How are you thinking about the fixed versus variable cost structure within SG&A as you scale Intelligent Eyewear units in the back half of this year and into 2027/2028?

Adrian Mitchell explained that integrating Intelligent Eyewear involves one-time foundational investments, such as updating POS systems for products with 'zero numbers,' and opportunistic investments like building a paid warranties system. He expects to provide more clarity on run-rate expenses later in the year. “Our current product today does not have 0 numbers. Every intelligent eyewear product will have a 0 number. So you can think about the implications in our retail POS system, our inventory tracking system, our order management system, our exchange processes.”

What's driving the improving in-period active customer growth, and how are you approaching inventory management, pricing, and margins for the AI glasses?

Dave Gilboa attributed active customer growth improvement to e-commerce rebound (post-Home Try-On), strong exam business, and insurance growth. Neil Blumenthal stated that Intelligent Eyewear will be demoed in stores, with most orders customized. Product margin will be slightly lower on a percentage basis due to higher electronics costs, but same or higher in absolute dollars. “From a product margin perspective, on a percentage basis, Intelligent Eyewear will be slightly lower than our existing product, as we know, as you mentioned, the higher cost of consumer electronics. But on an absolute dollar basis, it will be the same or higher and you'll see that flow through.”

Can you provide more detail on how preorders will inform demand and your supply chain's speed to support the pathway from order to consumption for Intelligent Eyewear?

Adrian Mitchell explained that preorders this fall will be a key indicator for signaling demand and its trajectory. The company is making specific retrofit changes in labs, such as eliminating electrostatic discharges, expanding space, and improving inspection and loss prevention processes for the higher-unit-cost electronic item. “Preorders this fall is going to be a key indicator for us of signaling demand and the trajectory of that demand.”

WRBY

Warby Parker (WRBY) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Consumer Discretionary· Aug 6, 2026

Source: earnings call transcript

Executive summary

Warby Parker Q2 FY26 — Intelligent Eyewear Launch Preparations and Tariff Refund Investments

Warby Parker is actively preparing for the fall launch of its Intelligent Eyewear collection, leveraging a significant tariff refund to fund strategic investments in technology, optical labs, and marketing. While navigating industry-wide traffic softness and the diminishing impact of the Home Try-On program, the company is focused on driving customer acquisition through eye exams, insurance, and the anticipated halo effect of the new product category.

Highlights

Generated $236 million in revenue, representing approximately 10% year-over-year growth.
Achieved adjusted EBITDA of $33 million, or a 14% margin, including an $11.8 million tariff refund benefit.
Eye exams grew over 30% year-over-year and reached approximately 7% of revenue.
Opened 15 net new stores in Q2, bringing the total to 352 stores across 43 states and 2 Canadian provinces.
Active customers grew 4.1% over the trailing 12 months, and average revenue per customer increased 6.6% year-over-year.

Concerns

E-commerce revenue was flat year-over-year, reflecting the transitory headwind from the sunsetting of the Home Try-On program.
Traffic remains softer than desired across the category, impacting customer acquisition.
Q2 revenue was towards the low end of guidance, and Q3 guidance reflects a prudent stance due to challenging comparisons and incremental investments.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year 2026 Revenue	$959 million to $976 million high materiality	FY26	High
Full-year 2026 Adjusted EBITDA	$117 million to $119 million high materiality	FY26	High
Q3 2026 Revenue	$243 million to $246 million medium materiality	Q3 · FY26	Medium
Q3 2026 Adjusted EBITDA	$26 million to $28 million medium materiality	Q3 · FY26	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Retail Retail revenue increased year-over-year, contributing to overall company growth.	—	13.6%	—	—
E-commerce E-commerce revenue was down due to lapping a period that included the Home Try-On program. Excluding this impact, underlying order volume showed strong growth. Glasses and contact sales order volume growth (ex-Home Try-On impact): low double digits year-over-year	$58.7 million	-0.3%	—	—

Product announcements

Product	Type	Timeline
Intelligent Eyewear collection	launch	Fall 2026, deliveries on track for holiday season
Warby Parker Sport	launch	Q2 FY26
New Collections	launch	Q2 FY26

Deals & partnerships

Samsung and Google Collaboration on Intelligent Eyewear

Combining leading AI capabilities (Google's Gemini) with a customer experience centered on privacy and trustworthiness for the Intelligent Eyewear product. Partners will share marketing investments.

Risks & headwinds

Industry-wide traffic softness Ongoing

Continued softness in traffic or units across the category, impacting customer acquisition.

