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Sep 30
Warby Parker Q3 2025 Earnings Report
Warby Parker reported strong financial results for the third quarter ended September 30, 2025, with accelerated revenue and customer growth, and significantly expanded profitability.
Key Takeaways
Warby Parker delivered a strong third quarter in 2025, with net revenue increasing by 15.2% to $221.7 million and net income improving to $5.9 million. The company also saw accelerated active customer growth and a meaningful expansion in Adjusted EBITDA margin, reflecting strong operational discipline and strategic advancements.
Net revenue increased by 15.2% year over year to $221.7 million, demonstrating accelerated topline growth.
Net income improved by $9.9 million to $5.9 million, driven by leveraging the expense base on higher revenue.
Active Customers grew by 9.3% to 2.66 million on a trailing 12-month basis, and Average Revenue per Customer increased by 4.8% to $320.
Adjusted EBITDA increased by $8.4 million to $25.7 million, with Adjusted EBITDA Margin expanding by 2.6 points to 11.6%.
Warby Parker
Warby Parker
Forward Guidance
For the full year 2025, Warby Parker updated its guidance, expecting net revenue between $871 million and $874 million, representing approximately 13% growth. Adjusted EBITDA is projected to be between $98 million and $101 million, with an Adjusted EBITDA Margin of 11.3% to 11.6%. The company is also on track to open 45 new stores.
Positive Outlook
- Projected net revenue growth of approximately 13% for the full year 2025, indicating continued strong performance.
- Anticipated Adjusted EBITDA between $98 million and $101 million, demonstrating expected profitability expansion.
- Adjusted EBITDA Margin is expected to expand by 180 to 210 basis points year over year, highlighting improved operational efficiency.
- On track to open 45 new stores, including five shop-in-shops at Target, indicating continued retail expansion.
- Focus on innovation through AI to create new products like AI glasses and enhance customer experience.
Challenges Ahead
- Guidance for GAAP net margin or GAAP net income is not provided due to uncertainty and variability of stock-based compensation and taxes.
- Forward-looking statements are subject to risks and uncertainties, including managing future growth effectively.
- Potential increases in component and shipping costs and changes in supply chain could impact results.
- Changes to U.S. or other countries' trade policies and tariff and import/export regulations pose risks.
- An overall decline in the health of the economy and other factors impacting consumer spending, such as recessionary conditions, inflation, infectious diseases, government instability, and geopolitical unrest, could affect performance.