Warby Parker (WRBY) investor relations material

Executive summary

• Achieved 13% revenue growth in 2025, reaching $871.9M–$872M, with 2.69M active customers and $324 average revenue per customer.

• Opened 47 new stores, ending 2025 with 323 locations, and scaled eye exams to 285 sites.

• Reported first full year of net income profitability and $44M in free cash flow.

• Announced partnerships with Google and Samsung for AI glasses, targeting a significant new market.

• 2026 strategy focuses on omni-channel expansion, insurance penetration, and AI-driven innovation.

Financial highlights

• Full-year 2025 revenue reached $871.9M–$872M, up 13% YoY; adjusted EBITDA was $95M–$95.2M (10.9% margin, up 30.2%).

• Q4 2025 revenue was $212M, up 11.2% YoY; retail revenue grew 15.2%, e-commerce up 1.6%.

• Adjusted gross margin for 2025 was 54.0%–54.4%, down due to tariffs, contacts mix, and higher doctor headcount.

• Ended 2025 with 2.7M active customers (+7% YoY) and average revenue per customer of $324 (+5.7% YoY).

• Free cash flow for 2025 was $43.7M–$44M; cash position at year-end was $286M–$286.4M.

Outlook and guidance

• 2026 revenue guidance: $959M–$976M (10–12% YoY growth), excluding any AI glasses revenue.

• Adjusted EBITDA guidance: $117M–$119M (12.2% margin, +130 bps YoY).

• Q1 2026 revenue expected at $238M–$240M (6.5–7.5% YoY growth), with 11.5% EBITDA margin.

• Plans to open 50 new stores and launch ~15 collections, including sport eyewear.

• Guidance assumes no AI glasses revenue and incorporates launch-related expenses.