Warby Parker Revenue Rises 10.4% to $244.7 Million in Third Quarter
Key Facts
Warby Parker reported revenue of $244.7 million for the third quarter ended September 30 on November 5, up 10.4% year over year. The results came as the company's shares rose in premarket trading on November 5. Investing.com reported that the stock gained 22.0% in that trading and linked the move to adjusted EBITDA exceeding the company's guidance and an expansion in gross margin. The move related to the November 5 results announcement session. The stock's close at $25.48 was from the November 6 session.
Customer metrics showed growth in both the buyer base and their spending, according to the results statement filed with the U.S. Securities and Exchange Commission. Active customers rose 3.0% to 2.74 million in the 12 months ended in the third quarter. Average revenue per customer was $342, up 6.7% year over year. These figures reflect two different drivers of revenue growth: an increase in customer numbers and higher average revenue per customer. The available facts do not establish that earnings beat analysts' expectations.
Gross margin improved to 54.4% in the third quarter, compared with 54.1% in the same period a year earlier. The company attributed the improvement to lower tariffs, savings in customer shipping costs, optical lab efficiencies, and greater penetration of progressive lenses and lens treatments. It said growth in eyecare services and occupancy costs for new stores offset some of those gains. Selling, general and administrative expenses rose to $129.6 million, an increase of $13.2 million from a year earlier. The company said retail compensation and corporate expenses, including technology costs, contributed in part to the increase.
The company opened 12 net new stores during the third quarter, ending the period with 364 stores. It recorded operating cash flow of $24.7 million, while free cash flow was negative $2.0 million. The company said free cash flow reflected investments to launch smart glasses. Cash and cash equivalents totaled $287.9 million at quarter-end, according to the company statement. On the earnings call, it said e-commerce growth accelerated to 5%, while eye exams and insurance rose 30% and 22%, respectively, year over year.
Co-CEO Dave Gilboa said the company will begin accepting preorders for its first smart glasses collection on November 12 and expects to deliver initial orders in mid-December. He added that the company sees the category as a potential driver of revenue growth and profitability starting in 2027. These dates put the product launch among the main next steps after the third-quarter results announcement. The 22.0% share move was documented in premarket trading on November 5, not in the November 9 session cited in the circulating headline. The company's results figures and product launch dates therefore remain the clearest available developments.