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    WRBY
    Earnings call· Jun 2026(Q2 FY26)

    Warby Parker Q2 FY26 earnings call WRBY

    Aug 6, 2026 Source

    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

    5

    • 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

    3

    • 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

    4
    CategoryTargetConfidence
    Full-year 2026 Revenue
    $959 million to $976 million
    high materiality
    High
    Full-year 2026 Adjusted EBITDA
    $117 million to $119 million
    high materiality
    High
    Q3 2026 Revenue
    $243 million to $246 million
    medium materiality
    Medium
    Q3 2026 Adjusted EBITDA
    $26 million to $28 million
    medium materiality
    Medium

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    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%——

    Operational metrics

    30
    Revenue
    $235.5 million9.8% year-over-year growth
    Q2 FY26

    Total company revenue for the second quarter, within guidance range.

    Adjusted EBITDA
    $32.9 million230 basis points above last year
    Q2 FY26

    Includes an $11.8 million tariff refund benefit.

    Tariff refunds benefit
    $11.8 million
    Q2 FY26

    Benefit recognized for inventory sold through the second quarter, partially used to offset strategic investments.

    Total Tariff refunds benefit
    $14.4 million
    FY26

    Total tariff refund benefit for the year, providing additional funding for investments.

    Investments offset by tariff refunds
    $6 million
    Q2 FY26

    Additional investments made in Q2, offset by tariff refunds.

    Remaining tariff benefit for Q3 investments
    $8.4 million
    Q3 FY26

    Majority of remaining tariff benefit to fund additional investments in Q3.

    Net new stores opened
    15
    Q2 FY26

    Includes the 350th store at Dorel Marketplace.

    Total stores
    352
    as of Q2 FY26

    Includes locations in 48 of the 50 largest metropolitan areas in the U.S.

    Stores with eye exams
    90%
    Q2 FY26

    Positioning the company to drive growth through greater awareness and utilization of eye exams.

    Eye exams growth
    30%year-over-year
    Q2 FY26

    Reflects increased awareness and utilization efforts.

    Eye exams as % of revenue
    7%up from 6% a year ago
    Q2 FY26

    Believed to have potential to reach 15% to 20% over time based on industry penetration.

    Progressive lens penetration
    23.4%up 30 basis points from last year
    Q2 FY26

    Reflects the benefit of opening more stores with doctors.

    E-commerce glasses and contact sales order volume growth (ex-HTO)
    low double digitsyear-over-year
    Q2 FY26

    Excluding the impact of the Home Try-On program sunsetting.

    Contacts business growth
    high-single digitsyear-over-year
    Q2 FY26

    Driven primarily by the retail channel.

    Contacts as % of revenue
    11%steady
    Q2 FY26

    Penetration remained steady.

    Active customers growth
    4.1%over the trailing 12 months
    TTM Q2 FY26

    Expected to see stronger growth, attracting new customers is a key priority.

    Average revenue per customer growth
    6.6%year-over-year
    Q2 FY26

    Pleased with continued growth.

    In-network lives
    35 millionup from 32 million last quarter
    as of Q2 FY26

    Meaningful strides across in-network and out-of-network offerings.

    Insurance penetration (in-network)
    8%up from 7% a year ago
    Q2 FY26

    Strong growth in the in-network business.

    Adjusted gross margin
    $136.9 million380 basis points above last year
    Q2 FY26

    Increase primarily related to tariff benefit, partially offset by modest deleverage in fixed cost portion.

    Adjusted SG&A expenses
    $119.3 million170 basis points higher than last year
    Q2 FY26

    Primarily driven by increased retail compensation and higher technology investments, partially offset by customer experience efficiencies.

    Cash position
    $293 million
    end of Q2 FY26

    Ended the quarter in a strong cash position.

    Cash collected from tariffs
    $3.4 million
    Q2 FY26

    Included in free cash flow generation.

    Home Try-On headwind on growth
    2.8
    Q2 FY26

    Impact on growth from the sunsetting of the Home Try-On program.

    Home Try-On headwind on growth (expected)
    1.7
    Q3 FY26

    Expected impact on growth from the sunsetting of the Home Try-On program.

    Home Try-On headwind on growth (expected)
    0.5
    Q4 FY26

    Expected impact on growth from the sunsetting of the Home Try-On program.

    Glasses distributed to people in need
    25 million
    cumulative

    Part of the company's mission to distribute glasses to people in need.

    Industry-wide customers purchasing glasses where they get eye exam
    75%
    current

    Highlights the opportunity for Warby Parker to increase eye exam awareness and utilization.

    US population within 30 minutes of store
    Nearly 2/3
    current

    Indicates broad retail presence and accessibility.

    Intelligent Eyewear battery life
    9 hours
    typical usage

    A critical milestone for all-day wearability, shared at Samsung's Galaxy Unpack.

    Industry KPIs

    5
    MetricValueDetails
    Sg a OPEX ratio50.6%% of revenue
    Store count growth352stores
    Gross margin drivers58.1%% of revenue
    Active customers nspac4.1%%
    Share buyback capital return$100 millionUSD

    Product announcements

    3
    ProductTypeDetails
    Intelligent Eyewear collectionlaunch
    Warby Parker Sportlaunch
    New Collectionslaunch

    Deals & partnerships

    1
    Samsung and GoogleCollaboration 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

    4
    Industry-wide traffic softnessOngoing

    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 sunsettingH2 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 JuneLate 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 comparisonsQ3 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

    5

    Active customer growth

    Q4 FY26
    Current4.1% (TTM)
    TargetHigher 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.

    Q&A highlights

    6

    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 read6 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.