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

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

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 Trading Down 1.7%

Shares of NYSE:WRBY traded down $0.45 during trading on Friday, reaching $25.63. The company’s stock had a trading volume of 5,095,052 shares, compared to its average volume of 2,662,640. The stock has a market capitalization of $2.77 billion, a PE ratio of 427.25, a price-to-earnings-growth ratio of 6.47 and a beta of 1.95. Warby Parker has a 12 month low of $16.26 and a 12 month high of $31.00. The firm’s 50 day simple moving average is $24.91 and its two-hundred day simple moving average is $25.12.

Analysts Set New Price Targets

A number of equities research analysts have commented on WRBY shares. Citigroup restated a “market outperform” rating on shares of Warby Parker in a research note on Thursday, September 17th. The Goldman Sachs Group reaffirmed a “buy” rating and issued a $32.00 target price on shares of Warby Parker in a report on Friday. Deutsche Bank Aktiengesellschaft set a $29.00 price target on Warby Parker in a report on Thursday, September 17th. Citizens Jmp boosted their price objective on Warby Parker from $29.00 to $40.00 and gave the company a “market outperform” rating in a research report on Friday. Finally, Weiss Ratings cut Warby Parker from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday, October 23rd. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, Warby Parker presently has an average rating of “Moderate Buy” and an average target price of $31.42.

Insider Transactions at Warby Parker

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

More Warby Parker News

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

Warby Parker Company Profile

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.