Eyewear retailer Warby Parker (NYSE:WRBY) fell short of the market’s revenue expectations in Q2 CY2026, but sales rose 9.8% year on year to $235.5 million. The company’s full-year revenue guidance of $967.5 million at the midpoint came in 1.3% below analysts’ estimates. Its GAAP profit of $0.04 per share was in line with analysts’ consensus estimates.
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Warby Parker (WRBY) Q2 CY2026 Highlights:
- Revenue: $235.5 million vs analyst estimates of $237.8 million (9.8% year-on-year growth, 1% miss)
- EPS (GAAP): $0.04 vs analyst estimates of $0.04 (in line)
- Adjusted EBITDA: $32.88 million vs analyst estimates of $28.88 million (14% margin, 13.9% beat)
- The company reconfirmed its revenue guidance for the full year of $967.5 million at the midpoint
- EBITDA guidance for the full year is $118 million at the midpoint, below analyst estimates of $121 million
- Operating Margin: 1.3%, up from -2.1% in the same quarter last year
- Free Cash Flow Margin: 2.9%, down from 11.1% in the same quarter last year
- Active Customers: 2.71 million, up 110,000 year on year
- Locations: 352 at quarter end, up from 298 in the same quarter last year
- Market Capitalization: $3.59 billion
Company Overview
Founded in 2010, Warby Parker (NYSE:WRBY) designs, manufactures, and sells eyewear, including prescription glasses, sunglasses, and contact lenses, through its e-commerce platform and physical retail locations.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years.
With $911.6 million in revenue over the past 12 months, Warby Parker is a small retailer, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with suppliers. On the bright side, it can grow faster because it has more white space to build new stores.
As you can see below, Warby Parker’s sales grew at a solid 12.9% compounded annual growth rate over the last three years as it opened new stores and expanded its reach.
This quarter, Warby Parker’s revenue grew by 9.8% year on year to $235.5 million, missing Wall Street’s estimates.
Looking ahead, sell-side analysts expect revenue to grow 15.3% over the next 12 months, an acceleration versus the last three years. This projection is eye-popping and indicates its newer products will fuel better top-line performance.
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Number of Stores
A retailer’s store count influences how much it can sell and how quickly revenue can grow.
Warby Parker sported 352 locations in the latest quarter. Over the last two years, it has opened new stores at a rapid clip by averaging 17.2% annual growth, among the fastest in the consumer retail sector. This gives it a chance to scale into a mid-sized business over time.
When a retailer opens new stores, it usually means it’s investing for growth because demand is greater than supply, especially in areas where consumers may not have a store within reasonable driving distance.
Key Takeaways from Warby Parker’s Q2 Results
We were impressed by how significantly Warby Parker blew past analysts’ gross margin expectations this quarter. We were also excited its EBITDA outperformed Wall Street’s estimates by a wide margin. On the other hand, its full-year EBITDA guidance missed and its full-year revenue guidance fell slightly short of Wall Street’s estimates. Overall, this quarter could have been better. The stock traded down 3.4% to $28.29 immediately after reporting.
Big picture, is Warby Parker a buy here and now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).