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1. Company Snapshot

1.a. Company Description

Warby Parker Inc.provides eyewear products.It offers eyeglasses, sunglasses, light-responsive lenses, blue-light-filtering lenses, and contact lenses, as well as accessories, including cases, lenses kit with anti-fog spray, pouches, and anti-fog lens spray.


The company also offers eye exams and vision tests directly to consumers through its retail stores, website, and mobile apps.As of May 16, 2022, it had 160 retail stores in the United States and Canada.The company was formerly known as JAND, Inc.


and changed its name to Warby Parker Inc.in June 2021.Warby Parker Inc.


was incorporated in 2009 and is headquartered in New York, New York.

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1.b. Last Insights on WRBY

Here is a 90-word analysis of the positive drivers behind Warby Parker Inc.'s recent stock performance: Warby Parker's recent performance was driven by its partnership with Target, allowing it to expand its reach through five shop-in-shops in 2025. This strategic move is expected to increase brand visibility and drive sales. Additionally, the company's website traffic has seen a significant jump, indicating growing demand for its products. Despite missing Q4 earnings estimates, the company's efforts to improve its omnichannel experience and expand its offerings, including contacts and eye exams, are expected to drive future growth.

1.c. Company Highlights

2. Warby Parker Delivers Strong Q3 with 15.2% Revenue Growth

Warby Parker's Q3 financial performance was robust, with net revenue growing 15.2% year-over-year to $221.7 million, driven by a 20% increase in retail revenue. Adjusted gross margin was 54.2%, and adjusted EBITDA grew approximately 50% to $25.7 million, representing an 11.6% adjusted EBITDA margin. Earnings per share (EPS) came in at $0.11, beating estimates of $0.09. The company's retail productivity stood at 103.8% versus the same period last year, driven by stronger glasses growth paired with continued momentum in contacts and exams businesses in stores.

Publication Date: Nov -16

📋 Highlights
  • Revenue Growth & EBITDA Expansion:: Q3 net revenue rose 15.2% YoY to $221.7M, with adjusted EBITDA surging 50% to $25.7M (11.6% margin), driven by retail growth and margin improvements.
  • Retail Expansion & Productivity:: Retail revenue grew 20.2% YoY, fueled by 16.4% new store additions, ending with 313 stores, and 103.8% retail productivity (vs. prior year).
  • Active Customer Growth Acceleration:: 2.66 million active customers (9.3% YoY growth), with 9 consecutive quarters of acceleration, and 4.8% higher average revenue per customer ($320).
  • AI & Strategic Partnerships:: Launched AI initiatives for eyewear innovation, announcing partnerships with Google and Samsung to develop intelligent glasses, enhancing customer experience and product offerings.
  • E-Commerce & Strategic Shifts:: E-commerce revenue grew 3.2% YoY, while phasing out Home-Try On and Scout programs to boost direct e-commerce growth, targeting densification in existing markets.

Revenue Drivers

The primary drivers of revenue growth in Q3 were active customer growth, acceleration in the glasses business, the strength of the highly productive store base, and the expansion of holistic vision care offerings. The company delivered its highest glasses volume growth of the year, alongside its ninth consecutive quarter of accelerated active customer growth. Retail revenue grew 20% year-over-year, driven by a 16% new store expansion over the same period and continued healthy growth of stores opened 12 months or more.

Operational Highlights

Warby Parker opened 15 new stores in Q3, ending the period with 313 stores. Existing stores' average revenue per store was $2.2 million, with performance in line with the target 35% 4-wall margins. The company is entering its third act, defined by innovation through AI, planning to leverage AI to develop new products, enhance customer and patient experience, and drive productivity. As Neil Blumenthal mentioned, "We plan to leverage AI to develop new products, enhance our customer and patient experience, and drive productivity and accelerate EBITDA expansion."

