What does Warby Parker do and what are its main business segments?

What were the key takeaways from Warby Parker's earnings call?

Did Warby Parker beat or miss consensus estimates last quarter?

What is Warby Parker's gross profit margin?

What guidance did Warby Parker's management provide for the next earnings period?

What factors drove the changes in Warby Parker's revenue and profit?

What is the market's earnings forecast for Warby Parker next quarter?

What is the revenue and EPS growth rate for Warby Parker year over year?

- **Revenue Growth**: 15.2% YoY to $221.7M, driven by 20% retail growth and 13% glasses unit expansion.
- **AI Innovation**: Partnering with Google and Samsung to launch AI glasses, with upgraded labs supporting future fulfillment.
- **Margin Expansion**: Adjusted EBITDA up 50% to $25.7M (11.6% margin), with 260bps YoY expansion.
- **Store Expansion**: 15 new stores opened, including 5 Target shop-in-shops, bringing total to 313.
- **Guidance**: Full year EBITDA $98-101M (11.3-11.6% margin), Q4 EBITDA $18-21M (9.2% margin).
- **Challenges**: Mix shift to $95 frames, contacts growth deceleration to 21% YoY.


**【CEO Summary Section】**
- **Q3 Revenue Growth**: 15.2% YoY to $221.7M, driven by 20% retail revenue growth and 13% glasses unit growth. Adjusted EBITDA rose 50% to $25.7M (11.6% margin), despite macro challenges.
- **Customer Dynamics**: Resilient progressives customers offset mix shift to $95 frames, weighing on ASP. Contacts growth decelerated to 21% YoY amid macro softness.
- **AI Innovation**: Partnering with Google and Samsung to develop AI glasses, with first products expected in coming months. Upgraded optical labs to support future AI-driven fulfillment.
- **Store Expansion**: Opened 15 new stores (313 total), including 5 Target shop-in-shops. Suburban densification strategy continues, with 88% of stores now offering eye exams.
- **Long-Term Vision**: Aiming for 20%+ EBITDA margin through disciplined cost control, AI-driven efficiency, and omnichannel expansion.

**【CFO Financial Commentary】**
- **Top Line**: E-commerce frame sales grew 3.2% YoY, offsetting Home Try-on sunset. Contacts (11.5% of revenue) and eye exams (6.5% of revenue) showed strong growth.
- **Gross Margin**: 54.2% (down 40bps YoY) due to tariffs and contacts mix. Eye exam margin improved from 2024 inefficiencies.
- **Expense Control**: Adjusted SG&A at 48.7% of revenue (-360bps YoY), driven by 3% non-marketing SG&A growth. Marketing spend at 13.1% of revenue.
- **Cash Flow**: $36M year-to-date free cash flow, with 2025 expected to be third consecutive year of positive FCF.
- **Guidance**: Full year net revenue $871-874M (13% YoY), EBITDA $98-101M (11.3-11.6% margin). Q4 EBITDA $18-21M (9.2% margin).

**【Q&A Highlights】**
- **Mix Shift**: Younger customers gravitating to $95 frames, while progressives (22.3% of Rx units) remain resilient. No trade-down from lens price increases.
- **AI Impact**: Using AI for design, customer engagement (e.g., Advisor tool), and content creation. Early AI adoption driving 200+ basis points of EBITDA margin expansion.
- **Store Strategy**: Targeting suburban markets with 1-2 stores. Shop-in-shops performing in line with expectations, with 5-10 more planned for 2026.
- **Doctor Retention**: 60% of store leaders promoted internally. Doctors value clinical tools, culture, and technology (e.g., Point of Everything system).
- **Tariff Mitigation**: Supplier diversification and selective price increases offset $10M+ annual impact.


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

Eyewear Products

Services and Other

WRBY

WRBY fundamentals

You can ask Aime