Warby Parker Q1 revenue beats estimates on customer growth

Warby Parker

07/05/2026 11:55

Overview

U.S. eyewear retailer's Q1 revenue rose 8.3%, beating analyst expectations

Net income for Q1 fell slightly year-over-year to $3.2 mln

Gross margin declined to 54% due to higher fixed and supply chain costs

Outlook

Warby Parker sees 2026 net revenue of $959-$976 mln, about 10%-12% growth vs 2025

Company expects 2026 adjusted EBITDA of $117-$119 mln, margin of 12.2%

Warby Parker plans 50 new store openings in 2026

Result Drivers

CUSTOMER GROWTH - Active customers grew 4.8% and average revenue per customer rose 6.9% year-over-year, contributing to revenue growth

COST PRESSURES - Gross margin declined due to higher fixed expenses, tariff costs, and increased optical lab and shipping costs, partially offset by price increases and more sales of higher-margin lens products

SG&A LEVERAGE - SG&A as a percentage of revenue decreased, mainly due to the end of the Home-Try On program and lower stock-based compensation, corporate, and customer experience costs

Company press release: ID:nBw10PZnta

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$242.45 mln
$239.34 mln (13 Analysts)
Q1 EPS
$0.03
Q1 Net Income
$3.18 mln
Q1 Adjusted EBITDA
$29.60 mln
Q1 Gross Margin
54.00%
Q1 Adjusted EBITDA Margin
12.20%
Q1 Gross Profit
$131.04 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

Wall Street's median 12-month price target for Warby Parker Inc is $30.00, about 36.2% above its May 6 closing price of $22.03

The stock recently traded at 40 times the next 12-month earnings vs. a P/E of 52 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)