Warby Parker Announces Second Quarter 2025 Results
Net revenue increased
Active Customers increased
“It has been a busy and exciting year marked by major milestones. We celebrated opening our 300th store and distributing 20 million pairs of glasses to people in need around the world. Looking ahead, our partnership with Google to develop intelligent eyewear is a testament to Warby Parker’s commitment to innovation as we shape the future of how people interact with AI,” shared Co-Founder and Co-CEO Neil Blumenthal.
“We look forward to sharing more about our AI glasses initiative with Google. In the meantime, our team continues to invest in ways to make shopping for glasses easier than ever, leveraging proprietary digital innovations and AI tools to enable remarkable experiences across channels. This quarter, we launched Advisor, our personalized, AI-driven recommendation tool, which has strong early traction. We believe we are well-positioned for continued innovation and growth heading into the back half of the year,” added Co-Founder and Co-CEO Dave Gilboa.
Second Quarter 2025 Highlights
-
Net revenue increased
$26.3 million 13.9% , to$214.5 million -
Active Customers increased
9.0% to 2.60 million on a trailing 12-month basis, and Average Revenue per Customer increased4.6% year over year to$316 -
Net loss improved
$5.0 million $1.8 million -
Adjusted EBITDA(1) increased
$5.4 million $25.0 million 11.7% . -
Net cash provided by operating activities of
$40.2 million -
Free Cash Flow(1) of
$23.9 million - Opened 11 net new stores during the quarter, ending Q2 with 298 stores.
Second Quarter 2025 Year Over Year Financial Results
-
Net revenue increased
$26.3 million 13.9% , to$214.5 million -
Active Customers increased
9.0% to 2.60 million on a trailing 12-month basis, and Average Revenue per Customer increased4.6% to$316 -
Gross margin was
53.0% compared to56.0% in the prior year. The decrease in gross margin was driven by$2.5 million -
Selling, general, and administrative expenses (“SG&A”) were
$118.1 million $3.8 million 55.1% of revenue, down from60.8% in the prior year. As a percentage of revenue, SG&A decreased primarily due to leverage from lower stock-based compensation and corporate expenses. Adjusted SG&A(1) was$104.8 million 48.9% of revenue, compared to$98.2 million 52.2% of revenue in the prior year. -
Net loss improved
$5.0 million $1.8 million $3.8 million $2.5 million $1.3 million -
Adjusted EBITDA(1) increased
$5.4 million $25.0 million 11.7% .
Balance Sheet Highlights
Warby Parker ended the second quarter of 2025 with
Leadership Update
Effective October 1, 2025, Steve Miller is stepping down as Warby Parker’s Chief Financial Officer to pursue another opportunity outside of the industry. Co-Founder and Co-CEO Dave Gilboa will assume the roles of principal financial officer and principal accounting officer on an interim basis until the Company appoints a successor. Mr.
“When Steve joined Warby Parker fourteen years ago as our first CFO, he brought financial rigor, strategic vision, and an unwavering commitment to creating impact both inside and outside of the organization,” says
2025 Outlook
For the full year 2025, Warby Parker is raising its guidance as follows:
-
Net revenue of
$880 million $888 million 14% to15% . -
Adjusted EBITDA(1) of
$98 million $101 million 11.1% to11.4% . - On track to open 45 new stores, including five shop-in-shops at select Target locations
“Our Q2 results underscore our ability to stay agile and focused in a dynamic consumer and policy environment,” said Steve Miller, Chief Financial Officer. “We’re proud to deliver our eighth consecutive quarter of accelerating active customer growth alongside 130 basis points of year over year Adjusted EBITDA margin expansion. It’s been a privilege to help guide Warby Parker through more than a decade of growth, including our transition from a private company to a scaled public business. I’m proud of what we’ve accomplished and confident in the team’s continued ability to execute with discipline and purpose.”
The guidance and forward-looking statements made in this press release and on our conference call are based on management's expectations as of the date of this press release.
