Warby Parker’s second quarter results were met with a negative market reaction, driven in part by revenue coming in below Wall Street’s expectations and cautious commentary around store traffic trends. Management attributed softer traffic to broader industry headwinds, though noted strong conversion rates and record-high average order values for customers visiting stores. Co-CEO Neil Blumenthal emphasized, “Once customers cross that threshold and enter a Warby Parker, we're delivering incredible customer service and providing the products that people want.” The company also highlighted continued growth in its eye exams, insurance utilization, and new product introductions as supporting factors for the quarter.
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Warby Parker (WRBY) Q2 CY2026 Highlights:
- Revenue: $235.5 million vs analyst estimates of $237.8 million (9.8% year-on-year growth, 1% miss)
- Adjusted EPS: $0.15 vs analyst estimates of $0.11 (30% beat)
- Adjusted EBITDA: $32.88 million vs analyst estimates of $28.88 million (14% margin, 13.9% beat)
- The company reconfirmed its revenue guidance for the full year of $967.5 million at the midpoint
- EBITDA guidance for the full year is $118 million at the midpoint, below analyst estimates of $121 million
- Operating Margin: 1.3%, up from -2.1% in the same quarter last year
- Active Customers: 2.71 million, up 110,000 year on year
- Locations: 352 at quarter end, up from 298 in the same quarter last year
- Market Capitalization: $3.13 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Warby Parker’s Q2 Earnings Call
- Brooke Roach (Goldman Sachs) asked about retail traffic softness and store strategy; Co-CEO Neil Blumenthal explained that while store traffic is soft, conversion and average order values are high, and marketing investments will ramp up ahead of the Intelligent Eyewear launch.
- Oliver Chen (TD Cowen) questioned active customer growth improvement and inventory planning for AI glasses; Co-CEO David Gilboa pointed to positive e-commerce and exam trends, while Blumenthal detailed inventory controls and margin expectations for the new product.
- Dana Telsey (Telsey Advisory Group) inquired about Target shop-in-shops, store setup for AI glasses, and insurance progress; Gilboa confirmed new Target locations will feature Intelligent Eyewear, and Blumenthal highlighted substantial insurance penetration potential.
- Mark Carden (UBS) asked about future fuel costs and the finality of tariff refunds; Gilboa discussed operational improvements with shipping carriers and clarified that $14.4 million is the expected total tariff benefit.
- Mark Altschwager (Baird) pressed on quarter-to-date trends and out-of-network claims tool impact; CFO Adrian Mitchell described improving conversion and insurance penetration, while Gilboa noted that the new tool is driving higher average order values and customer satisfaction.
Catalysts in Upcoming Quarters
In upcoming quarters, our analysts will be watching (1) the impact of the Intelligent Eyewear launch on store traffic and customer acquisition, (2) whether marketing investments translate into higher active customer growth and improved traffic trends, and (3) continued expansion and utilization of insurance and eye exam offerings. Progress in digital channel growth and the effectiveness of operational upgrades will also be key milestones.
Warby Parker currently trades at $25.42, down from $29.27 just before the earnings. Is there an opportunity in the stock? The answer lies in our full research report (it’s free).
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