Warby Parker FY 2025 results: profitability holds on a trailing basis as Q4 swings back to a loss

Warby Parker (WRBY) closed FY 2025 with Q4 revenue of US$212 million and a basic EPS loss of US$0.05, while on a trailing twelve month view the business remained just in the black with basic EPS of US$0.01 on US$871.9 million of revenue. Over the last six reported quarters, quarterly revenue has moved from US$190.6 million in Q4 2024 to a range between US$211.9 million and US$223.8 million through FY 2025, with basic EPS oscillating between profits of up to US$0.05 and losses of up to US$0.06. The latest quarter therefore puts the focus squarely on how durable the recent margin improvement really is.

With the headline numbers on the table, the next step is to set these results against the widely followed narratives around Warby Parker’s growth, profitability and risk profile to see which stories still hold up and which ones the new data starts to challenge.

TTM profit is slim at US$1.6 million on US$871.9 million of sales

• On a trailing twelve month view, Warby Parker earned US$1.6 million of net income on US$871.9 million of revenue, which is a very small profit relative to the size of the business.
• Bulls point to this move into the black as the base for much higher earnings, but the current level is tiny compared to the bullish narrative that talks about profit margins rising from roughly flat to 11.3% and earnings climbing from US$0.7 million to US$165.0 million, so the latest numbers leave a big gap between where profitability is now and where that optimistic path expects it to go.
  • Supportive for the bullish view, TTM earnings are positive after earlier losses, which lines up with the story that the company has become profitable.
  • Challenging that same view, the step up from US$1.6 million of profit today to US$165.0 million by 2028 would require a very large increase in earnings compared with what the recent income statement currently shows.

Investors who want to see how optimistic projections connect to these early profits might find it helpful to read through the bull case in detail: 🐂 Warby Parker Bull Case

Quarterly swings between profit and loss continue

• Across the last six reported quarters, basic EPS moved between profits of up to US$0.05 in Q3 2025 and losses of up to US$0.06 in Q3 2024, with Q4 2025 back to a loss of about US$0.05 on US$212.0 million of revenue.
• Skeptics focus on how this pattern of flip flopping profits fits with the bearish narrative that even with revenue forecast to grow around the low to mid teens each year and margins assumed to rise to 21.5%, the stock could still be pricing in more optimism than they are comfortable with.
  • Bears argue that dependence on store expansion and new projects like AI glasses could keep earnings volatile, and the alternation between positive and negative EPS over the last six quarters shows earnings are not yet on a smooth upward track.
  • At the same time, consensus data mentioning around 14.8% expected annual revenue growth suggests underlying demand assumptions are relatively healthy, which means the bearish view is mainly about the quality and stability of those future earnings rather than top line potential alone.

If you are weighing these risks against the cautious case, it can be useful to see how bears frame the story in one place: 🐻 Warby Parker Bear Case

Valuation signals mix growth hopes with DCF caution

• The trailing P/S of 3.6x sits below the peer average of 5.3x but above the US Specialty Retail industry average of 0.5x, while the current share price of US$25.65 is well above the DCF fair value figure of roughly US$8.54.
• Consensus narrative commentary highlights strong forecasted earnings growth of 76.8% per year and revenue growth of about 15.2% per year, and those growth rates help explain why the stock trades on a higher multiple than the broader industry, but the gap to the DCF fair value keeps a valuation tension in the story.
  • On one side, the company’s shift to trailing profitability and the growth forecasts are consistent with paying more than the sector average P/S, especially if the business continues to scale revenue from the current US$871.9 million base.
  • On the other, a share price that is far above the US$8.54 DCF fair value and recent share price volatility leave room for investors to question how much of that long term earnings expansion is already built into today’s valuation.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Warby Parker on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If this mix of cautious and optimistic signals leaves you undecided, now may be a good time to review the full picture yourself and see how 2 key rewards and 2 important warning signs lines up with your own judgment.

Explore Alternatives

Warby Parker’s thin TTM profit of US$1.6 million, ongoing quarterly EPS losses and a share price far above DCF fair value all point to meaningful valuation risk.

If that valuation gap makes you uneasy, this is a good moment to size up 53 high quality undervalued stocks that pair stronger value signals with fundamentals you might find more reassuring.

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.