Financial Data and Key Metrics Changes - Revenue for Q2 2025 reached $214.5 million, reflecting a year-over-year increase of 13.9% [29] - Adjusted EBITDA for Q2 was $25 million, with an adjusted EBITDA margin of 11.7%, up from 10.4% in the previous year [37] - Active customers increased by 9% year-over-year, totaling 2.6 million [10][29] - Average revenue per customer rose by 4.6% to $316 [29] Business Line Data and Key Metrics Changes - Glasses revenue grew approximately 11% year-over-year, with progressive lenses accounting for 23% of prescription units sold [13][30] - Contact lenses saw a significant increase of 28% year-over-year, now representing 11.5% of total revenue [20][30] - Eye exams grew 44% year-over-year, contributing 6% to total revenue [22][30] Market Data and Key Metrics Changes - Retail revenue increased by 19.3% year-over-year, driven by new store openings and growth in established stores [29][30] - The company opened 11 new stores in Q2, bringing the total to 298 stores [31] - Retail productivity was reported at 101.7, indicating strong performance in existing stores [32] Company Strategy and Development Direction - The company aims to expand its store footprint to over 900 locations across North America, highlighting significant growth potential [7] - A partnership with Google was announced to develop AI-powered intelligent eyewear, expanding the company's total addressable market [8][9] - The company is transitioning away from the Home Try-On program to focus on in-store experiences and AI-driven digital tools [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of the eye care consumer market, despite challenges in April [49] - The company raised its full-year guidance, expecting net revenue between $880 million and $888 million, representing 14-15% growth year-over-year [42] - Management noted that the gross impact of tariffs has moderated, contributing positively to EBITDA flow-through [39] Other Important Information - The CFO announced plans to step down after 14 years, with the co-CEO taking on interim financial responsibilities [24][25] - The company reported a strong cash position of $286 million and generated $24 million in free cash flow during Q2 [38] Q&A Session Summary Question: Insights on the health of the eye care consumer and future growth - Management noted stability in the customer base and confidence in continued growth, citing the ability to adapt quickly to market changes [49][50] Question: Progress on the Google partnership and its importance - The partnership is expected to unlock new levels of utility in eyewear, with a focus on AI integration [59][60] Question: Impact of selective price increases on consumer behavior - Price increases were well received, with minimal impact on conversion rates and a stronger uptake on higher-value lens upgrades [64] Question: Drivers of revenue growth acceleration into July - Growth was observed across both retail and e-commerce channels, supported by pricing changes implemented earlier in the year [70][71] Question: Details on the Warby Advisor tool - The AI-driven tool provides personalized frame recommendations, enhancing the online shopping experience [73][74] Question: Future opportunities in the insurance market - The company sees significant growth potential in its insurance business, with ongoing efforts to enhance customer awareness and utilization [83][84] Question: Long-term outlook for contacts and progressives - Both segments are viewed as long-term growth drivers, with significant market share opportunities remaining [85][88]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 reached $214.5 million, reflecting a year-over-year increase of 13.9% [29] - Adjusted EBITDA for Q2 was $25 million, with an adjusted EBITDA margin of 11.7%, up from 10.4% in the previous year [36] - Active customers increased by 9% year-over-year, totaling 2.6 million, with average revenue per customer rising 4.6% to $316 [10][29] Business Line Data and Key Metrics Changes - Glasses revenue grew approximately 11% year-over-year, with progressive lenses accounting for 23% of prescription units sold [13][30] - Contact lenses saw a significant increase of 28% year-over-year, now representing 11.5% of total revenue [20][30] - Eye exams grew 44% year-over-year, contributing 6% to total revenue [21][30] Market Data and Key Metrics Changes - Retail revenue increased by 19.3% year-over-year, driven by the opening of new stores and growth in existing locations [29][15] - The company opened 11 new stores in Q2, bringing the total to 298 stores, with a focus on underpenetrated suburban markets [15][30] Company Strategy and Development Direction - The company aims to expand its store footprint to over 900 locations across North America, highlighting significant growth potential [6] - A partnership with Google was announced to develop AI-powered intelligent eyewear, expanding the company's total addressable market beyond traditional glasses [7][9] - The company is transitioning away from the Home Try On program to focus on in-store experiences and AI-driven digital tools [18][90] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health of the eye care consumer and the ability to maintain growth despite macroeconomic challenges [48] - The company raised its full-year guidance, expecting net revenue between $880 million and $888 million, representing 14-15% growth year-over-year [41] - Management noted that tariff-related impacts have moderated, allowing for improved financial performance [38] Other Important Information - Steve Miller, the Chief Financial Officer, announced his departure after 14 years, with Dave Gilboa assuming interim financial responsibilities [23][25] - The company is focusing on leveraging AI technology to enhance customer experience and operational efficiency [51][72] Q&A Session Summary Question: Thoughts on the health of the eye care consumer and future growth - Management noted stability in the customer base and confidence in continued growth, citing the ability to adapt quickly to market changes [48][49] Question: Progress on the Google partnership and its importance - The partnership is expected to unlock new levels of utility for consumers, with glasses becoming a primary interface for engaging with AI [57][60] Question: Drivers of revenue growth acceleration into July - Growth has been observed across both retail and e-commerce channels, supported by recent pricing changes [70] Question: Details on the Warby Advisor feature - The AI-driven tool provides personalized frame recommendations based on user preferences, showing strong engagement and sales [72] Question: Impact of sunsetting the Home Try On program - The program's sunset allows for resource reallocation towards marketing and higher-margin initiatives, reflecting a shift in the company's business model [90]

Second Quarter 2025 Earnings Report Speakers: DAVE GILBOA | Co-Founder & Co-CEO NEIL BLUMENTHAL | Co-Founder & Co-CEO STEVE MILLER | SVP & Chief Financial Officer Speakers: DAVE GILBOA | Co-Founder & Co-CEO NEIL BLUMENTHAL | Co-Founder & Co-CEO STEVE MILLER | SVP & Chief Financial Officer Forward-Looking Statements / Non-GAAP Financial Measures This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities ...

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $223.8 million, reflecting an 11.9% year-over-year increase [26] - Adjusted EBITDA margin improved to 13.1%, up nearly 200 basis points year-over-year [6][34] - The company achieved its first quarter of positive GAAP net income as a public company [6] Business Line Data and Key Metrics Changes - Retail revenue increased by 14.8% year-over-year, while e-commerce revenue grew by 5.5%, marking its highest quarterly growth since 2021 [26] - Glasses revenue grew by 9.1%, contact lens revenue surged by 25.1%, and eye care revenue increased by approximately 40% year-over-year [28] - Active customers reached 2.57 million, representing an 8.7% year-over-year growth [27] Market Data and Key Metrics Changes - The company opened 11 new stores in Q1, the highest number for that quarter, bringing the total to 287 stores [28] - Retail productivity was reported at 99.8% compared to the same period last year [29] - The penetration of contact lenses increased from 9.2% of revenue in Q1 2024 to 10.3% in Q1 2025 [28] Company Strategy and Development Direction - The company plans to invest in marketing at a rate in the low teens as a percentage of revenue while optimizing media spend [8] - Continued focus on product innovation with the launch of seven new collections, including a premium light-responsive lens [9] - The company aims to open 45 new stores in 2025, including shop-in-shops with Target [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current dynamic macro environment, emphasizing the resilience of their omnichannel model [11][23] - The company is taking a cautious approach to guidance due to potential consumer sentiment volatility [45][47] - Management believes that their value proposition positions them well to gain market share during economic uncertainty [23][58] Other Important Information - The company has reduced its exposure to China in its cost of goods sold from approximately 20% to less than 10% by year-end [13][39] - Adjusted SG&A expenses were reported at $110.3 million, or 49.3% of revenue, showing a decrease from the previous year [32] Q&A Session Summary Question: Change in revenue outlook for the year - Management noted a more cautious approach to guidance due to consumer sentiment volatility and potential elongation in purchase cycles [45][46] Question: Impact of tariffs on gross margin and EBITDA margin - Management indicated that they expect to mitigate the majority of the potential tariff impact through strategic pricing and supply chain adjustments [50][79] Question: Customer traffic and consumer confidence - Management observed pockets of strength and volatility in customer behavior, with confidence in their competitive positioning during market disruptions [56][58] Question: Marketing spend efficiency - Management reported consistent efficiency in marketing investments, leveraging a diversified media mix to optimize spend [66][67] Question: Insurance customer