Warby Parker (NYSE:WRBY) Releases Quarterly Earnings Results, Misses Estimates By $0.08 EPS

Key Points

• Warby Parker missed earnings expectations for the quarter, reporting $0.03 EPS versus the $0.11 consensus, though revenue came in slightly above estimates at $242.45 million and rose 8.4% year over year.
• Management reiterated full-year 2026 guidance for revenue of $959 million to $976 million and adjusted EBITDA of $117 million to $119 million, while noting that AI glasses revenue is not yet included in the outlook.
• Business trends remain solid despite margin pressure, with active customers up to 2.7 million, exam volume growing about 30%, and 14 net new stores opened in Q1, even as adjusted gross margin fell due to higher costs and tariffs.

Warby Parker (NYSE:WRBY - Get Free Report) announced its earnings results on Thursday. The company reported $0.03 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.11 by ($0.08), FiscalAI reports. The firm had revenue of $242.45 million for the quarter, compared to analyst estimates of $239.44 million. Warby Parker had a return on equity of 2.32% and a net margin of 0.15%.The firm's revenue was up 8.4% compared to the same quarter last year. During the same quarter last year, the business posted $0.03 EPS.

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

• Q1 results beat guidance — revenue was $242.4M (up 8.3% YoY) and adjusted EBITDA was $29.6M (12.2% margin), demonstrating resilience despite winter weather and soft category demand.
• Full‑year 2026 guidance reaffirmed — management expects $959M–$976M revenue (≈10%–12% growth) and $117M–$119M adjusted EBITDA, with the outlook excluding AI glasses revenue but including pre‑launch costs.
• AI glasses launch planned later this year — Warby Parker is partnering with Google and Samsung, investing in supply chain, lab capacity, retail experience and systems; launch economics and revenue are not included in current guidance.
• Omni‑channel expansion and eye care traction — opened 14 net stores in Q1 (on track for 50 in 2026), exams grew ~30% YoY, active customers reached 2.7M and insurance penetration rose to ~10%, supporting higher AOV and lifetime value.
• Near‑term margin pressure — adjusted gross margin declined 220 bps to 54.2% due to fixed cost deleverage (doctor headcount, occupancy), tariffs, and lab/shipping costs, though management expects tariff tailwinds and operational initiatives to help later in the year.

Warby Parker Stock Performance

Shares of NYSE:WRBY traded up $2.32 during trading on Friday, reaching $29.52. 4,176,843 shares of the stock were exchanged, compared to its average volume of 2,460,305. Warby Parker has a 12-month low of $14.96 and a 12-month high of $31.00. The firm has a market cap of $3.16 billion, a price-to-earnings ratio of 1,476.54 and a beta of 1.95. The firm's 50-day moving average price is $23.31 and its 200 day moving average price is $23.08.

Warby Parker News Roundup

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

• Positive Sentiment: Warby Parker reported Q1 revenue of $242.45 million, topping estimates, and said revenue grew 8.4% year over year, signaling solid demand. Warby Parker Announces First Quarter 2026 Results
• Positive Sentiment: The company posted Q1 earnings of $0.12 per share, matching year-ago results and beating Wall Street expectations, reinforcing that profitability is holding up better than feared. Warby Parker Inc. (WRBY) Surpasses Q1 Earnings and Revenue Estimates
• Positive Sentiment: Management said active customers rose 4.8% to 2.69 million and average revenue per customer increased 6.9%, both signs of healthy customer growth and monetization. Warby Parker Announces First Quarter 2026 Results
• Positive Sentiment: Warby Parker guided FY2026 revenue to $959 million-$976 million, a range investors are treating as supportive even though it is slightly below consensus, and the company also generated net income of $3.2 million. Warby Parker Announces First Quarter 2026 Results
• Positive Sentiment: Analysts turned more constructive after earnings, with BTIG raising its price target to $34 and Telsey lifting its target to $33, both with bullish ratings. BTIG Research price target update
• Positive Sentiment: Telsey Advisory Group also upgraded its view to “outperform,” citing roughly 13.7% upside from the recent trading level. Telsey Advisory Group price target update

Insider Activity at Warby Parker

In other news, Director Bradley E. Singer sold 15,793 shares of the firm's stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $27.53, for a total value of $434,781.29. Following the transaction, the director owned 16,026 shares of the company's stock, valued at approximately $441,195.78. This trade represents a 49.63% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Neil Harris Blumenthal sold 75,213 shares of Warby Parker stock in a transaction on Friday, April 17th. The shares were sold at an average price of $24.56, for a total transaction of $1,847,231.28. Following the transaction, the chief executive officer owned 50,165 shares in the company, valued at $1,232,052.40. The trade was a 59.99% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 115,793 shares of company stock worth $2,901,550 in the last 90 days. 18.24% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in WRBY. JPMorgan Chase & Co. raised its holdings in shares of Warby Parker by 32.5% during the 4th quarter. JPMorgan Chase & Co. now owns 9,679,067 shares of the company's stock valued at $210,907,000 after buying an additional 2,375,726 shares during the period. Fuller & Thaler Asset Management Inc. purchased a new position in Warby Parker in the 4th quarter worth approximately $46,484,000. SRS Investment Management LLC acquired a new stake in Warby Parker in the fourth quarter valued at approximately $31,277,000. Goldman Sachs Group Inc. grew its position in Warby Parker by 96.8% in the first quarter. Goldman Sachs Group Inc. now owns 1,888,817 shares of the company's stock valued at $34,433,000 after acquiring an additional 929,073 shares in the last quarter. Finally, Price T Rowe Associates Inc. MD raised its stake in shares of Warby Parker by 71.3% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,078,778 shares of the company's stock valued at $45,298,000 after purchasing an additional 865,345 shares during the period. 93.24% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of brokerages have weighed in on WRBY. Citigroup increased their price target on Warby Parker from $18.00 to $24.00 and gave the stock a "neutral" rating in a research note on Tuesday, March 17th. Weiss Ratings lowered Warby Parker from a "hold (c-)" rating to a "sell (d)" rating in a research note on Monday, March 2nd. UBS Group increased their target price on Warby Parker from $25.00 to $27.00 and gave the stock a "neutral" rating in a research report on Friday. BTIG Research raised their price target on Warby Parker from $32.00 to $34.00 and gave the stock a "buy" rating in a research note on Thursday. Finally, Telsey Advisory Group upped their price objective on shares of Warby Parker from $32.00 to $33.00 and gave the company an "outperform" rating in a research note on Friday. Ten research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $29.00.

Warby Parker Company Profile

Warby Parker, Inc NYSE: WRBY is a U.S.-based eyewear company that designs, manufactures and sells prescription glasses, sunglasses and contact lenses through a direct-to-consumer model. Since its founding, the company has combined online and brick-and-mortar channels to streamline the customer experience, offering features such as virtual try-on technology and a home try-on program that allows consumers to sample frames before purchase.

Established in 2010 by Wharton graduates Neil Blumenthal, Dave Gilboa, Andrew Hunt and Jeffrey Raider, Warby Parker set out to disrupt the traditional optical market by controlling the entire supply chain—from frame design and lens production to warehousing and distribution.

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