Warby Parker (NYSE:WRBY) Posts Quarterly Earnings Results, Misses Expectations By $0.05 EPS

Warby Parker (NYSE:WRBY) released its earnings results on Thursday. The company reported $0.04 earnings per share for the quarter, missing the consensus estimate of $0.09 by ($0.05), FiscalAI reports. The firm had revenue of $244.74 million during the quarter, compared to the consensus estimate of $244.92 million. Warby Parker had a net margin of 0.85% and a return on equity of 3.36%. Warby Parker’s quarterly revenue was up 10.4% compared to the same quarter last year. During the same period in the prior year, the business posted $0.05 earnings per share.

Here are the key takeaways from Warby Parker’s conference call:

• Warby Parker reported Q3 revenue of $244.7 million, up 10.4%, and adjusted EBITDA of $28.6 million, with an 11.7% margin that slightly exceeded last year’s level. Adjusted gross margin improved 40 basis points to 54.6%, supported by lower tariffs and operating efficiencies.
• The company cited continued softness in eyewear industry units and store traffic, with pressure particularly among cash-pay customers; active-customer growth moderated. It narrowed full-year revenue growth guidance to 11%–12%, while noting that Q4 guidance includes higher launch and marketing expenses.
• Warby Parker expects its Intelligent Eyewear launch to begin contributing modestly in Q4, with customer deliveries starting in mid-December, and sees the product as a potential growth driver as production scales in 2027. Executives emphasized the opportunity but did not provide specific 2027 sales targets or pricing on the call.
• Several core growth initiatives showed momentum: e-commerce revenue grew 5%, eye exams increased 30%, and insurance revenue grew 22% year over year. The company also opened 41 net new stores year to date and remains on track for 50 openings in 2026.

Warby Parker Price Performance

Warby Parker stock traded down $0.45 during mid-day trading on Friday, hitting $25.63. 5,095,052 shares of the company’s stock traded hands, compared to its average volume of 2,662,640. The firm has a 50 day simple moving average of $24.91 and a two-hundred day simple moving average of $25.12. Warby Parker has a fifty-two week low of $16.26 and a fifty-two week high of $31.00. The stock has a market cap of $2.77 billion, a price-to-earnings ratio of 427.25, a P/E/G ratio of 6.47 and a beta of 1.95.

Insider Buying and Selling

In other news, CEO Neil Blumenthal sold 100,000 shares of the stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $27.69, for a total value of $2,769,000.00. Following the transaction, the chief executive officer directly owned 36,020 shares of the company’s stock, valued at $997,393.80. This represents a 73.52% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 16.80% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on WRBY shares. Citizens Jmp boosted their price objective on shares of Warby Parker from $29.00 to $40.00 and gave the stock a “market outperform” rating in a research note on Friday. BTIG Research reiterated a “buy” rating on shares of Warby Parker in a research note on Tuesday, October 27th. The Goldman Sachs Group reiterated a “buy” rating and issued a $32.00 target price on shares of Warby Parker in a research note on Friday. Roth Capital reiterated a “neutral” rating and set a $28.00 price target on shares of Warby Parker in a report on Wednesday, August 5th. Finally, TD Cowen assumed coverage on Warby Parker in a report on Friday, October 30th. They set a “strong-buy” rating for the company. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $31.42.

Key Headlines Impacting Warby Parker

Here are the key news stories impacting Warby Parker this week:

• Positive Sentiment: Citizens JMP raised its price target to $40 from $29 and reiterated “market outperform.” The new target implies about 56% upside from the $25.63 reference price. Citizens JMP rating
• Positive Sentiment: Management signaled 15%–20% revenue growth for Q4 and expects deliveries of its new Intelligent Eyewear to begin in mid-December, providing a possible growth driver. Q4 growth outlook and Intelligent Eyewear
• Positive Sentiment: Q3 revenue rose 10.4% year over year to $244.7 million, with active customers up 3% to 2.74 million, average revenue per customer up 6.7%, and gross margin improving to 54.4%. These trends support the growth narrative. Q3 results
• Neutral Sentiment: One report noted WRBY moved above its 200-day moving average, a potentially supportive technical signal, although it does not resolve the earnings concerns. Moving-average report
• Negative Sentiment: Profit results were less clear and may weigh on sentiment. The supplied earnings data shows $0.04 per share versus a $0.09 consensus estimate, while another report cited $0.11 and a beat—likely reflecting different earnings measures. Revenue was approximately in line with estimates. Q3 metrics comparison
• Negative Sentiment: Coverage also flagged substantial spending ahead, which could limit near-term profitability even as Warby Parker expands stores and product lines. Q3 spending outlook

About Warby Parker

Warby Parker Inc is an optical retailer that designs, manufactures and sells prescription eyeglasses, sunglasses, contact lenses and related accessories. The company offers its products through its website, mobile applications and a growing network of retail stores, combining online shopping with in-person services such as frame fitting and eye examinations.

Founded in 2010 by Neil Blumenthal, Dave Gilboa, Andrew Hunt and Jeffrey Raider, Warby Parker was established as a direct-to-consumer eyewear company.