Warby Parker Inc. reported fourth‑quarter 2025 revenue of $212 million, an 11.2% year‑over‑year increase that matched Wall Street expectations. The company posted a GAAP loss of $0.05 per share, a miss against the consensus estimate of $0.05, resulting in a break‑even outcome relative to analysts’ forecasts. The loss reflects higher operating expenses and a modest decline in gross margin, which fell to 52.4% from 54.1% in the prior year due to tariff costs and increased shipping expenses.
Full‑year 2026 revenue guidance was set at $959 million to $976 million, representing 10%–12% growth versus the $871.9 million reported for 2025. The guidance is slightly below analysts’ expectations, indicating a cautious outlook amid macro‑economic uncertainty while still affirming confidence in double‑digit top‑line expansion.
Adjusted EBITDA margin for the quarter rose to 10.9% from 9.5% in the same period last year, driven by disciplined cost control and operational leverage. The margin expansion demonstrates the company’s ability to scale revenue while managing expenses, even as gross margin compression pressures persist from higher input costs.
Warby Parker achieved its first full‑year net income of $1.6 million in 2025, a milestone that underscores the effectiveness of its growth strategy. The company continues to invest in AI‑driven eyewear initiatives and expands its omnichannel footprint, adding 47 net new stores and partnering with Target for shop‑in‑shop locations. A $100 million share repurchase program further signals management’s confidence in the business’s cash‑generating capacity.
Investor sentiment following the release was mixed. Some market participants focused on the GAAP loss and EPS miss, while others highlighted the company’s positive net income, margin improvement, and forward guidance as indicators of resilience and future growth potential.
Overall, Warby Parker’s results illustrate a company that is navigating competitive pressures and cost inflation while maintaining growth momentum through strategic investments in AI and retail expansion. The earnings miss underscores the need for continued cost discipline, but the guidance and margin trajectory suggest a solid foundation for sustained performance.
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