One-glance verdict
Overvalued
$6.51 our estimate vs market $29.90
Wall Street consensus: $32.25 (395.3% higher than our fair-value estimate)
359% above our estimate, beyond the bull case
Fundamentals snapshot
Warby Parker Inc.
WRBY · NYQ · Healthcare · Medical Instruments & Supplies
Current price
$29.90
52-week range
$16.26 - $31.50
Market cap
$3.72B
Balance sheet
Healthy
-0.64x Concerning
Net cash $23.11M. 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 7.2% last year.
- Reward Returns 1.9% 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 and sunglasses directly to customers online and in their own stores, making money from selling these stylish frames and lenses. They also offer eye exams and accessories, creating a whole experience around eyewear. This direct approach helps them control how customers see their brand and potentially keep more money from each sale because they aren't selling through other shops that take a cut.
How the company got here
Warby Parker was founded in 2010 by four friends who were frustrated by the high cost of eyeglasses. They saw that the eyewear industry was dominated by a few large companies, which kept prices high. The founders believed they could offer a better alternative by designing their glasses in-house and selling them directly to consumers online, cutting out the middlemen. This direct-to-consumer (DTC) approach allowed them to offer stylish, quality eyewear at a much lower price point than traditional retailers. The company quickly gained traction, initially as an online-only business, and later expanded to include physical retail stores.
What it actually does
Warby Parker designs, manufactures, and sells a variety of eyewear products. This includes prescription eyeglasses, sunglasses, and contact lenses. They also offer accessories like cases and cleaning cloths. Beyond just selling products, Warby Parker provides eye exams and vision tests through its retail locations, aiming to be a comprehensive vision care provider.
Eyewear
This is Warby Parker's largest business segment, making up the bulk of its revenue. It encompasses the sale of both prescription eyeglasses and sunglasses. Customers can choose from a wide range of frames, upload their prescriptions, and purchase their glasses online or in-store. The company designs these frames in-house, which helps them control quality and cost, and offers them at a price significantly lower than traditional optical shops.
Contact Lenses
This segment focuses on the sale of contact lenses. Warby Parker offers various types of contact lenses, including single-vision, progressive, and those with special features like blue-light filtering. This business line complements their glasses offerings, providing customers with another option for vision correction. It represents a smaller portion of the company's overall sales compared to eyewear.
Eye Care
This segment includes the services Warby Parker provides related to eye health. Most notably, this involves offering eye exams and vision tests in their retail stores. By integrating these services, Warby Parker aims to provide a more complete vision care experience for its customers, making it convenient to get both eyewear and an eye check-up in one place. This segment is a smaller contributor to total revenue but is key to their strategy of being a full-service vision provider.
What management is betting on now
Warby Parker is focused on strengthening its position as an omnichannel vision care provider, meaning they are integrating their online and physical store experiences seamlessly. They are investing in technology to enhance customer convenience, such as virtual try-on tools and improved online purchasing processes. Management is also prioritizing profitability by improving operational efficiency and continuing to offer value to customers, aiming to build long-term customer relationships within the vision care space.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
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
FY2026 Q3
$-1.98M
Revenue
$244.74M
Net income
$5.60M
Diluted EPS
0.04
Operating cash flow
$24.72M
Free cash flow
$-1.98M
Fetching…
Sources
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
Is it cheap or expensive?
Fair value $6.51 vs current price $29.90
Wall Street consensus is the average analyst price target: $32.25 (395.3% higher than our fair-value estimate).
Our most-likely fair value is $6.51 a share — about 78.2% below today's price of $29.90, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $23.1M - more cash than debt. Interest coverage -0.6x.
Net debt
$-23.11M
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 $264.80M 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 $67.02M 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 $42.67M 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 7.2% last year.
-
Returns 1.9% 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)
498.33x
Forward P/E
47.13x
P/B
9.19x
P/S
3.98x
EV/EBITDA
78.14x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
53.5%
Operating margin
1.6%
Net margin
0.8%
ROE
1.9%
ROA
-0.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.66x
Current ratio
2.26x
Quick ratio
1.86x
Total debt
$264.80M
Total cash
$287.91M
Growth
How the business has been compounding
Revenue TTM
$934.66M
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
$102.11M
Free CF TTM
$43.74M
FCF margin
4.7%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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