(1) Please see the reconciliation of non-GAAP financial measures to the most comparable GAAP financial measure in the section titled “Non-GAAP Financial Measures” below.
Webcast and Conference Call
A conference call to discuss Warby Parker’s second quarter 2025 results, as well as third quarter and full year 2025 outlook, is scheduled for 8:00 a.m. ET on August 7, 2025. To participate, please dial 833-470-1428 from the
Forward-Looking Statements
This press release and the related conference call, webcast and presentation contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements may relate to, but are not limited to, expectations of future operating results or financial performance, including expectations regarding achieving profitability and growth in our e-commerce channel, delivering stakeholder value, growing market share, and our guidance for the quarter ending September 30, 2025 and year ending December 31, 2025; expectations regarding the number of new store openings during the year ending December 31, 2025; management’s plans, priorities, initiatives and strategies; expectations regarding growth of our business; and expectations regarding our ability to mitigate the impacts of existing or new tariffs. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “toward,” “will,” or “would,” or the negative of these words or other similar terms or expressions. You should not put undue reliance on any forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all.
Forward-looking statements are based on information available at the time those statements are made and are based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management as of that time with respect to future events. These statements are subject to risks and uncertainties, many of which involve factors or circumstances that are beyond our control, that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this press release may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements. These risks and uncertainties include our ability to manage our future growth effectively; our expectations regarding cost of goods sold, gross margin, channel mix, customer mix, and selling, general, and administrative expenses; increases in component and shipping costs and changes in supply chain; changes to
Additional information regarding these and other factors that could affect the Company’s results is included in the Company’s SEC filings, which may be obtained by visiting the SEC's website at www.sec.gov. Information contained on, or that is referenced or can be accessed through, our website does not constitute part of this document and inclusions of any website addresses herein are inactive textual references only.
Glossary
Active Customers is defined as unique customer accounts that have made at least one purchase in the preceding 12-month period.
Average Revenue per Customer is defined as the sum of the total net revenues in the preceding 12-month period divided by the current period Active Customers.
Non-GAAP Financial Measures
We use Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Cost of Goods Sold (“Adjusted COGS”), Adjusted Gross Margin, Adjusted Gross Profit, Adjusted Selling, General, and Administrative Expenses (“Adjusted SG&A”), and Free Cash Flow as important indicators of our operating performance. Collectively, we refer to these non-GAAP financial measures as our “Non-GAAP Measures.” The Non-GAAP Measures, when taken collectively with our GAAP results, may be helpful to investors because they provide consistency and comparability with past financial performance and assist in comparisons with other companies, some of which use similar non-GAAP financial information to supplement their GAAP results.
Adjusted EBITDA is defined as net (loss) income before interest and other income, taxes, and depreciation and amortization as further adjusted for asset impairment costs, stock-based compensation expense and related employer payroll taxes, amortization of cloud-based software implementation costs, non-cash charitable donations, charges for certain legal matters outside the ordinary course of business, and non-recurring costs such as restructuring costs and major system implementation costs. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by net revenue.
Adjusted COGS is defined as cost of goods sold adjusted for stock-based compensation expense and related employer payroll taxes.
Adjusted Gross Profit is defined as net revenue minus Adjusted COGS. Adjusted Gross Margin is defined as Adjusted Gross Profit divided by net revenue.
Adjusted SG&A is defined as SG&A adjusted for stock-based compensation expense and related employer payroll taxes, non-cash charitable donations, charges for certain legal matters outside the ordinary course of business, and non-recurring costs such as restructuring costs and major system implementation costs.
Free Cash Flow is defined as net cash provided by operating activities minus purchases of property and equipment.
The Non-GAAP Measures are presented for supplemental informational purposes only. A reconciliation of historical GAAP to Non-GAAP financial information is included under “Selected Financial Information” below.
