Financial Performance - Net revenue for Q3 2025 reached $222 million, a 15.2% year-over-year growth compared to $192.447 million in Q3 2024[9, 53] - Adjusted EBITDA for Q3 2025 was $26 million, representing an 11.6% margin, compared to $17.308 million and 9.0% margin in Q3 2024[9, 53] - The company's full year 2025 outlook projects net revenue between $871 million and $874 million, representing approximately 13% year-over-year growth[30] - Full year 2025 adjusted EBITDA is projected to be between $98 million and $101 million, with an approximate 11.4% margin[30] - Q4 2025 net revenue is expected to be between $211 million and $214 million, representing approximately 11-12% year-over-year growth[32] - Q4 2025 adjusted EBITDA is projected to be between $18 million and $21 million, with an approximate 9.2% margin[32] Business Operations - Warby Parker has 313 stores as of September 30, 2025, including 5 stores in Canada[7, 24] - The company opened 15 net new retail stores in Q3 2025[24] - Warby Parker estimates a potential footprint of 900+ stores[25] - The company estimates that its sales represent approximately 1% of the $68 billion U S eyewear market[7]

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]