Abstract

Warby Parker Inc. will report results on February 26, 2026 Pre-Market; investors will watch revenue growth, margins, and progress on profitability as management provides guidance for the new fiscal year.

Market Forecast

Consensus points to a revenue estimate of $213.06 million for the current quarter, implying 13.55% year-over-year growth, with EBIT forecast at $6.38 million and EPS estimated at $0.05. Year-over-year growth rates are forecast as follows: revenue up 13.55%, EBIT up 3.62%, and EPS up 102.01%. Street models imply a broadly stable gross margin profile and a modestly positive net margin alongside an improving adjusted EPS trajectory. Management’s revenue mix remains centered on core eyewear products, with services and other contributing a smaller share and supported by store expansion and higher average order value. The most promising segment is eyewear products, which generated $207.22 million last quarter and continues to benefit from unit growth and price mix; services and other contributed $14.46 million.

Last Quarter Review

In the previous quarter, Warby Parker Inc. delivered revenue of $221.68 million, a gross profit margin of 54.11%, GAAP net profit attributable to shareholders of $5.87 million with a net margin of 2.65%, and adjusted EPS of $0.12, with revenue rising 15.19% year over year and adjusted EPS up 140.00% year over year. Net income grew quarter over quarter by 435.27%, reflecting operating leverage and expense control. A key highlight was the acceleration in top-line growth into the mid-teens while maintaining a gross margin above 54%, supportive of improved operating profitability. Core eyewear products contributed $207.22 million while services and other reached $14.46 million, with growth driven by broader assortment and ongoing retail expansion.

Current Quarter Outlook (with major analytical insights)

Core Eyewear Products

The core eyewear business is expected to remain the primary revenue driver. With a last quarter run-rate of $207.22 million and the current quarter revenue estimate at $213.06 million, the segment should benefit from continued store additions, higher capture rates for eye exams, and steady conversion from omnichannel traffic. The company’s historical gross margin near the mid-50% range suggests pricing discipline and favorable product mix continue to underpin profitability. Key watchpoints include promotional intensity during the holiday-to-January period and any normalization in demand after peak seasonality.

Sustained growth in prescription glasses and sunglasses should be supported by Warby Parker Inc.’s integrated retail and digital model, which helps control customer acquisition costs and enhances repeat purchase behavior. Incremental revenue contributions from new stores typically build over several quarters, creating a visibility pipeline that can support the mid-teens revenue growth outlook. On the cost side, continued streamlining of SG&A and efficient inventory planning can preserve gross margin even if revenue mix shifts toward lower-priced frames.

The EBIT estimate of $6.38 million and EPS of $0.05 imply modest operating leverage this quarter compared to the prior quarter’s seasonal high. Investors will focus on whether operational efficiencies achieved last quarter remain intact in a lower-revenue seasonal period. If management sustains mid-50% gross margin and keeps non-GAAP opex growth below sales growth, adjusted EPS could track above the implied run-rate even with softer seasonal demand.

Services and Other

The services and other segment, which includes eye exams and ancillary products, delivered $14.46 million last quarter. While a smaller revenue base, this segment can enhance customer lifetime value by increasing touchpoints and driving in-store traffic. Continued investments in exam lanes and optometry staffing typically lift capture rates and can create an attachment effect for eyewear sales. As the store fleet matures, services revenue should scale with a lag to store openings, aiding mid-term operating leverage.

Given the company’s vertically integrated approach, services also provide data benefits that support merchandising and inventory allocation decisions. The segment’s growth durability will depend on staffing utilization and local demand seasonality—particularly post-holiday periods when appointment volumes may normalize. Pricing for exams and insurance reimbursement dynamics remain variables; however, the segment’s margin contribution, while less than eyewear, is strategically important for cross-sell and repeat purchases.

We expect services growth to remain positive year over year in the current quarter, complementing eyewear revenue while representing a single-digit percentage of total sales. Any commentary on increasing attach rates or improved scheduling efficiency would be a positive read-through for the sustainability of the broader omnichannel model.

Stock Price Sensitivities This Quarter

Shares are likely to react to the cadence of margin performance and the trajectory of operating income into 2026. The prior quarter’s net margin of 2.65% reflected a step-change from earlier periods; maintaining a positive net margin in a seasonally lighter quarter would reinforce the path toward consistent profitability. Investors will also scrutinize guidance color around store openings, per-store productivity, and unit economics, as these underpin free cash flow conversion.

Another sensitivity is the balance between revenue growth and promotions. If revenue growth in the low-to-mid teens comes at the cost of heavier discounting, gross margin could slip from the 54% area. Conversely, stable or improving gross margin with double-digit growth would be viewed constructively. Finally, any updates on marketing efficiency, customer acquisition costs, and inventory turns could adjust expectations for FY26 operating leverage and capital needs.

Analyst Opinions

Bullish opinions dominate among recent institutional notes, with multiple Buy reiterations and price targets in the mid-to-high $20s. Notably, Goldman Sachs maintained a Buy with a $27.00 target, Piper Sandler reiterated Buy with a $28.00 target, Telsey Advisory Group reaffirmed Buy with a $24.00 target, and BTIG maintained Buy with a $28.00 target. The ratio of bullish to bearish views skews positive at 4:0 in the recent period.

The bullish camp emphasizes continued double-digit revenue growth, resilient gross margins around the mid-50% range, and a clear path toward profitability supported by operating discipline and store maturation. Analysts point to benefits from omnichannel scale, improving eye exam capture, and average ticket uplifts as drivers that can sustain mid-teens growth without sacrificing margin quality. Expectations for EPS normalization despite seasonal headwinds suggest confidence in cost controls and inventory efficiency. Investors will be watching if management’s commentary aligns with these themes, particularly around attach rates, store productivity, and FY26 operating income targets; alignment would validate the majority bullish stance ahead of the Pre-Market print on February 26, 2026.