We have not reconciled our Adjusted EBITDA Margin guidance to GAAP net (loss) income margin, or net margin, or Adjusted EBITDA guidance to GAAP net (loss) income because we do not provide guidance for GAAP net margin or GAAP net (loss) income due to the uncertainty and potential variability of stock-based compensation and taxes, which are reconciling items between GAAP net margin and Adjusted EBITDA Margin and GAAP net (loss) income and Adjusted EBITDA, respectively. Because such items cannot be reasonably provided without unreasonable efforts, we are unable to provide a reconciliation of the Adjusted EBITDA Margin guidance to GAAP net margin and Adjusted EBITDA guidance to GAAP net (loss) income. However, such items could have a significant impact on GAAP net margin and GAAP net (loss) income.
About Warby Parker
Warby Parker (NYSE: WRBY) was founded in 2010 with a mission to inspire and impact the world with vision, purpose, and style–without charging a premium for it. Headquartered in
Warby Parker aims to demonstrate that businesses can scale, do well, and do good in the world. Ultimately, the Company believes in vision for all, which is why for every pair of glasses or sunglasses sold, it distributes a pair to someone in need through its Buy a Pair, Give a Pair program. To date, Warby Parker has worked alongside its nonprofit partners to distribute more than 20 million glasses to people in need.
Selected Financial Information
Warby Parker Inc. and Subsidiaries |
||||||||
Condensed Consolidated Balance Sheets (Unaudited) |
||||||||
(Amounts in thousands, except par value) |
||||||||
|
June 30,
|
|
December 31,
|
|||||
Assets |
|
|
|
|||||
Current assets: |
|
|
|
|||||
Cash and cash equivalents |
$ |
286,384 |
|
|
$ |
254,161 |
|
|
Accounts receivable, net |
|
1,139 |
|
|
|
1,948 |
|
|
Inventory |
|
43,268 |
|
|
|
52,345 |
|
|
Prepaid expenses and other current assets |
|
15,306 |
|
|
|
17,592 |
|
|
Total current assets |
|
346,097 |
|
|
|
326,046 |
|
|
|
|
|
|
|||||
Property and equipment, net |
|
177,156 |
|
|
|
170,464 |
|
|
Right-of-use lease assets |
|
170,240 |
|
|
|
171,284 |
|
|
Other assets |
|
8,406 |
|
|
|
8,696 |
|
|
Total assets |
$ |
701,899 |
|
|
$ |
676,490 |
|
|
|
|
|
|
|||||
Liabilities and stockholders’ equity |
|
|
|
|||||
Current liabilities: |
|
|
|
|||||
Accounts payable |
$ |
26,037 |
|
|
$ |
23,519 |
|
|
Accrued expenses |
|
60,571 |
|
|
|
51,609 |
|
|
Deferred revenue |
|
21,522 |
|
|
|
32,358 |
|
|
Current lease liabilities |
|
24,632 |
|
|
|
20,235 |
|
|
Other current liabilities |
|
2,771 |
|
|
|
2,633 |
|
|
Total current liabilities |
|
135,533 |
|
|
|
130,354 |
|
|
|
|
|
|
|||||
Non-current lease liabilities |
|
203,747 |
|
|
|
205,120 |
|
|
Other liabilities |
|
1,168 |
|
|
|
943 |
|
|
Total liabilities |
|
340,448 |
|
|
|
336,417 |
|
|
Commitments and contingencies |
|
|
|
|||||
Stockholders’ equity: |
|
|
|
|||||
Common stock, |
|
12 |
|
|
|
12 |
|
|
Additional paid-in capital |
|
1,048,699 |
|
|
|
1,029,220 |
|
|
Accumulated deficit |
|
(685,501 |
) |
|
|
(687,221 |
) |
|
Accumulated other comprehensive loss |
|
(1,759 |
) |
|
|
(1,938 |
) |
|
