are the key news stories impacting Warby Parker this week:

• Positive Sentiment: Citizens JMP raised its price target to $40 from $29 and reiterated “market outperform.” The new target implies about 56% upside from the $25.63 reference price. Citizens JMP rating
• Positive Sentiment: Management signaled 15%–20% revenue growth for Q4 and expects deliveries of its new Intelligent Eyewear to begin in mid-December, providing a possible growth driver. Q4 growth outlook and Intelligent Eyewear
• Positive Sentiment: Q3 revenue rose 10.4% year over year to $244.7 million, with active customers up 3% to 2.74 million, average revenue per customer up 6.7%, and gross margin improving to 54.4%. These trends support the growth narrative. Q3 results
• Neutral Sentiment: One report noted WRBY moved above its 200-day moving average, a potentially supportive technical signal, although it does not resolve the earnings concerns. Moving-average report
• Negative Sentiment: Profit results were less clear and may weigh on sentiment. The supplied earnings data shows $0.04 per share versus a $0.09 consensus estimate, while another report cited $0.11 and a beat—likely reflecting different earnings measures. Revenue was approximately in line with estimates. Q3 metrics comparison
• Negative Sentiment: Coverage also flagged substantial spending ahead, which could limit near-term profitability even as Warby Parker expands stores and product lines. Q3 spending outlook

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the stock. UBS Group upped their target price on shares of Warby Parker from $28.00 to $32.00 and gave the company a "neutral" rating in a research note on Friday. TD Cowen began coverage on shares of Warby Parker in a research note on Friday, October 30th. They issued a "strong-buy" rating on the stock. Deutsche Bank Aktiengesellschaft set a $29.00 price objective on Warby Parker in a research note on Thursday, September 17th. The Goldman Sachs Group restated a "buy" rating and set a $32.00 target price on shares of Warby Parker in a research report on Friday. Finally, BTIG Research reaffirmed a "buy" rating on shares of Warby Parker in a research note on Tuesday, October 27th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $31.42.

Insider Buying and Selling at Warby Parker

In related news, CEO Neil Blumenthal sold 100,000 shares of the business's stock in a transaction that occurred on Thursday, October 1st. The stock was sold at an average price of $27.69, for a total value of $2,769,000.00. Following the completion of the sale, the chief executive officer directly owned 36,020 shares in the company, valued at approximately $997,393.80. The trade was a 73.52% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 16.80% of the company's stock.

Warby Parker Company Profile

Warby Parker Inc is an optical retailer that designs, manufactures and sells prescription eyeglasses, sunglasses, contact lenses and related accessories. The company offers its products through its website, mobile applications and a growing network of retail stores, combining online shopping with in-person services such as frame fitting and eye examinations.

Founded in 2010 by Neil Blumenthal, Dave Gilboa, Andrew Hunt and Jeffrey Raider, Warby Parker was established as a direct-to-consumer eyewear company.

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