Warby Parker Reports $214.5M Revenue in Q2 2025, Partners with Google on AI Glasses

Warby Parker Inc. reported a net revenue of $214.5 million for the second quarter of 2025, marking a 13.9% increase from $188.2 million in the same period last year. The company's gross profit also rose to $113.6 million, up from $105.4 million, although the gross margin decreased to 53.0% from 56.0%. The net loss for the quarter was $1.8 million, a significant improvement compared to a loss of $6.8 million in the prior year. For the first half of 2025, Warby Parker generated $438.3 million in revenue, up 12.9% from $388.2 million in the first half of 2024, with a net income of $1.7 million compared to a loss of $9.4 million.

The company experienced a notable increase in customer engagement, with active customers rising by 9.0% year-over-year. Average revenue per customer also increased to $316 from $302, driven by strong sales in the glasses segment and higher adoption rates of premium products. However, the cost of goods sold increased by 21.8% to $100.9 million, primarily due to higher product and fulfillment costs, which impacted the gross margin. The company attributed the decline in gross margin to inventory write-downs related to the discontinuation of its Home Try-On program and increased costs associated with new retail locations.

In terms of strategic developments, Warby Parker announced a partnership with Google to develop AI-powered glasses, with Google committing up to $75 million for product development and commercialization costs. This collaboration is expected to enhance Warby Parker's product offerings, although it has not yet had a material financial impact. The company continues to expand its retail footprint, with 298 stores as of June 30, 2025, up from 256 stores a year earlier, and 259 of these locations offering in-person eye exams.

Operationally, Warby Parker's total assets increased to $701.9 million from $676.5 million at the end of 2024, with cash and cash equivalents rising to $286.4 million. The company reported a total employee headcount of 2,200, reflecting its ongoing investment in workforce expansion to support growth. The company also noted that it expects to continue facing challenges related to inflation and supply chain disruptions, but it remains optimistic about its ability to navigate these issues while maintaining customer satisfaction.

Looking ahead, Warby Parker anticipates continued revenue growth driven by its strategic initiatives and product innovations. The company plans to leverage its partnership with Google to enhance its technology offerings and expand its market presence. Despite the potential for ongoing operating losses as it invests in growth, Warby Parker believes its current cash reserves and credit facilities will be sufficient to fund operations for at least the next 12 months.