Q4 2025 Warby Parker Inc Earnings Call

February 26, 2026

All lines will remain in listen-only mode. During the presentation, portion of the call, and they'll be an opportunity for Q&A after Management's prepared remarks, you can enter the queue for questions by pressing star. Followed by 1 on your telephone keypad. If you change your mind, please press star followed by 2 to exit the queue.

Please note that in the interest of taking as many of your questions as possible company respectively, asks that you limit yourself to 1 question and then 1 follow up if needed.

I will now hand the call over to Jackin Berkeley head of investor relations to begin. Please go ahead.

Thank you, and good morning everyone here with me. Today are Neil Blumenthal and Dave gilboa are co-founders. And co-ceos alongside Adrian Mitchell, Chief Financial Officer and Josh tupo, vice president of financial planning and Analysis.

Before we begin, we have a couple of reminders our earnings release and slide presentation are available on our website at investors.com orbi parker.com.

During this call. And in our presentation, we will be making comments of a forward-looking nature.

Actual results May differ materially from those expressed or implied as a result of the various risks and uncertainties.

For more information about some of these risks, please review the company's FCC filings, including the section, titled risk factors in the company's latest annual report on form 10K.

These forward-looking statements are based on information as of February 26th 2026 and except as required. By law, we assume no obligation to publicly update or revise, our forward-looking statements,

additionally, we will be discussing certain non-gaap Financial measures these non-gaap Financial measures are in addition to and not a substitute for measures of financial performance prepared in accordance with us, gaap,

A Reconciliation of our non-gaap measures to the most directly comparable us. Gaap measures can be found in this morning's press release and our slide deck available on our IR website. And with that, I'll pass it over to Dave to kick us off.

Thanks, Jacqueline and good morning everyone. Thank you for joining us today to discuss our fourth quarter and fiscal 2025 results. In our outlook for 2026

2025 was an eventful year and 1 that we're proud of. We took decisive actions that enabled us to continue. Delighting customers to invest in Innovation and position Warby Parker for long-term success, all while, delivering sustainable growth.

We drove double digit, Revenue growth, each quarter meaningfully expanded adjusted, ebita, and reported our first full year of positive net income. Even as we navigated tariffs in a dynamic consumer backdrop,

Looking ahead 2026 will be an exciting year for Warby Parker. We continue to see tremendous runway in scaling, our existing growth initiatives from opening more stores to driving Progressive growth to increasing Insurance penetration. We'll speak to these and other Core Business drivers shortly.

This year, we also plan to introduce our first AI glasses in partnership with Google and Samsung, which we expect while unlock significant new Tam and enable us to take advantage of the biggest technology shift in our lifetime. These devices will bring the world's most advanced AI to glasses designed for all day wear.

Over the last 16 years, we have reimagined how people shop for eyewear bringing together great design, exceptional value and an unparalleled customer experience. Underpinned by Technology, Innovation and customer obsession.

Over time we've seen how this powerful combination has drawn consumers to our brand and helped us capture market share.

Today, we believe the optical industry is in a period of transition. While the core eyewear category remains large, and more stable than most consumer sectors. We've seen more volatility in demand and transient softness than usual in the post-pandemic era, including during some periods over the last year.

Our confidence remains in the long-term durability and attractiveness of the category, given an increasing Health need that it serves but we are planning conservatively for the near-term. Given recent trends

At the same time, enthusiasm for smart glasses is accelerating with Clear Proof points of consumer. Eagerness to embrace these new devices serving as a demand Catalyst independent of Trends in the broader eyewear category.

We believe we're well positioned to continue taking market share, regardless of macro conditions and given our inherent advantages as a tech enabled brand. Believe we are a better position than the rest of our category to successfully navigate and capitalize on the transition from traditional eyewear to intelligent eyewear.

Speaker #1: A substitute for measures of financial performance prepared in accordance with U.S. GAAP. A reconciliation of our non-GAAP measures to the most directly comparable U.S.

Malding into a holistic, eye care, provider, and Omni Channel retailer.

Speaker #1: GAAP measures can be found in this morning's press release and our slide deck available on our IR website. And with that, I'll pass it over to Dave to kick us off.

Act 3 is all about AI. We plan to introduce new products, like AI glasses, while also leveraging AI across the organization to drive productivity, and enhance the customer experience.

With that. Let's turn to results.

Speaker #2: Thanks, Jaclyn, and good morning, everyone. Thank you for joining us today to discuss our fourth quarter and fiscal 2025 results, and our outlook for 2026.

In fiscal 2025 we delivered 13% Revenue growth driven by 47 new store openings the most ever in a single year.

High single digit customer growth and mid single digit, average revenue per customer growth.

Speaker #2: 2025 was an eventful year, and one that we're proud of. We took decisive actions that enabled us to continue delighting customers, to invest in innovation, and to position Warby Parker for long-term success.

Speaker #2: All while delivering sustainable growth. We drove double-digit revenue growth each quarter, meaningfully expanded adjusted EBITDA, and reported our first full year of positive net income, even as we navigated tariffs in a dynamic consumer backdrop.

we believe this performance reflects continued market share gains, we drove healthy unit volumes, average selling price and customer growth while prescription glasses units, declined, 6% industry-wide, according to the vision Council,

Speaker #2: Looking ahead, 2026 will be an exciting year for Warby Parker. We continue to see tremendous runway in scaling our existing growth initiatives, from opening more stores to driving progressive growth to increasing insurance penetrations.

And while much of the category, relied on significant price increases, we mitigated the impact of tariffs, while preserving our unmatched value proposition and maintaining prices on the vast majority of our offerings including our 95 prescription glasses.

We believe our Innovative designs value proposition and seamless Omni Channel. Experience position us, well, to continue gaining share in any Market condition.

Speaker #2: We'll speak to these and other core business drivers shortly. This year, we also plan to introduce our first AI glasses in partnership with Google and Samsung, which we expect will unlock significant new TAM and enable us to take advantage of the biggest technology shift in our lifetime.

We also expanded profitability.

Full year adjusted ebit da was 95 million up 30%. Year-over-year driven by leverage and non-marketing sgna expense.

Speaker #2: These devices will bring the world's most advanced AI to glasses designed for all-day wear. Over the last 16 years, we have reimagined how people shop for eyewear, bringing together great design, exceptional value, and an unparalleled customer experience underpinned by technology, innovation, and customer obsession.

We also achieved our first full year of net income profitability and generated 44 million in free cash flow.

[Company Representative] (Warby Parker): A substitute for measures of financial performance prepared in accordance with U.S. GAAP. A reconciliation of our non-GAAP measures to the most directly comparable U.S. GAAP measures can be found in this morning's press release and our slide deck, available on our IR website. With that, I'll pass it over to Dave to kick us off.

Jacqueline Waterer: A substitute for measures of financial performance prepared in accordance with U.S. GAAP. A reconciliation of our non-GAAP measures to the most directly comparable U.S. GAAP measures can be found in this morning's press release and our slide deck, available on our IR website. With that, I'll pass it over to Dave to kick us off.

We delivered these results. While continuing to invest in our long-term strategic initiatives and strengthen the foundation of our operations, we implemented changes. That mitigated the impact of tariffs demonstrating the flexibility of our supply chain and the resilience of our team.

Speaker #2: Over time, we've seen how this powerful combination has drawn consumers to our brand and helped us capture market share. Today, we believe the optical industry is in a period of transition.

Dave Gilboa: Thanks, Jacqueline. Good morning, everyone. Thank you for joining us today to discuss our Q4 and fiscal 2025 results and our outlook for 2026. 2025 was an eventful year and one that we're proud of. We took decisive actions that enabled us to continue delighting customers, to invest in innovation, and position Warby Parker for long-term success, all while delivering sustainable growth. We drove double-digit revenue growth each quarter, meaningfully expanded Adjusted EBITDA, and reported our first full year of positive net income, even as we navigated tariffs in a dynamic consumer backdrop. Looking ahead, 2026 will be an exciting year for Warby Parker. We continue to see tremendous runway in scaling our existing growth initiatives, from opening more stores to driving progressive growth to increasing insurance penetration. We'll speak to these and other core business drivers shortly.

In addition, we streamlined our operations by sunsetting our home Triumph program and completed several infrastructure upgrades in our labs and across our Tech stack to support future growth. And prepare us for our AI glasses launch.

Speaker #2: While the core eyewear category remains large and more stable than most consumer sectors, we have seen more volatility in demand and transient softness than usual in the post-pandemic era, including during some periods over the last year.

Turning to the fourth quarter.

In the quarter Revenue, grew 11% and adjusted ebit down margin with 7.2% roughly in line with last year.

Speaker #2: Our confidence remains in the long-term durability and attractiveness of the category given the increasing health needs that it serves, but we are planning conservatively for the near term given recent trends.

As we shared on our last call, our guidance assumed that the trends we saw in September and October would continue through the end of the year.

Speaker #2: At the same time, enthusiasm for smart glasses is accelerating, with clear proof points of consumer eagerness to embrace these new devices. Serving as a demand catalyst independent of trends in the broader eyewear category.

however, in December, we saw a Slowdown in our 1 year and 2 year growth Trends with softness concentrated in our 25 to 34 year old consumer cohort, while our older Progressive customer remained more resilient

We experience softer retail traffic and contact lens growth load, which pressured our e-commerce Channel.

Speaker #2: We believe we're well positioned to continue taking market share regardless of macro conditions, and given our inherent advantages as a tech-enabled brand, believe we are better positioned than the rest of our category to successfully navigate and capitalize on the transition from traditional eyewear to intelligent eyewear.

As a result of this fourth quarter, adjusted ebitda came in below our expectations.

While we are not satisfied with that outcome, we responded quickly and Incorporated learnings directly into our 2026 plan.

Dave Gilboa: This year, we also plan to introduce our first AI glasses in partnership with Google and Samsung, which we expect will unlock significant new TAM and enable us to take advantage of the biggest technology shift in our lifetime. These devices will bring the world's most advanced AI to glasses designed for all-day wear. Over the last 16 years, we have reimagined how people shop for eyewear, bringing together great design, exceptional value, and an unparalleled customer experience underpinned by technology, innovation, and customer obsession. Over time, we've seen how this powerful combination has drawn consumers to our brand and helped us capture market share. Today, we believe the optical industry is in a period of transition.

Trends improved early in the first quarter before being impacted by historic winter weather.

Speaker #2: This gives us a great deal of confidence in our 2026 plan, and as we enter Warby Parker's third act, Acts 1 and 2 were about pioneering the direct-to-consumer brand, then evolving into a holistic eye care provider and omnichannel retailer.

Looking ahead. We remain as excited as ever about the opportunity in our Core Business and the role we expect AI glasses to play in expanding our addressable market and growth potential Beyond traditional eyewear.

Speaker #2: Act 3 is all about AI. We plan to introduce new products like AI glasses while also leveraging AI across the organization to drive productivity and enhance the customer experience.

Today we represent a proximately 1.3% share of the 70 billion dollar US eyewear market and that does not include any future spend in AI glasses.

Speaker #2: With that, let's turn to results. In fiscal 2025, we delivered 13% revenue growth, driven by 47 new store openings—the most ever in a single year.

While the market is large, We Believe many customers remain underserved by a category that has not prioritized Innovation customer experience in transparency.

Dave Gilboa: While the core eyewear category remains large and more stable than most consumer sectors, we have seen more volatility in demand and transient softness than usual in the post-pandemic era, including during some periods over the last year. Our confidence remains in the long-term durability and attractiveness of the category, given the increasing health needs that it serves, but we are planning conservatively for the near term, given recent trends. At the same time, enthusiasm for smart glasses is accelerating, with clear proof points of consumer eagerness to embrace these new devices, serving as a demand catalyst independent of trends in the broader eyewear category.

Speaker #2: High single-digit customer growth and mid-single-digit average revenue per customer growth. We believe this performance reflects continued market share gains. We drove healthy unit volumes, average selling price, and customer growth while prescription glasses units declined 6% industry-wide according to the vision council.

While the category has relied largely on price increases, our team has proven that our brand product assortment Omni Channel offering and value proposition resonate. Well, with consumers across Market conditions

Speaker #2: And while much of the category relied on significant price increases, we mitigated the impact of tariffs while preserving our unmatched value proposition and maintaining prices on the vast majority of our offerings, including our $95 prescription glasses.

As we look to 2026 our strategy emphasizes scaling, the drivers of our Core Business to accelerate growth, while preparing the organization for the launch of AI glasses. We're prioritizing expanding access across our Omni Channel platform, increasing Insurance penetration, and continuing to elevate the customer experience as we scale

We believe these Investments position, where we Parker for sustained market, share, gains and long-term profitable growth.

Speaker #2: We believe our innovative designs, value proposition, and seamless omnichannel experience position us well to continue gaining share in any market condition. We also expanded profitability.

Dave Gilboa: We believe we're well positioned to continue taking market share regardless of macro conditions, and given our inherent advantages as a tech-enabled brand, believe we are better positioned than the rest of our category to successfully navigate and capitalize on the transition from traditional eyewear to intelligent eyewear. This gives us a great deal of confidence in our 2026 plan and as we enter Warby Parker's third act. Acts one and two were about pioneering the direct-to-consumer brand, then evolving into a holistic eye care provider and omni-channel retailer. Act three is all about AI. We plan to introduce new products like AI glasses, while also leveraging AI across the organization to drive productivity and enhance the customer experience. With that, let's turn to results.

In 2026. We're also taking a disciplined and measured approach to our guidance. Given the macroeconomic trends that remain outside of our control while staying focused on the initiatives, we can control

Speaker #2: Full-year adjusted EBITDA was $95 million, up 30% year over year, driven by leverage in non-marketing SG&A expense. We also achieved our first full year of net income profitability and generated $44 million in free cash flow.

While the vision Council projects, the total eyewear Market to be down. This year, we are committed to delivering low. Double-digit Revenue growth and 130 basis points of adjusted ebit down margin expansion.

Speaker #2: We delivered these results while continuing to invest in our long-term strategic initiatives and strengthen the foundation of our operations. We implemented changes that mitigated the impact of tariffs, demonstrating the flexibility of our supply chain and the resilience of our team.

This guidance does not include any potential revenue from AI glasses, but it does include the operating expenses and capital Investments required for launch.

We are investing thoughtfully and from a position of strength.

Months ahead.

Speaker #2: In addition, we streamlined our operations by sunsetting our home triumph program and completed several infrastructure upgrades in our labs and across our tech stack to support future growth and prepare us for our AI glasses launch.

Dave Gilboa: In fiscal 2025, we delivered 13% revenue growth, driven by 47 new store openings, the most ever in a single year, high single-digit customer growth, and mid-single digit average revenue per customer growth. We believe this performance reflects continued market share gains. We drove healthy unit volumes, average selling price, and customer growth, while prescription glasses units declined 6% industry-wide, according to The Vision Council. While much of the category relied on significant price increases, we mitigated the impact of tariffs while preserving our unmatched value proposition and maintaining prices on the vast majority of our offerings, including our $95 prescription glasses. We believe our innovative designs, value proposition, and seamless omni-channel experience position us well to continue gaining share in any market condition. We also expanded profitability.

