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what it is
Warby Parker sells glasses, contacts, and eye care through stores and its website.
how it gets paid
Last year Warby Parker made $872M in revenue. Prescription glasses was the main engine at $0.48B, or 55% of sales.
why it's growing
Revenue grew 13.0% last year. Revenue hit $660M, but the -$0.05 EPS print mattered more because it showed sales growth did not fix earnings.
what just happened
Warby Parker posted $660M in quarterly revenue, but the EPS line missed.
At a glance
C+ balance sheet — struggling to keep the lights on
232.5x trailing p/e — you're paying up for this one
16.5% return on capital — nothing to write home about
xvary composite: 31/100 — weak
$0.25 fy2026 eps est
What they do
Warby Parker sells glasses, contacts, and eye care through stores and its website.
You are not buying frames. You are buying a repeat-visit machine. Warby has 271 U.S. stores and five in Canada, plus its website, so your next pair stays inside one brand loop. That mix keeps your prescription, fit, and purchase history in the same place.
How they make money
$872M
annual revenue · their business grew +13.0% last year
Prescription glasses
$0.48B
Contact lenses
$0.17B
Sunglasses
$0.12B
Eye exams
$0.09B
Accessories and other
$0.01B
The products that matter
direct-to-consumer eyewear retail
Eyewear & Accessories
$741M · 85% of sales
it is the revenue engine. at $741M, this one category drives 85% of company sales, so any slowdown here shows up everywhere.
core engine
eye exams and care services
Vision Exams & Services
$87M · care add-on
this $87M business is much smaller, but it matters because it keeps customers inside the system after the first frame purchase.
margin watch
new category and product expansion
new launches
launch later this year
management has signaled an official product launch later this year. we are keeping this vague on purpose because the snapshot data does not give clean revenue or profit numbers yet.
catalyst watch
Key numbers
$872M
annual revenue
Revenue means money in the door. $872M says this is a real retailer, not a tiny niche shop.
54.5%
gross margin
Gross margin means money left after product costs. 54.5% gives Warby room to fund stores and marketing.
232.5x
trailing p/e
P/E means price versus past earnings. 232.5x means the market is paying a very high price for today’s profit.
16.5%
return on capital
Return on capital means profit on each dollar invested. 16.5% says the business earns back cash faster than many retailers.
Financial health
C+
strength
- balance sheet grade C+ — weak — may struggle to fund operations
- risk rank 5 — safer than 5% of stocks
- price stability 10 / 100
- net profit margin 6.9% — keeps 7 cents of every dollar in revenue
- return on equity 16% — $0.16 profit for every $1 investors have put in
C+ — below average. watch for debt servicing and cash burn.
Total return vs. market
Return history isn't available for WRBY right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Warby Parker posted $660M in quarterly revenue, but the EPS line missed.
EDGAR shows $660M revenue and 54.5% gross margin. Yahoo Finance says EPS was -$0.05 versus $0.03 expected, so the quarter looked better on sales than on profit.
$660M
revenue
-$0.05
eps
54.5%
gross margin
the number that mattered
Revenue hit $660M, but the -$0.05 EPS print mattered more because it showed sales growth did not fix earnings.
-
management tempered its 2025 sales outlook for warby parker in early november.
-
at that time, leadership conceded that annual receipts at the retailer of value-priced eyewear would likely land between $871 million and $874 million, up a strong 12.9%–13.3% on the year, but a bit shy of its previous $880 million–$888 million target range and the 14.1%–15.1% growth that it implied.for the part, our top-line call is now $875 million, down $10 million from three months earlier and nominally above the company’s reduced view. the retailer apparently experienced an unexpected slowdown in demand across certain product lines, beginning in september. according to leadership, warby saw a deceleration in sales of contact lenses and unifocal eyewear, both of which skew towards a younger, generally more-budget conscious consumer.
-
that said, multifocal products reportedly continue to sell well.what’s more, as eyewear typically represents a less discretionary household expenditure, any delays in buying contact lenses and such are likely to be short lived.
-
the executive team recently envisioned warby entering the third major act in its growth story, one that leans heavily on artificial intelligence (ai).after pioneering the business of selling prescription eyewear online, the company has since evolved into a more-holistic vision-care provider with a growing number of brick-and-mortar locations that, for example, offer eye exams. up next is incorporating ai not only in the products that the retailer sells, but also in the ways it does business. with respect to the former, warby has teamed up with alphabet, inc.’s google unit and south korea’s samsung to develop ai-powered smart glasses.
-
the official product launch is slated for sometime later this year.
source: company earnings report, 2025
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What could go wrong
the #1 risk is store and services expansion without enough margin lift.
high
thin profitability
a 3.0% net margin on $872M in revenue leaves very little buffer for weaker traffic, higher costs, or a bad launch.
small operating misses can erase most of the profit base
med
revenue concentration in frames and accessories
Eyewear & Accessories is $741M, or 85% of sales. if that category slows, the smaller services base cannot offset it yet.
85% of revenue is tied to the core merchandise engine
med
guidance credibility
management already tempered its 2025 sales outlook, and the institutional top-line call fell to $875M from $885M three months earlier.
lower expectations pressure a stock priced for acceleration
high
share price volatility
a 10 / 100 price stability score and a $11–$31 52-week range tell you this stock can re-rate hard in both directions.
valuation sentiment can move faster than the business itself
between the 3.0% net margin, 85% revenue concentration in merchandise, and 10 / 100 price stability score, you do not need a disaster for this stock to get hit.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
net margin
3.0% for the full year and 2.6% last quarter. if that does not move up, the valuation story gets awkward.
calendar
next earnings report
the next quarterly report is expected around may 2026. you want revenue growth and margin expansion in the same print.
trend
services mix
Vision Exams & Services is $87M today. if that piece starts scaling faster, the business becomes less dependent on one-time frame purchases.
risk
new launch and growth reset
management has a product launch slated for later this year after cutting its sales outlook. that raises the bar for execution.
Analyst rankings
short-term outlook
average
momentum score 3. in human-speak, analysts see a stock moving with the market rather than breaking away from it.
risk profile
high risk
stability score 5. translated: this name has a real history of sharp moves, and you should expect that to continue.
chart momentum
top 20%
technical score 2. the tape looks better than the fundamentals, which is nice until it isn't.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 140 buyers vs. 117 sellers in 3q2025. total institutional holdings: 0.1B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$13
$43
$23
current price
$28
target midpoint · +20% from current · 3-5yr high: $45 (+95% · 18% ann'l return)
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