Warby Parker Narrows 2026 Sales Range After Faster Growth

The Tip Desk · November 7, 2026 · 3 min read

Third-quarter revenue reached $244.7 million as the company lifted the low end of its full-year outlook to $966 million.

Warby Parker Inc. (WRBY) reported third-quarter net revenue of $244.7 million, up 10.4% from a year earlier, as year-over-year growth accelerated for a second straight quarter.

The direct-to-consumer vision brand had grown sales 9.8% in the second quarter and 8.3% in the first. Chief Financial Officer Adrian Mitchell said Adjusted EBITDA exceeded guidance.

Trailing 12-month Active Customers rose 3.0% to 2.74 million, a slower pace than 4.1% growth in the second quarter and 4.8% in the first. Average Revenue per Customer was $342, up 6.7% year over year.

Gross margin was 54.4%, compared with 54.1% a year earlier. The company said the increase was primarily related to leverage in glasses from reduced tariffs, customer shipping savings, optical lab efficiencies, and higher penetration of progressives and other lens treatments. Those benefits were partly offset by deleverage from growth in eye care and occupancy costs as the company opened 12 net new stores. Adjusted gross profit was $133.6 million, or 54.6% of revenue.

The 54.4% print followed a 57.9% gross margin in the second quarter that included an $11.8 million IEEPA tariff-refund benefit.

Adjusted EBITDA was $28.6 million, or an 11.7% margin, down from $32.9 million and a 14.0% margin in the second quarter, which included the tariff-refund benefit.

Net income was $5.6 million, down $0.3 million from a year earlier. Diluted earnings were $0.04 a share.

Selling, general, and administrative expenses were $129.6 million, or 53.0% of revenue, up 50 basis points from a year earlier. The company attributed the increase primarily to retail compensation and corporate expenses, including higher technology costs, partly offset by lower marketing as a percentage of revenue. Adjusted SG&A was $120.8 million, or 49.4% of revenue.

The company opened 12 net new stores in the quarter, ending with 364 locations, after 15 net new stores in the second quarter and 14 in the first.

Operating cash flow was $24.7 million. Free cash flow was $(2.0) million, which the company said reflected investments related to launching Intelligent Eyewear, after $6.8 million in the second quarter and $8.4 million in the first. Cash and cash equivalents were $287.9 million at September 30.

For full-year 2026, Warby Parker narrowed net revenue guidance to $966 million to $976 million, representing approximately 11% to 12% growth versus 2025, from a prior range of $959 million to $976 million. Adjusted EBITDA guidance of $117 million to $119 million was reaffirmed, equating to a 12.2% margin and 130 basis points of year-over-year expansion at the midpoint. Guidance now includes a modest contribution from Intelligent Eyewear, along with related launch and operating expenses. The company still plans 50 new store openings.

Co-Founders and Co-CEOs Dave Gilboa and Neil Blumenthal said the company would begin accepting pre-orders on November 12 for its first Intelligent Eyewear collection and look forward to delivering customer orders during the holiday season. Blumenthal said the company is rolling out Warby Parker Care, expanding its retail footprint, and building on investments in exams and insurance.

Mitchell said the company is maintaining a focus on profitability through the remainder of the year as it enters 2027 with significant financial flexibility.