Before I turn it over to Neil, let me take a moment to talk about q1. As many of you know the country has faced historic winter storms and cold weather to start the year. And we are not immune to those impacts.

Speaker #2: Turning to the fourth quarter, in the quarter, revenue grew 11% and adjusted EBITDA margin was $7.2%, roughly in line with last year. As we shared on our last call, our guidance assumed that the trends we saw in September and October would continue through the end of the year.

Our high concentration of stores on the East Coast which are among our highest volume stores. Has presented a challenge early in the year.

Resulting in store closures and lower traffic.

Adrian will provide further details later in the call when reviewing guidance,

And with that, I'll turn it over to Neil to walk through our 2026 plan.

Thank you, Dave.

Speaker #2: However, in December, we saw a slowdown in our one-year and two-year growth trends, with softness concentrated in our 25 to 34-year-old consumer cohort while our older progressive customer remained more resilient.

Let me Begin by highlighting our 3 strategic priorities for 2026. Our first priority in 2026 is to further. Invest in scaling, our industry-leading Omni Channel model, while delivering exceptional customer experiences.

Speaker #2: We experienced softer retail traffic and contact lens growth slowed, which pressured our e-commerce channel. As a result of this, fourth quarter adjusted EBITDA came in below our expectations.

We're focused on this in 3, primary ways 1 expanding our retail footprint.

2, increasing Revenue within our existing Fleet through eye exams and product mix.

Speaker #2: While we are not satisfied with that outcome, we responded quickly and incorporated learnings directly into our 2026 plan. Trends improved early in the first quarter, before being impacted by historic winter weather.

And 3 continuing to enhance our online experience.

Dave Gilboa: Full-year Adjusted EBITDA was $95 million, up 30% year-over-year, driven by leverage in non-marketing SG&A expense. We also achieved our first full year of net income profitability and generated $44 million in free cash flow. We delivered these results while continuing to invest in our long-term strategic initiatives and strengthen the foundation of our operations. We implemented changes that mitigated the impact of tariffs, demonstrating the flexibility of our supply chain and the resilience of our team. In addition, we streamlined our operations by sunsetting our Home Try-On program and completed several infrastructure upgrades in our labs and across our tech stack to support future growth and prepare us for our AI glasses launch. Turning to Q4. In Q4, revenue grew 11% and Adjusted EBITDA margin was 7.2%, roughly in line with last year.

Speaker #2: Looking ahead, we remain as excited as ever about the opportunity in our core business and the role we expect AI glasses to play in expanding our addressable market and growth potential beyond traditional eyewear.

First, we will continue to thoughtfully expand our store base. We ended 2025 with 323 stores. It's just a fraction of the almost 45,000 optical shops in the US and well below our long-term potential of at least 900 stores.

Speaker #2: Today, we represent approximately 1.3% share of the $70 billion U.S. eyewear market, and that does not include any future spend in AI glasses. While the market is large, we believe many customers remain underserved by a category that has not prioritized innovation, customer experience, and transparency.

When we survey consumers, who have not yet, shopped with us, 1 of the top reasons, is that there isn't a store nearby. That's why we will continue to scale points of distribution while driving, convenience and awareness in those markets where we already operate.

We're also seeing clear benefits from our infill strategy.

Speaker #2: While the category has relied largely on price increases, our team has proven that our brand, product assortment, omnichannel offering, and value proposition resonate well with consumers across market conditions.

In that markets with the highest number of stores frequently have the highest e-commerce growth driven by Greater brand awareness and customer engagement across channels.

Speaker #2: As we look to 2026, our strategy emphasizes scaling the drivers of our core business to accelerate growth while preparing the organization for the launch of AI glasses.

Dave Gilboa: As we shared on our last call, our guidance assumed that the trends we saw in September and October would continue through the end of the year. However, in December, we saw a slowdown in our 1-year and 2-year growth trends, with softness concentrated in our 25 to 34-year-old consumer cohort, while our older progressive customer remained more resilient. We experienced softer retail traffic and contact lens growth slowed, which pressured our e-commerce channel. A result of this, Q4 Adjusted EBITDA came in below our expectations. While we are not satisfied with that outcome, we responded quickly and incorporated learnings directly into our 2026 plan. Trends improved early in the Q1 before being impacted by historic winter weather.

Our approach to retail expansion is deliberate with a rigorous site. Selection process designed to shorten ramp time, and support sustained, revenue and margin growth over time.

Speaker #2: We're prioritizing expanding access across our omnichannel platform, increasing insurance penetration, and continuing to elevate the customer experience as we scale. We believe these investments position Warby Parker for sustained market share gains and long-term profitable growth.

Our stores, continue to generate attractive unit economics, including strong, 4-wall, margins and healthy, payback periods reinforcing our confidence. In our ability, to expand retail locations thoughtfully. As we scale,

Speaker #2: In 2026, we're also taking a disciplined and measured approach to our guidance, given the macroeconomic trends that remain outside of our control, while staying focused on the initiatives we can control.

Second, we see significant opportunities to drive additional growth within our existing Fleet particularly through Eye Care and higher value products.

Speaker #2: While the vision council projects the total eyewear market to be down this year, we are committed to delivering low double-digit revenue growth and $130 basis points of adjusted EBITDA margin expansion, this guidance does not include any potential revenue from AI glasses.

Hi exams are important driver of stores, Revenue growth given that industry-wide 3/4 of glasses are purchased in connection with an eye exam.

Dave Gilboa: Looking ahead, we remain as excited as ever about the opportunity in our core business and the role we expect AI glasses to play in expanding our addressable market and growth potential beyond traditional eyewear. Today, we represent approximately 1.3% share of the $70 billion US eyewear market. That does not include any future spend in AI glasses. While the market is large, we believe many customers remain underserved by a category that has not prioritized innovation, customer experience, and transparency. While the category has relied largely on price increases, our team has proven that our brand, product assortment, omni-channel offering, and value proposition resonate well with consumers across market conditions. As we look to 2026, our strategy emphasizes scaling the drivers of our core business to accelerate growth while preparing the organization for the launch of AI glasses.

In 2025, I exams grew 37% to approximately 6% of our business supported by Rolling Out features like digital retinal Imaging.

Speaker #2: But it does include the operating expenses and capital investments required for launch. We are investing thoughtfully and from a position of strength. We look forward to sharing more about our launch plans in the months ahead.

We now have exam capabilities, in almost 90% of our stores and find that stores offering eye exams deliver higher Revenue, sales conversion and growth profit while delivering a more seamless experience for our customers and patients.

Speaker #2: Before I turn it over to Neil, let me take a moment to talk about Q1. As many of you know, the country has faced historic winter storms and cold weather to start the year, and we are not immune to those impacts.

In 2025 I exams accounted for 11 billion dollars in Industry. Spend over time we believe I exams within our business can scale to levels comparable to the broader industry.

Speaker #2: Our high concentration of stores on the East Coast, which are among our highest volume stores, has presented a challenge early in the year. Resulting in store closures and lower traffic.

Speaker #2: Adrian will provide further details later in the call when reviewing guidance. And with that, I'll turn it over to Neil to walk through our 2026 plan.

In 2026, we'll continue scaling. I exams as a core level of store growth by increasing awareness of our offering expanding coverage, and high demand markets, and optimizing scheduling capacity to serve more customers and patients.

Speaker #1: Thank you, Dave. Let me begin by highlighting our three strategic priorities for 2026. Our first priority in 2026 is to further invest in scaling our industry-leading omnichannel model while delivering exceptional customer experiences.

Dave Gilboa: We're prioritizing expanding access across our omni-channel platform, increasing insurance penetration, and continuing to elevate the customer experience as we scale. We believe these investments position Warby Parker for sustained market share gains and long-term profitable growth. In 2026, we're also taking a disciplined and measured approach to our guidance, given the macroeconomic trends that remain outside of our control, while staying focused on the initiatives we can control. While The Vision Council projects the total eyewear market to be down this year, we are committed to delivering low double-digit revenue growth and 130 basis points of Adjusted EBITDA margin expansion. This guidance does not include any potential revenue from AI glasses, but it does include the operating expenses and capital investments required for launch. We are investing thoughtfully and from a position of strength.

Dave, and I would like to extend a special thank you to the approximately 550 full-time and part-time optometrists that are part of the Warby Parker family for their exceptional commitment to Patient Care.

In addition to aiare, broadening our product, assortment and increasing, customer Choice, remains Central to how we drive engagement and experience.

Speaker #1: We're focused on this in three primary ways. One, expanding our retail footprint. Two, increasing revenue within our existing fleet through eye exams and product mix.

Style and newness, our core to that strategy.

Speaker #1: And three, continuing to enhance our online experience. First, we will continue to thoughtfully expand our store base. We ended 2025 with 323 stores, just a fraction of the almost 45,000 optical shops in the U.S., and well below our long-term potential of at least 900 stores.

In 2025, we launched 15 new Collections and we plan to maintain a steady Cadence, going forward across both Optical and Son in 2026. We will also enter new categories with the launch of our first sport collection featuring performance lenses 1 of the most requested categories from our customers

We Believe expanding into this category will attract new customers while fueling incremental purchases from our existing base.

Speaker #1: When we survey consumers who have not yet shopped with us, one of the top reasons is that there isn't a store nearby. That's why we will continue to scale points of distribution while driving convenience and awareness in those markets where we already operate.

At the same time, we plan to drive higher, average, revenue per customer by expanding our offering of complex lenses, tints Coatings and other enhancements,

Dave Gilboa: We look forward to sharing more about our launch plans in the months ahead. Before I turn it over to Neil, let me take a moment to talk about Q1. As many of you know, the country has faced historic winter storms and cold weather to start the year, and we are not immune to those impacts. Our high concentration of stores on the East Coast, which are among our highest volume stores, has presented a challenge early in the year, resulting in store closures and lower traffic. Adrian will provide further details later in the call when reviewing guidance. With that, I'll turn it over to Neil to walk through our 2026 plan.

Speaker #1: In 2026, we plan to open 50 new stores, and a large portion of those new stores will be located in existing markets. We're also seeing clear benefits from our infill strategy.

% across progressives bifocals and multifocals.

Speaker #1: In that markets with the highest number of stores frequently have the highest e-commerce growth, driven by greater brand awareness and customer engagement across channels.

Third, we will continue to invest in e-commerce and increasingly personalized online experience.

Speaker #1: Our approach to retail expansion is deliberate, with a rigorous site selection process designed to shorten ramp time and support sustained revenue and margin growth over time.

Neil Blumenthal: Thank you, Dave. Let me begin by highlighting our three strategic priorities for 2026. Our first priority in 2026 is to further invest in scaling our industry-leading omni-channel model while delivering exceptional customer experiences. We're focused on this in three primary ways. One, expanding our retail footprint. Two, increasing revenue within our existing fleet through eye exams and product mix. Three, continuing to enhance our online experience. First, we will continue to thoughtfully expand our store base. We ended 2025 with 323 stores, just a fraction of the almost 45,000 optical shops in the US, and well below our long-term potential of at least 900 stores. When we survey consumers who have not yet shopped with us, one of the top reasons is that there isn't a store nearby.

Adrian Mitchell: Thank you, Dave. Let me begin by highlighting our three strategic priorities for 2026. Our first priority in 2026 is to further invest in scaling our industry-leading omni-channel model while delivering exceptional customer experiences. We're focused on this in three primary ways. One, expanding our retail footprint. Two, increasing revenue within our existing fleet through eye exams and product mix. Three, continuing to enhance our online experience. First, we will continue to thoughtfully expand our store base. We ended 2025 with 323 stores, just a fraction of the almost 45,000 optical shops in the US, and well below our long-term potential of at least 900 stores. When we survey consumers who have not yet shopped with us, one of the top reasons is that there isn't a store nearby.

Speaker #1: Our stores continue to generate attractive unit economics, including strong four-wall margins and healthy payback periods, reinforcing our confidence in our ability to expand retail locations thoughtfully as we scale.

This channel is a core part of how customers discover and engage with Warby Parker and it plays an important role. Both in the initial purchase journey, and in driving retention over time in 20125. E-commerce, grew low single digits as the channel continued, to face a high, single digit Headway from the decision to Sunset our home Triumph program.

Speaker #1: Second, we see significant opportunities to drive additional growth within our existing fleet, particularly through eye care and higher-value products. Eye exams are important drivers of stores' revenue growth, given that industry-wide, three-quarters of glasses are purchased in connection with an eye exam.

Excluding home Tryon, Direct online glasses and contacts purchases grew in the mid- teens. Giving us confidence that this channel can return to higher growth levels year-over-year with our investments in personalization and customer experience, as we laugh, the phasing out of home. Try on later this year. And next year,

Speaker #1: In 2025, eye exams grew 37% to approximately 6% of our business, supported by rolling out features like digital retinal imaging. We now have exam capabilities in almost 90% of our stores.

We're also driving e-commerce, growth through tools, like advisor, our proprietary, AI, powered recommendations, engine that launched in 2025, which paired with our award-winning virtual Tryon tool is driving higher conversion by simplifying the shopping journey and enhancing the customer experience.

We'll continue to leverage these assets to drive growth in 2026.

Speaker #1: And find that stores offering eye exams deliver higher revenue, sales conversion, and gross profit, while delivering a more seamless experience for our customers and patients.

Neil Blumenthal: That's why we will continue to scale points of distribution while driving convenience and awareness in those markets where we already operate. In 2026, we plan to open 50 new stores, and a large portion of those new stores will be located in existing markets. We're also seeing clear benefits from our infill strategy, in that markets with the highest number of stores frequently have the highest e-commerce growth, driven by greater brand awareness and customer engagement across channels. Our approach to retail expansion is deliberate, with a rigorous site selection process designed to shorten ramp time and support sustained revenue and margin growth over time. Our stores continue to generate attractive unit economics, including strong four-wall margins and healthy payback periods, reinforcing our confidence in our ability to expand retail locations thoughtfully as we scale.

Adrian Mitchell: That's why we will continue to scale points of distribution while driving convenience and awareness in those markets where we already operate. In 2026, we plan to open 50 new stores, and a large portion of those new stores will be located in existing markets. We're also seeing clear benefits from our infill strategy, in that markets with the highest number of stores frequently have the highest e-commerce growth, driven by greater brand awareness and customer engagement across channels. Our approach to retail expansion is deliberate, with a rigorous site selection process designed to shorten ramp time and support sustained revenue and margin growth over time. Our stores continue to generate attractive unit economics, including strong four-wall margins and healthy payback periods, reinforcing our confidence in our ability to expand retail locations thoughtfully as we scale.

Speaker #1: In 2025, eye exams accounted for $11 billion in industry spend. Over time, we believe eye exams within our business can scale to levels comparable to the broader industry.

While our core Mission remains unchanged this next ACT is about expanding our reach and integrating groundbreaking technology into a product. People already love and wear every day.