Total stockholders’ equity |
|
361,451 |
|
|
|
340,073 |
|
|
Total liabilities and stockholders’ equity |
$ |
701,899 |
|
|
$ |
676,490 |
|
|
Warby Parker Inc. and Subsidiaries |
||||||||||||||||
Condensed Consolidated Statements of Operations (Unaudited) |
||||||||||||||||
(Amounts in thousands, except per share data) |
||||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|||||||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|||||||||
Net revenue |
$ |
214,475 |
|
|
$ |
188,222 |
|
|
$ |
438,257 |
|
|
$ |
388,225 |
|
|
Cost of goods sold |
|
100,866 |
|
|
|
82,840 |
|
|
|
198,668 |
|
|
|
169,384 |
|
|
Gross profit |
|
113,609 |
|
|
|
105,382 |
|
|
|
239,589 |
|
|
|
218,841 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Selling, general, and administrative expenses |
|
118,134 |
|
|
|
114,338 |
|
|
|
241,643 |
|
|
|
232,924 |
|
|
Loss from operations |
|
(4,525 |
) |
|
|
(8,956 |
) |
|
|
(2,054 |
) |
|
|
(14,083 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Interest and other income, net |
|
1,984 |
|
|
|
2,567 |
|
|
|
4,439 |
|
|
|
5,123 |
|
|
|
|
|
|
|
|
|
|
|||||||||
(Loss) income before income taxes |
|
(2,541 |
) |
|
|
(6,389 |
) |
|
|
2,385 |
|
|
|
(8,960 |
) |
|
Provision for income taxes |
|
(789 |
) |
|
|
373 |
|
|
|
665 |
|
|
|
481 |
|
|
Net (loss) income |
$ |
(1,752 |
) |
|
$ |
(6,762 |
) |
|
$ |
1,720 |
|
|
$ |
(9,441 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Earnings per share: |
|
|
|
|
|
|
|
|||||||||
Basic |
$ |
(0.01 |
) |
|
$ |
(0.06 |
) |
|
$ |
0.01 |
|
|
$ |
(0.08 |
) |
|
Diluted |
$ |
(0.01 |
) |
|
$ |
(0.06 |
) |
|
$ |
0.01 |
|
|
$ |
(0.08 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|||||||||
Basic |
|
122,565 |
|
|
|
120,086 |
|
|
|
122,257 |
|
|
|
119,615 |
|
|
Diluted |
|
122,565 |
|
|
|
120,086 |
|
|
|
125,719 |
|
|
|
119,615 |
|
|
Warby Parker Inc. and Subsidiaries |
||||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) |
||||||||
(Amounts in thousands) |
||||||||
|
Six Months Ended June 30, |
|||||||
|
2025 |
|
2024 |
|||||
Cash flows from operating activities |
|
|
|
|||||
Net income (loss) |
$ |
1,720 |
|
|
$ |
(9,441 |
) |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|||||
Depreciation and amortization |
|
24,648 |
|
|
|
21,704 |
|
|
Stock-based compensation |
|
21,229 |
|
|
|
27,879 |
|
|
Non-cash charitable contribution |
|
2,821 |
|
|
|
2,196 |
|
|
Asset impairment charges |
|
486 |
|
|
|
421 |
|
|
Amortization of cloud-based software implementation costs |
|
1,488 |
|
|
|
2,008 |
|
|
Change in operating assets and liabilities: |
|
|
|
|||||
Accounts receivable, net |
|
809 |
|
|
|
571 |
|
|
Inventory |
|
9,077 |
|
|
|
8,888 |
|
|
Prepaid expenses and other assets |
|
1,085 |
|
|
|
(61 |
) |
|
Accounts payable |
|
1,846 |
|
|
|
1,384 |
|
|
Accrued expenses |
|
10,752 |
|
|
|
5,187 |
|
|
Deferred revenue |
|
(10,836 |
) |
|
|
(10,565 |
) |
|
Lease assets and liabilities |
|
4,067 |
|
|
|
1,956 |
|
|
Other liabilities |
|
365 |
|
|
|
(577 |
) |
|
Net cash provided by operating activities |
|
69,557 |
|
|
|
51,550 |
|
|
Cash flows from investing activities |
|
|
|
|||||
Purchases of property and equipment |
