Warby Parker (WRBY) Q4 2025 earnings summary

Executive summary

• Achieved 13% revenue growth in 2025, reaching $871.9M–$872M, with 47 new stores opened and 2.69M active customers; average revenue per customer rose 5.7% to $324.

• Reported first full year of positive net income and $44M in free cash flow; adjusted EBITDA up 30% to $95M.

• Launched strategic initiatives including sunsetting Home Try-On, infrastructure upgrades, and partnerships with Google and Samsung for AI glasses.

• Expanded insurance, contacts, and exams penetration, with eye exams now offered at nearly 90% of stores.

• Distributed over 20M pairs of glasses through the Buy a Pair, Give a Pair program.

Financial highlights

• Q4 2025 revenue: $212M, up 11.2% year-over-year; full-year revenue: $871.9M–$872M, up 13% year-over-year.

• Adjusted EBITDA for 2025: $95M–$95.2M (10.9% margin), up 30% year-over-year; Q4 adjusted EBITDA: $15.2M.

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

• Ended 2025 with $286M–$286.4M in cash and $44M in free cash flow.

• SG&A for 2025: $433.3M–$475.9M (49.7%–54.6% of revenue), down as a percent of revenue.

Outlook and guidance

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

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

• Q1 2026 revenue guidance: $238M–$240M, with adjusted EBITDA of $27M–$28M (11.5% margin); retail to represent ~75% of Q1 revenue.

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

• No incremental revenue from AI glasses launch included in guidance.