Warby Parker Inc (NYSE:WRBY) Reports Mixed Q3 2025 Results with Strong Earnings Beat and Revenue Miss

Warby Parker Inc (NYSE:WRBY) reported financial results for the third quarter of 2025, delivering a performance characterized by significant bottom-line strength against a backdrop of modest revenue growth that fell short of Wall Street's expectations. The market's initial reaction appears to reflect this mixed outcome, with the stock facing notable downward pressure in pre-market trading.

Earnings and Revenue Versus Estimates

The eyewear retailer's third-quarter results presented a tale of two key metrics. On the profitability front, the company significantly exceeded analyst expectations, while its top-line growth, though solid, did not meet the high bar set by market forecasts.

• Earnings Per Share (EPS): $0.11 (Non-GAAP) reported versus $0.087 estimated
• Revenue: $221.7 million reported versus $229.0 million estimated

The company's ability to translate its revenue into profit was a clear highlight. The substantial earnings beat of approximately 27% demonstrates effective cost management and operational leverage. However, the revenue miss of roughly 3.2% seems to be the primary factor influencing the negative market sentiment in early trading.

Market Reaction and Price Action

The immediate market reaction to the earnings report has been negative. The stock is indicating a significant drop in pre-market activity, which suggests investors are focusing more on the revenue shortfall than the strong earnings performance. This price action highlights the market's current sensitivity to growth trajectories, even when accompanied by improving profitability.

Third Quarter 2025 Performance Summary

Beyond the headline EPS and revenue figures, Warby Parker's quarterly report revealed several positive operational trends that underscore the company's ongoing growth and improving financial health.

• Net Revenue increased 15.2% year-over-year to $221.7 million.
• Active Customers grew 9.3% to 2.66 million on a trailing twelve-month basis.
• Average Revenue Per Customer rose 4.8% to $320.
• Net Income was $5.9 million, a substantial improvement from a net loss in the prior year period.
• Adjusted EBITDA more than tripled to $25.7 million, with the margin expanding 260 basis points to 11.6%.
• The company ended the quarter with a strong cash position of $280.4 million.

2025 Outlook and Analyst Expectations

Management provided an updated full-year 2025 outlook, projecting net revenue between $871 million and $874 million, which represents approximately 13% growth. This guidance sits notably below the analyst sales estimate of $903.7 million for the full year, potentially contributing to the negative market reaction. The company also expects to open 45 new stores in 2025, continuing its physical retail expansion.

Strategic Initiatives and Management Commentary

Co-CEOs Neil Blumenthal and Dave Gilboa emphasized the company's strategic progress, highlighting acceleration in topline and customer growth alongside expanded profitability. Blumenthal pointed to innovation through AI, including the development of new products like AI glasses, as a key focus for the company's "next act." Gilboa attributed the meaningful profitability expansion to "operational discipline and focus on sustainable growth," expressing confidence in the company's differentiated value proposition and ability to gain market share.

For a detailed look at historical earnings, future estimates, and analyst projections for Warby Parker, you can review the complete earnings and estimates data here.

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