|
(32,438 |
) |
|
|
(32,088 |
) |
|
Investment in optical equipment company |
|
— |
|
|
|
(2,000 |
) |
|
Net cash used in investing activities |
|
(32,438 |
) |
|
|
(34,088 |
) |
|
Cash flows from financing activities |
|
|
|
|||||
Proceeds from stock option exercises |
|
117 |
|
|
|
2,639 |
|
|
Shares withheld for taxes on stock-based compensation |
|
(6,361 |
) |
|
|
— |
|
|
Proceeds from shares issued in connection with employee stock purchase plan |
|
1,169 |
|
|
|
1,068 |
|
|
Net cash (used in) provided by financing activities |
|
(5,075 |
) |
|
|
3,707 |
|
|
Effect of exchange rates on cash |
|
179 |
|
|
|
(105 |
) |
|
Net change in cash and cash equivalents |
|
32,223 |
|
|
|
21,064 |
|
|
Cash and cash equivalents, beginning of period |
|
254,161 |
|
|
|
216,894 |
|
|
Cash and cash equivalents, end of period |
$ |
286,384 |
|
|
$ |
237,958 |
|
|
Supplemental disclosures |
|
|
|
|||||
Cash paid for income taxes |
$ |
643 |
|
|
$ |
345 |
|
|
Cash paid for interest |
|
176 |
|
|
|
92 |
|
|
Non-cash investing and financing activities: |
|
|
|
|||||
Purchases of property and equipment included in accounts payable and accrued expenses |
$ |
4,645 |
|
|
$ |
4,089 |
|
|
Warby Parker Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures (Unaudited)
The following table reconciles Adjusted EBITDA and Adjusted EBITDA Margin to the most directly comparable GAAP measure, which is net (loss) income:
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|||||||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|||||||||
|
(unaudited, in thousands) |
|
(unaudited, in thousands) |
|||||||||||||
Net (loss) income |
$ |
(1,752 |
) |
|
$ |
(6,762 |
) |
|
$ |
1,720 |
|
|
$ |
(9,441 |
) |
|
Adjusted to exclude the following: |
|
|
|
|
|
|
|
|||||||||
Interest and other income, net |
|
(1,984 |
) |
|
|
(2,567 |
) |
|
|
(4,439 |
) |
|
|
(5,123 |
) |
|
Provision for income taxes |
|
(789 |
) |
|
|
373 |
|
|
|
665 |
|
|
|
481 |
|
|
Depreciation and amortization expense |
|
12,486 |
|
|
|
11,121 |
|
|
|
24,648 |
|
|
|
21,704 |
|
|
Asset impairment charges |
|
175 |
|
|
|
22 |
|
|
|
486 |
|
|
|
421 |
|
|
Stock-based compensation expense(1) |
|
9,162 |
|
|
|
14,097 |
|
|
|
22,163 |
|
|
|
28,412 |
|
|
Non-cash charitable donation(2) |
|
2,821 |
|
|
|
2,196 |
|
|
|
2,821 |
|
|
|
2,196 |
|
|
Amortization of cloud-based software implementation costs |
|
752 |
|
|
|
935 |
|
|
|
1,489 |
|
|
|
2,008 |
|
|
System implementation costs(3) |
|
346 |
|
|
|
— |
|
|
|
346 |
|
|
|
— |
|
|
Inventory write-downs(4) |
|
2,456 |
|
|
|
— |
|
|
|
2,456 |
|
|
|
— |
|
|
Other costs(5) |
|
1,341 |
|
|
|
168 |
|
|
|
1,866 |
|
|
|
1,303 |
|
|
Adjusted EBITDA |
$ |
25,014 |
|
|
$ |
19,583 |
|
|
$ |
54,221 |
|
|
$ |
41,961 |
|
|
Adjusted EBITDA Margin |
|
11.7 |
% |
|
|
10.4 |
% |
|
|
12.4 |
% |
|
|
10.8 |
% |
|
(1) |
Represents expenses related to the Company’s equity-based compensation programs and related employer payroll taxes, which may vary significantly from period to period depending upon various factors including the timing, number, and the valuation of awards granted, and vesting of awards including the satisfaction of performance conditions. For both the three months ended June 30, 2025 and 2024, the amount includes |
