Warby Parker (WRBY) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $242.4 million, up 8.3% year-over-year, surpassing guidance, with adjusted EBITDA at $29.6 million (12.2% margin) and net income of $3.2 million.

• Active customers grew 4.8% to 2.69 million, and average revenue per customer increased 6.9% to $331.

• 14 net new stores opened, expanding the footprint to 337 locations, with nearly 89% offering in-person eye exams.

• Strategic priorities include scaling the omni-channel model, preparing for AI glasses launch with Google and Samsung, and investing in technology, brand awareness, and customer acquisition.

• Growth achieved despite severe winter weather, store closures, and ongoing softness in category traffic and unit demand.

Financial highlights

• Gross margin declined to 54.0% from 56.3% year-over-year, mainly due to higher product, fulfillment, and occupancy costs.

• Adjusted gross margin was 54.2%, down from 56.4% last year.

• Adjusted SG&A expenses were $117.1 million (48.3% of revenue), down 100 basis points year-over-year; total SG&A was $129.4 million, but as a percentage of revenue, it decreased by 180 basis points.

• Free cash flow for Q1 2026 was $8.4 million, with cash and cash equivalents at $288.2 million at quarter-end.

• Net income for Q1 2026 was $3.2 million, slightly down from $3.5 million in Q1 2025.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: net revenue of $959–$976 million (10–12% growth), adjusted EBITDA of $117–$119 million (12.2% margin, 130 bps expansion), and 50 new store openings planned.

• Q2 2026 guidance: net revenue of $235–$238 million (10–11% growth), adjusted EBITDA of $27–$29 million (~12% margin).

• Guidance excludes any revenue from AI glasses but includes related pre-launch expenses.

• Management notes uncertainty due to evolving tariff policies and macroeconomic factors.