Warby Parker Wraps Up 2025 with Strong Growth and Momentum

Warby Parker finished 2025 on a high note, reporting double-digit growth and its first full year of positive net income. Fourth-quarter revenue reached $212 million, up 11.2% from the prior year, while full-year revenue grew 13% to $871.9 million. Active customers increased by 7% and average revenue per customer rose to $324, showing steady engagement and loyalty.

Several areas stood out as major wins. The company opened 47 net new stores in 2025, ending the year with 323 locations. Adjusted EBITDA grew 30% year-over-year to $95.2 million, and Warby Parker maintained positive operating and free cash flow for the third consecutive year. Management also launched a $100 million share repurchase program, signaling confidence in the business and a commitment to shareholders.

On the customer side, Warby Parker continued to make shopping convenient, with online ordering, eye exams, and a growing range of lenses and progressives. Face-to-face experiences helped build trust and engagement, reinforcing the brand’s strong market position.

There were challenges as well. Gross margin dipped slightly to 54% due to tariff costs, higher shipping expenses, increased doctor headcount, and growing sales of contact lenses. SG&A costs rose in absolute dollars but fell as a percentage of revenue, reflecting some operational efficiencies. These factors contributed to a modest net loss of $6 million in Q4 even as the full year ended with $1.6 million in net income.

Looking ahead, 2026 is off to a strong start. With Q1 wrapping up soon, Warby Parker is on track for 10–12% revenue growth this year and plans to open 50 new stores. Adjusted EBITDA and margins are expected to improve, supported by continued investment in innovation, including AI and technology enhancements that will further improve the customer experience.

Overall, 2025 was a milestone year. Revenue growth, positive net income, and operational improvements set the stage for 2026. While challenges like tariffs and rising costs remain, the company’s strong balance sheet and focus on innovation position it well for continued success.