Warby Parker Inc. (WRBY) shares tumbled 5.77% in pre-market trading on Thursday following the release of its third-quarter earnings report. The eyewear retailer's revenue fell short of analyst expectations, despite showing strong year-over-year growth.

For Q3 2025, Warby Parker reported revenue of $221.68 million, representing a 15.2% increase from the same period last year. However, this figure missed the consensus estimate of $224.5 million. The company's gross margin also declined to 54.1% from 54.5% in the previous year, primarily due to tariffs, increased sales of contact lenses, and higher shipping costs.

Despite the revenue miss, Warby Parker showed improvements in other areas. Net income rose to $5.87 million, a significant increase from the previous year. The company also reported an adjusted EBITDA of $25.7 million and an 11.6% adjusted EBITDA margin. Looking ahead, Warby Parker maintains an optimistic outlook, forecasting full-year 2025 revenue between $871 million and $874 million, and plans to open 45 new stores. However, the market's reaction suggests that investors may have been expecting even stronger results given the company's growth trajectory.