Guidance and Outlook

For Q4 2025, Warby Parker is guiding to net revenue between $211 million and $214 million, representing growth of approximately 11% to 12% year-over-year, and adjusted EBITDA of $18 million to $21 million. The company expects net revenue growth of around 13% year-over-year for the full year, with adjusted EBITDA margin expansion. Analysts estimate next year's revenue growth at 12.8%. With a current P/S Ratio of 2.44, it appears that the market has already priced in a certain level of growth, making it essential to monitor the company's ability to deliver on its guidance.

Valuation

Considering Warby Parker's current valuation metrics, the stock trades at a P/E Ratio of 2897.51, indicating a potentially high expectation for future growth. The EV/EBITDA ratio stands at 93.15, suggesting that the company's enterprise value is significantly higher than its EBITDA. It is crucial to assess whether the company's future growth prospects justify these valuation multiples.

3. NewsRoom

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Warby Parker Inc. (WRBY) Presents at Morgan Stanley Global Consumer & Retail Conference 2025 Transcript

Dec -02

Source: seekingalpha.com

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Atika Capital Management LLC Makes New $982,000 Investment in Warby Parker Inc. $WRBY

Nov -27

Source: defenseworld.net

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Warby Parker (WRBY) Reports Q3 Earnings: What Key Metrics Have to Say

Nov -07

Source: zacks.com

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Warby Parker Inc. (WRBY) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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Why Warby Parker Stock Is Plummeting Today

Nov -06

Source: fool.com

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Warby Parker Inc. (WRBY) Q3 Earnings Top Estimates

Nov -06

Source: zacks.com

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Warby Parker: Excellent Management Of Tariffs, Accelerating Growth

Oct -06

Source: seekingalpha.com

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Warby Parker Is Still Worth Buying At This Price

Sep -26

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (15.40%)

6. Segments

Eyewear Products

Expected Growth: 15.4%

Increasing demand for stylish and affordable eyewear, growing online presence, and expansion into new markets drive Warby Parker's growth. The company's innovative try-before-you-buy model and home try-on program also contribute to its success.

Services and Other

Expected Growth: 15.4%

Warby Parker's services, including eye exams and online sales, are expected to drive growth, fueled by increasing demand for convenient and affordable eye care. The non-prescription sunglasses and accessories segment will also contribute to growth, driven by the rising popularity of fashion eyewear.

7. Detailed Products

Eyeglasses

Warby Parker offers a wide range of stylish and affordable eyeglasses for men and women, including single vision, progressive, and reading glasses.

Sunglasses

Warby Parker's sunglasses collection features trendy and functional designs for men and women, with polarized and non-polarized lens options.

Contact Lenses

Warby Parker offers a convenient and affordable contact lens subscription service, with a wide range of lens types and brands available.

Eye Exams

Warby Parker offers comprehensive eye exams at their retail locations, performed by licensed optometrists.

Insurance Services

Warby Parker accepts many major insurance providers and offers in-network benefits for eye exams and eyewear purchases.

8. Warby Parker Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Warby Parker's products are moderately substitutable with other eyewear brands, but the company's unique business model and brand identity help to differentiate it from competitors.

Bargaining Power Of Customers

Warby Parker's customers have some bargaining power due to the availability of alternative eyewear brands, but the company's affordable prices and convenient home try-on program help to mitigate this power.

Bargaining Power Of Suppliers

Warby Parker's suppliers have limited bargaining power due to the company's large scale of operations and ability to negotiate favorable prices.

Threat Of New Entrants

The eyewear industry has moderate barriers to entry, and new entrants may face challenges in replicating Warby Parker's business model and brand recognition, but the company still needs to be vigilant in responding to potential new competitors.

Intensity Of Rivalry

The eyewear industry is highly competitive, with many established brands and new entrants vying for market share, and Warby Parker must continue to innovate and differentiate itself to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 36.63%
Debt Cost 3.95%
Equity Weight 63.37%
Equity Cost 12.14%
WACC 9.14%
Leverage 57.81%

11. Quality Control: Warby Parker Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

18.77$

Current Price

18.77$

Potential

-0.00%

Expected Cash-Flows