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Mar 31, 2025
Warby Parker Q1 2025 Earnings Report
Reported strong Q1 2025 results with double-digit revenue growth and exceeded profitability expectations.
Key Takeaways
Warby Parker delivered a strong start to 2025, achieving positive net income for the first time as a public company. Revenue grew by 11.9% year-over-year, driven by increased active customers and average revenue per customer. The company also saw significant growth in Adjusted EBITDA and Free Cash Flow, while opening 11 net new stores.
Net revenue increased 11.9% to $223.8 million.
Achieved GAAP net income of $3.5 million, their first profitable quarter as a public company.
Adjusted EBITDA increased by $6.8 million to $29.2 million, with a margin of 13.1%.
Active Customers grew by 8.7% to 2.57 million on a trailing 12-month basis.
Forward Guidance
Warby Parker is revising its full year 2025 guidance, expecting continued revenue growth and strong Adjusted EBITDA.
Positive Outlook
- Net revenue projected between $869 million and $886 million, representing 13% to 15% growth.
- Adjusted EBITDA projected between $91 million and $97 million.
- Adjusted EBITDA Margin projected between 10.5% and 11.0%.
- Assumes successful mitigation of the significant majority of tariffs at current rates.
- On track to open 45 new stores, including five shop-in-shops at select Target locations in the second half of the year.
Challenges Ahead
- Guidance does not account for potential variability of stock-based compensation.
- Guidance does not account for potential variability of taxes.
- Uncertainty and potential variability of reconciling items between GAAP net margin and Adjusted EBITDA Margin.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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