Speaker #1: In 2026, we'll continue scaling eye exams as a core lever of store growth by increasing awareness of our offerings, expanding coverage in high-demand markets, and optimizing scheduling capacity to serve more customers and patients.

With the integration of powerful AI models, like, Gemini, we are building glasses that deliver real-time personalized, assistance allowing you to keep your phone in your pocket and stay present in the moment.

Speaker #1: Dave and I would like to extend a special thank you to the approximately 550 full-time and part-time optometrists that are part of the Warby Parker family, for their exceptional commitment to patient care.

This is a powerful personal assistant that is there when you need it and invisible, when you don't embedded in beautifully designed eyewear made for everyday all day, use that. You'd expect from Warby Parker.

Speaker #1: In addition to eye care, broadening our product assortment and increasing customer choice remains central to how we drive engagement and experience. Style and newness are core to that strategy.

In 2026, we will continue building capabilities across several areas to support this next phase of innovation.

Neil Blumenthal: We see significant opportunities to drive additional growth within our existing fleet, particularly through eye care and higher value products. Eye exams are an important driver of stores' revenue growth, given that industry-wide, three-quarters of glasses are purchased in connection with an eye exam. In 2025, eye exams grew 37% to approximately 6% of our business, supported by rolling out features like digital retinal imaging. We now have exam capabilities in almost 90% of our stores and find that stores offering eye exams deliver higher revenue, sales conversion, and gross profit while delivering a more seamless experience for our customers and patients. In 2025, eye exams accounted for $11 billion in industry spend. Over time, we believe eye exams within our business can scale to levels comparable to the broader industry.

Speaker #1: In 2025, we launched 15 new collections, and we plan to maintain a steady cadence going forward across both optical and sun, in 2026, we will also enter new categories with the launch of our first sport collection, featuring performance lenses.

Adrian Mitchell: We see significant opportunities to drive additional growth within our existing fleet, particularly through eye care and higher value products. Eye exams are an important driver of stores' revenue growth, given that industry-wide, three-quarters of glasses are purchased in connection with an eye exam. In 2025, eye exams grew 37% to approximately 6% of our business, supported by rolling out features like digital retinal imaging. We now have exam capabilities in almost 90% of our stores and find that stores offering eye exams deliver higher revenue, sales conversion, and gross profit while delivering a more seamless experience for our customers and patients. In 2025, eye exams accounted for $11 billion in industry spend. Over time, we believe eye exams within our business can scale to levels comparable to the broader industry.

First, we are prioritizing production and supply chain Readiness to address the added complexity of the Consumer Electronics space.

We are expanding manufacturing capacity strengthening systems and quality control processes and building the operational infrastructure necessary to support and scale a new category.

Speaker #1: One of the most requested categories from our customers. We believe expanding into this category will attract new customers, while fueling incremental purchases from our existing base.

Second, we are readying our stores and store teams for the launch of AI glasses.

Speaker #1: At the same time, we plan to drive higher average revenue per customer by expanding our offering of complex lenses, tints, coatings, and other enhancements.

This includes adding dedicated fixtures investing in training and designing a best-in-class shopping experience across channels.

We are equipping our teams to support product education, demonstrations servicing and ongoing customer support from day 1.

Speaker #1: Progressives are a key component of that opportunity. In 2025, Progressives for us represented approximately 22% of prescription units. Compared to an industry average of roughly 40% across Progressives, bifocals, and multifocals.

Third on the technology side, we are advancing a multi-year product road map, supported by continued investment in research and development with additional products and features already in the pipeline.

Speaker #1: Third, we will continue to invest in e-commerce and increasingly personalize online experience. This channel is a core part of how customers discover and engage with Warby Parker, and it plays an important role both in the initial purchase journey and in driving retention over time.

Neil Blumenthal: In 2026, we'll continue scaling eye exams as a core lever of store growth by increasing awareness of our offerings, expanding coverage in high-demand markets, and optimizing scheduling capacity to serve more customers and patients. Dave and I would like to extend a special thank you to the approximately 550 full-time and part-time optometrists that are part of the Warby Parker family for their exceptional commitment to patient care. In addition to eye care, broadening our product assortment and increasing customer choice remains central to how we drive engagement and experience. Style and newness are core to that strategy. In 2025, we launched 15 new collections, and we plan to maintain a steady cadence going forward across both optical and sun.

Adrian Mitchell: In 2026, we'll continue scaling eye exams as a core lever of store growth by increasing awareness of our offerings, expanding coverage in high-demand markets, and optimizing scheduling capacity to serve more customers and patients. Dave and I would like to extend a special thank you to the approximately 550 full-time and part-time optometrists that are part of the Warby Parker family for their exceptional commitment to patient care. In addition to eye care, broadening our product assortment and increasing customer choice remains central to how we drive engagement and experience. Style and newness are core to that strategy. In 2025, we launched 15 new collections, and we plan to maintain a steady cadence going forward across both optical and sun.

These initiatives involve targeted operating and capital Investments aligned with our expected launch timeline. Later this year, we are working closely with our strategic partner Google who is offsetting a large portion of pre-launch Investments.

Speaker #1: In 2025, e-commerce grew low single digits. As the channel continued to face a high single-digit headwind from the decision to sunset our home triumph program.

At the same time, we continue to use AI across the organization to drive productivity and efficiency. We are already seeing impact across teams from creative and design to engineering, where AI is now generating more than 50% of our code base.

Speaker #1: Excluding home try-on, direct online glasses and contacts purchases grew in the mid-teens, giving us confidence that this channel can return to higher growth levels year over year with our investments in personalization and customer experience.

And finally, our third priority in 2026, is to make additional strides to increase Insurance penetration while continuing to invest in brand awareness and customer acquisition.

Speaker #1: As we lapped the phasing out of home try-on later this year and next year. We're also driving e-commerce growth through tools like Advisor, our proprietary AI-powered recommendations engine, that launched in 2025, which, paired with our award-winning virtual try-on tool, is driving higher conversion by simplifying the shopping journey and enhancing the customer experience.

A significant opportunity in the business today is expanding access to both in network and out of network Insurance customers.

Neil Blumenthal: In 2026, we will also enter new categories with the launch of our first sport collection, featuring performance lenses, one of the most requested categories from our customers. We believe expanding into this category will attract new customers while fueling incremental purchases from our existing base. At the same time, we plan to drive higher average revenue per customer by expanding our offering of complex lenses, tints, coatings, and other enhancements. Progressives are a key component of that opportunity. In 2025, progressives for us represented approximately 22% of prescription units, compared to an industry average of roughly 40% across progressives, bifocals, and multifocals. Third, we will continue to invest in e-commerce and an increasingly personalized online experience.

Adrian Mitchell: In 2026, we will also enter new categories with the launch of our first sport collection, featuring performance lenses, one of the most requested categories from our customers. We believe expanding into this category will attract new customers while fueling incremental purchases from our existing base. At the same time, we plan to drive higher average revenue per customer by expanding our offering of complex lenses, tints, coatings, and other enhancements. Progressives are a key component of that opportunity. In 2025, progressives for us represented approximately 22% of prescription units, compared to an industry average of roughly 40% across progressives, bifocals, and multifocals. Third, we will continue to invest in e-commerce and an increasingly personalized online experience.

From the beginning, our pricing philosophy has been to offer Fair transparent pricing with our customer paid out of pocket, or uses insurance benefits.

Speaker #1: We'll continue to leverage these assets to drive growth in 2026. Our second priority this year is preparing for the launch of AI glasses. As we look ahead, we believe the opportunity in front of Warby Parker is larger than ever as we enter Act Three.

Customers using in-network benefits, traditional Optical retailers, still pay approximately $200 out of pocket. Whereas at Warby Parker they can purchase a complete pair of prescription glasses, starting at $95.

Speaker #1: While our core mission remains unchanged, this next act is about expanding our reach and integrating groundbreaking technology into a product people already love and wear every day.

Our goal has always been to deliver compelling value regardless of how a customer chooses to pay. At the same time, we recognize that many customers have vision insurance benefits and we have worked diligently to make it easier for them to apply those benefits. When shopping with us,

Speaker #1: With the integration of powerful AI models like Gemini, we are building glasses that deliver real-time, personalized assistance allowing you to keep your phone in your pocket and stay present in the moment.

Cents. Approximately 40% year-over-year dollar growth

Neil Blumenthal: This channel is a core part of how customers discover and engage with Warby Parker, and it plays an important role both in the initial purchase journey and in driving retention over time. In 2025, e-commerce grew low single digits, as the channel continued to face a high single-digit headwind from the decision to sunset our Home Try-On program. Excluding Home Try-On, direct online glasses and contacts purchases grew in the mid-teens, giving us confidence that this channel can return to higher growth levels year-over-year with our investments in personalization and customer experience as we lap the phasing out of Home Try-On later this year and next year.

Adrian Mitchell: This channel is a core part of how customers discover and engage with Warby Parker, and it plays an important role both in the initial purchase journey and in driving retention over time. In 2025, e-commerce grew low single digits, as the channel continued to face a high single-digit headwind from the decision to sunset our Home Try-On program. Excluding Home Try-On, direct online glasses and contacts purchases grew in the mid-teens, giving us confidence that this channel can return to higher growth levels year-over-year with our investments in personalization and customer experience as we lap the phasing out of Home Try-On later this year and next year.

Speaker #1: This is a powerful personal assistant that is there when you need it, and invisible when you don't. Embedded in beautifully designed eyewear made for everyday, all-day use that you'd expect from Warby Parker.

Insured customers continue to be among our most valuable spending more on their initial purchase. Selecting progressive lenses at higher rates and returning more frequently over time.

Speaker #1: In 2026, we will continue building capabilities across several areas to support this next phase of innovation. First, we are prioritizing production and supply chain readiness to address the added complexity of the consumer electronics space.

In 2026, our plan assumes incremental progress across 3, Dimensions. First, we are expanding covered lives by strengthening relationships with existing carriers and scaling Pilots with additional carriers.

Speaker #1: We are expanding manufacturing capacity, strengthening systems and quality control processes, and building the operational infrastructure necessary to support and scale a new category. Second, we are readying our stores and store teams for the launch of AI glasses.

Second, we are focused on scaling utilization by increasing awareness and simplifying how customers access their benefits. That includes making it easy to verify coverage across both in network and out of network plans.

Neil Blumenthal: We're also driving e-commerce growth through tools like Advisor, our proprietary AI-powered recommendations engine that launched in 2025, which, paired with our award-winning virtual try-on tool, is driving higher conversion by simplifying the shopping journey and enhancing the customer experience. We will continue to leverage these assets to drive growth in 2026. Our second priority this year is preparing for the launch of AI glasses. As we look ahead, we believe the opportunity in front of Warby Parker is larger than ever as we enter act three. While our core mission remains unchanged, this next act is about expanding our reach and integrating groundbreaking technology into a product people already love and wear every day. With the integration of powerful AI models like Gemini, we are building glasses that deliver real-time, personalized assistance, allowing you to keep your phone in your pocket and stay present in the moment.

Adrian Mitchell: We're also driving e-commerce growth through tools like Advisor, our proprietary AI-powered recommendations engine that launched in 2025, which, paired with our award-winning virtual try-on tool, is driving higher conversion by simplifying the shopping journey and enhancing the customer experience. We will continue to leverage these assets to drive growth in 2026. Our second priority this year is preparing for the launch of AI glasses. As we look ahead, we believe the opportunity in front of Warby Parker is larger than ever as we enter act three. While our core mission remains unchanged, this next act is about expanding our reach and integrating groundbreaking technology into a product people already love and wear every day. With the integration of powerful AI models like Gemini, we are building glasses that deliver real-time, personalized assistance, allowing you to keep your phone in your pocket and stay present in the moment.

Clearly communicating eligibility and ensuring Warby Parker is visible. When customers are actively searching for covered providers.

Speaker #1: This includes adding dedicated fixtures, investing in training, and designing a best-in-class shopping experience across channels. We are equipping our teams to support product education, demonstrations, servicing, and ongoing customer support from day one.

Third, we are improving the experience for out of network customers. Last year, we piloted a new capability designed to simplify reimbursement, reducing friction, and making it easier for customers to use their benefits with us. We are encouraged by the early results and plan to scale this to all stores this quarter,

Speaker #1: Third, on the technology side, we are advancing a multi-year product roadmap supported by continued investment in research and development. With additional products and features already in the pipeline.

We are working diligently to increase Insurance penetration while competitive Dynamics. Make this challenging, we remain Relentless in our Pursuit as we believe, this is a key driver of Revenue, growth and market share gains for our business over time.

Speaker #1: These initiatives involve targeted operating and capital investments, aligned with our expected launch timeline later this year. We are working closely with our strategic partner Google who's offsetting a large portion of pre-launch investments.

Imperial. We continue to invest in marketing to drive awareness and acquire customers. In ways that complement our retail and insurance strategies.

Speaker #1: At the same time, we continue to use AI across the organization to drive productivity and efficiency. We are already seeing impact across teams from creative and design to engineering, where AI is now generating more than 50% of our code base.

In 2025, we increase investments in top of funnel marketing including launching a 3-year partnership with Arch. Manning a glass is where since Age 3 and a Warby Parker customer since middle school.

Neil Blumenthal: This is a powerful personal assistant that is there when you need it and invisible when you don't, embedded in beautifully designed eyewear made for everyday, all-day use that you'd expect from Warby Parker. In 2026, we will continue building capabilities across several areas to support this next phase of innovation. First, we are prioritizing production and supply chain readiness to address the added complexity of the consumer electronics space. We are expanding manufacturing capacity, strengthening systems and quality control processes, and building the operational infrastructure necessary to support and scale a new category. Second, we are readying our stores and store teams for the launch of AI glasses. This includes adding dedicated fixtures, investing in training, and designing a best-in-class shopping experience across channels. We are equipping our teams to support product education, demonstrations, servicing, and ongoing customer support from day one.

Adrian Mitchell: This is a powerful personal assistant that is there when you need it and invisible when you don't, embedded in beautifully designed eyewear made for everyday, all-day use that you'd expect from Warby Parker. In 2026, we will continue building capabilities across several areas to support this next phase of innovation. First, we are prioritizing production and supply chain readiness to address the added complexity of the consumer electronics space. We are expanding manufacturing capacity, strengthening systems and quality control processes, and building the operational infrastructure necessary to support and scale a new category. Second, we are readying our stores and store teams for the launch of AI glasses. This includes adding dedicated fixtures, investing in training, and designing a best-in-class shopping experience across channels. We are equipping our teams to support product education, demonstrations, servicing, and ongoing customer support from day one.

this partnership has allowed us to participate in a national linear media campaign and connect with a younger demographic particularly in key markets across the southeast

Speaker #1: And finally, our third priority in 2026 is to make additional strides to increase insurance penetration while continuing to invest in brand awareness and customer acquisition.

To further expand awareness in 2026. We plan to pursue differentiated Partnerships collaborations and brand initiatives designed to reach a broader audience.

