Warby Parker Swings to Profit in Q2, Gross Margin Surges on Tariff Refunds
WRBY sits 80% above its 52-week low of $14.96.
Summary
Warby Parker reported Q2 2026 net income of $4.6M, reversing a year-ago loss, with revenue up 9.8% to $235.5M. Gross margin surged to 57.9%, helped by an $11.8M tariff refund. The company continues to expand its store base and advance its Google AI glasses partnership.
Key Events · Earnings and Guidance · WRBY
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Return to Profitability
Net income of $4.6M in Q2 2026 vs. a net loss of $1.8M in Q2 2025, driven by revenue growth and gross margin expansion.
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Revenue Growth Accelerates
Net revenue rose 9.8% YoY to $235.5M, with Active Customers up 4.1% to 2.709M and Average Revenue per Customer increasing to $336 from $316.
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Gross Margin Surge
Gross margin hit 57.9%, up 490 bps YoY, boosted by an $11.8M benefit from IEEPA tariff refunds. Excluding this, underlying margin still expanded.
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Store Expansion Continues
Ended Q2 with 352 retail stores, up from 298 a year ago, with 89.5% offering eye exams.
Analysis · WRBY · Industrial Applications And Services
A clean beat on profitability marks a turning point, as Warby Parker swung from a year-ago loss to $4.6M in net income. The headline gross margin of 57.9% was boosted by a one-time $11.8M tariff refund benefit, but even excluding that, underlying margin expansion is clear. Revenue grew 9.8%, fueled by higher average spend per customer and a 54-store increase in the retail fleet. Progress on the Google AI glasses partnership continues, with $4.4M in costs reimbursed this quarter. Liquidity remains ample — $292.7M in cash and an undrawn $120M credit line — and a $100M buyback authorization is in place, though no shares have been repurchased yet. Investors should note the tariff refund is non-recurring, but this quarter signals a shift toward sustained profitability.
At the time of this filing, WRBY was trading at $27.00 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $3.3B. The 52-week trading range was $14.96 to $31.00. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.