One-glance verdict
Overvalued
$7.19 our estimate vs market $26.71
Wall Street consensus: $30.46 (323.7% higher than our fair-value estimate)
271% above our estimate, beyond the bull case
Fundamentals snapshot
Warby Parker Inc.
WRBY · NYQ · Healthcare · Medical Instruments & Supplies
Current price
$26.71
52-week range
$14.96 - $31.00
Market cap
$3.30B
Balance sheet
Healthy
-0.64x Concerning
Net cash $41.69M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 4.6% last year.
- Reward Returns 2.1% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 4/10 years.
What this company does
Warby Parker Inc.
Warby Parker sells glasses, sunglasses, and contact lenses directly to customers through its own stores and website, bypassing traditional optical shops. The company's revenue (the total money it brings in from sales) comes mostly from selling these eyewear products, which it designs itself. By controlling its own supply chain (the entire process of making and selling goods, from the factory to the final customer), the company tries to offer stylish eyewear at lower prices.
How the company got here
Warby Parker was started in 2010 by four students who were frustrated by the high cost of prescription glasses. They realized that a single company controlled a large portion of the eyewear industry, which kept prices high. To offer a more affordable option, they decided to design their own glasses and sell them directly to customers online, a strategy known as direct-to-consumer. This approach allowed them to avoid the markups from traditional retail stores. After starting online, the company eventually expanded into physical retail stores and began offering eye exams, becoming a one-stop shop for vision care.
What it actually does
Warby Parker sells its own brand of prescription eyeglasses, sunglasses, and contact lenses. Customers can buy these products through the company's website, mobile app, or at one of its more than 300 retail stores across the U.S. and Canada. In many of its stores, the company also offers eye exams and vision tests, providing a full range of vision care services. The company is known for its fixed-price model for glasses, which includes standard prescription lenses, challenging the traditionally expensive eyewear market.
Eyeglasses and Sunglasses
This is the company's core business and makes up the vast majority of its revenue. Warby Parker designs its own frames and sells them directly to consumers, which helps keep prices lower than many traditional brands. Customers can choose from a variety of styles and add different types of lenses, such as single-vision, progressives (lenses for both near and far vision), and blue-light-filtering lenses. This part of the business generates money every time a customer purchases a new pair of glasses or sunglasses, either online or in a store.
Contact Lenses
This is a smaller but growing part of Warby Parker's business. The company sells its own daily contact lens brand as well as brands from other major manufacturers. By offering contacts, Warby Parker aims to capture more of its customers' vision needs in one place. This creates a more regular revenue stream, as people who wear contacts need to buy them more frequently than they buy new glasses.
Eye Exams and Vision Services
A small but strategically important part of the business is providing eye exams in many of its retail stores. Customers pay for a comprehensive eye health check-up with an on-site optometrist. This service helps bring people into the stores and makes it more convenient for them to get a new prescription and buy glasses or contacts all in one visit. Offering exams allows the company to be involved earlier in a customer's journey to getting new eyewear.
What management is betting on now
The company is heavily focused on expanding its physical retail footprint, with a long-term goal of operating around 900 stores. Management believes that having more physical locations makes it easier for customers to shop and get eye exams, driving growth. They are also investing in technology, including a partnership to develop AI-powered smart glasses. The strategy is to become a comprehensive vision care brand that serves all of a customer's needs, from exams to a wide variety of eyewear, through a seamless experience that blends online and in-person shopping.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$13.06M
FY2024 Q4
$2.19M
FY2025 Q1
$13.21M
FY2025 Q2
$23.91M
FY2025 Q3
$-1.52M
FY2025 Q4
$8.13M
FY2026 Q1
$8.37M
FY2026 Q2
$6.75M
Revenue
$235.51M
Net income
$4.64M
Diluted EPS
0.04
Operating cash flow
$29.62M
Free cash flow
$6.75M
Fetching…
Sources
Revenue
$242.45M
Net income
$3.18M
Diluted EPS
0.03
Operating cash flow
$24.51M
Free cash flow
$8.37M
Fetching…
Sources
Revenue
$211.97M
Net income
$-5.95M
Diluted EPS
-0.06
Operating cash flow
$23.25M
Free cash flow
$8.13M
Fetching…
Sources
Revenue
$221.68M
Net income
$5.87M
Diluted EPS
0.05
Operating cash flow
$17.97M
Free cash flow
$-1.52M
Fetching…
Sources
Revenue
$214.47M
Net income
$-1.75M
Diluted EPS
-0.01
Operating cash flow
$40.20M
Free cash flow
$23.91M
Fetching…
Sources
Revenue
$223.78M
Net income
$3.47M
Diluted EPS
0.03
Operating cash flow
$29.36M
Free cash flow
$13.21M
Fetching…
Sources
Revenue
$190.64M
Net income
$-6.88M
Diluted EPS
-0.06
Operating cash flow
$19.91M
Free cash flow
$2.19M
Fetching…
Sources
Revenue
$192.45M
Net income
$-4.07M
Diluted EPS
-0.03
Operating cash flow
$27.28M
Free cash flow
$13.06M
Fetching…
Sources
Is it cheap or expensive?
Fair value $7.19 vs current price $26.71
Wall Street consensus is the average analyst price target: $30.46 (323.7% higher than our fair-value estimate).
Our most-likely fair value is $7.19 a share — about 73.1% below today's price of $26.71, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $41.7M - more cash than debt. Interest coverage -0.6x.
Net debt
$-41.69M
Interest coverage
-0.64x
Warby Parker Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
WRBY
BASELINE
Warby Parker Inc.
Total debt $250.98M Interest coverage -0.64x This is the baseline the peer rows are being compared against.
Total debt $697.01M Interest coverage 3.55x This peer still has a real interest-payment cushion, while WRBY does not.
Total debt $57.67M Interest coverage 159.61x This peer still has a real interest-payment cushion, while WRBY does not.
Total debt $14.47M Interest coverage -70.45x Neither company has much profit cushion over interest right now.
Total debt $41.92M Interest coverage -2.36x Neither company has much profit cushion over interest right now.
What you should know
The case for and against WRBY
3 Rewards
0 Risks
Rewards
-
Revenue grew 4.6% last year.
-
Returns 2.1% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
445.17x
Forward P/E
43.45x
P/B
8.72x
P/S
3.62x
EV/EBITDA
78.61x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
53.1%
Operating margin
-3.6%
Net margin
0.8%
ROE
2.1%
ROA
-1.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.64x
Current ratio
2.27x
Quick ratio
1.80x
Total debt
$250.98M
Total cash
$292.67M
Growth
How the business has been compounding
Revenue TTM
$911.61M
Revenue 5Y CAGR
12.7%
EPS TTM
0.06
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$95.36M
Free CF TTM
$43.74M
FCF margin
4.8%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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