Warby Parker (WRBY) investor relations material

Executive summary

• Q3 revenue rose 10.4% YoY to $244.7M; net income was $5.6M and Adjusted EBITDA was $28.6M, or 11.7% of revenue.

• Nine-month revenue grew 9.5% to $722.7M; net income was $13.4M versus $7.6M and Adjusted EBITDA was $91.0M versus $80.0M.

• Growth was supported by customer spending, premium lenses and eye-care adoption, while category traffic and unit trends remained soft.

Financial highlights

• Q3 gross profit rose 11.0% to $133.2M; reported gross margin increased to 54.4% from 54.1%.

• Adjusted gross profit was $133.6M, or 54.6% of revenue, up 40 bps YoY; tariff relief and efficiencies were partly offset by eye-care and store occupancy costs.

• Adjusted SG&A was $120.8M, or 49.4% of revenue; reported SG&A was $129.6M, or 53.0%, up 50 bps YoY.

• Net income was $5.6M versus $5.9M; diluted EPS was $0.04 versus $0.05.

• Marketing expense was $29.5M, or 12.1% of revenue, down 100 bps YoY; Q4 marketing is expected to increase around the Intelligent Eyewear launch.

Outlook and guidance

• FY2026 revenue guidance narrowed to $966M–$976M, or 11%–12% YoY growth; Adjusted EBITDA guidance is $117M–$119M, with a 12.2% midpoint margin.

• Q4 revenue guidance is $243M–$253M, or 15%–20% YoY growth; Adjusted EBITDA is $26M–$28M, with a 10.9% midpoint margin.

• FY guidance includes up to 1 percentage point of revenue growth from Intelligent Eyewear; Q4 includes several percentage points and launch costs, with no base-business halo assumed.

• Intelligent Eyewear customer deliveries begin in mid-December; production and sales are expected to scale meaningfully in 2027.

• Substantially all deferred revenue at September 30 and the remaining tariff-refund benefit held in inventory were expected to be recognized in Q4.