WRBY Warby Parker Inc.

Overview and Growth

Fiscal 2025 results for Warby Parker Inc. combined $871.90M of revenue with net income of $1.64M and an operating cash inflow of $110.78M. At $871.90M, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. Compared with $771.32M in fiscal 2024, revenue recorded a 13.0% year-over-year increase. The company reported diluted EPS of $0.01, adding a shareholder-level measure to the absolute income figures considered below. The revenue-to-assets relationship was 1.21x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

After reported cost of revenue, the company retained $470.58M as gross profit before recognizing operating expenses and other items. Gross margin was 54.0%, so that share of each revenue unit remained after the cost of revenue reported for the period. Operations produced a $5.34M operating loss before non-operating and tax effects. The operating loss equaled 0.6% of revenue, showing the scale of the operating deficit relative to sales. After all reported below-operating-line items, the company recorded net income of $1.64M for the fiscal year. Net margin was 0.2%, meaning that this portion of revenue remained as net income after all recognized expenses. Pretax income was $3.04M, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. Measured against revenue, pretax income equaled 0.3%, adding a pre-tax profitability layer between revenue and net income. The reported income-tax provision was $1.40M, the amount recognized between pretax income and the final net-income result. The effective relationship between income tax and positive pretax income was 46.1%, without assuming a statutory-rate comparison. The relationship between net income and period-end equity was 0.4%, indicating the profitability achieved on book capital. Net income represented 0.2% of period-end assets, placing the company’s bottom-line result against the total resource base employed.

Liquidity and Capital Structure

The company held $720.92M of assets against $353.19M of liabilities and $367.73M of equity, revealing how the asset base was financed. At period end, current assets of $352.44M compared with current liabilities of $150.13M, defining the company’s short-term resource position. The current ratio was 2.35x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. The company held $286.36M in cash and equivalents, a narrower liquidity measure than total current assets. Measured only with cash and equivalents, coverage of current liabilities was 190.7%, excluding receivables and other current assets. Relative to total assets, liabilities measured 49.0%, complementing the separate equity-based view of the company’s capital structure. Measured against total assets, cash and equivalents represented 39.7%, a balance-sheet composition measure rather than a liquidity forecast. Total assets were 6.6% higher than fiscal 2024 assets of $676.49M, measuring the company’s own balance-sheet change. Reported equity changed 8.1% from $340.07M in fiscal 2024, placing the current capital base higher year over year.

Cash Flow and Earnings Quality

Cash flow from operations was $110.78M, a reported cash inflow that can be compared directly with net income and capital spending. Against net income, operating cash flow measured 67.51x, showing the relationship between accrual earnings and operating cash. Capital spending was $67.05M, absorbing part of the cash generated from operations before free cash flow. Capital expenditures represented 60.5% of operating cash flow, leaving the remainder available as free cash flow. Free cash flow came to $43.74M, leaving a positive amount after capital expenditures. Free cash flow represented 5.0% of revenue, linking post-investment cash generation with the company’s operating scale. Free cash flow equaled 6.1% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Sep 24, 2026.