WRBY Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

Revenue: $236 million, up approximately 10% year-over-year.

Adjusted EBITDA: Approximately $33 million, representing a 14% margin, boosted by an $11.8 million benefit from tariff refunds.

Retail Revenue: Increased by 13.6% year-over-year; e-commerce revenue was flat due to the sunsetting of the Home Try-On program.

Eye Exams: Grew over 30% year-over-year, now representing 7% of total revenue.

Active Customers: Grew 4.1% year-over-year; average revenue per customer increased by 6.6%.

2Strategic Updates and Business Highlights

Intelligent Eyewear Launch: Set to debut in the fall, with customer deliveries expected for the holiday season. The initiative aims to enhance customer experience and drive brand awareness.

Store Expansion: Opened 15 new stores, totaling 352 locations across 43 states and 2 Canadian provinces. The company is on track to open 50 stores in 2026.

Eye Exam Marketing Campaign: Launched to increase awareness and drive traffic, generating nearly 200 million impressions.

New Product Offerings: Introduced Warby Parker Sport, expanding into performance eyewear.

3Forward Guidance and Outlook

Full-Year Guidance: Reaffirmed revenue guidance of $959 million to $976 million (10%-12% growth) and adjusted EBITDA of $117 million to $119 million.

Q3 Guidance: Projected revenue of $243 million to $246 million (10%-11% growth) and adjusted EBITDA of $26 million to $28 million.

Customer Growth: Anticipated improvement in active customer growth in the second half of the year, supported by marketing investments and the launch of Intelligent Eyewear.

4Bad News, Challenges, or Points of Concern

Traffic Softness: Noted ongoing softness in retail traffic, with a significant portion of growth in the eyewear category driven by price rather than units sold.

E-commerce Headwinds: The transition away from the Home Try-On program has negatively impacted e-commerce revenue, which was flat year-over-year.

Competitive Pressures: The overall eyewear market is experiencing challenges, with many competitors facing similar traffic declines.

5Notable Q&A Insights

Traffic Trends: Management acknowledged softness in traffic but highlighted strong conversion rates and customer satisfaction once customers enter stores.

Insurance Utilization: The company is seeing growth in both in-network and out-of-network insurance offerings, with a focus on increasing awareness of these benefits among customers.

Inventory Management for Intelligent Eyewear: Plans to manage inventory through preorders and ensure adequate supply chain readiness to meet anticipated demand.

Customer Base Composition: Emphasis on attracting new customers while retaining existing ones, with a focus on high-value customers from eye exams and insurance utilization. Overall, Warby Parker is positioning itself for growth with the upcoming launch of Intelligent Eyewear while navigating current market challenges and focusing on enhancing customer experience through strategic investments.