Health Check
Warby Parker has $217 million in cash with moderate debt. The company reached adjusted profitability in 2025, a milestone, but free cash flow is still thin at around $28 million. Not a concern yet, but there is no large cash cushion for setbacks.
Revenue grew 14.8% to $768 million, with same-store sales growth of 8.2%. The company opened 32 new stores in 2025 and the eye exam business is growing rapidly. The Google partnership for smart glasses has generated significant buzz and preorder interest.
At a P/E ratio of about 85 (based on thin profits), Warby Parker is priced for significant future growth. The company is still in the early stages of profitability, so the valuation depends heavily on whether growth continues and margins expand. Higher risk, higher potential reward.
Warby Parker shares have surged about 22% in three months, driven by the Google smart glasses partnership announcement and strong Q4 earnings. The stock is trading at 52-week highs and showing strong buying interest.
The Google partnership for smart glasses has been a game-changer for sentiment. Three analysts initiated coverage with buy ratings in the past month. The combination of physical retail growth, e-commerce strength, and the smart glasses opportunity has Wall Street increasingly optimistic.
News
Warby Parker Posts First Full-Year Profit, Revenue Up 14.8%
Warby Parker reported its first full-year GAAP profit, a major milestone for the direct-to-consumer eyewear company. Revenue hit $768 million with same-store sales growth of 8.2%. The company opened 32 new stores and now operates 245 locations. CEO Neil Blumenthal said 2026 would focus on "scaling profitability while investing in smart eyewear."
Warby Parker and Google Announce Smart Glasses Partnership
Warby Parker revealed a partnership with Google to develop prescription smart glasses powered by Google's AI assistant. The glasses will feature a lightweight design with built-in audio, camera, and heads-up display. Preorders are expected to open in Q3 2026 with pricing starting at $499. The announcement sent shares up 18% in after-hours trading.
Three Analysts Initiate Warby Parker Coverage With Buy Ratings
Baird, Piper Sandler, and Cowen all initiated coverage of Warby Parker with buy-equivalent ratings and price targets ranging from $28 to $32. Analysts cited the company's expanding store footprint, improving unit economics, and the Google partnership optionality as key catalysts for 2026.
Financials
Warby Parker generated $768 million in revenue, growing nearly 15% year-over-year. Growth is being driven by new store openings, increasing eye exam revenue, and strong online sales. The company is still small compared to the giants on this list, but growing much faster.
Warby Parker earned $0.28 per share — its first full year of profitability. While this is a small number compared to Apple or J&J, crossing from losses to profits is a critical milestone. It proves the business model works. Last year the company lost $0.11 per share.
Warby Parker generated $45 million in operating cash flow, up significantly from just $17.6 million last year. Cash flow is growing faster than revenue, which means the business is becoming more efficient as it scales. A very encouraging trend for a young company.
Warby Parker keeps 55.8 cents of every revenue dollar after production costs. For a retail company, this is excellent — it reflects the direct-to-consumer model that cuts out middlemen. Traditional eyewear companies like Luxottica have similar margins but charge much higher prices.