Warby Parker Inc.

Second-quarter revenue was $235.5 million, up 9.8% year over year. Retail revenue increased 13.6% year over year, while e-commerce revenue was $58.7 million, down 0.3% year over year because of the Home Try-On sunset. Adjusted gross margin was $136.9 million, or 58.1% of revenue, up 380 basis points versus last year; adjusted SG&A was $119.3 million, or 50.6% of revenue; and adjusted EBITDA was $32.9 million, or a 14% margin, including an $11.8 million tariff benefit. For the full year 2026, Warby Parker reaffirmed revenue guidance of $959 million to $976 million and adjusted EBITDA guidance of $117 million to $119 million, implying about 10% to 12% revenue growth and a 12.2% adjusted EBITDA margin. Third-quarter guidance is for revenue of $243 million to $246 million and adjusted EBITDA of $26 million to $28 million, with management expecting stronger fourth-quarter growth as Home Try-On headwinds fade and launch-related marketing ramps.

Neil Blumenthal framed the quarter as a period of both core-business execution and heavy preparation for a major product launch. He emphasized that Warby Parker is leaning into exams, insurance, store expansion, and brand investment to build awareness and customer traffic, while keeping guidance conservative and excluding any benefit from AI glasses. His tone was upbeat and mission-driven, repeatedly stressing that Intelligent Eyewear is the result of years of work and will extend the company’s design-and-service model into a new category.

Adrian Mitchell focused on the financial discipline behind the launch investments and on how tariff refunds are funding them. He said the company recognized a $14.4 million tariff refund benefit this year, including $11.8 million in Q2 and $2.6 million to flow through later, and that Q2 additional investments were about $6 million, with a significant portion of the remaining $8.4 million expected to fund Q3. He highlighted $293 million of cash at quarter-end, about $7 million of free cash flow in Q2, and continued optionality under a $100 million share repurchase authorization.

Analysts pressed on weak traffic, the store business, and whether the company is seeing enough improvement in active customer growth. Management said the category remains soft on traffic and units, but Warby Parker is seeing strong conversion, record average order values, and market-share gains; they also pointed to improving in-period customer growth, stronger exam and insurance momentum, and lower Home Try-On drag into the second half. Other questions focused on Intelligent Eyewear inventory, pricing, and margins: management said preorders will help gauge demand, the product will be slightly lower margin on a percentage basis than existing products but potentially equal or higher in absolute dollars, and store demos plus optical-lab changes will help manage supply and quality.