|
(2) |
Represents charitable expense recorded in connection with the donation of 178,572 shares of Class A common stock in both May 2025 and May 2024 to the Warby Parker Impact Foundation. |
|
(3) |
Represents costs related to the implementation of major new enterprise software systems. |
|
(4) |
Represents one-time inventory write-downs primarily related to the decision to sunset our Home-Try On program at the end of this year. | |
(5) |
Represents restructuring costs incurred in the second quarter of 2025 and charges for certain legal matters outside the ordinary course of business. |
Warby Parker Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures (Unaudited)
The following table presents our non-GAAP, or adjusted, financial measures for the periods presented as a percentage of revenue. Each cost and operating expense is adjusted for stock-based compensation expense and related employer payroll taxes, non-cash charitable donations, charges for certain legal matters outside the ordinary course of business, and non-recurring costs such as restructuring costs and major system implementation costs.
|
Reported |
|
Adjusted |
|
Reported |
|
Adjusted |
|||||||||||||||||||||||||
|
Three Months Ended
|
|
Three Months Ended
|
|
Six Months Ended
|
|
Six Months Ended
|
|||||||||||||||||||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|||||||||||||||||
|
(unaudited, in thousands) |
|
(unaudited, in thousands) |
|
(unaudited, in thousands) |
|
(unaudited, in thousands) |
|||||||||||||||||||||||||
Cost of goods sold |
$ |
100,866 |
|
|
$ |
82,840 |
|
|
$ |
98,099 |
|
|
$ |
82,555 |
|
|
$ |
198,668 |
|
|
$ |
169,384 |
|
|
$ |
195,628 |
|
|
$ |
168,855 |
|
|
% of Revenue |
|
47.0 |
% |
|
|
44.0 |
% |
|
|
45.7 |
% |
|
|
43.9 |
% |
|
|
45.3 |
% |
|
|
43.6 |
% |
|
|
44.6 |
% |
|
|
43.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Gross profit |
$ |
113,609 |
|
|
$ |
105,382 |
|
|
$ |
116,376 |
|
|
$ |
105,667 |
|
|
$ |
239,589 |
|
|
$ |
218,841 |
|
|
$ |
242,629 |
|
|
$ |
219,370 |
|
|
% of Revenue |
|
53.0 |
% |
|
|
56.0 |
% |
|
|
54.3 |
% |
|
|
56.1 |
% |
|
|
54.7 |
% |
|
|
56.4 |
% |
|
|
55.4 |
% |
|
|
56.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Selling, general, and administrative expenses |
$ |
118,134 |
|
|
$ |
114,338 |
|
|
$ |
104,775 |
|
|
$ |
98,162 |
|
|
$ |
241,643 |
|
|
$ |
232,924 |
|
|
$ |
215,031 |
|
|
$ |
201,542 |
|
|
% of Revenue |
|
55.1 |
% |
|
|
60.8 |
% |
|
|
48.9 |
% |
|
|
52.2 |
% |
|
|
55.1 |
% |
|
|
60.0 |
% |
|
|
49.1 |
% |
|
|
51.9 |
% |
|
Warby Parker Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures (Unaudited)
The following table reflects a reconciliation of each non-GAAP, or adjusted, financial measure to its most directly comparable financial measure prepared in accordance with GAAP:
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|||||||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|||||||||
|
(unaudited, in thousands) |
|
(unaudited, in thousands) |
|||||||||||||
Cost of goods sold |
$ |
100,866 |
