Warby Parker Inc. (NYSE:WRBY) Q2 2025 Earnings: Revenue Growth Meets Expectations, Adjusted EBITDA Improves

Warby Parker Inc. (NYSE:WRBY) Reports Q2 2025 Earnings: Revenue Growth Meets Expectations, Adjusted EBITDA Improves

Warby Parker Inc. released its second-quarter 2025 financial results, showing mixed performance relative to analyst expectations. The company reported revenue of $214.5 million, marking a 13.9% year-over-year increase but slightly below the consensus estimate of $217.3 million. Adjusted earnings per share (EPS) came in at $0.08, narrowly beating the forecasted $0.0786.

Key Financial Highlights

• Revenue Growth: Net revenue rose to $214.5 million, driven by a 9% increase in active customers (to 2.6 million) and a 4.6% rise in average revenue per customer ($316).
• Profitability Trends: Net loss improved by $5 million year-over-year to $1.8 million, while Adjusted EBITDA climbed to $25 million (11.7% margin), up from $19.6 million in Q2 2024.
• Cash Flow & Liquidity: The company generated $40.2 million in operating cash flow and ended the quarter with $286.4 million in cash and equivalents.
• Store Expansion: Warby Parker opened 11 new stores, bringing its total footprint to 298 locations, with plans to open 45 stores in 2025, including shop-in-shop partnerships with Target.

Market Reaction

Following the earnings release, shares of Warby Parker saw a pre-market gain of ~5.9%, suggesting investor optimism despite the slight revenue miss. The stock has been relatively stable over the past month, up 9.1%, though it remains nearly flat over the past two weeks. The market appears to be responding favorably to improved profitability metrics and the company’s reaffirmed full-year guidance.

Outlook vs. Analyst Estimates

Warby Parker raised its full-year 2025 guidance, projecting:

• Revenue: $880–$888 million (vs. analyst consensus of $895.2 million).
• Adjusted EBITDA: $98–$101 million (implying an 11.1–11.4% margin).

While the revenue outlook remains slightly below Wall Street expectations, the company’s focus on cost discipline and margin expansion seems to be resonating with investors.

Strategic Developments

• AI & Digital Innovation: The company highlighted its partnership with Google to develop AI-powered eyewear and the launch of "Advisor," an AI-driven recommendation tool.
• Leadership Transition: CFO Steve Miller will step down in October, with co-CEO Dave Gilboa assuming interim financial leadership.

Conclusion

Warby Parker’s Q2 results reflect steady growth and improving profitability, though revenue slightly lagged expectations. The market’s positive reaction suggests confidence in the company’s ability to balance expansion with margin improvements.

For more detailed earnings estimates and historical performance, visit Warby Parker’s earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research before making any financial decisions.