Why Warby Parker’s latest earnings matter for shareholders

Warby Parker (WRBY) moved into the spotlight after reporting its first full year of net income, paired with revenue growth in 2025, a new 2026 outlook, and a US$100 million share repurchase program.

The company reported 2025 sales of US$871.91 million compared with US$771.32 million a year earlier, and net income of US$1.64 million compared with a net loss of US$20.39 million. Basic and diluted earnings per share from continuing operations were US$0.01, versus a basic and diluted loss per share of US$0.17 the prior year.

In the fourth quarter, sales were US$211.97 million compared with US$190.64 million a year earlier. Warby Parker recorded a net loss of US$5.95 million for the quarter, versus a net loss of US$6.88 million a year before, with basic and diluted loss per share from continuing operations of US$0.05 compared with US$0.06 previously.

Alongside the results, management issued 2026 guidance calling for net revenue between US$959 million and US$976 million. They indicated that this represents around 10% to 12% growth versus full year 2025. For context, the company’s trailing twelve month revenue figure provided here is US$871.905 million.

Warby Parker’s share repurchase plan, authorized by the board, allows the company to buy back up to US$100 million of its Class A common stock with no fixed expiration date. The company also filed a shelf registration for US$160.30 million of Class A shares, linked to an employee stock ownership plan related offering of 7,339,630 securities.

These steps, alongside previously outlined plans to expand its store base and develop AI glasses with Google and Samsung, form the backdrop for the sharp move in Warby Parker’s share price immediately after the earnings release and guidance update.

At a share price of US$26.29, Warby Parker’s 1 day share price return of 5.12% and 7 day share price return of 18.42% follow a strong 90 day share price return of 42.11%. The 3 year total shareholder return of 114.09% shows how earnings, the 2026 outlook and the new buyback have fed into building momentum rather than a short term spike.

If this earnings story has you thinking about where else growth and technology could intersect with retail, it might be worth scanning our screener of 19 top founder-led companies as a way to surface fresh ideas.

With the shares up strongly and trading only around 10% below the average analyst price target and an estimated 10% intrinsic discount, is Warby Parker still mispriced, or is the market already baking in the next leg of growth?

Most Popular Narrative: 3.5% Undervalued

With Warby Parker’s shares last closing at $26.29 against a narrative fair value of $27.25, the current pricing sits just below that widely followed view, which leans heavily on long term growth and margin assumptions.

The partnership with Google to develop AI-powered intelligent eyewear positions Warby Parker to enter a substantially larger market, leveraging advancements in wearable technology and artificial intelligence to drive new, higher-margin revenue streams in the future.

Read the complete narrative. Read the complete narrative.

Curious what kind of revenue curve and margin profile could justify that fair value, plus a premium future earnings multiple above the industry? The underlying narrative leans on faster growth, thicker profitability, and a valuation framework that assumes those financial targets hold over time without breaking. If you want to see the full set of assumptions, including the earnings path that underpins that premium, the full narrative lays it out in detail.

Result: Fair Value of $27.25 (UNDERVALUED)

However, this upbeat narrative can unravel if heavy store expansion squeezes margins or if the Google AI glasses project fails to gain meaningful customer traction.

Another way to look at Warby Parker’s valuation

While our DCF model suggests Warby Parker at $26.29 is trading below an estimated future cash flow value of $29.21, the picture changes when you look at sales. The current P/S of 3.7x is well above the 0.5x industry average, the 0.7x peer average and a fair ratio of 1.7x. That gap points to meaningful valuation risk if sentiment cools or growth assumptions are dialed back, so the real question is whether you think the business can keep justifying that kind of premium.

Next Steps

If this mix of positives and concerns feels finely balanced, it is worth looking through the numbers yourself and forming a clear view before sentiment shifts. You can anchor that view with 3 key rewards and 2 important warning signs.

Ready for more investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.