Speaker #1: A significant opportunity in the business today is expanding access to both in-network and out-of-network insurance customers. From the beginning, our pricing philosophy has been to offer fair, transparent pricing whether a customer pays out-of-pocket or uses insurance benefits.

In 2025, we leverage more advanced measurement and tools and analytics to inform our media mix decisions in the midst of rising media costs.

In 2026. We remain committed to marketing spend in the low teens as a percent of Revenue, while continuing to improve productivity across a broader, set of both established and emerging channels.

Speaker #1: Customers using in-network benefits at traditional optical retailers still pay approximately $200 out-of-pocket. Whereas at Warby Parker, they can purchase a complete pair of prescription glasses starting at $95.

We are actively optimizing and reallocating spend towards higher return marketing channels, including reinvesting savings from the sunset of the home. Tryon program into brand awareness initiatives and customer acquisition.

Speaker #1: Our goal has always been to deliver compelling value regardless of how a customer chooses to pay. At the same time, we recognize that many customers have vision insurance benefits, and we have worked diligently to make it easier for them to apply those benefits when shopping with us.

Neil Blumenthal: Third, on the technology side, we are advancing a multiyear product roadmap supported by continued investment in research and development, with additional products and features already in the pipeline. These initiatives involve targeted operating and capital investments aligned with our expected launch timeline later this year. We are working closely with our strategic partner, Google, who is offsetting a large portion of pre-launch investments. At the same time, we continue to use AI across the organization to drive productivity and efficiency. We are already seeing impact across teams, from creative and design to engineering, where AI is now generating more than 50% of our code base. Finally, our third priority in 2026 is to make additional strides to increase insurance penetration while continuing to invest in brand awareness and customer acquisition.

Adrian Mitchell: Third, on the technology side, we are advancing a multiyear product roadmap supported by continued investment in research and development, with additional products and features already in the pipeline. These initiatives involve targeted operating and capital investments aligned with our expected launch timeline later this year. We are working closely with our strategic partner, Google, who is offsetting a large portion of pre-launch investments. At the same time, we continue to use AI across the organization to drive productivity and efficiency. We are already seeing impact across teams, from creative and design to engineering, where AI is now generating more than 50% of our code base. Finally, our third priority in 2026 is to make additional strides to increase insurance penetration while continuing to invest in brand awareness and customer acquisition.

Taken together. These 3 priorities are designed to strengthen the core eyewear business. Expand into new categories and establish the capabilities necessary for us to drive higher levels of Revenue growth over time, positioning the company to accelerate as these Investments scale.

Speaker #1: In 2025, our in-network insurance penetration was approximately 8%, up from 7% the prior year. This represents approximately 40% year-over-year dollar growth. Insured customers continue to be among our most valuable, spending more on their initial purchase, selecting Progressive lenses at higher rates, and returning more frequently over time.

Speaker #1: In 2026, our plan assumes incremental progress across three dimensions. First, we are expanding covered lives by strengthening relationships with existing carriers and scaling pilots with additional carriers.

As we grow the business, we remain Guided by the belief that scale and impact. Go hand. In hand in 2025, we surpassed 20 million pairs of glasses, distributed globally through our bio, give a pair program and expanded pupils project to reach more students across the US committing to distribute and additional 40,000 pairs of glasses over the next 2 years. In Baltimore, Boston, New York, and Washington DC.

Now, I'm thrilled to welcome Adrien Mitchell to Warby Parker.

Speaker #1: Second, we are focused on scaling utilization by increasing awareness and simplifying how customers access their benefits. That includes making it easy to verify coverage across both in-network and out-of-network plans.

Adrienne brings deep operating and financial leadership and experience across some of the world's most recognized consumer Brands. He joins us at an important moment, in Warby Parker's evolution.

Neil Blumenthal: A significant opportunity in the business today is expanding access to both in-network and out-of-network insurance customers. From the beginning, our pricing philosophy has been to offer fair, transparent pricing, whether a customer pays out of pocket or uses insurance benefits. Customers using in-network benefits at a traditional optical retailer still pay approximately $200 out of pocket, whereas at Warby Parker, they can purchase a complete pair of prescription glasses starting at $95. Our goal has always been to deliver compelling value regardless of how a customer chooses to pay. At the same time, we recognize that many customers have vision insurance benefits, and we have worked diligently to make it easier for them to apply those benefits when shopping with us. In 2025, our in-network insurance penetration was approximately 8%, up from 7% the prior year.

Adrian Mitchell: A significant opportunity in the business today is expanding access to both in-network and out-of-network insurance customers. From the beginning, our pricing philosophy has been to offer fair, transparent pricing, whether a customer pays out of pocket or uses insurance benefits. Customers using in-network benefits at a traditional optical retailer still pay approximately $200 out of pocket, whereas at Warby Parker, they can purchase a complete pair of prescription glasses starting at $95. Our goal has always been to deliver compelling value regardless of how a customer chooses to pay. At the same time, we recognize that many customers have vision insurance benefits, and we have worked diligently to make it easier for them to apply those benefits when shopping with us. In 2025, our in-network insurance penetration was approximately 8%, up from 7% the prior year.

Speaker #1: Clearly communicating eligibility and ensuring Warby Parker is visible when customers are actively searching for covered providers. Third, we are improving the experience for out-of-network customers.

I also want to take a moment to recognize Josh tupo. Our VP of fpna for his meaningful contributions, during this critical transition period, and for his steady leadership and partnership, we're grateful for the role, he's played

Speaker #1: Last year, we piloted a new capability designed to simplify reimbursement, reducing friction and making it easier for customers to use their benefits with us.

With that. I'd like to welcome Adrien Mitchell. Our new Chief Financial Officer to share some additional detail on our results, for the quarter, and our outlook for the balance of this fiscal year.

Speaker #1: We are encouraged by the early results and plan to scale this to all stores this quarter. We are working diligently to increase insurance penetration.

Speaker #1: While competitive dynamics make this challenging, we remain relentless in our pursuit. As we believe this is a key driver of revenue growth and market share gains for our business over time.

Thank you, Neil and thank you Josh. I've always been impressed by Woody Parker's Innovative brand leadership. Relentless, focus on customer experience and its history of innovation. I'm excited to join the team at this important moment and to work alongside you Dave and the broader team to support long-term sustainable growth while making Vision Care More accessible for all

Speaker #1: In parallel, we continue to invest in marketing to drive awareness and acquire customers in ways that complement our retail and insurance strategies. In 2025, we increase investments in top-of-funnel marketing, including launching a three-year partnership with Arch Manning, a glasses wearer since age three and a Warby Parker customer since middle school.

Today our review, our fourth quarter and full year 2025 results in more detail and then provide guidance for the full year and the first quarter of 2026.

Let's start with the fourth quarter.

Neil Blumenthal: This represents approximately 40% year-over-year dollar growth. Insured customers continue to be among our most valuable, spending more on their initial purchase, selecting progressive lenses at higher rates, and returning more frequently over time. In 2026, our plan assumes incremental progress across three dimensions. First, we are expanding covered lives by strengthening relationships with existing carriers and scaling pilots with additional carriers. Second, we are focused on scaling utilization by increasing awareness and simplifying how customers access their benefits. That includes making it easy to verify coverage across both in-network and out-of-network plans, clearly communicating eligibility, and ensuring Warby Parker is visible when customers are actively searching for covered providers. Third, we are improving the experience for out-of-network customers. Last year, we piloted a new capability designed to simplify reimbursement, reducing friction and making it easier for customers to use their benefits with us.

Adrian Mitchell: This represents approximately 40% year-over-year dollar growth. Insured customers continue to be among our most valuable, spending more on their initial purchase, selecting progressive lenses at higher rates, and returning more frequently over time. In 2026, our plan assumes incremental progress across three dimensions. First, we are expanding covered lives by strengthening relationships with existing carriers and scaling pilots with additional carriers. Second, we are focused on scaling utilization by increasing awareness and simplifying how customers access their benefits. That includes making it easy to verify coverage across both in-network and out-of-network plans, clearly communicating eligibility, and ensuring Warby Parker is visible when customers are actively searching for covered providers. Third, we are improving the experience for out-of-network customers. Last year, we piloted a new capability designed to simplify reimbursement, reducing friction and making it easier for customers to use their benefits with us.

Speaker #1: This partnership has allowed us to participate in a national linear media campaign and connect with a younger demographic, particularly in key markets across the Southeast.

.2% year-over-year driven by contributions from both new and existing stores.

E-commerce Revenue was 56.8 Million up 1.6% year-over-year.

Speaker #1: To further expand awareness in 2026, we plan to pursue differentiated partnerships, collaborations, and brand initiatives designed to reach a broader audience. In 2025, we leverage more advanced measurement tools and analytics to inform our media mix decisions.

Speaker #1: In the midst of rising media costs. In 2026, we remain committed to marketing spend in the low teens as a percent of revenue, while continuing to improve productivity across a broader set of both established and emerging channels.

To gross margin. Our gross margin accounts for a range of costs including frames lenses, Optical Labs, customer shipping optometrist salaries store rent and the depreciation of store buildout. Our gross margin. Also includes stock-based compensation expenses for our optometrists and Optical lab employees.

For comparability, I will speak to gross margin. Excluding stock-based compensation.

Speaker #1: We are actively optimizing and reallocating spend towards higher return marketing channels, including reinvesting savings from the sunset of the home triumph program into brand awareness initiatives and customer acquisition.

Neil Blumenthal: We are encouraged by the early results and plan to scale this to all stores this quarter. We are working diligently to increase insurance penetration. While competitive dynamics make this challenging, we remain relentless in our pursuit, as we believe this is a key driver of revenue growth and market share gains for our business over time. In parallel, we continue to invest in marketing to drive awareness and acquire customers in ways that complement our retail and insurance strategies. In 2025, we increased investments in top-of-funnel marketing, including launching a 3-year partnership with Arch Manning, a glasses wearer since age 3 and a Warby Parker customer since middle school. This partnership has allowed us to participate in a national linear media campaign and connect with a younger demographic, particularly in key markets across the Southeast.

Adrian Mitchell: We are encouraged by the early results and plan to scale this to all stores this quarter. We are working diligently to increase insurance penetration. While competitive dynamics make this challenging, we remain relentless in our pursuit, as we believe this is a key driver of revenue growth and market share gains for our business over time. In parallel, we continue to invest in marketing to drive awareness and acquire customers in ways that complement our retail and insurance strategies. In 2025, we increased investments in top-of-funnel marketing, including launching a 3-year partnership with Arch Manning, a glasses wearer since age 3 and a Warby Parker customer since middle school. This partnership has allowed us to participate in a national linear media campaign and connect with a younger demographic, particularly in key markets across the Southeast.

Speaker #1: Taken together, these three priorities are designed to strengthen the core eyewear business, expand into new categories, and establish the capabilities necessary for us to drive higher levels of revenue growth, which will accelerate as these investments scale.

Fourth quarter, adjusted gross margin was 52.5% 170 basis points below last year. The decrease in adjusted gross margin was primarily driven by tariff related, headwinds and glasses, and The Leverage in the fixed portion of gross margin, which included increased Dr. Headcounts, as we staffed up in advance for our busiest period.

Speaker #1: As we grow the business, we remain guided by the belief that scale and impact go hand in hand. In 2025, we surpassed $20 million pairs of glasses distributed globally, through our buy-a-pair, give-a-pair program.

We also experienced increased penetration of lower margin. Contact lenses. And an increase in expedited customer shipping costs. These impacts were partially offset by selectively price increases taken earlier this year in glasses and increased penetration of higher margin, progressive lenses and other lens enhancements.

Speaker #1: And expanded pupils project to reach more students across the US, committing to distribute an additional 40,000 pairs of glasses over the next two years in Baltimore, Boston, Newark, and Washington, DC.

Shifting to sgna adjusted sgna excludes non-cash calls, like stock-based compensation expenses, fourth quarter, adjusted, sgna expenses were 110.3 million or 52% of Revenue 200 basis points, lower than last year, reflecting Revenue, growth outpacing, expense growth.

Speaker #1: Now I'm thrilled to welcome Adrian Mitchell to Warby Parker. Adrian brings deep operating and financial leadership and experience across some of the world's most recognized consumer brands.

Neil Blumenthal: To further expand awareness in 2026, we plan to pursue differentiated partnerships, collaborations, and brand initiatives designed to reach a broader audience. In 2025, we leveraged more advanced measurement tools and analytics to inform our media mix decisions in the midst of rising media costs. In 2026, we remain committed to marketing spend in the low teens as a % of revenue, while continuing to improve productivity across a broader set of both established and emerging channels. We are actively optimizing and reallocating spend towards higher return marketing channels, including reinvesting savings from the sunset of the Home Try-On program into brand awareness initiatives and customer acquisition.

Adrian Mitchell: To further expand awareness in 2026, we plan to pursue differentiated partnerships, collaborations, and brand initiatives designed to reach a broader audience. In 2025, we leveraged more advanced measurement tools and analytics to inform our media mix decisions in the midst of rising media costs. In 2026, we remain committed to marketing spend in the low teens as a % of revenue, while continuing to improve productivity across a broader set of both established and emerging channels. We are actively optimizing and reallocating spend towards higher return marketing channels, including reinvesting savings from the sunset of the Home Try-On program into brand awareness initiatives and customer acquisition.

Marketing. As a percent of Revenue was 12.9% flat to last year as expected. The majority of the leverage was driven by adjusted non-marketing sgna, which was 200 basis points below last year.

Speaker #1: He joins us at an important moment in Warby Parker's evolution. I also want to take a moment to recognize Josh Trupo, our VP of FP&A, for his meaningful contributions during this critical transition period and for his steady leadership and partnership.

Fourth quarter, adjusted. Ebit dial was 15.2 million as a percent of total revenue. It was 7.2% or 10 basis points below last year. Now, I'll turn to the full year 2025

Speaker #1: We're grateful for the roles he's played. With that, I'd like to welcome Adrian Mitchell, our new Chief Financial Officer, to share some additional detail on our results for the quarter and our outlook for the balance of this fiscal year.

Full year 2025 Revenue was 871.9 Million up 13% year-over-year, retail Revenue, increased 17.3% year-over-year driven by contributions from both new and existing stores.

Speaker #2: Thank you, Neil, and thank you, Josh. I've always been impressed by Warby Parker's innovative brand leadership, relentless focus on customer experience, and its history of innovation.

E-commerce Revenue was 241 million up 3.1% year-over-year.

Neil Blumenthal: Taken together, these three priorities are designed to strengthen the core eyewear business, expand into new categories, and establish the capabilities necessary for us to drive higher levels of revenue growth over time, positioning the company to accelerate as these investments scale. As we grow the business, we remain guided by the belief that scale and impact go hand in hand. In 2025, we surpassed 20 million pairs of glasses distributed globally through our Buy a Pair, Give a Pair program, and expanded Pupils Project to reach more students across the US, committing to distribute an additional 40,000 pairs of glasses over the next two years in Baltimore, Boston, Newark, and Washington, DC. Now, I'm thrilled to welcome Adrian Mitchell to Warby Parker. Adrian brings deep operating and financial leadership and experience across some of the world's most recognized consumer brands.

