Warby Parker Inc. (WRBY) FY2025 10-K Annual Report

Filed: Feb 26, 2026
Health Care
Ophthalmic GoodsSEC EDGAR

Warby Parker Inc. (WRBY) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 26, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

Warby Parker Inc. FY2025 10-K Analysis

Business Overview

  • Core direct-to-consumer eyewear brand integrating design, technology, healthcare, and social enterprise with 323 retail stores and digital commerce
  • New AI-powered intelligent eyewear partnerships with Google and Samsung announced in 2025, expanding market beyond traditional glasses
  • Strategic emphasis on AI tools like Virtual Try-On and Advisor to enhance personalization and omnichannel shopping experience
  • Workforce totaled 4,036 employees as of Dec 31, 2025, supporting expanded retail and technology growth
  • Underpenetration in vision insurance with only 8.3% revenue from insurance-backed orders despite 60% U.S. vision market insurance use

Management Discussion & Analysis

  • Revenue $871.9M in 2025, up 13% YoY from $771.3M in 2024
  • Gross margin slightly declined to 54.0% in 2025 from 55.3% in 2024
  • Net income $1.6M in 2025 vs net loss $20.4M in 2024
  • Adjusted EBITDA $95.2M in 2025 with margin 10.9% vs $73.1M and 9.5% in 2024
  • Partnership with Google includes up to $75M funding for AI glasses development and commercialization

Risk Factors

  • Regulatory/legal risk: Costs impacted by evolving international trade policies and tariffs, with proactive supplier diversification outside China to manage volatility
  • Geopolitical/macroeconomic risk: Trade environment and inflation pressures in 2025 increased cost of goods sold 16.5% to $401.3M, reducing gross margin 130 bps to 54.0%
  • Operational/supply chain risk: Discontinuation and inventory write-down of Home-Try-On program in Q2 2025, indicating supply chain or strategy shifts impacting $2.46M write-down
  • Competitive/market disruption risk: Growing contacts business with lower margin than glasses increased COGS and pressured gross margin, reflecting shift in product mix dynamics
  • Financial/structural risk: Reliance on key personnel exemplified by stock-based compensation swings ($36.1M in 2025 vs $48.4M in 2024) impacting operating expenses and profitability

Warby Parker Inc. FY2025 Key Financial Metrics
XBRL

Revenue

$872M

+13.0% YoY

Net Income

$2M

+108.0% YoY

Gross Margin

54.0%

-137bp YoY

Operating Margin

-0.6%

+329bp YoY

Net Margin

0.2%

+283bp YoY

ROE

0.4%

+644bp YoY

Total Assets

$721M

+6.6% YoY

EPS (Diluted)

$0.01

+105.9% YoY

Operating Cash Flow

$111M

+12.2% YoY

Source: XBRL data from Warby Parker Inc. FY2025 10-K filing on SEC EDGAR. All figures in USD.

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