Eyewear retailer Warby Parker (NYSE: WRBY) reported Q1 CY2026 results beating Wall Street’s revenue expectations, with sales up 8.3% year on year to $242.4 million. On the other hand, the company’s full-year revenue guidance of $967.5 million at the midpoint came in 1.4% below analysts’ estimates. Its GAAP profit of $0.03 per share was $0.02 below analysts’ consensus estimates.
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Warby Parker (WRBY) Q1 CY2026 Highlights:
- Revenue: $242.4 million vs analyst estimates of $239.4 million (8.3% year-on-year growth, 1.3% beat)
- EPS (GAAP): $0.03 vs analyst estimates of $0.05 ($0.02 miss)
- Adjusted EBITDA: $29.57 million vs analyst estimates of $27.66 million (12.2% margin, 6.9% 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: 0.7%, in line with the same quarter last year
- Free Cash Flow Margin: 3.5%, down from 5.9% in the same quarter last year
- Locations: 337 at quarter end, up from 287 in the same quarter last year
- Market Capitalization: $2.70 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
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years.
With $890.6 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 grew its sales at a solid 13% compounded annual growth rate over the last three years as it opened new stores and expanded its reach.
This quarter, Warby Parker reported year-on-year revenue growth of 8.3%, and its $242.4 million of revenue exceeded Wall Street’s estimates by 1.3%.
Looking ahead, sell-side analysts expect revenue to grow 14.2% over the next 12 months, similar to its three-year rate. This projection is eye-popping and indicates its newer products will catalyze better top-line performance.
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Number of Stores
Warby Parker sported 337 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 Q1 Results
We enjoyed seeing Warby Parker beat analysts’ EBITDA expectations this quarter. We were also happy its revenue narrowly outperformed Wall Street’s estimates. On the other hand, its EPS was in line and its gross margin fell short of Wall Street’s estimates. Overall, this was a mixed quarter. The stock traded up 7.1% to $23.59 immediately following the results.
Should you buy the stock or not? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).