Adrian Mitchell: Taken together, these three priorities are designed to strengthen the core eyewear business, expand into new categories, and establish the capabilities necessary for us to drive higher levels of revenue growth over time, positioning the company to accelerate as these investments scale. As we grow the business, we remain guided by the belief that scale and impact go hand in hand. In 2025, we surpassed 20 million pairs of glasses distributed globally through our Buy a Pair, Give a Pair program, and expanded Pupils Project to reach more students across the US, committing to distribute an additional 40,000 pairs of glasses over the next two years in Baltimore, Boston, Newark, and Washington, DC. Now, I'm thrilled to welcome Adrian Mitchell to Warby Parker. Adrian brings deep operating and financial leadership and experience across some of the world's most recognized consumer brands.

Speaker #2: I'm excited to join the team at this important moment and to work alongside you, Dave, and the broader team to support long-term, sustainable growth while making vision care more accessible for all.

We finished 2025 with 2.7 million active customers representing growth of 7% year-over-year on a trailing 12-month basis.

Average revenue per customer, increased 5.7% year-over-year to 324 dollars in 2025.

Speaker #2: Today, I'll review our fourth quarter and full year 2025 results in more detail. And then provide guidance for the full year and the first quarter of 2026.

Speaker #2: Let's start with the fourth quarter. Fourth quarter revenue was $212 million up 11.2% to last year. Retail revenue increased 15.2% year over year, driven by contributions from both new and existing stores.

This was driven by several factors including our selective price increases for lenses and lens enhancements. At the end of April, a higher mix of Premium lenses like progressives and continued growth in. Both contact lenses and eye exam sales, partially offset by the mixed shift into lower price. Point frames

Speaker #2: E-commerce revenue was $56.8 million, up 1.6% year over year. Turning to gross margin, our gross margin accounts for a range of costs, including frames, lenses, optical labs, customer shipping, optometrist salaries, store rent, and the depreciation of store build-outs.

Full year, adjusted gross margin was 54.4% down, 110 basis points to decrease in adjusted. Gross margin was driven by tariff related, headwinds and glasses higher contacts. Next increased, Dr. Headcount and customer shipping costs

Neil Blumenthal: He joins us at an important moment in Warby Parker's evolution. I also want to take a moment to recognize Josh Truppo, our VP of FP&A, for his meaningful contributions during this critical transition period and for his steady leadership and partnership. We're grateful for the role he's played. With that, I'd like to welcome Adrian Mitchell, our new Chief Financial Officer, to share some additional detail on our results for the quarter and our outlook for the balance of this fiscal year.

Adrian Mitchell: He joins us at an important moment in Warby Parker's evolution. I also want to take a moment to recognize Josh Truppo, our VP of FP&A, for his meaningful contributions during this critical transition period and for his steady leadership and partnership. We're grateful for the role he's played. With that, I'd like to welcome Adrian Mitchell, our new Chief Financial Officer, to share some additional detail on our results for the quarter and our outlook for the balance of this fiscal year.

These impacts are partially offset by selectively price increases in glasses and increased penetration of progressive lenses and other lens enhancements.

Speaker #2: Our gross margin also includes stock-based compensation expenses for our optometrists and optical lab employees. For comparability, I will speak to gross margin excluding stock-based compensation.

Fully your adjusted sgna. Expenses were 433.33 million, as a percent of total revenue adjusted, sgna was 49.7% 280 basis points, lower than last year.

Speaker #2: Fourth quarter adjusted gross margin was 52.5%, 170 basis points below last year. The decrease in adjusted gross margin was primarily driven by tariff-related headwinds in glasses, and the leverage in the fixed portion of gross margin, which included increased doctor headcount as we staffed up in advance for our busiest period.

Adrian Mitchell: Thank you, Neil, and thank you, Josh. I've always been impressed by Warby Parker's innovative brand leadership, relentless focus on customer experience, and its history of innovation. I'm excited to join the team at this important moment and to work alongside you, Dave, and the broader team to support long-term sustainable growth while making vision care more accessible for all. Today, I'll review our Q4 and full year 2025 results in more detail, and then provide guidance for the full year and the Q1 of 2026. Let's start with the Q4. Q4 revenue was $212 million, up 11.2% to last year. Retail revenue increased 15.2% year-over-year, driven by contributions from both new and existing stores. E-commerce revenue was $56.8 million, up 1.6% year-over-year.

Marketing, as a percent of Revenue was 12.6%, 20 basis points higher than last year. And as expected, the majority of the leverage was driven by adjusted non-marketing sgna, which was 300 basis points below last year.

Speaker #2: We also experienced increased penetration of lower-margin contact lenses and an increase in expedited customer shipping costs. These impacts were partially offset by selective price increases taken earlier this year in glasses, and increased penetration of higher-margin progressive lenses and other lens enhancements.

Now shifting to Capital allocation, we ended the year in a strong cash position of 286, million of 32 million from the prior year, we generated approximately 44 million in free. Cash flow in 2025, up from 35 million in 2024, as anticipated 2025 marked, our third consecutive year of positive and accelerating free cash flow.

Speaker #2: Shifting to FG&A, adjusted FG&A excludes non-cash costs like stock-based compensation expenses. Fourth quarter adjusted FG&A expenses were $110.3 million, or 52% of revenue, 200 basis points lower than last year, reflecting revenue growth outpacing expense growth.

In addition we have a 120 million credit facility expandable to 175 million which remains undrawn other than 4 million outstanding for letters of credit. Providing us with additional liquidity and flexibility.

Speaker #2: Marketing as a percent of revenue was 12.9%, flat to last year. As expected, the majority of the leverage was driven by adjusted non-marketing FG&A, which was $200 basis points below last year.

Adrian Mitchell: Turning to gross margin. Our gross margin accounts for a range of costs, including frames, lenses, optical labs, customer shipping, optometrist salaries, store rent, and the depreciation of store buildouts. Our gross margin also includes stock-based compensation expenses for our optometrists and optical lab employees. For comparability, I will speak to gross margin excluding stock-based compensation. Q4 adjusted gross margin was 52.5%, 170 basis points below last year. The decrease in adjusted gross margin was primarily driven by tariff-related headwinds in glasses and deleverage in the fixed portion of gross margin, which included increased doctor headcount as we staffed up in advance for our busiest period. We also experienced increased penetration of lower-margin contact lenses and an increase in expedited customer shipping costs.

Notably our balance sheet is a meaningful strategic asset. It gives us the flexibility to self-fund the Strategic initiatives underway in 2026. Support the launch of AI glasses and position the business for Accelerated growth.

Speaker #2: Fourth quarter adjusted EBITDA was 15.2 million. As a percent of total revenue, it was 7.2%, or 10 basis points below last year. Now I'll turn to the full year 2025.

As it relates to Capital, allocation, we will continue to deploy Capital deliberately to support growth while maintaining Financial flexibility. We evaluate Capital allocation holistically.

Speaker #2: Full year 2025 revenue was $871.9 million, up 13% year over year. Retail revenue increased 17.3% year over year, driven by contributions from both new and existing stores.

Balancing investments in the business with returns to shareholders.

Speaker #2: E-commerce revenue was $241 million, up 3.1% year over year. We finished 2025 with $2.7 million active customers, representing growth of 7% year over year on a trailing 12-month basis.

Earlier this week, our board of directors authorized up to $100 million. In share repurchases, we intended to use with this authorization opportunistically primarily to offset dilution over time, and even manner consistent with our Capital allocation priorities.

Equally as important, our primary focus remains investing in high return initiatives within the business to support long-term profitable growth and healthy value creation.

Speaker #2: Average revenue per customer increased 5.7% year over year to $324 in 2025. This was driven by several factors, including our selective price increases for lenses and lens enhancements at the end of April, a higher mix of premium lenses like progressives, and continued growth in both contact lenses and eye exam sales, partially offset by the mix shift into lower price point frames.

Adrian Mitchell: These impacts were partially offset by selective price increases taken earlier this year in glasses and increased penetration of higher-margin progressive lenses and other lens enhancements. Shifting to SG&A. Adjusted SG&A excludes non-cash costs like stock-based compensation expenses. Q4 adjusted SG&A expenses were $110.3 million, or 52% of revenue, 200 basis points lower than last year, reflecting revenue growth outpacing expense growth. Marketing as a percent of revenue was 12.9%, flat to last year. As expected, the majority of the leverage was driven by adjusted non-marketing SG&A, which was 200 basis points below last year. Q4 adjusted EBITDA was $15.2 million. As a percent of total revenue, it was 7.2%, or 10 basis points below last year. Now I'll turn to the full year 2025.

We are pleased that our cash flow generation allows us to sell fund our priorities. While also, providing the flexibility to return excess Capital to shareholders through this share buyback program.

Now, let's turn to our outlook for 2026.

Speaker #2: Full year adjusted gross margin was 54.4%, down 110 basis points. The decrease in adjusted gross margin was driven by tariff-related headwinds in glasses, higher contact mix, increased doctor headcount, and customer shipping costs.

Based on recent Trends and core eyewear industry. Headwinds, we believe that it is prudent to adopt a measured approach spending in. The broader Optical industry is expected to decline, low single digits this year, on both a unit volume and dollar basis.

While we have conviction in our strategic initiatives and the underlying health of our business, we're planning with discipline. Given the current backdrop

Speaker #2: These impacts are partially offset by selective price increases in glasses, and increased penetration of progressive lenses and other lens enhancements. Full year adjusted FG&A expenses were $433.3 million.

We are focused on executing a Omni Channel model to continue to elevate the customer experience and successfully launching AI glasses. All of which we believe will create a durable platform for long-term profitable growth.

Speaker #2: As a percent of total revenue, adjusted FG&A was 49.7%, $280 basis points lower than last year. Marketing as a percent of revenue was 12.6%, 20 basis points higher than last year, and as expected, the majority of the leverage was driven by adjusted non-marketing FG&A, which was $300 basis points below last year.

Before getting into the specifics, we want to also share that we are. Assessing what metrics we disclose to ensure that our stakeholders can better track the drivers of value creation within our business

Adrian Mitchell: Full year 2025 revenue was $871.9 million, up 13% year-over-year. Retail revenue increased 17.3% year-over-year, driven by contributions from both new and existing stores. E-commerce revenue was $241 million, up 3.1% year-over-year. We finished 2025 with 2.7 million active customers, representing growth of 7% year-over-year on a trailing twelve-month basis. Average revenue per customer increased 5.7% year-over-year to $324 in 2025.

It is also important to note that our 2026 Outlook excludes. Any Revenue contribution from AI glasses, but it does include the operating expenses, required to support the launch. We believe this approach, reflects an appropriate balance of transparency and conservatism, as we enter this new category,

Speaker #2: Now shifting to capital allocation. We ended the year in a strong cash position of $286 million, up 32 million from the prior year. We generated approximately $44 million in free cash flow in 2025, up from $35 million in 2024.

For the full year of 2026 regarding to revenue of 959 to 976 million representing approximately, 10% to 12% year-over-year growth.

Speaker #2: As anticipated, 2025 marked our third consecutive year of positive and accelerating free cash flow. In addition, we have a $120 million credit facility, expandable to $175 million, which remains undrawn other than $4 million outstanding for letters of credit, providing us with additional liquidity and flexibility.

Adrian Mitchell: This was driven by several factors, including our selective price increases for lenses and lens enhancements at the end of April, a higher mix of premium lenses like progressives, and continued growth in both contact lenses and eye exam sales, partially offset by the mix shift into lower price point frames. Full year Adjusted gross margin was 54.4%, down 110 basis points. The decrease in Adjusted gross margin was driven by tariff-related headwinds in glasses, higher contacts mix, increased doctor headcount, and customer shipping costs. These impacts are partially offset by selective price increases in glasses and increased penetration of progressive lenses and other lens enhancements. Full year Adjusted SG&A expenses were $433.3 million. As a percent of total revenue, Adjusted SG&A was 49.7%, 280 basis points lower than last year.

We expect e-commerce to grow in the low. Single digits range for the full year, with the impact of sunsetting. The home Tryon program more concentrated in the first half and moderating in the second half of the year.

We expect gross margin to be in line with the full year 2025 reflecting mixed Dynamics across glasses, contacts and eye exams, as well. As ongoing supply chain efficiencies partially offset by non-product related investment costs including store rents and Doctor salaries

Speaker #2: The growth in our cash balance is a result of increased profitability and disciplined capital management. Notably, our balance sheet is a meaningful strategic asset.

Speaker #2: It gives us the flexibility to self-fund the strategic initiatives underway in 2026, support the launch of AI glasses, and position the business for accelerated growth.

We are guiding to adjusted ebit do of 117 to 119 million, which equates to an adjusted ebit da margin of 12.2% across our Revenue range and 130 basis points of expansion year-over-year.

We expect marketing to remain in the low teens as a percent of Revenue.

Speaker #2: As it relates to capital allocation, we will continue to deploy capital deliberately to support growth. While maintaining financial flexibility, we evaluate capital allocation holistically.

Turning to the first quarter.

Since we Sunset the home try-on program retail is expected to represent approximately 75% of our Revenue in the first quarter.

Speaker #2: Balancing investments in the business with returns to shareholders. Earlier this week, our board of directors authorized up to $100 million in share repurchases. We intended to use this authorization opportunistically, primarily to offset dilution over time, and in a manner consistent with our capital allocation priorities.

Adrian Mitchell: Marketing as a percent of revenue was 12.6%, 20 basis points higher than last year. As expected, the majority of the leverage was driven by adjusted non-marketing SG&A, which was 300 basis points below last year. Now shifting to capital allocation. We ended the year in a strong cash position of $286 million, up $32 million from the prior year. We generated approximately $44 million in free cash flow in 2025, up from $35 million in 2024. As anticipated, 2025 marked our third consecutive year of positive and accelerating free cash flow. In addition, we have a $120 million credit facility, expandable to $175 million, which remains undrawn other than $4 million outstanding for letters of credit, providing us with additional liquidity and flexibility.

Encouragingly, retail delivered High Teens year-over-year growth in early, January of this year. Reflecting an acceleration from December.

Speaker #2: Equally as important, our primary focus remains investing in high-return initiatives within the business to support long-term profitable growth and healthy value creation. We are pleased that our cash flow generation allows us to self-fund our priorities while also providing the flexibility to return excess capital to shareholders through this share buyback program.

starting in mid January and extending through this week, we experience significant snow and prolonged cold weather conditions that materially impacted store traffic and sales and errors, that generated over 70% of total retail sales for Warby Parker

When we look at the q1 performance for stores in these areas which include many of our highest volume locations, we have seen High Teens year-over-year, retail growth through periods of normal weather but deteriorated performance to low single digit declines year-over-year growth during periods of inclement weather.

Speaker #2: Now let's turn to our outlook for 2026. Based on recent trends and core eyewear industry headwinds, we believe that it is prudent to adopt a measured approach.

