Warby Parker(US:WRBY)2025-11-06 22:03Financial Performance - For the three months ended September 30, 2025, net revenue was $221.7 million, a 15.2% increase from $192.4 million in the same period of 2024[118]. - Gross profit for the three months ended September 30, 2025, was $119.9 million, representing a gross margin of 54.1%, compared to $104.9 million and 54.5% in 2024[118]. - The company reported net income of $5.9 million for the three months ended September 30, 2025, compared to a net loss of $4.1 million in the same period of 2024[118]. - Adjusted EBITDA for the three months ended September 30, 2025, was $25.7 million, up from $17.3 million in 2024, reflecting an Adjusted EBITDA margin of 11.6%[118][120]. - Net revenue for the nine months ended September 30, 2025, increased by $79.3 million, or 13.7%, to $659.9 million compared to $580.7 million in the same period of 2024[148]. - Adjusted EBITDA for the three months ended September 30, 2025, was $25.75 million, compared to $17.31 million in 2024, reflecting a significant increase[133]. - Gross profit increased by $15.08 million, or 14.4%, for the three months ended September 30, 2025, reaching $119.95 million[143]. - Selling, general, and administrative expenses rose to $116.38 million, a 4.4% increase from $111.48 million in 2024, while as a percentage of net revenue, it decreased by 540 basis points to 52.5%[145]. - Interest and other income, net, decreased by $0.66 million, or 23.3%, for the three months ended September 30, 2025, totaling $2.18 million[146]. - Selling, general, and administrative expenses rose by $13.6 million, or 4.0%, to $358.0 million, with a decrease in SG&A as a percentage of net revenue from 59.3% to 54.2%[153]. - Interest and other income, net, decreased by $1.3 million, or 16.9%, to $6.6 million, primarily due to lower interest rates and unfavorable foreign currency fluctuations[154][155]. Customer Engagement - Active Customers increased to 2,656 thousand as of September 30, 2025, compared to 2,431 thousand in 2024, indicating growth in customer engagement[120]. - Active customers increased by 9.3%, and average revenue per customer rose to $320 from $305 year-over-year, driven by strong adoption of precision progressives and selective price increases[148]. Operational Expansion - The company operated 313 retail stores as of September 30, 2025, up from 269 stores in the same period of 2024, enhancing its physical presence[120]. - The company is focused on diversifying its supply chain to mitigate risks from tariffs and economic uncertainties, which may impact future performance[117]. - The company expects operating losses to continue as it invests in business expansion, with sufficient cash and cash equivalents to fund operations for at least the next 12 months[160]. - Net cash used in investing activities increased to $51.9 million in 2025, primarily for new retail store build-outs and capitalized software development[169]. Cash and Liquidity - Cash and cash equivalents as of September 30, 2025, were $280.4 million, up from $254.2 million at the end of 2024, with an accumulated deficit of $679.6 million[159]. - The company has $280.4 million in cash and money-market funds as of September 30, 2025, indicating a focus on liquidity and capital preservation[179]. Market and Economic Factors - The partnership with Google aims to develop AI-powered glasses, with Google committing up to $75 million for product development and commercialization costs[114]. - The company does not believe that foreign exchange rates have a material effect on its business, financial condition, or results of operations[178]. - Inflation may impact costs related to raw materials, transportation, labor, and rent, which could affect the company's operations if not offset by increased revenue[180]. - The company expects fluctuations in cost of goods sold as a percentage of net revenue due to product mix and inventory management[136].