Warby Parker Inc. announced its financial results for the fourth quarter and full year ended December 31, 2025.

Warby Parker Inc. (NYSE: WRBY) ("Warby Parker" or the "Company"), a direct-to-consumer lifestyle brand focused on vision for all, today announced financial results for the fourth quarter and full year ended December 31, 2025.

Highlights

Delivered revenue growth of 13.0% for full year 2025 and 11.2% for the fourth quarter.

Drove Active Customer growth of 7.0%, and Average Revenue per Customer of $324, up 5.7% year over year.

Achieved first full year of positive net income of $1.6 million, and expanded Adjusted EBITDA(1) by 30.2% year over year to $95.2 million and Adjusted EBITDA Margin(1) by 140 basis points to 10.9%.

Delivered third consecutive year of positive operating cash flow and Free Cash Flow(1) in 2025 of $110.8 million and $43.7 million, respectively.

Opened 47 net new stores during the year, ending 2025 with 323 stores.

Authorized a $100 million share repurchase program to complement strategic growth investments in the business.

"In 2025, we delivered double-digit revenue growth each quarter and achieved our first full year of positive net income while expanding Adjusted EBITDA," said Dave Gilboa, Co-Founder and Co-CEO. "In a dynamic environment, we leveraged our unmatched value proposition to capture additional market share while giving customers more convenient options to shop with us than ever before."

"As we look ahead, we are focused on laying the groundwork for accelerating growth. We are moving decisively into Warby Parker's next act, one defined by groundbreaking innovation and AI that will redefine how our customers experience eyewear and vision care," added Co-Founder and Co-CEO Neil Blumenthal.

Fourth Quarter 2025 Year-Over-Year Financial Results

Net revenue increased $21.3 million, or 11.2%, to $212.0 million.

Gross margin was 52.4% compared to 54.1% in the prior year. The decrease in gross margin was primarily driven by tariff costs related to glasses, increased doctor headcount, sales growth of contact lenses, and increased customer shipping costs as a percent of revenue, partially offset by selective price increases in glasses taken in the second quarter and increased penetration of progressives and other lens enhancements.

Selling, general and administrative expenses ("SG&A") increased $5.4 million to $117.9 million, or 55.6% of revenue, down 340 basis points from 59.0% in the prior year. As a percentage of revenue, SG&A decreased primarily due to leverage from corporate expenses and efficiencies in our customer experience operations, as well as lower stock-based compensation. Adjusted SG&A(1) was $110.3 million, or 52.0% of revenue, compared to $103.0 million, or 54.0% of revenue, in the prior year.

Net loss improved $0.9 million to $6.0 million, primarily as a result of leveraging our expense base on higher revenue.

Adjusted EBITDA(1) increased $1.4 million to $15.2 million, and Adjusted EBITDA Margin(1) of 7.2% was roughly flat with the prior year.

Full Year 2025 Year-Over-Year Financial Results

Net revenue increased $100.6 million, or 13.0%, to $871.9 million.

Gross margin was 54.0% compared to 55.3% in the prior year. The decrease in gross margin was primarily driven by tariff costs related to glasses, sales growth of contact lenses, increased doctor headcount, and increased customer shipping costs as a percent of revenue, partially offset by selective price increases in glasses taken in the second quarter and increased penetration of progressives and other lens enhancements.

SG&A increased $19.0 million to $475.9 million, or 54.6% of revenue, down 460 basis points from 59.2% in the prior year. As a percentage of revenue, SG&A decreased primarily due to leverage from corporate expenses and efficiencies in our customer experience operations, as well as lower stock-based compensation. Adjusted SG&A(1) was $433.3 million, or 49.7% of revenue, compared to $405.2 million, or 52.5% of revenue in the prior year.

Net income improved $22.0 million to $1.6 million, primarily as a result of leveraging our expense base on higher revenue.

Adjusted EBITDA(1) increased $22.1 million to $95.2 million, and Adjusted EBITDA Margin(1) increased 140 basis points to 10.9%.

Balance Sheet and Cash Flow Highlights

Ended fiscal year 2025 with $286.4 million in cash and cash equivalents.

Net cash provided by operating activities of $110.8 million in 2025; $43.7 million of full year Free Cash Flow(1), our third consecutive year of positive operating cash flow and Free Cash Flow(1).

Share Repurchase Program

In February 2026, the Company's Board of Directors authorized a share repurchase program to purchase up to $100.0 million of the Company's Class A common stock (the "Share Repurchase Program"). Repurchases under the Share Repurchase Program may be made in the open market, in privately negotiated transactions, or otherwise, with the amount and timing of repurchases to be determined at the Company's discretion, depending on market conditions and corporate needs. Open market repurchases will be structured to occur in accordance with applicable federal securities laws, including within the pricing and volume requirements of Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of its shares under this authorization. The Share Repurchase Program does not have a fixed expiration date, does not obligate the Company to acquire any particular amount of Class A common stock, and may be modified, suspended, or terminated at any time at the discretion of the Company's Board of Directors.

2026 Outlook

For the full year 2026, Warby Parker is providing the following guidance:

Net revenue of $959 to $976 million, representing approximately 10% to 12% growth versus full year 2025.

Adjusted EBITDA(1) of $117 to $119 million, which equates to an Adjusted EBITDA Margin(1) of 12.2% across the revenue range, and 130 basis points of year-over-year expansion.

50 new store openings.

"Our healthy balance sheet and strong cash flows allow us to invest in our strategic growth initiatives as we scale our business over time, while maintaining the flexibility to return capital to shareholders," said Adrian Mitchell, Chief Financial Officer. "I am incredibly energized by Warby Parker's compelling brand promise. By marrying exceptional style with superior quality and outstanding value, we've effectively positioned our business for exciting growth opportunities on the horizon."

(1) Please see the definitions and reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures in the section titled "Non-GAAP Financial Measures" below.

Webcast and Conference Call

A conference call to discuss Warby Parker's fourth quarter and full year 2025 results, as well as first quarter and full year 2026 outlook, is scheduled for 8:00 a.m. ET today. 

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