Overview

• U.S. eyewear retailer's Q1 revenue rose 8.3%, beating analyst expectations

• Net income for Q1 fell slightly year-over-year to $3.2 mln

• Gross margin declined to 54% due to higher fixed and supply chain costs

Outlook

• Warby Parker sees 2026 net revenue of $959-$976 mln, about 10%-12% growth vs 2025

• Company expects 2026 adjusted EBITDA of $117-$119 mln, margin of 12.2%

• Warby Parker plans 50 new store openings in 2026

Result Drivers

• CUSTOMER GROWTH - Active customers grew 4.8% and average revenue per customer rose 6.9% year-over-year, contributing to revenue growth

• COST PRESSURES - Gross margin declined due to higher fixed expenses, tariff costs, and increased optical lab and shipping costs, partially offset by price increases and more sales of higher-margin lens products

• SG&A LEVERAGE - SG&A as a percentage of revenue decreased, mainly due to the end of the Home-Try On program and lower stock-based compensation, corporate, and customer experience costs

Company press release: ID:nBw10PZnta

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$242.45 mln	$239.34 mln (13 Analysts)
Q1 EPS		$0.03
Q1 Net Income		$3.18 mln
Q1 Adjusted EBITDA		$29.60 mln
Q1 Gross Margin		54.00%
Q1 Adjusted EBITDA Margin		12.20%
Q1 Gross Profit		$131.04 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• Wall Street's median 12-month price target for Warby Parker Inc is $30.00, about 36.2% above its May 6 closing price of $22.03

• The stock recently traded at 40 times the next 12-month earnings vs. a P/E of 52 three months ago

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