behavior - Management highlighted positive trends in insurance customer utilization and ongoing efforts to improve access to benefits [71][72] Question: Sources of leverage in EBITDA - Management outlined plans for significant leverage from non-marketing SG&A and strategic pricing adjustments to offset tariff impacts [77][79] Question: Consumer behavior of new cohorts - Management reported consistent consumer behavior across new and existing cohorts, with significant opportunities in the optical market [96][97]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $223.8 million, reflecting an 11.9% year-over-year increase [24] - Adjusted EBITDA margin improved to 13.1%, up nearly 200 basis points year-over-year [5][33] - The company achieved its first quarter of positive GAAP net income as a public company [5] Business Line Data and Key Metrics Changes - Retail revenue increased by 14.8% year-over-year, while e-commerce revenue grew by 5.5%, marking its highest quarterly growth since 2021 [25] - Glasses revenue grew by 9.1%, contact lens revenue surged by 25.1%, and eye care revenue increased by approximately 40% year-over-year [26] - Active customers reached 2.57 million, representing an 8.7% year-over-year growth [25] Market Data and Key Metrics Changes - The share of contact lenses in total revenue increased from 9.2% in Q1 2024 to 10.3% in Q1 2025, while eye care's share rose from 4.7% to 5.8% [27] - The company opened 11 new stores in Q1, the highest number for that quarter, bringing the total to 287 stores [27] Company Strategy and Development Direction - The company plans to open 45 new stores in 2025, including shop-in-shops with Target [9][38] - Continued investment in marketing is planned at low teens as a percentage of revenue, leveraging analytics to optimize media spend [6][20] - The company is focused on product innovation, having launched seven collections in 2025, including a new premium light-responsive lens [7] Management's Comments on Operating Environment and Future Outlook - Management expressed a cautious outlook due to macroeconomic uncertainties and potential impacts on consumer sentiment [46][48] - The company is confident in its ability to adapt to changing environments, citing past experiences with tariffs and the COVID-19 pandemic [10][22] - The updated revenue guidance for 2025 is between $869 million and $886 million, reflecting a 13% to 15% growth year-over-year [38] Other Important Information - The company has significantly reduced its sourcing from China, estimating that it will decrease from approximately 20% to less than 10% of COGS by year-end [12][37] - Adjusted SG&A expenses were $110.3 million, or 49.3% of revenue, showing a decrease from 51.7% in the previous year [31] Q&A Session Summary Question: Change in revenue outlook for the year - Management noted a more cautious approach to guidance due to consumer sentiment and market volatility, adjusting the growth projection from 14%-16% to 13%-15% [45][48] Question: Impact of tariffs on gross margin and EBITDA margin - Management indicated that the shape of the year for EBITDA would likely follow a similar pattern to previous years, with Q1 being the highest margin quarter [50][51] Question: Customer traffic and consumer confidence - Management observed pockets of strength and volatility in customer behavior, with confidence that the company will benefit from its value proposition during economic uncertainty [56][57] Question: Marketing spend efficiency - The company reported consistent efficiency in marketing investments, with a diversified media mix helping to optimize spend [66] Question: Insurance customer behavior - Management highlighted positive progress in integrating insurance benefits, with insurance customers spending more and showing higher repeat purchase rates [72][73] Question: Consumer behavior of new cohorts - Management noted consistent consumer behavior across new and existing cohorts, with strong market opportunities remaining [95]

Financial Performance - Net revenue for Q1 2025 reached $224 million, an 11.9% year-over-year growth compared to Q1 2024[10] - Adjusted EBITDA for Q1 2025 was $29.2 million, representing 13.1% of net revenue[10] - The company projects full year 2025 net revenue to be between $869 million and $886 million, representing approximately 13-15% year-over-year growth[28] - Full year 2025 adjusted EBITDA is projected to be between $91 million and $97 million, with an adjusted EBITDA margin of approximately 10.5-11.0%[28] - Q2 2025 net revenue is expected to be between $211 million and $214 million, reflecting approximately 12-14% year-over-year growth[30] - Q2 2025 adjusted EBITDA is projected to be between $20 million and $22 million, with an approximate 10% margin[30] Retail Expansion - The company has 287 retail stores as of March 31, 2025, including 282 in the U S and 5 in Canada[8, 23] - 11 net new retail stores were opened in Q1 2025[23] - The company sees potential for 900+ store locations in the future[24] Market Overview - The company's sales represent approximately 1% of the $68 billion U S eyewear market[8]