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- **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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

WRBY

WRBY fundamentals

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