In these weather impacted areas, performance returned to High Teens growth year-over-year after snow and cold weather, conditions, passed, and these stores return to normal operations.

Speaker #2: Spending in the broader optical industry is expected to decline low single-digits this year on both a unit volume and dollar basis. While we have conviction in our strategic initiatives and the underlying help of our business, we're planning with discipline given the current backdrop.

In non-weather impacted markets, retail growth has been low double digits, which is consistent with new store growth in these markets.

Adrian Mitchell: The growth in our cash balance is a result of increased profitability and disciplined capital management. Notably, our balance sheet is a meaningful strategic asset. It gives us the flexibility to self-fund the strategic initiatives underway in 2026, support the launch of AI glasses, and position the business for accelerated growth. As it relates to capital allocation, we will continue to deploy capital deliberately to support growth while maintaining financial flexibility. We evaluate capital allocation holistically, balancing investments in the business with returns to shareholders. Earlier this week, our board of directors authorized up to $100 million in share repurchases. We intended to use this authorization opportunistically, primarily to offset dilution over time and in a manner consistent with our capital allocation priorities. Equally as important, our primary focus remains investing in high return initiatives within the business to support long-term, profitable growth and healthy value creation.

Speaker #2: We are focused on executing across our omnichannel model continuing to elevate the customer experience and successfully launching AI glasses all of which we believe will create a durable platform for long-term profitable growth.

On program in the fourth quarter.

Speaker #2: Before getting into the specifics, we want to also share that we are assessing what metrics we disclose to ensure that our stakeholders can better track the drivers of value creation within our business.

For e-commerce quarter. Today are a direct glasses and contacts purchases have been growing in the low double digits range reinforcing. The fact that the forward-looking parts of our e-commerce business remain healthy despite the headwinds from sunsetting, the home, try and program late last year.

Speaker #2: It is also important to note that our 2026 outlook excludes any revenue contribution from AI glasses but it does include the operating expenses required to support the launch.

Taking all this into account, including inclement weather conditions are quarter to date Topline growth for the full business. As of earlier this week is in the mid single digit range.

Speaker #2: We believe this approach reflects an appropriate balance of transparency and conservatism as we enter this new category. For the full year 2026, we're guiding to revenue of $959 to $976 million representing approximately 10% to 12% year over year growth.

As a result for the first quarter of 2026, we're regarding to revenue growth of 6.5 to 7.5% year-over-year for approximately 238 to 240 million assuming. No, further significant weather related disruptions for the remainder of the quarter.

Adrian Mitchell: We are pleased that our cash flow generation allows us to self-fund our priorities, while also providing the flexibility to return excess capital to shareholders through this share buyback program. Now let's turn to our outlook for 2026. Based on recent trends and core eyewear industry headwinds, we believe that it is prudent to adopt a measured approach. Spending in the broader optical industry is expected to decline low single digits this year on both a unit volume and dollar basis. While we have conviction in our strategic initiatives and the underlying health of our business, we're planning with discipline given the current backdrop. We are focused on executing across our omni-channel model, continuing to elevate the customer experience, and successfully launching AI glasses, all of which we believe will create a durable platform for long-term, profitable growth.

Speaker #2: We expect e-commerce to grow in the low single-digits range for the full year with the impact of sunsetting the home try-on on program more concentrated in the first half and moderating in the second half of the year.

We expect an adjusted ebiza of 27 to 28 million. Approximately 11.5% ebita margin at the midpoint of our range.

Speaker #2: We expect gross margin to be in line with the full year 2025 reflecting mixed dynamics across glasses, contacts, and eye exams, as well as ongoing supply chain efficiencies partially offset by non-product-related investment costs including store rent and doctor salaries.

as expected first quarter, adjusted ebit that is impacted by lower Revenue, resulted from the impact of inclement weather and we expect to drive year-over-year, leverage in the remainder of the year as Topline growth normalizes,

Speaker #2: We are guiding to adjusted EBITDA of $117 to $119 million which equates to an adjusted EBITDA margin of 12.2% across our revenue range and $130 basis points of expansion year over year.

Speaker #2: We expect marketing to remain in the low teens as a percent of revenue. Turning to the first quarter, since we sunset the home try-on program, retail is expected to represent approximately 75% of our revenue in the first quarter.

2026 is a year. We are intentionally investing in building the capabilities necessary to support accelerated Revenue growth over time. We are focused on scaling The Core Business expanding access across our Omni Channel platform and executing the launch of AI glasses, while there are external factors beyond our control. We are planning our business with discipline, staying focused on what we can control and continuing to make progress on the initiatives that matter. Most

Adrian Mitchell: Before getting into the specifics, we want to also share that we are assessing what metrics we disclose to ensure that our stakeholders can better track the drivers of value creation within our business. It is also important to note that our 2026 outlook excludes any revenue contribution from AI glasses, but it does include the operating expenses required to support the launch. We believe this approach reflects an appropriate balance of transparency and conservatism as we enter this new category. For the full year 2026, we're guiding to revenue of $959 to $976 million, representing approximately 10% to 12% year-over-year growth.

before I wrap up, I'll share a few observations from my first few weeks here.

Speaker #2: Encouragingly, retail delivered high teens year over year growth in early January of this year reflecting an acceleration from December. Starting in experienced significant snow and prolonged cold weather conditions that materially impacted store traffic and sales in areas that generated over 70% of total retail sales for Warby Parker.

First, our powerful brand proposition position that the intersection of exceptional style superior quality, and outstanding value creates a meaningful runway for our Core Business to demonstrate sustained, mid- teens to High Teens growth and continued gains in market share.

Speaker #2: When we look at the Q1 performance for stores in these areas, which include many of our highest volume locations, we have seen high teens year over year retail growth during periods of normal weather but deteriorated performance to low single-digit declines year over year growth during periods of inclement weather.

We also see a significant opportunity to deepen relationships with holistic, Vision, Care customers, those who engage with us across exams classes and contacts and who consistently become our most valuable customers over time.

Adrian Mitchell: We expect e-commerce to grow in the low single digits range for the full year, with the impact of sunsetting the Home Try-On program more concentrated in the first half and moderating in the second half of the year. We expect gross margin to be in line with the full year 2025, reflecting mixed dynamics across glasses, contacts, and eye exams, as well as ongoing supply chain efficiencies, partially offset by non-product related investment costs, including store rent and doctor salaries. We are guiding to Adjusted EBITDA of $117 to $119 million, which equates to an Adjusted EBITDA margin of 12.2% across our revenue range and 130 basis points of expansion year-over-year. We expect marketing to remain in the low teens as a percent of revenue. Turning to Q1.

Second, our culture and proven track record of innovation positions us incredibly well as a leading player in the smart glasses category, which complements our Core Business?

Speaker #2: In these weather impact areas, performance returned to high teens growth year over year after snow and cold weather conditions passed and these stores returned to normal operations.

Finally, our healthy balance sheet and strong free cash. Flow allows us to sell funds, strategic growth initiatives. As we scale our business in future years, while also maintaining the flexibility to return Capital to shareholders, through our share repurchase program.

Speaker #2: In non-weather impacted markets, retail growth has been low double digits which is consistent with new store growth in these markets. For e-commerce, growth trends have been muted with low single-digit year over year declines quarter to date largely unaffected by weather patterns while absorbing the impact of the sunsetting of our home try-on program in the fourth quarter.

All this is possible because of an impressive team. I'm energized to be a part of this team and really excited about the long-term opportunities ahead with that. I'll now pass it back to Dave for closing comments.

Speaker #2: For e-commerce quarter to date, our direct glasses and contacts purchases have been growing in the low double digits range reinforcing the fact that the forward-looking parts of our e-commerce business remain healthy despite the headwinds from sunsetting the home try-on program late last year.

Thank you, Adrian. 2026 is an important year for us and we believe we remain uniquely positioned to continue delivering, strong growth in market, share gains while we expand the profitability of our business over time,

Adrian Mitchell: Since we sunset the Home Try-On program, retail is expected to represent approximately 75% of our revenue in Q1. Encouragingly, retail delivered high teens year-over-year growth in early January of this year, reflecting an acceleration from December. Starting in mid-January and extending through this week, we experienced significant snow and prolonged cold weather conditions that materially impacted store traffic and sales in areas that generated over 70% of total retail sales for Warby Parker. When we look at the Q1 performance for stores in these areas, which include many of our highest volume locations, we have seen high teens year-over-year retail growth during periods of normal weather, but deteriorated performance to low single digit declines year-over-year growth during periods of inclement weather.

At the same time, we are excited about the launch of AI glasses later this year and have a clear plan to drive growth in 2026 and Beyond.

I also want to recognize our team.

Speaker #2: Taking all this into account including inclement weather conditions, our quarter to date top-line growth for the full business as of earlier this week is in the mid-single-digit range.

Neil and I are inspired by the talent and dedication of our team members across Warby Parker. Right now, we're enabling us to embark on our next ambitious phase of growth. We're excited about the road ahead and confident in what this team continues to accomplish.

Speaker #2: As a result, for the first quarter of 2026, we're guiding to revenue growth of 6.5 to 7.5% year over year or approximately $238 to $240 million assuming no further significant weather-related disruptions for the remainder of the quarter.

With that operator, please open the line for Q&A.

Speaker #2: We expect an adjusted EBITDA of $27 to $28 million approximately $11.5% EBITDA margin at the midpoint of our range. As expected, first quarter adjusted EBITDA is impacted by lower revenue resulting from the impact of inclement weather and we expect to drive year over year leverage in the remainder of the year as top-line growth normalizes.

Thank you to ask a question. Please press star. Followed by 1 on your telephone keypad. If you change your mind, please press star followed by 2 to exit, the queue. And when preparing to ask your question, please ensure that your device is unmuted locally.

Finally, please note that in the interest of taking as many questions as possible, the company respectfully, asks that you limit yourself to 1 question and 1 follow-up if needed.

Adrian Mitchell: In these weather impacted areas, performance returned to high teens growth year-over-year after snow and cold weather conditions passed, and these stores returned to normal operations. In non-weather impacted markets, retail growth has been low double digits, which is consistent with new store growth in these markets. For e-commerce, growth trends have been muted, with low single digit year-over-year declines quarter to date, largely unaffected by weather patterns while absorbing the impact of the sunsetting of our Home Try-On program in Q4. For e-commerce quarter to date, our direct glasses and contacts purchases have been growing in the low double digits range, reinforcing the fact that the forward-looking parts of our e-commerce business remain healthy despite the headwind from sunsetting the Home Try-On program late last year.

Our first question today will be from the line of Brooke roach with Goldman Sachs. Please go ahead. Your line is open

Good morning and thank you for taking our questions.

Speaker #2: 2026 is a year we are intentionally investing necessary to support accelerated revenue growth over time. We are focused on scaling the core business, expanding access across our omnichannel platform, and executing the launch of AI glasses.

Softness that you're seeing with your younger. Customer are you losing share with that age cohort? Or is that simply a function of the broader industry pressure? And what actions are you taking to shore up this part of the business in 2026?

Speaker #2: While there are external factors beyond our control, we're planning our business with discipline, staying focused on what we can control and continuing to make progress on the initiatives that matter most.

Speaker #2: Before I wrap up, I'll share a few observations from my first few weeks here. First, our powerful brand proposition positioned at the intersection of exceptional style, superior quality, and outstanding value creates a meaningful runway for our core business to demonstrate sustained mid-teens to high teens growth and continued gains in market share.

Adrian Mitchell: Taking all this into account, including inclement weather conditions, our quarter to date top line growth for the full business as of earlier this week, is in the mid single digit range. As a result, for Q1 of 2026, we're guiding to revenue growth of 6.5% to 7.5% year-over-year, or approximately $238 to $240 million, assuming no further significant weather-related disruptions for the remainder of the quarter. We expect an Adjusted EBITDA of $27 to $28 million, approximately 11.5% EBITDA margin at the midpoint of our range. As expected, Q1 Adjusted EBITDA is impacted by lower revenue resulting from the impact of inclement weather, and we expect to drive year-over-year leverage in the remainder of the year as top line growth normalizes.

Speaker #2: We also see a significant opportunity to deepen relationships with holistic vision care customers those who engage with us across exams, glasses, and contacts and who consistently become our most valuable customers over time.

Those prescription glasses units and and contacts units were down, um, in the mid single digits, um, on a unit basis year-over-year. And that those Trends, deteriorated, um, in in the back half of the year in in Q4. Um, and so, on a relative basis, we believe we're continuing to to outperform, uh, the category. But there's no question that, um, younger and lower income, uh, consumers are feeling pressure. And, and that's impacting, um, some of their, their purchasing behavior in the category. Um, now we are, uh, taking actions to, uh, engage with that demographic. Um, we're

Speaker #2: Second, our culture and proven track record of innovation positions us incredibly well as a leading player in the smart glasses category which complements our core business.

Speaker #2: Finally, our healthy balance sheet and strong free cash flow allows us to self-fund strategic growth initiatives as we scale our business in future years while also maintaining the flexibility to return capital to shareholders through our share repurchase program.

Adrian Mitchell: 2026 is a year we are intentionally investing in building the capabilities necessary to support accelerated revenue growth over time. We are focused on scaling the core business, expanding access across our omni-channel platform, and executing the launch of AI glasses. While there are external factors beyond our control, we're planning our business with discipline, staying focused on what we can control, and continuing to make progress on the initiatives that matter most. Before I wrap up, I'll share a few observations from my first few weeks here. First, our powerful brand proposition, positioned at the intersection of exceptional style, superior quality, and outstanding value, creates a meaningful runway for our core business to demonstrate sustained mid-teens to high teens growth and continued gains in market share.

Speaker #2: All this is possible because of an impressive team. I'm energized to be a part of this team and really excited about the long-term opportunities ahead with that, I'll now pass it back to Dave for closing comments.

Speaker #2: Thank you, Adrian. 2026 is an important year for us and we believe we will remain uniquely positioned to continue delivering strong growth in market share gains while we expand the profitability of our business over time.

Speaker #2: At the same time, we are excited about the launch of AI glasses later this year and have a clear plan to drive growth in 2026 and beyond.

Um, adding incremental media dollars and, and new campaigns on channels where um, younger consumers are spending time, including uh, Tik Tok Reddit, YouTube shorts, uh, and others. Um, and we also recognize that um, uh, people are are being conscious around, um, the the dollars that they're spending um, and are looking to take advantage of, uh, their vision insurance benefits. And so, um, we've been spending a lot of time in investing in efforts, um, to to make their dollars go further. Um, both by educating, um, folks around, uh, their new in network benefits, uh, that, that they, um, were were be maybe an option, um, for, for the first time for them, um, and then also making it easier for people to have visibility.

Speaker #2: I also want to recognize our team. Neil and I are inspired by the talent and dedication of our team members across Warby Parker right now who are enabling us to embark on our next ambitious phase of growth.

Speaker #2: We're excited about the road ahead and confident in what the team continues to accomplish. With that, Operator, please open the line for Q&A.

