Warby Parker (WRBY) Q4 2024 earnings summary

Executive summary

• Full-year 2024 revenue grew 15.2% to $771.3M, with Q4 revenue up 17.8% to $190.6M.

• Adjusted EBITDA margin expanded to 9.5% for the year, with Adjusted EBITDA of $73M, up 40% year-over-year.

• Opened 41 new stores in 2024, ending with 276 locations; plan to open 45 new stores in 2025, including five Target shop-in-shops.

• Active customers grew 7.8% to 2.51M, with average revenue per customer rising 6.8% to $307.

• Full-year GAAP net loss improved to $20.4M from $63.2M in 2023.

Financial highlights

• Adjusted gross margin for 2024 was 55.5%, up from 54.7% in 2023.

• Free cash flow reached $35M, up from $7M in 2023; cash balance at $254M.

• Q4 2024 net revenue was $190.6M, up 17.8% year-over-year; Q4 adjusted EBITDA was $13.8M (7.3% margin).

• SG&A for 2024 was $456.9M (59.2% of revenue), up due to payroll and marketing, partially offset by lower stock-based compensation.

• Net cash from operating activities was $98.7M in 2024, up from $61.0M in 2023.

Outlook and guidance

• 2025 revenue guidance: $878–$893M (14–16% growth); Adjusted EBITDA of $97M (11% margin midpoint).

• Q1 2025 revenue guidance: $223.5–$225.5M (12–13% growth); Adjusted EBITDA of $27–$28M (12% margin).

• Gross margin expected to remain in the mid-50% range, with a 20–40 bps headwind from tariffs.

• 45 new store openings planned, including five Target shop-in-shops.

• Marketing spend to remain in the low teens as a % of revenue; non-marketing SG&A to continue leveraging.