WRBY · Warby Parker Inc.

Warby Parker delivered a solid first quarter 2026, beating internal guidance on both top-line and profitability metrics despite notable gross margin compression. Revenue growth of 8.3% to $242.4 million was underpinned by a 4.8% increase in Active Customers to 2.69 million and a 6.9% rise in Average Revenue per Customer to $331 — demonstrating resilience in customer acquisition and monetization. However, gross margin declined 230 basis points to 54.0%, primarily due to tariff-related costs, higher optical laboratory and customer shipping expenses, and deleverage in fixed occupancy and doctor headcount costs — partially offset by prior-year selective price increases and stronger sales of higher-margin progressive lenses. SG&A improved as a percentage of revenue (down 180 bps), reflecting cost discipline following the sunset of the Home-Try-On program and lower stock-based compensation, though retail compensation rose as a percent of revenue. Net income dipped slightly to $3.2 million, while Adjusted EBITDA rose modestly to $29.6 million — though its margin contracted 90 bps to 12.2% due to gross margin pressure outweighing SG&A leverage. Management reaffirmed full-year 2026 guidance, signaling confidence in sustained execution, and highlighted two strategic priorities: expanding retail footprint (50 new stores planned) and launching intelligent AI eyewear — a material innovation initiative that could redefine long-term differentiation and margin potential. The forward-looking commentary underscores a deliberate shift toward technology-enabled products, positioning Warby Parker beyond its legacy DTC eyewear model.