📊 WRBY Key Takeaways
Is Warby Parker Inc. (WRBY) a Good Investment?
Warby Parker demonstrates solid revenue growth of 13% YoY with healthy gross margins of 54%, but this strength is undermined by critically weak operating profitability with just 0.7% operating margin and only 0.8% ROE. The fortress balance sheet with $288M cash and zero debt provides financial stability, but the company must demonstrate material margin expansion to justify investment given its poor capital efficiency.
Warby Parker Inc. Key Strengths (WRBY)
- Solid revenue growth momentum at 13% YoY with no deceleration
- Strong gross margins of 54% indicate healthy unit economics before operating expenses
- Fortress balance sheet: $288.2M cash, zero long-term debt, 2.33x current ratio, and Debt/Equity of 0.0x
- Positive operating and free cash flow generation demonstrates underlying business viability
WRBY Stock Risks: Warby Parker Inc. Investment Risks
- Critically thin operating margin of 0.7% despite 54% gross margins indicates severe SG&A burden and potential structural profitability challenges
- Abysmal capital returns with ROE of 0.8% and ROA of 0.4% for $736M asset company suggests value destruction
- Weak cash conversion with FCF margin of only 3.5% versus revenue growth, indicating high customer acquisition costs or competitive pressures
- Net income of only $3.2M on $242M revenue is indefensible margin performance and raises questions about unit economics sustainability
Key Metrics to Watch
- Operating margin trajectory and SG&A ratio - must improve substantially for profitability viability
- Free cash flow generation relative to revenue growth - assess working capital efficiency
- Return on Equity and Return on Assets - need material improvement toward industry standards
- Gross margin sustainability and erosion rate as the business scales
- Operating cash flow consistency and quality of earnings
Warby Parker Inc. (WRBY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 3.5% FCF margin may limit capital allocation flexibility. Strong liquidity with a 2.33x current ratio provides a solid financial cushion.
WRBY Profit Margin, ROE & Profitability Analysis
WRBY vs Market Sector: How Warby Parker Inc. Compares
How Warby Parker Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Warby Parker Inc. Stock Overvalued? WRBY Valuation Analysis 2026
Based on fundamental analysis, Warby Parker Inc. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Warby Parker Inc. Balance Sheet: WRBY Debt, Cash & Liquidity
WRBY Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Warby Parker Inc.'s revenue has grown significantly by 61% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.54 indicates the company is currently unprofitable.
WRBY Revenue Growth, EPS Growth & YoY Performance
WRBY Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $223.8M | $3.2M | $0.03 |
| Q3 2025 | $192.4M | -$1.8M | $-0.03 |
| Q2 2025 | $188.2M | $1.7M | $0.01 |
| Q1 2025 | $200.0M | -$2.7M | $-0.02 |
| Q3 2024 | $169.8M | -$2.7M | $-0.03 |
| Q2 2024 | $166.1M | -$2.7M | $-0.06 |
| Q1 2024 | $172.0M | -$2.7M | $-0.02 |
| Q3 2023 | $148.8M | -$10.8M | $-0.15 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Warby Parker Inc. Dividends, Buybacks & Capital Allocation
WRBY SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Warby Parker Inc. (CIK: 0001504776)
📋 Recent SEC Filings
❓ Frequently Asked Questions about WRBY
What is the AI rating for WRBY?
Warby Parker Inc. (WRBY) has an AI grade of B with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are WRBY's key strengths?
Claude: Solid revenue growth momentum at 13% YoY with no deceleration. Strong gross margins of 54% indicate healthy unit economics before operating expenses.
What are the risks of investing in WRBY?
Claude: Critically thin operating margin of 0.7% despite 54% gross margins indicates severe SG&A burden and potential structural profitability challenges. Abysmal capital returns with ROE of 0.8% and ROA of 0.4% for $736M asset company suggests value destruction.
What is WRBY's revenue and growth?
Warby Parker Inc. reported revenue of $242.4M.
Does WRBY pay dividends?
Warby Parker Inc. does not currently pay dividends.
Where can I find WRBY SEC filings?
Official SEC filings for Warby Parker Inc. (CIK: 0001504776) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is WRBY's EPS?
Warby Parker Inc. has a diluted EPS of $0.03.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is WRBY's fundamental grade?
Based on our AI fundamental analysis in June 2026, Warby Parker Inc. has a B grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is WRBY stock overvalued or undervalued?
Valuation metrics for WRBY: ROE of 0.8% (sector avg: 15%), net margin of 1.3% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is WRBY's AI grade for 2026?
Our dual AI analysis gives Warby Parker Inc. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is WRBY's free cash flow?
Warby Parker Inc.'s operating cash flow is $24.5M, with capital expenditures of $16.1M. FCF margin is 3.5%.
How does WRBY compare to other Market stocks?
Vs Default sector averages: Net margin 1.3% (avg: 12%), ROE 0.8% (avg: 15%), current ratio 2.33 (avg: 1.8).