Warby Parker Stock Earnings Reports

Warby Parker reported Q1 2026 revenue of $242.4M (up 8.3% YoY) and adjusted EBITDA of $29.6M (12.2% margin), beating guidance. Management reaffirmed full-year 2026 guidance: revenue $959M–$976M (≈10%–12% growth) and adjusted EBITDA $117M–$119M, and noted the guidance excludes any revenue from the planned AI glasses but does include pre- and post-launch investments. Key operational highlights: 14 net new stores opened in Q1 (50 targeted for 2026), exams grew ~30% YoY as exam services expanded to ~90% of stores, and e-commerce was down ~4% largely due to the lapping and sunset of the Home Try-On program (management expects this headwind to fade). Gross margin was pressured (adjusted gross margin 54.2%, down ~220 bps) from fixed cost deleverage (doctor headcount, occupancy), tariffs, and lab/shipping costs, but management expects tariff tailwinds and mix/operational improvements to help margins later in the year. Management is preparing for an AI (intelligent) eyewear launch later this year with partners Google and Samsung, investing in retail readiness, lab capacity, training and systems; the launch is expected to be transformational but is not included in near-term revenue guidance. Insurance penetration improved (in‑network ~10% penetration, up from ~8%), out-of-network reimbursement tooling rolled out and is driving higher AOVs, and the company is reallocating marketing toward higher-return channels and glasses (vs. contacts) while expanding channels like YouTube, TikTok and Reddit. Financial position remains solid with ~$288M cash, ~$8M free cash flow in Q1, and a $100M repurchase authorization; a $75M reimbursement from Google supports AI glasses investments. Overall, management emphasizes disciplined spend, confidence in underlying customer demand (particularly exams and higher-value frames/lenses), and that they are positioned to scale omnichannel distribution and capture share while launching AI eyewear later this year.