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

Warby Parker (NYSE:WRBY) released its quarterly earnings data on Thursday. The company reported $0.04 earnings per share for the quarter, missing analysts’ consensus estimates of $0.09 by ($0.05), FiscalAI reports. The business had revenue of $244.74 million during the quarter, compared to analyst estimates of $244.92 million. Warby Parker had a return on equity of 3.36% and a net margin of 0.85%. The firm’s revenue was up 10.4% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.05 EPS.

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 WRBY stock traded down $0.45 during trading hours on Friday, hitting $25.63. The company’s stock had a trading volume of 5,095,052 shares, compared to its average volume of 2,662,640. Warby Parker has a 12-month low of $16.26 and a 12-month high of $31.00. The stock has a market cap 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. The company has a 50 day moving average of $24.91 and a 200 day moving average of $25.12.

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

Insider Activity at Warby Parker

In other Warby Parker news, CEO Neil Blumenthal sold 100,000 shares of Warby Parker 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 owned 36,020 shares of the company’s stock, valued at approximately $997,393.80. The trade was a 73.52% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 16.80% of the company’s stock.

Analysts Set New Price Targets

Several brokerages have recently weighed in on WRBY. Roth Capital restated a “neutral” rating and issued a $28.00 target price on shares of Warby Parker in a research note on Wednesday, August 5th. Deutsche Bank Aktiengesellschaft set a $29.00 price objective on Warby Parker in a research report on Thursday, September 17th. TD Cowen began coverage on shares of Warby Parker in a research report on Friday, October 30th. They set a “strong-buy” rating on the stock. Citizens Jmp raised their price objective on Warby Parker from $29.00 to $40.00 and gave the stock a “market outperform” rating in a research note on Friday. Finally, UBS Group increased their price objective on Warby Parker from $28.00 to $32.00 and gave the company a “neutral” rating in a report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $31.42.

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.