Speaker #1: Thank you, all, for the question. Please press star followed by one on your telephone keypad. If you change your mind, please press star followed by two to exit the queue.

Speaker #1: And when preparing to ask your question, please ensure that your device is unmuted locally. Finally, please note that, in the interest of taking as many questions as possible, the company respectfully asks that you limit yourselves to one question and one follow-up if needed.

Adrian Mitchell: We also see a significant opportunity to deepen relationships with holistic vision care customers, those who engage with us across exams, glasses, and contacts, and who consistently become our most valuable customers over time. Second, our culture and proven track record of innovation positions us incredibly well as a leading player in the smart glasses category, which complements our core business. Finally, our healthy balance sheet and strong free cash flow allows us to self-fund strategic growth initiatives as we scale our business in future years, while also maintaining the flexibility to return capital to shareholders through our share repurchase program. All this is possible because of an impressive team. I'm energized to be a part of this team and really excited about the long-term opportunities ahead. With that, I'll now pass it back to Dave for closing comments.

Ability into their out of network benefits. Um, we ran a pilot in Q4 that was, uh, quite successful, um, where regardless of insurance carrier, um, uh, customers can get a precise, um, indication of the reimbursement that they'll receive from their, uh, from their out of network benefits, and our teams can can help them submit those forms. Um, and so, uh, given the success of that, that pilot, we're, uh, we'll be rolling that out more broadly and, and, uh, anticipate that, um, that will, um, you know, help help help Drive.

Speaker #1: Our first question today will be from the line of Brooke Roach with Goldman Sachs. Please go ahead. Your line is open.

Conversion, um, for all demographics. But you know, in particular um, those those younger and and lower income cohorts,

Speaker #3: Good morning and thank you for taking our question. Can you elaborate on the softness that you're seeing with your younger customer? Are you losing share with that age cohort or is that simply a function of the broader industry pressure?

Speaker #3: And what actions are you taking to shore up this part of the business in 2026?

Great. And then as a follow-up, Neil, you spoke in the prepared remarks about supply chain Readiness, for the upcoming launch of the AI glasses, can you speak to the unit capacity that you're preparing for and launch year and how quickly you might be able to scale. The supply chain should demand follow a similar, Cadence of growth as the broader industry.

Sure. Thanks Brooke.

Speaker #2: Yeah. Thanks, Brooke. We believe this is reflective of pressure that the category is seeing overall and if you look at some of the industry sources like Vision Council, they indicate that both prescription glasses units and contacts units were down in the mid-single digits on a units basis year over year and that those trends deteriorated in the back half of the year in Q4.

1 of our advantages from day 1, uh was building a vertically integrated brand so that way we could be responsive to customer demands as well as customer needs and changing interests. Um so uh our team uh, which

Dave Gilboa: Thank you, Adrian. 2026 is an important year for us, and we believe we remain uniquely positioned to continue delivering strong growth in market share gains while we expand the profitability of our business over time. At the same time, we are excited about the launch of AI glasses later this year and have a clear plan to drive growth in 2026 and beyond. I also want to recognize our team. Neil and I are inspired by the talent and dedication of our team members across Warby Parker right now, who are enabling us to embark on our next ambitious phase of growth. We're excited about the road ahead and confident in what this team continues to accomplish. With that, operator, please open the lines.

Speaker #2: And so on a relative basis, we believe we're continuing to outperform the category, but there's no question that younger and lower-income consumers are feeling pressure and that's impacting some of their purchasing behavior in the category.

Is based right in New York. But, um, as presents globally to ensure that we have a robust and resilient supply chain 1 of, which has only gotten stronger, um, given some of the Tariff crisis, uh, of recent years. Um,

Speaker #2: Now, we are taking actions to engage with that demographic where adding incremental media dollars and new campaigns on channels where younger consumers are spending time, including TikTok, Reddit, YouTube Shorts, and others.

Operator: Thank you. To ask a question, please press star followed by one on your telephone keypad. If you change your mind, please press star followed by two to exit the queue. When preparing to ask your question, please ensure that your device is unmuted locally. Finally, please note that in the interest of taking as many questions as possible, the company respectfully asks that you limit yourself to one question and one follow-up if needed. Our first question today will be from the line of Brooke Roach with Goldman Sachs. Please go ahead. Your line is open.

Speaker #2: And we also recognize that people are being conscious around the dollars that they're spending and are looking to take advantage of their vision insurance benefits.

Speaker #2: And so we've been spending a lot of time investing in efforts to make their dollars go further both by educating folks around their new in-network benefits that they were maybe an option for the first time for them and then also making it easier for people to have visibility into their out-of-network benefits we ran a pilot in Q4 that was quite successful where regardless of insurance carrier, customers can get a precise indication of the reimbursement that they'll receive from their out-of-network benefits and our teams can help them submit those forms and so given the success of that pilot, we're we'll be rolling that out more broadly and anticipate that that will help drive conversion.

we continue to invest in our Optical Labs, um, to ensure that we have the capacity, um, that we need in the new capabilities to, you know, ensure that this product, um, which we believe is the first 1, that's really designed for all day, every day, wear and really coming from an eyewear first. And then in particular a prescription, I wear first, uh, perspective, um, puts us in a unique position, sort of, similarly, as we think about our store Fleet of 300 Plus stores staff, um, with long tenured, um, incredibly passionate. But Tech forward, uh, team members also puts us in a position, um, ahead of, uh, eventual competitors on how to properly sell and market and and serve, um, customers of AI glasses.

Great. Thanks so much. I'll pass it on.

Brooke Roach: Good morning, and thank you for taking our question. Can you elaborate on the softness that you're seeing with your younger customer? Are you losing share with that age cohort, or is that simply a function of the broader industry pressure? What actions are you taking to shore up this part of the business in 2026?

The next question today will be from the line of Dana telsey. With telsey group, please go ahead, your line is open

Hi, good morning everyone and welcome.

Me, as you think about the Cadence?

obviously, we have the

Neil Blumenthal: Yeah, thanks, Brooke. You know, we believe this is reflective of pressure that, you know, the category is seeing overall. If you look at some of the industry sources, like The Vision Council, they indicate that, you know, both prescription glasses units and contacts units were down in the mid-single digits on a units basis year-over-year, and that those trends deteriorated in the back half of the year in Q4. On a relative basis, we believe we're continuing to outperform the category, but there's no question that younger and lower-income consumers are feeling pressure and that's impacting some of their purchasing behavior in the category. Now we are taking actions to engage with that demographic.

Hopefully, the snow will be ending but who, who knows what um how you thinking about growth rates going forward. And I noticed you're opening 50 stores this year.

Include the 5 targets. How are those targets stopping shops, doing? What is the learning and how you thinking about?

For 2026. Thank you.

Speaker #2: For all demographics, but in particular, those younger and lower-income cohorts.

Speaker #3: Great. And a follow-up, Neil, you said you can prepare marks about supply chain readiness for the upcoming launch of AI glasses. Can you speak to the unit capacity that you're preparing for in launch year and how quickly you might be able to scale the supply chain should demand a similar cadence of growth as the broader industry?

Speaker #4: For demand as well as customer needs and changing interests, so our team which is based right in New York, but has presence globally to ensure that we have a robust and resilient supply chain.

Neil Blumenthal: We're adding incremental media dollars and new campaigns on channels where younger consumers are spending time, including TikTok, Reddit, YouTube Shorts, and others. We also recognize that people are being conscious around the dollars that they're spending and are looking to take advantage of their vision insurance benefits. We've been spending a lot of time investing in efforts to make their dollars go further, both by educating folks around their new in-network benefits that they were maybe an option for the first time for them. Then also making it easier for people to have visibility into their out-of-network benefits.

Speaker #4: One of which has only gotten stronger given some of the tariff crises of recent years. We'll continue to invest in our optical labs to ensure that we have the capacity that we need in the new capabilities to ensure that this product which we believe is the first one that's really designed for all-day, everyday wear and really coming from an eyewear-first and in particular, a prescription eyewear-first perspective, puts us in a unique position for similarly as we think about our store fleet of 300-plus stores staffed with long-tenured incredibly passionate but tech-forward team members also puts us in a position ahead of eventual competitors on how to properly sell and market and serve customers of AI glasses.

Thanks, Dana. I'll take the target question first. Um, you know, we opened 5 shopping shops last year, uh, and are anticipating opening a similar number this year. This is part of our strategy to test and learn, um, just as we grew our own Store Fleet in a very deliberate way, um, starting with a showroom in our office to doing, uh, shop and shops in, you know, Marquee stores a cross. The us, including like, I'm a Gina Willie in in Nashville, um, to doing activations in hotels and at 1 Point buying, uh, an old yellow school bus and driving that cross country and converting it into a mobile store as part of the Warby Parker class trip. Um, this is, uh, something where we're testing and and learning. Um, I had a chance to visit our, uh, brick location and Brick New Jersey. The store looks beautiful. It's the first thing that you see, as soon as you walk in,

Into the the target, um, our team there. Um, it's fantastic. Um, we're seeing um,

Neil Blumenthal: We ran a pilot in Q4 that was quite successful, where regardless of insurance carrier, customers can get a precise indication of the reimbursement that they'll receive from their out-of-network benefits, and our teams can help them submit those forms. Given the success of that pilot, we'll be rolling that out more broadly and anticipate that will, you know, help drive conversion for all demographics, but, you know, in particular, those younger and lower income cohorts.

Slightly older demographic. So we are seeing higher Progressive penetration than in our uh, existing Fleet. Um, we're also seeing a higher percentage of of new customers, um, but again, we're in the test and learn phase um, and we'll be able to sort of share more after this pilot.

Speaker #3: Great. Thanks so much. I'll pass it on.

Speaker #1: The next question today will be from the line of Dana Tellsy with Tellsy Group. Please go ahead. Your line is open.

Speaker #5: Hi. Good morning, everyone. And welcome as you think about the cadence of this year and obviously we had the weather we have the weather impacts and hopefully the snow will be ending, but who knows what.

Brooke Roach: Great. Just a follow-up, Neil, you spoke in the prepared remarks about supply chain readiness for the upcoming launch of the AI glasses. Can you speak to the unit capacity that you're preparing for in launch year, and how quickly you might be able to scale the supply chain should demand follow a similar cadence of growth as the broader industry?

Speaker #5: How are you thinking about growth rates going forward? And I noticed you're opening 50 stores this year. Include the five targets. How are those targets shop and shops doing?

Speaker #5: What is the learnings? And how are you thinking about tariffs given the volatility that's currently going on and what pricing looks like for 2026?

Speaker #5: Thank you.

In a good morning, it's great to be with you, with regards to our Outlook. Um, we talked a little bit on the call with the regards of the headwinds that we saw with weather in the first quarter. And but yet, we're still committed to low double digit growth. As we think about the balance of the year. The 1 thing that I would share is that our growth is actually quite healthy. So if you compared to what we saw last year in the industry, which was up about 4%, we grew at actually 3 times the rate of the industry but not just on compounding price, which is what we saw in the industry, given the decline in units that they spoke about earlier, but we had a healthy balance of unit growth, ASP growth and customer growth. So that's an important dimension in terms of the health. The other thing that we continue to believe given the strength of the proposition is that we'll continue to be a market share Gainer, not a market, share donor. And so even though we expect a softer q1, just give them the weather impacts. And what we spoke about on the call we do expect to see acceleration and return to more normalized Trends. As we look ahead, the 1 thing, I'll just point out from my opening remarks, is it

Speaker #2: Thanks, Dana. I'll take the target question first. We've opened five shop and shops. Last year, and our anticipating opening a similar number this year, this is part of our strategy to test and learn.

Neil Blumenthal: Demand as well as customer needs and changing interests. Our team, which is based right in New York, but has presence globally to ensure that we have a robust and resilient supply chain, one of which has only gotten stronger, given some of the tariff crises of recent years. We continue to invest in our optical labs to ensure that we have the capacity that we need and the new capabilities to ensure that this product, which we believe is the first one that's really designed for all-day, every-day wear, and really coming from an eyewear first, and in particular, a prescription eyewear first, perspective, puts us in a unique position.

Speaker #2: Just as we grew our own store fleet in a very deliberate way, starting with a showroom in our office to doing shop and shops in marquee stores across the US, including our Imogen and Lily in Nashville, to doing activations in hotels and at one point in time in old yellow school bus and dynamic cross-country and converting it into a mobile store as part of Warby Parker Class Trip.

Relates to what we experienced in. Q1 is the big takeaway? Is that the fundamentals of the business remain healthy in those periods where weather was not an impact? We talked about the High Teens growth of of our retail business. And also when you think about the normalization of the headwinds, with e-commerce very healthy low double digit growth in terms of web glasses and contacts. So we're very encouraged about what's ahead. But we also want to be consistent in delivering what we say. We're going to deliver

Joshua to talk about tax.

Speaker #2: This is something we're testing and learning. I had a chance to visit our brick location and brick New Jersey. The store looks beautiful. It's the first thing that you see as soon as you walk into the target.

Speaker #2: Our team there is fantastic. And we're in the test and learn phase. And we'll be able to sort of share more after this pilot.

Neil Blumenthal: Similarly, as we think about our store fleet of 300 plus stores, staffed with long-tenured, incredibly passionate but tech-forward team members, also puts us in a position ahead of eventual competitors on how to properly sell and market and serve customers of AI glasses.

Speaker #2: Dana, good morning. It's great to be with you. With regards to our outlook, we talked a little bit on the call with regards to the headwinds that we saw with weather in the first quarter.

Speaker #2: But yet we're still committed to low double-digit growth as we think about the balance of the year. The one thing that I would share is that our growth is actually quite healthy.

Speaker #2: So if you compare to what we saw last year in the industry, which was up about 4%, we grew at actually three times the rate of the industry.

Hi, Dana. As it relates to tariffs, you're absolutely right. Uh, certainly volatile. Um, the Supreme Court ruling from last week is pretty recent. So we're still analyzing those impacts. But when you think about that rolling and we break it down to 2 pieces. First, there's the refunds on what we already paid for, um, and the Supreme Court, didn't really say anything specific regarding that. So we're continuing to monitor that, we'll obviously take the necessary steps to preserve our rights. As it relates, to those refunds, we have not assumed anything in either our margins or our cash flow, uh, plan for the year as it relates to collection of those refunds. Um, and in terms of the go forward piece of tariffs, uh, the Willing removed, the emergency, uh, tariffs. However, pretty quickly. The administration responded with a new Global search charge of 10% and they've indicated, they're likely going to move that up to 15%. So given all of that we have not Incorporated

Brooke Roach: Great. Thanks so much. I'll pass it on.

Operator: The next question today will be from the line of Dana Telsey with Telsey Group. Please go ahead. Your line is open.

Speaker #2: But not just on compounding price, which is what we saw in the industry given the decline in units that Dave spoke about earlier, but we had a healthy balance of unit growth, ASP growth, and customer growth.

