Warby Parker Announces Third Quarter 2025 Results

Core Insights - Warby Parker reported a strong third quarter for 2025, with net revenue growth accelerating to 15.2% year over year, reaching $221.7 million [6][20][21] - The company experienced a 9.3% increase in active customers, totaling 2.66 million on a trailing 12-month basis, and average revenue per customer rose by 4.8% to $320 [6][20][21] - Net income improved significantly to $5.9 million, an increase of $9.9 million compared to the previous year [6][20][21] Financial Performance - Net revenue increased by $29.2 million, or 15.2%, compared to the prior year period, reaching $221.7 million [6][20] - Active customers grew by 9.3% to 2.66 million, while average revenue per customer increased by 4.8% to $320 [6][20] - Gross margin was reported at 54.1%, slightly down from 54.5% in the prior year, primarily due to tariffs, increased shipping costs, and sales growth of contact lenses [6][20] - Selling, general, and administrative expenses (SG&A) were $116.4 million, up $4.9 million from the prior year, but represented a lower percentage of revenue at 52.5% compared to 57.9% [6][20] Profitability Metrics - Adjusted EBITDA increased by $8.4 million year over year to $25.7 million, with an adjusted EBITDA margin of 11.6%, up 2.6 points from the previous year [6][20] - The company ended the quarter with $280.4 million in cash and cash equivalents, and year-to-date net cash provided by operating activities was $87.5 million [6][20] Strategic Initiatives - Warby Parker plans to innovate through AI, including the development of AI glasses, to enhance customer experience and drive productivity [2][3] - The company is on track to open 45 new stores in 2025, including five shop-in-shops at select Target locations [6][20]