Warby Parker’s Q1 Results Signal a Turnaround in Sight

Warby Parker (NYSE: WRBY) has long been a poster child for the disruptor era, blending stylish eyewear with a socially conscious mission. But in recent years, questions about its path to profitability loomed large. Now, the company has delivered its first quarter as a public entity with a GAAP net income in the black—a milestone that hints at a turning point. Q1 2025 results reveal a company not only growing its top line but also tightening its grip on costs, suggesting Warby Parker may finally be scaling its way to sustainable success.

The quarter’s standout achievement was the $3.5 million GAAP net income, marking the first positive quarterly result since its 2021 IPO. This shift, driven by a 11.9% revenue jump to $223.8 million, reflects Warby’s dual focus on expanding its retail footprint and improving operational efficiency. Adjusted EBITDA rose to $29.2 million, with a margin of 13.1%, up nearly 2 percentage points from last year. These figures, combined with $265.1 million in cash reserves, underscore a healthier balance sheet—a stark contrast to the losses that once plagued the brand.

The growth engine is firing on multiple cylinders. E-commerce and retail channels both contributed to revenue gains, with active customers up 8.7% to 2.57 million. This metric is particularly telling: Warby has now reported seven straight quarters of accelerating customer growth, a sign that its direct-to-consumer model remains compelling. The average revenue per customer also rose 4.8% to $310, suggesting customers are buying more products or upgrading to pricier options like premium lenses—a strategy that could offset margin pressures from lower-margin contact lens sales.

Yet challenges persist. Gross margin dipped slightly to 56.3%, as Warby invested in store expansion and faced the drag of contact lenses, which now make up 13% of revenue (up from 10% in 2024). The company also plans to open 45 new stores this year, including five shop-in-shops at Target, a move that could boost foot traffic but also increase occupancy costs. Investors will watch closely whether these expenses can be managed without sacrificing margins further.

Warby’s leadership has long bet on physical stores as a growth lever, and the results so far are mixed. While new locations contributed to the 11-store net increase in Q1, the company’s store-level economics remain under scrutiny. The $16.2 million in capital expenditures for the quarter highlights the investment required to fuel this strategy. Management, however, argues that the Target collaborations—which reduce upfront costs—will help scale efficiently.

Looking ahead, Warby’s full-year guidance is cautiously optimistic. Revenue is projected to grow 13–15% to $869–886 million, with adjusted EBITDA margins expected to hold between 10.5–11%. This relies on mitigating risks like tariffs and supply chain disruptions—a tall order in an uncertain macroeconomic environment.

The company’s commitment to its social mission remains intact. Warby distributed over 15 million pairs of glasses through its “Buy a Pair, Give a Pair” program, a core part of its brand identity that likely resonates with its customer base. Yet, as competition in the eyewear market intensifies—from legacy brands like Luxottica to digital upstarts—Warby must prove it can sustain differentiation.

In conclusion, Warby Parker’s Q1 results are a clear step forward, blending top-line momentum with hard-won profitability. The 7.3% increase in cash reserves and positive net income signal financial resilience, while the $29.4 million in operating cash flow demonstrates operational health. However, the path to long-term dominance will depend on executing its store expansion without margin erosion, navigating supply chain hurdles, and maintaining customer loyalty in a crowded space. For now, the glasses are off—Warby’s future looks clearer than ever.