Warby Parker(US:WRBY)2025-11-06 11:46Financial Performance - Net revenue increased by $29.2 million, or 15.2%, to $221.7 million compared to the prior year period[6] - Net income improved by $9.9 million to $5.9 million, reflecting higher revenue and operational efficiency[11] - Adjusted EBITDA rose by $8.4 million year over year to $25.7 million, with an Adjusted EBITDA Margin increase of 2.6 points to 11.6%[11] - For the full year 2025, net revenue is projected to be between $871 million and $874 million, representing approximately 13% growth[11] - Adjusted EBITDA for 2025 is expected to be between $98 million and $101 million, with an Adjusted EBITDA Margin of 11.3% to 11.6%[11] - Gross profit for the nine months ended September 30, 2025, was $359,536,000, up from $323,708,000 in 2024, indicating a growth of 11.1%[28] - The company reported a net income of $5,874,000 for the three months ended September 30, 2025, compared to a net loss of $4,072,000 in the same period of 2024[28] - Adjusted EBITDA for the three months ended September 30, 2025, was $25,745,000, with an adjusted EBITDA margin of 11.6%, compared to 9.0% in 2024[32] Customer Metrics - Active Customers grew by 9.3% to 2.66 million on a trailing 12-month basis, with Average Revenue per Customer increasing by 4.8% to $320[6] Expenses and Margins - Gross margin was 54.1%, slightly down from 54.5% in the prior year, primarily due to tariffs and increased shipping costs[6] - Selling, general, and administrative expenses (SG&A) were $116.4 million, representing 52.5% of revenue, down from 57.9% in the prior year[6] - Selling, general, and administrative expenses for the three months ended September 30, 2025, were $116,375,000, compared to $111,480,000 in the same period of 2024[28] - Adjusted selling, general, and administrative expenses for the nine months ended September 30, 2025, were $322,990,000, an increase of 6.9% from $302,166,000 in the same period of 2024[40] Cash and Liquidity - Warby Parker ended Q3 2025 with $280.4 million in cash and cash equivalents[11] - Cash and cash equivalents at the end of the period were $280,360,000, an increase from $254,161,000 at the beginning of the period[30] - The company experienced a net cash provided by operating activities of $87,531,000 for the nine months ended September 30, 2025, compared to $78,832,000 in 2024[30] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $87,531,000, an increase of 10.8% from $78,832,000 in the same period of 2024[40] - Free cash flow for Q3 2025 was $(1,516,000), a decrease from $13,059,000 in Q3 2024[40] Inventory and Assets - Inventory as of September 30, 2025, was $45,592,000, down from $52,345,000 as of December 31, 2024[26] - Total assets as of September 30, 2025, were $706,921,000, up from $676,490,000 as of December 31, 2024[26] - Total liabilities increased slightly to $337,296,000 as of September 30, 2025, compared to $336,417,000 at the end of 2024[26] Investments and Other Expenses - The company invested $19,490,000 in property and equipment during Q3 2025, compared to $14,223,000 in Q3 2024[40] - Stock-based compensation expense for Q3 2025 was $7,029,000, down 34.5% from $10,680,000 in Q3 2024[40] - The company incurred $2,456,000 in inventory write-downs for the nine months ended September 30, 2025, related to the Home-Try On program[41] - Charitable donations included a non-cash expense of $2,821,000 for the nine months ended September 30, 2025, compared to $2,196,000 in the same period of 2024[40] Future Plans - The company plans to open 45 new stores in 2025, including five shop-in-shops at select Target locations[11]