Dive Brief:
- Warby Parker recorded its first full-year net income on Thursday, reporting a 2025 net income of $1.6 million from a net loss of $20.4 million the year prior.
- Net revenue for the year grew 13% year over year to $871.9 million, but gross margin fell 130 basis points to 54% due in part to tariffs and higher shipping costs. These factors were partially offset by selective price increases, the company said.
- For Q4, Warby Parker reported net revenue grew 11.2% year over year to $212 million, while gross margin contracted 170 basis points to 52.4%.
Dive Insight:
Warby Parker closed out 2025 on a high note.
“In a dynamic environment, we leveraged our unmatched value proposition to capture additional market share while giving customers more convenient options to shop with us than ever before,” Dave Gilboa, co-founder and co-CEO, said in a statement.
The full-year net income places the eyewear company among a small group of DTC brands that have been able to achieve profitability. However, while net income was positive, the brand posted a $5.3 million operating loss, an improvement from the loss of $30.1 million the year prior. In the fourth quarter, Warby Parker reported net loss improved 13.4% to nearly $6 million and operating loss narrowed 27.2% to $6.9 million.
The brand opened 47 net new stores during 2025, ending the year with 323 locations. The company also grew its active customer base 7% year over year to 2.69 million.
In the year ahead, Warby Parker plans to open 50 new stores and drive growth within existing locations, improve the online experience and launch 15 new collections, including its first sport collection.
The company is also focused on the upcoming launch of its AI glasses in partnership with Google and Samsung announced last year.
For 2026, the company is projecting net revenue between $959 million and $976 million, representing growth of 10% to 12% year over year. For Q1, it is expecting net revenue to increase between 6.5% and 7.5% from the year-ago period to reach $238 million to $240 million.