|
|
$ |
82,840 |
|
|
$ |
198,668 |
|
|
$ |
169,384 |
|
|
Adjusted to exclude the following: |
|
|
|
|
|
|
|
|||||||||
Stock-based compensation expense(1) |
|
311 |
|
|
|
285 |
|
|
|
584 |
|
|
|
529 |
|
|
Inventory write-downs(2) |
|
2,456 |
|
|
|
— |
|
|
|
2,456 |
|
|
|
— |
|
|
Adjusted Cost of Goods Sold |
$ |
98,099 |
|
|
$ |
82,555 |
|
|
$ |
195,628 |
|
|
$ |
168,855 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Gross profit |
$ |
113,609 |
|
|
$ |
105,382 |
|
|
$ |
239,589 |
|
|
$ |
218,841 |
|
|
Adjusted to exclude the following: |
|
|
|
|
|
|
|
|||||||||
Stock-based compensation expense(1) |
|
311 |
|
|
|
285 |
|
|
|
584 |
|
|
|
529 |
|
|
Inventory write-downs(2) |
|
2,456 |
|
|
|
— |
|
|
|
2,456 |
|
|
|
— |
|
|
Adjusted Gross Profit |
$ |
116,376 |
|
|
$ |
105,667 |
|
|
$ |
242,629 |
|
|
$ |
219,370 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Selling, general, and administrative expenses |
$ |
118,134 |
|
|
$ |
114,338 |
|
|
$ |
241,643 |
|
|
$ |
232,924 |
|
|
Adjusted to exclude the following: |
|
|
|
|
|
|
|
|||||||||
Stock-based compensation expense(1) |
|
8,851 |
|
|
|
13,812 |
|
|
|
21,579 |
|
|
|
27,883 |
|
|
Non-cash charitable donation(3) |
|
2,821 |
|
|
|
2,196 |
|
|
|
2,821 |
|
|
|
2,196 |
|
|
System implementation costs(4) |
|
346 |
|
|
|
— |
|
|
|
346 |
|
|
|
— |
|
|
Other costs(5) |
|
1,341 |
|
|
|
168 |
|
|
|
1,866 |
|
|
|
1,303 |
|
|
Adjusted Selling, General, and Administrative Expenses |
$ |
104,775 |
|
|
$ |
98,162 |
|
|
$ |
215,031 |
|
|
$ |
201,542 |
|
|
|
|
|
|
|
|
|
|
|||||||||
Net cash provided by operating activities |
$ |
40,199 |
|
|
$ |
31,624 |
|
|
$ |
69,557 |
|
|
$ |
51,550 |
|
|
Purchases of property and equipment |
|
(16,286 |
) |
|
|
(17,651 |
) |
|
|
(32,438 |
) |
|
|
(32,088 |
) |
|
Free Cash Flow |
$ |
23,913 |
|
|
$ |
13,973 |
|
|
$ |
37,119 |
|
|
$ |
19,462 |
|
|
(1) |
Represents expenses related to the Company’s equity-based compensation programs and related employer payroll taxes, which may vary significantly from period to period depending upon various factors including the timing, number, and the valuation of awards granted, and vesting of awards including the satisfaction of performance conditions. For both the three months ended June 30, 2025 and 2024, the amount includes |
|
(2) |
Represents one-time inventory write-downs primarily related to the decision to sunset our Home-Try On program at the end of this year. | |
(3) |
Represents charitable expense recorded in connection with the donation of 178,572 shares of Class A common stock in both May 2025 and May 2024 to the Warby Parker Impact Foundation. |
|
(4) |
Represents costs related to the implementation of major new enterprise software systems. |
|
(5) |
Represents restructuring costs incurred in the second quarter of 2025 and charges for certain legal matters outside the ordinary course of business. |
Source: Warby Parker Inc.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250806035262/en/
Investor Relations:
Jaclyn Berkley, Head of Investor Relations
Brendon Frey, ICR
investors@warbyparker.com
Media:
Ali Weltman
ali@derris.com
Source: Warby Parker Inc.
