Warby Parker Reports $223.8 Million Revenue in Q1 2025, Achieves Net Income of $3.5 Million

Warby Parker Inc. reported a net revenue of $223.8 million for the first quarter of 2025, marking an increase of 11.9% from $200.0 million in the same period of 2024. The company's gross profit also rose to $126.0 million, up from $113.5 million, resulting in a gross margin of 56.3%, slightly down from 56.7% year-over-year. Warby Parker achieved a net income of $3.5 million, a significant turnaround from a net loss of $2.7 million in the prior year. The company’s earnings per share were $0.03, compared to a loss of $0.02 per share in the first quarter of 2024.

The financial performance reflects several strategic developments, including an increase in active customers by 8.7% and a rise in average revenue per customer from $296 to $310. This growth was driven by strong sales in higher-priced eyewear products, particularly precision progressive lenses, and an increase in bundled purchases of glasses and contact lenses. The company also expanded its retail footprint, growing from 245 stores to 287 stores, which contributed to increased brand awareness and customer engagement.

Operationally, Warby Parker's cost of goods sold increased by 13.0% to $97.8 million, primarily due to higher product and fulfillment costs associated with sales growth, particularly in the contact lens segment. Selling, general, and administrative expenses rose by 4.2% to $123.5 million, but as a percentage of revenue, these expenses decreased from 59.3% to 55.2%. This reduction indicates improved operational efficiency as the company scales its business. The company’s cash and cash equivalents increased to $265.1 million, up from $254.2 million at the end of 2024, providing a solid liquidity position for future investments.

Looking ahead, Warby Parker remains focused on expanding its product offerings and retail presence while navigating macroeconomic challenges such as inflation and supply chain pressures. The company plans to continue diversifying its supplier base and implementing strategic price adjustments to mitigate the impact of rising costs. Management expressed confidence in the company's ability to sustain growth and profitability, supported by its mission-driven approach and commitment to customer satisfaction. The outlook for the remainder of 2025 includes expectations for continued revenue growth and operational improvements as the company leverages its omnichannel strategy.