Mitigation:Increasing marketing investments, expanding eye exam campaigns, growing the insurance business, and leveraging the Intelligent Eyewear launch to drive awareness and traffic.

Transitory headwind from Home Try-On program sunsetting H2 FY26, fully abating by 2027

Impacted Q2 growth by 2.8 percentage points; expected to impact Q3 by ~1.7 percentage points and Q4 by ~0.5 percentage points.

Mitigation:Underlying e-commerce trends remain healthy, and the headwind is diminishing over time, with higher channel growth expected overall by 2027.

Unexpected softness in late June Late June FY26

Brought Q2 revenue from the high end to the low end of guidance.

Mitigation:A rebound on a 2-year basis was observed in July.

Challenging Q3 revenue comparisons Q3 FY26

Q3 FY25 grew 15% year-over-year, making Q3 FY26 comparisons tougher.

Mitigation:Outlook balances improvements across the business with challenging comparisons and incremental investments ahead of the Intelligent Eyewear launch.

What to watch in Q3 FY26

Active customer growth

Q4 FY26

Current 4.1% (TTM)

Target Higher in-period growth trends reflected in Q4 TTM

Why it matters

This is a key indicator of customer acquisition success and overall business health, especially with new marketing investments and the Intelligent Eyewear launch.

As we look ahead, we expect higher active customer growth by the end of the year. We're already seeing improving in-period customer growth trends, and we expect those to be reflected in our reported Q4 active customer growth.

Find out whether WRBY delivers this. Inve re-checks your case every morning.

Q&A highlights

Can you elaborate on the traffic trends in your retail business, how they compare to prior periods, and how you're preparing for increased traffic with the Intelligent Eyewear launch?

Neil Blumenthal noted industry-wide traffic softness but strong in-store conversion and high average order values. Dave Gilboa added that Warby Parker gained market share and is experimenting with new customer acquisition tactics, including expanding exam campaigns and increasing in-network insurance lives to 35 million.

“The most important takeaway for us in the second quarter is that we actually gained market share.”

asked by Brooke Roach · answered by David Gilboa

2 min read 6 chapters

Detailed narrative

Intelligent Eyewear Launch Preparations

Warby Parker is in the final stages of preparing for the fall launch of its Intelligent Eyewear collection, with customer deliveries anticipated for the holiday season. The new product category is designed to enhance daily experiences by enabling users to explore, discover, remember, navigate, and connect while remaining present.

The glasses boast approximately 9 hours of battery life and integrate with Google's Gemini AI, aiming to combine timeless design with advanced technical capabilities.

Strategic Investments & Tariff Refunds

The company is making significant strategic investments in technology infrastructure, optical labs, retail operations, and supply chain to seamlessly integrate Intelligent Eyewear and ensure a superior customer experience. These investments are largely funded by a $14.4 million tariff refund benefit for the year, with $11.8 million recognized in Q2 and the remaining $2.6 million reducing inventory in the second half.

Approximately $6 million of these investments were made in Q2, with the remaining $8.4 million allocated for Q3.

Omnichannel Model & Store Expansion

Warby Parker continues to expand its physical footprint, opening 15 net new stores in Q2 and reaching a total of 352 stores across 43 states and 2 Canadian provinces. The company is on track to meet its goal of 50 new store openings in 2026.

This growing retail presence is considered a competitive advantage, especially for demonstrating the utility of Intelligent Eyewear, with nearly two-thirds of the U.S. population now living within 30 minutes of a store.

Eye Care & Insurance Growth Initiatives

The eye exam business grew over 30% year-over-year in Q2, now contributing 7% of revenue, with a long-term potential of 15% to 20%. A dedicated eye exam marketing campaign generated nearly 200 million impressions, and the company implemented a homegrown AI-powered electronic health record system.

Insurance penetration is also growing, with over 35 million in-network lives and the out-of-network submission tool surpassing in-network penetration, driving higher average order values.

E-commerce Performance & Product Innovation

E-commerce revenue remained flat year-over-year in Q2, primarily due to the sunsetting of the Home Try-On program. However, excluding this impact, e-commerce glasses and contact sales order volume grew in the low double digits. The company launched five new collections, including Warby Parker Sport, its first performance eyewear, which is attracting new customers and seeing strong adoption of progressive lenses.

Customer Acquisition & Brand Awareness

While active customer growth was 4.1% over the trailing 12 months, the company anticipates stronger in-period growth trends to be reflected in Q4. Significant marketing investments are planned for the second half, partly shared with Intelligent Eyewear partners, to boost brand awareness and drive traffic. These efforts, combined with diminishing Home Try-On headwinds, are expected to support customer acquisition.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.