Warby Parker Shares Slip After Giving Up Early Gains Despite Strong Q2 Results and Raised Outlook

Warby Parker Inc. WRBY shares have pulled back after an early move higher, despite the company reporting strong second-quarter results and raising its full-year 2025 revenue guidance.

What To Know: The company reported second-quarter revenue of $214.5 million, up nearly 14% year-over-year and ahead of analyst expectations. Active customers grew 9% to 2.6 million on a trailing 12-month basis, and average revenue per customer increased 4.6% to $316. Warby Parker also posted a narrowed net loss of $1.8 million, a $5 million improvement compared to the same period last year. Adjusted EBITDA rose to $25 million, representing an 11.7% margin, up from 10.4% in the prior-year quarter.

Co-Founders and Co-CEOs Neil Blumenthal and Dave Gilboa highlighted key company milestones in the quarter, including the launch of their AI-powered recommendation tool, Advisor, and a new partnership with Google to develop intelligent eyewear. "Looking ahead, our partnership with Google to develop intelligent eyewear is a testament to Warby Parker’s commitment to innovation as we shape the future of how people interact with AI," Blumenthal said.

The company also raised its full-year 2025 guidance, now expecting revenue between $880 million and $888 million and adjusted EBITDA between $98 million and $101 million. Warby Parker plans to open 45 new stores this year, including several shop-in-shops within Target locations.

The decline in shares may reflect some profit-taking after a multi-quarter run of improving metrics. Warby Parker's gross margin declined to 53% from 56% a year ago, impacted by a $2.5 million inventory write-down linked to the phase-out of the Home-Try-On program, as well as higher store and doctor costs.

WRBY Price Action: Warby Parker shares were down 4.71% at $23.16 at the time of writing, according to Benzinga Pro.

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