Warby Parker reported 13% revenue growth for fiscal 2025 with double-digit growth each quarter, achieving its first full year of net income profitability and generating $44 million in free cash flow. The company plans to launch AI glasses with Google and Samsung in 2026 while opening 50 new stores, aiming for low double-digit revenue growth and 130 basis points of EBITDA margin expansion.
Cyborg Score Rationale
The company has successfully navigated a complex 2025 with a landmark partnership with Google and aggressive physical expansion including a deepening relationship with Target. Warby Parker achieved its first full year of net income profitability while maintaining its value proposition and keeping prices stable on core offerings despite tariff pressures. Strong fundamentals are offset by execution risks around AI glasses launch and softness in certain consumer segments.
Top Insights
AI glasses launch with Google and Samsung planned for 2026, marking entry into adjacent high-growth category
Eye exams grew 37% in 2025 to ~6% of revenue; in-network insurance penetration increased to 8% with 40% YoY dollar growth
Company ended 2025 with 323 stores and plans 50 new openings in 2026, demonstrating continued aggressive retail expansion
Market sentiment shifted from viewing Warby Parker as a '$95 frames' disruptor to recognizing it as an AI-integrated retail powerhouse
Named Competitors
National Vision Holdings — Value-segment optical retailer executing store closures and telemedicine expansion
Ray-Ban Meta — Luxury eyewear with integrated smart glasses and hearing aid technology
Traditional brick-and-mortar optical — Established optical retailers with limited direct-to-consumer presence
Recent Developments
(February 2026) Q4 2025 earnings exceeded expectations with 11.2% YoY revenue growth to $212M; CEO change with new CFO Adrian Mitchell appointed; full-year profitability milestone achieved
(January 2026) TD Cowen upgraded WRBY to $26 price target, citing Google AI partnership as major long-term value driver; stock surged 9% over two-day period
(December 2025) Full-year 2025 revenue growth of 13% with $95.2M adjusted EBITDA (+30.2% YoY); 47 net new stores opened, reaching 323 total locations
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