Warby Parker Inc. reported its financial results for the first quarter of 2026, revealing a net revenue of $242.4 million, an increase of 8.3% from $223.8 million in the same period last year. The company's gross profit rose to $131.0 million, reflecting a gross margin of 54.0%, down from 56.3% in the prior year. Net income for the quarter was $3.2 million, compared to $3.5 million in the first quarter of 2025. The decrease in gross margin was attributed to higher costs of goods sold, which increased by 13.9% to $111.4 million, driven by rising product and fulfillment costs, particularly in optical laboratory and lens expenses.
In terms of operational metrics, Warby Parker's active customer count grew by 4.8%, and the average revenue per customer increased to $331 from $310 year-over-year. The company opened 14 new retail stores during the quarter, bringing its total to 337 locations, with 299 of these offering in-person eye exams. This expansion aligns with Warby Parker's strategy to enhance its omnichannel presence, combining online and physical retail to improve customer engagement.
Strategically, Warby Parker has been focusing on innovation, including a partnership with Google to develop AI-enabled glasses, with Google committing up to $75 million for product development. The company also reported a reduction in selling, general, and administrative expenses by $2.0 million due to costs reimbursable by Google. Additionally, the company is navigating a complex tariff environment following a recent U.S. Supreme Court ruling that affected certain tariffs, which may impact future financial results.
Looking ahead, Warby Parker maintains a positive outlook, supported by its strong cash position of $288.2 million as of March 31, 2026, and an undrawn $120 million credit facility. The company expects its existing cash and cash equivalents, along with cash flows from operations, to be sufficient to fund its operations for at least the next 12 months. However, it acknowledges potential risks from macroeconomic factors, including inflation and changes in consumer spending behavior, which could influence its growth trajectory.
About Warby Parker Inc.
Warby Parker is a mission-driven lifestyle brand specializing in designing, manufacturing, and selling affordable eyewear, contact lenses, and vision care services. Operating through a direct-to-consumer omnichannel model, it offers stylish glasses, sunglasses, and telehealth eye exams via retail stores, e-commerce, and digital tools. The company emphasizes innovation, quality, and social impact, aiming to improve access to vision care worldwide.
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