Warby Parker Q2 Earnings Call: Revenue Growth, Strategic Moves, and Challenges Ahead

Warby Parker reported a 14% YoY revenue growth in Q2 2025, exceeding guidance expectations. The company achieved its eighth consecutive quarter of accelerating active customer growth, with 2.6 million active customers. Warby Parker also expanded its retail footprint with its 300th store opening and a partnership with Google to develop AI-powered eyewear. However, the company faced challenges from tariff impacts and the phasing out of its home try-on program, as well as the departure of its CFO.

Warby Parker Inc. (WRBY) reported its second-quarter 2025 results, showcasing a 14% year-over-year (YoY) revenue growth, surpassing analysts' expectations. The company achieved its eighth consecutive quarter of accelerating active customer growth, with 2.6 million active customers as of the end of the quarter. The company also expanded its retail footprint, opening its 300th store and partnering with Google to develop AI-powered eyewear.

Warby Parker's revenue for Q2 2025 was $214.5 million, a 13.9% increase from the same period last year. Despite the revenue growth, the company reported a loss of $0.01 per share, missing the expected earnings per share (EPS) of $0.08. This resulted in a negative surprise of 112.5%, but the stock saw a pre-market rise of 10.37%, reaching $26.82, indicating investor optimism driven by revenue growth and strategic initiatives [1].

The company's retail revenue rose by 19.3%, while e-commerce saw a modest 2% growth. Warby Parker's focus on expanding its store footprint and enhancing its product offerings, including new eyewear collections and AI-driven tools, played a crucial role in driving performance. The company's adjusted EBITDA margin was $25 million, representing an 11.7% margin [1].

Warby Parker's stock has shown significant volatility and momentum, with a beta of 2.1 and an impressive one-year return of 72.83%. The stock's performance is notable given its 52-week range, with a high of $29.73 and a low of $12.46 [1].

Despite the strong financial performance, Warby Parker faced challenges in Q2 2025. The company experienced tariff impacts and the phasing out of its home try-on program, which may have affected its operational efficiency. Additionally, the departure of its CFO, Steve Miller, could impact the company's financial stability and strategic planning [1].

Warby Parker maintains a positive outlook, projecting full-year revenue between $880 million and $888 million, reflecting a growth rate of 14-15%. The company plans to open 45 new stores, including collaborations with Target, and aims for an adjusted EBITDA between $98 million and $101 million [1].

References:

[1] https://ca.investing.com/news/transcripts/earnings-call-transcript-warby-parker-q2-2025-misses-eps-forecasts-revenue-grows-93CH-4144404