Why Warby Parker Stock Is Back on Investors’ Radar

Warby Parker (WRBY) is getting fresh attention after reporting full year 2025 results that returned the business to net profitability, issuing 2026 revenue guidance, and unveiling a US$100 million share repurchase program.

At a share price of US$25.28, Warby Parker has seen an 11.76% year to date share price return and a 24.65% total shareholder return over the past year. The 134.73% three year total shareholder return points to strong longer term momentum. Recent interest appears tied to the return to full year profitability, new 2026 revenue guidance and the US$100 million repurchase plan, which together may be reshaping how investors view the company’s growth prospects and risk profile.

If this earnings update has you looking beyond a single stock, it could be a good moment to widen your watchlist with our screener of 20 top founder-led companies.

With shares trading at US$25.28 and the stock sitting at roughly a 13% discount to the average analyst price target and about a 15% gap to one intrinsic value estimate, you have to ask: is this a genuine opening, or is the market already baking in the next leg of growth?

Most Popular Narrative: 11.8% Undervalued

Against a last close of $25.28, the most followed narrative points to fair value at about $28.67. It puts its focus squarely on growth, margins, and future earnings power rather than today’s profits.

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 justifies that higher fair value band? The core of this narrative is faster earnings growth, wider margins, and a richer earnings multiple than many retailers enjoy. The numbers behind those assumptions are what really matter.

Result: Fair Value of $28.67 (UNDERVALUED)

However, this hinges on smooth store expansion and the untested A.I. glasses push, where weaker execution or slower adoption could quickly challenge that undervalued story.

Another View: Multiples Tell a Different Story

The DCF and analyst narratives lean toward Warby Parker looking undervalued, but the P/S ratio sends a very different signal. At 3.6x, the stock trades far above the US Specialty Retail average of 0.5x and a fair ratio of 1.7x. This suggests meaningful valuation risk if sentiment cools.

Next Steps

All of this leaves the sentiment mixed.

Looking for more investment ideas?

If Warby Parker is on your radar, do not stop there. Broaden your opportunity set with a few focused stock lists that match different investing angles.

• Target value by reviewing companies our screener tags as 46 high quality undervalued stocks. These pair quality fundamentals with prices that may not fully reflect them.
• Prioritise resilience and capital strength with stocks from the solid balance sheet and fundamentals stocks screener (41 results) so you are not relying on fragile balance sheets when conditions change.
• Hunt for under followed opportunities by scanning the screener containing 23 high quality undiscovered gems, where solid business profiles have not yet attracted broad attention.

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.