Warby Parker (NYSE:WRBY) Posts Earnings Results, Misses Expectations By $0.08 EPS

Warby Parker (NYSE:WRBY) released its quarterly earnings data on Thursday. The company reported $0.03 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.11 by ($0.08), FiscalAI reports. Warby Parker had a net margin of 0.15% and a return on equity of 2.32%. The company had revenue of $242.45 million for the quarter, compared to the consensus estimate of $239.44 million. During the same quarter in the previous year, the firm posted $0.03 earnings per share. The business’s revenue for the quarter was up 8.4% compared to the same quarter last year.

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

• Q1 results beat guidance — revenue was $242.4M (up 8.3% YoY) and adjusted EBITDA was $29.6M (12.2% margin), demonstrating resilience despite winter weather and soft category demand.
• Full‑year 2026 guidance reaffirmed — management expects $959M–$976M revenue (≈10%–12% growth) and $117M–$119M adjusted EBITDA, with the outlook excluding AI glasses revenue but including pre‑launch costs.
• AI glasses launch planned later this year — Warby Parker is partnering with Google and Samsung, investing in supply chain, lab capacity, retail experience and systems; launch economics and revenue are not included in current guidance.
• Omni‑channel expansion and eye care traction — opened 14 net stores in Q1 (on track for 50 in 2026), exams grew ~30% YoY, active customers reached 2.7M and insurance penetration rose to ~10%, supporting higher AOV and lifetime value.
• Near‑term margin pressure — adjusted gross margin declined 220 bps to 54.2% due to fixed cost deleverage (doctor headcount, occupancy), tariffs, and lab/shipping costs, though management expects tariff tailwinds and operational initiatives to help later in the year.

Warby Parker Price Performance

NYSE WRBY traded up $2.32 during trading on Friday, reaching $29.52. The company’s stock had a trading volume of 4,176,843 shares, compared to its average volume of 2,460,305. The stock has a market capitalization of $3.16 billion, a PE ratio of 1,476.54 and a beta of 1.95. The firm has a fifty day moving average of $23.31 and a 200 day moving average of $23.08. Warby Parker has a one year low of $14.96 and a one year high of $31.00.

Warby Parker News Summary

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

• Positive Sentiment: Warby Parker reported Q1 revenue of $242.45 million, topping estimates, and said revenue grew 8.4% year over year, signaling solid demand. Warby Parker Announces First Quarter 2026 Results
• Positive Sentiment: The company posted Q1 earnings of $0.12 per share, matching year-ago results and beating Wall Street expectations, reinforcing that profitability is holding up better than feared. Warby Parker Inc. (WRBY) Surpasses Q1 Earnings and Revenue Estimates
• Positive Sentiment: Management said active customers rose 4.8% to 2.69 million and average revenue per customer increased 6.9%, both signs of healthy customer growth and monetization. Warby Parker Announces First Quarter 2026 Results
• Positive Sentiment: Warby Parker guided FY2026 revenue to $959 million-$976 million, a range investors are treating as supportive even though it is slightly below consensus, and the company also generated net income of $3.2 million. Warby Parker Announces First Quarter 2026 Results
• Positive Sentiment: Analysts turned more constructive after earnings, with BTIG raising its price target to $34 and Telsey lifting its target to $33, both with bullish ratings. BTIG Research price target update
• Positive Sentiment: Telsey Advisory Group also upgraded its view to “outperform,” citing roughly 13.7% upside from the recent trading level. Telsey Advisory Group price target update

Insider Activity

In other Warby Parker news, CEO Neil Harris Blumenthal sold 75,213 shares of the stock in a transaction that occurred on Friday, April 17th. The shares were sold at an average price of $24.56, for a total transaction of $1,847,231.28. Following the transaction, the chief executive officer directly owned 50,165 shares in the company, valued at $1,232,052.40. This trade represents a 59.99% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bradley E. Singer sold 15,793 shares of Warby Parker stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $27.53, for a total transaction of $434,781.29. Following the transaction, the director directly owned 16,026 shares in the company, valued at $441,195.78. This trade represents a 49.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 115,793 shares of company stock worth $2,901,550 over the last quarter. Corporate insiders own 18.24% of the company’s stock.

Hedge Funds Weigh In On Warby Parker

Large investors have recently added to or reduced their stakes in the business. NewEdge Advisors LLC lifted its stake in Warby Parker by 56.7% in the third quarter. NewEdge Advisors LLC now owns 2,350 shares of the company’s stock worth $65,000 after purchasing an additional 850 shares during the last quarter. State of Tennessee Department of Treasury purchased a new position in shares of Warby Parker in the second quarter worth about $126,000. Headlands Technologies LLC increased its holdings in shares of Warby Parker by 981.3% in the second quarter. Headlands Technologies LLC now owns 6,077 shares of the company’s stock worth $133,000 after buying an additional 5,515 shares during the period. Captrust Financial Advisors bought a new stake in shares of Warby Parker in the 2nd quarter valued at about $227,000. Finally, DRW Securities LLC purchased a new stake in Warby Parker during the 4th quarter valued at about $229,000. Hedge funds and other institutional investors own 93.24% of the company’s stock.

Wall Street Analysts Forecast Growth

WRBY has been the topic of a number of analyst reports. Citigroup boosted their price objective on Warby Parker from $18.00 to $24.00 and gave the company a “neutral” rating in a research note on Tuesday, March 17th. Weiss Ratings lowered Warby Parker from a “hold (c-)” rating to a “sell (d)” rating in a research note on Monday, March 2nd. UBS Group upped their target price on Warby Parker from $25.00 to $27.00 and gave the stock a “neutral” rating in a research note on Friday. BTIG Research upped their target price on Warby Parker from $32.00 to $34.00 and gave the stock a “buy” rating in a research note on Thursday. Finally, Telsey Advisory Group upped their target price on Warby Parker from $32.00 to $33.00 and gave the stock an “outperform” rating in a research note on Friday. Ten investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Warby Parker currently has an average rating of “Moderate Buy” and an average target price of $29.00.

About Warby Parker

Warby Parker, Inc (NYSE: WRBY) is a U.S.-based eyewear company that designs, manufactures and sells prescription glasses, sunglasses and contact lenses through a direct-to-consumer model. Since its founding, the company has combined online and brick-and-mortar channels to streamline the customer experience, offering features such as virtual try-on technology and a home try-on program that allows consumers to sample frames before purchase.

Established in 2010 by Wharton graduates Neil Blumenthal, Dave Gilboa, Andrew Hunt and Jeffrey Raider, Warby Parker set out to disrupt the traditional optical market by controlling the entire supply chain—from frame design and lens production to warehousing and distribution.