Dana Telsey: Hi, good morning, everyone, and welcome. As you think about the cadence of this year, obviously we have the weather impacts, and hopefully the snow will be ending, but who knows what? How are you thinking about growth rates going forward? I noticed you're opening 50 stores this year. Who are the 5 targets? How are those targets shop and shops doing? What is the learnings? How are you thinking about tariffs given the volatility that's currently going on and what pricing looks like for 2026? Thank you.

Speaker #2: So that's an important dimension in terms of the health. The other thing that we continue to believe, given the strength of the proposition, is that we'll continue to be a market-share gainer, not a market-share donor.

Any sort of benefit into our 2026 guidance tied to that ruling. We do think that any benefit will largely be offset by these statutory changes to tariffs. That the administration is currently exploring. Uh, with that being said, we are in a position to continue to be flexible and Nimble navigate the tariffs as we have in 2025.

Thank you.

Speaker #2: And so even though we expect a softer Q1 just given the weather impact and what we spoke about on the call, we do expect to see acceleration and return to more normalized trends as we go ahead.

Speaker #2: The one thing I'll just point out from my opening remarks that relates to what we expect in Q1 is the big takeaway is that fundamentals of the business remain healthy.

The next question will be from the line of Mark ultraair with fed. Please go ahead. Your line is open.

Good morning. Thank you. And welcome Adrian.

Speaker #2: In those periods where weather was not an impact, we talked about the high-team growth of our retail business and also when you think about normalization of the headwinds with e-commerce, very healthy, low double-digit growth in terms of web glasses and contacts.

Josh Truppo: Thanks, Dana. I'll take the Target question first. You know, we opened 5 shop-in-shops last year and are anticipating opening a similar number this year. This is part of our strategy to test and learn, just as we grew our own store fleet in a very deliberate way, starting with a showroom in our office to doing shop-in-shop in, you know, marquee stores across the US, including like Imogene + Willie in Nashville, to doing activations in hotels, and at 1 point in time, an old yellow school bus and driving that cross country and converting it into a mobile store as part of the Warby Parker class trip. This is something where we're testing and learning. I had a chance to visit our Brick location in Brick, New Jersey. The store looks beautiful.

Speaker #2: So we're very encouraged about what's ahead, but we also want to be consistent in delivering what we say we're going to deliver. Josh, you'd like to talk about tax?

Smart glasses, but curious if you're making any assumptions, regarding how the launch may impact, uh, traffic and conversion for the core business.

Speaker #1: Hi, Dana. As it relates to tax, you're absolutely right. Certainly volatile. The Supreme Court ruling last week is pretty recent. We're still analyzing those impacts.

Speaker #1: But when you think about that ruling and we break down to two pieces, first there's the refunds on what we already paid for. And the Supreme Court didn't really say anything specific regarding that.

Thanks Mark. Um, we are not into we have not factored in uh halo effect from the launch of AI glasses in in our guidance.

Speaker #1: So we're continuing to monitor that. We'll obviously take the necessary steps to preserve our rights as it relates to those refunds. We have not assumed anything in either our margins or our cash flow plan for the year as it relates to collection of those refunds.

And thank you for the welcome, mark.

Speaker #1: And in terms of the go-forward piece of tariffs, the ruling removed the emergency tariffs. However, pretty quickly, the administration responded with a new global surcharge.

Thank you. Um, separately, uh, more on the margin front, but can you help us reconcile? Um, the acceleration is store openings with the dip, you're seeing an active customers. And, and the average retail productivity is specifically, what are the other components that are enabling you to sustain the target for a while profitability? Thank you.

Speaker #1: A 10%. And they've indicated they're likely going to move that up to 15%. So given all of that, we have not incorporated any sort of benefit into our 2026 guidance tied to that ruling.

Josh Truppo: The first thing that you see as soon as you walk into the Target, our team there, is fantastic. We're in the test and learn phase, and we'll be able to sort of share more after this pilot.

Speaker #1: We do think that any benefit will largely be offset by these statutory changes to tariffs that the administration is currently exploring. With that being said, we are in a position to continue to be flexible and nimble navigate the tariffs as we have in 2025.

So within uh, within March, uh, within margin, um, in Q4, uh, you know, 1 of the things that we've talked about all year is when you kind of look at, uh, our store Fleet and you look at our gross margin as well as our non-marketing sgna. Um, 1 of the areas that we continue to uh, experience leverage in is non-marketing, uh, sgna, and Q4 non-marketing, sgna was up, 200 basis points.

Speaker #5: Thank you.

Adrian Mitchell: Dana, good morning. It's great to be with you. With regards to our outlook, we talked a little bit on the call with regards to the headwinds that we saw with weather in Q1, yet we're still committed to low double-digit growth as we think about the balance of the year. The one thing that I would share is that our growth is actually quite healthy. If you compare to what we saw last year in the industry, which was up about 4%, we grew at actually 3 times the rate of the industry, but not just on compounding price, which is what we saw in the industry, given the decline in units that Dave spoke about earlier, but we had a healthy balance of unit growth, ASP growth, and customer growth. That's an important dimension in terms of the health.

Speaker #1: The next question will be from the line of Mark Alswager with Baird. Please go ahead. Your line is open.

Speaker #6: Good morning. Thank you. And welcome, Adrian. Following up on the revenue guidance and the acceleration after Q1, you were clear that you're not incorporating any revenue from the smart glasses.

Speaker #6: But curious if you're making any assumptions regarding how the launch may impact traffic and conversion for the core business.

Speaker #2: Thanks, Mark. We are not we have not factored in halo effect from the launch of AI glasses in our guidance.

Adrian Mitchell: The other thing that we continue to believe, given the strength of the proposition, is that we'll continue to be a market share gainer, not a market share donor. Even though we expect a softer Q1, just given the weather impact and what we spoke about on the call, we do expect to see acceleration and return to more normalized spend as we look ahead. One thing I'll just point out from my opening remarks as it relates to what we experienced in Q1, is the big takeaway is that the fundamentals of the business remain healthy. In those periods where weather was not an impact, we talked about the high teens growth of our retail business, and also when we think about the normalization of the headwinds with e-commerce, very healthy, low double-digit growth in terms of web glasses and contacts.

Speaker #6: And thank you for the welcome, Mark.

Speaker #2: Thank you. I'm going to separately more on the margin front. But can you help us reconcile the acceleration in store openings with the dip you're seeing in active customers and the average retail productivity?

Um, and a piece of that, obviously, uh, impacts our store Fleet and our 4 wall margins. Um, within Q4, uh, we did experience a little bit of pressure, uh, around gross margins, um, very specifically related to certain impacts in Q4 they've talked a little bit about the revenue. Um, Cadence throughout the quarter that ultimately, um, just decelerated in the month of December, uh, which allowed us little time to kind of make some adjustments, especially as it relates to uh, Dr. Salaries, uh, which, um, you know, is embedded in our growth margin, um, and we had staff that had of of, of the holiday season. Um, so those are very specific to kind of Q4 impacts um and and we expect uh kind of a normalized gross margin as Adrian talked about, we expect gross margin in 2026 um to be very much in line with 2025

Speaker #2: Specifically, what are the other components that are enabling you to sustain the target four-wall profitability? Thank you.

Mark, if I could just also briefly build on Josh's point. We have pretty clear standards for our new store opening results. We look at Payback period and 4 wall margin as you mentioned, but the reality is like any retail company. There's going to be a variety of performance as as as you look at individual stores. But what we are very pleased with is the performance across a portfolio, as a lot of these new stores that are opening and continue to mature.

Speaker #6: So within margin, in Q4, one of the things that we've talked about all year is when you kind of look at our store fleet and you look at our gross margin as well as our non-marketing SG&A, one of the areas that we continue to experience leverage in is non-marketing.

Adrian Mitchell: We're very encouraged about what's ahead, but we also want to be consistent in delivering what we say we're going to deliver. Josh, you'd like to talk about tax?

Josh Truppo: Hi, Dana. As it relates to tax, you're absolutely right, certainly volatile. The Supreme Court ruling from last week is pretty recent. We're still analyzing those impacts. When you think about that ruling, when you break it down into two pieces, first, there's the refunds on what we already paid for. The Supreme Court didn't really say anything specific regarding that. We're continuing to monitor that. We'll obviously take the necessary steps to preserve our rights as it relates to those refunds. We have not assumed anything in either our margins or our cash flow plan for the year as it relates to collection of those refunds. In terms of the go-forward piece of tariffs, the ruling removed the emergency tariffs.

Speaker #6: SG&A in Q4, non-marketing SG&A was up 200 basis points. And a piece of that, obviously, impacts our store fleet and our four-wall margins. Within Q4, we did experience a little bit of pressure around those margins very specifically related to certain impacts in Q4.

Speaker #6: We talked a little bit about the revenue cadence throughout the quarter that ultimately decelerated in the month of December, which allowed us a little time to kind of make some adjustments, especially as it relates to Dr. Salaries, which is embedded in our gross margin.

Speaker #6: And we had to tap ahead of the holiday season. So those are very specific to kind of Q4 impacts. And we expect kind of a normalized gross margin as Adrian talked about.

Josh Truppo: However, pretty quickly, the administration responded with a new global surcharge, of 10%, and they've indicated they're likely gonna move that up to 15%. Given all of that, we have not incorporated any sort of benefit into our 2026 guidance tied to that ruling. We do think that any benefit will largely be offset by the statutory changes to tariffs that the administration is currently exploring. With that being said, we are in a position to continue to be flexible and nimble, navigate the tariffs as we have in 2025.

I'd also just call out, um, some of the the channel Dynamics, um, where you know, Ecom, um, you know, continues to be an evolving part of our our business, uh, in particular with the sun setting of our home Triumph program. Uh, this is our first, um quarter, uh, without that that offering, um, and uh, we are seeing, um, you know, home, try on historically. Um, it, we've seen, uh, the strongest volumes in q1, um, and, uh, in, in this period, um, where we anticipated that we would be able to drive, um, you know, significant portion of those home try and customers to our Stores, um, that have been impacted by whether um, you know, we're we're seeing, um, uh, you know, some some, uh, speed bumps, um, to that plan, but remain confident that, um, we'll be able to serve those those customers effectively. And if, uh, kind of you isolate, uh, the performance of our, uh, retail stores. We, we continue to see very healthy Dynamics and

Speaker #6: We expect gross margin in 2026 to be very much in line with 2025. Mark, you asked me to also completely build on Josh's point in a pretty clear standard for our new store opening results.

Speaker #6: You look at payback period and four-wall margin, as you mentioned. But the reality is, like any retail company, there's going to be a variety of performance as you look at individual stores.

In terms of customer Generation Um um you know, overall growth and profitability uh as we would expect. Uh and that gives us a confidence to continue to uh invest in accelerate our um, store all out. Plans.

Very helpful caller. Thank you.

Speaker #6: But what we are very pleased with is the performance across the portfolio as a lot of these new stores that are opening continue to mature.

The next question today will be from the line of Oliver Chen. With TD Cowen, please go ahead. Your line is open

Speaker #2: I'd also just call out some of the channel dynamics. Where e-comm, you know, continues to be an evolving part of our business, in particular with the sunsetting of our home triumph program.

Hi, thanks a lot. Hi, Neil, David and Adrian. Um, Neil and David as you know,

Paul Lejuez: Thank you.

Operator: The next question will be from the line of Mark Altschwager with Baird. Please go ahead. Your line is open.

Speaker #2: This is our first quarter without that offering. And we are seeing home triumph historically we've seen the strongest volumes in Q1. And in this period, where we anticipated that we would be able to drive significant portion of those home triumph customers to our stores, that have been impacted by weather, we're seeing some speed bumps to that plan, but remain confident that we'll be able to serve those customers effectively.

Mark Altschwager: Good morning. Thank you. Welcome, Adrian. Following up on the revenue guidance and the acceleration after Q1, you were clear that you're not incorporating any revenue from the smart glasses, but curious if you're making any assumptions regarding how the launch may impact traffic and conversion for the core business?

Josh Truppo: Thanks, Mark. We have not factored in a halo effect from the launch of AI glasses in our guidance.

Relative to to traffic and other comp levers. Um, what's Incorporated in your guidance view? Thanks, gentlemen.

Thanks Oliver.

Speaker #2: And if kind of you isolate the performance of our retail stores, we continue to see very healthy dynamics in terms of customer generation, overall growth, and profitability as we would expect and that gives us confidence to continue to invest and accelerate our store rollout plans.

Adrian Mitchell: Thank you for the welcome, Mark.

Mark Altschwager: Thank you. Separately, more on the margin front, can you help us reconcile the acceleration in store openings with the dip you're seeing in active customers and the average retail productivity? Specifically, what are the other components that are enabling you to sustain the target four-wall profitability? Thank you.

Speaker #6: Very helpful caller. Thank you.

Speaker #1: The next question today will be from the line of Oliver Chen with TD Cowen. Please go ahead. Your line is open.

Josh Truppo: Within margin, in Q4, you know, one of the things that we've talked about all year is when you kind of look at our store fleet and you look at our gross margin as well as our non-marketing SG&A, one of the areas that we continue to experience leverage in is non-marketing SG&A. In Q4, non-marketing SG&A was up 200 basis points. A piece of that obviously impacts our store fleet and our four-wall margins. Within Q4, we did experience a little bit of pressure around gross margins, very specifically related to certain impacts in Q4.

Speaker #2: Hi. Thanks a lot. Hi, Neil, David, and Adrian. Neil and David, as you know, from our Wharton days on the AI models a lot of the large language models rely on unsupervised and supervised training models.

Speaker #2: The question about the LLM training and what might be proprietary to Gemini and Google versus how you're thinking about what's unique to Warby Parker and also on the AI frontier with glasses, what are your views on personalization and some unlock that will set you apart?

We're very excited about the transformation that will be happening within the optical industry, uh, over the next decades, particularly as we transition, uh, right from traditional, uh, eyewear to intelligent eyewear, um, we believe that Google is the best partner for us for a variety of reasons, um, including their AI leadership overall. And, um, you know, basically writing the research papers, um, that all LL M's are are based off of, but, um, how they continue to innovate and, you know, lead with a product, like Gemini, but it's not just, uh, their work in AI. That makes them a great partner for us. It's their Suite of products that billions of people use every day from Google Maps to calendar, to Chrome to Gmail to YouTube and, and more. So, um, we don't plan to develop, um, any of our own models.

Speaker #2: Adrian, as we look at guidance going forward, what are your thoughts on units relative to traffic and other comp levers? What's incorporated in your guidance view?

Josh Truppo: They talked a little bit about the revenue, kids throughout the quarter that ultimately decelerated in the month of December, which allowed us a little time to kind of make some adjustments, especially as it relates to doctor salaries, which, you know, is embedded in our gross margin, and we have staffed ahead of the holiday season. Those are very specific to kind of Q4 impacts. We expect kind of a normalized gross margin. As Adrian talked about, we expect gross margin in 2026 to be very much in line with 2025.

Speaker #2: Thanks, gentlemen.

Speaker #6: Thanks, Oliver. We're very excited about the transformation that will be happening within the optical industry. Over the next decades, particularly as we transition right from traditional eyewear to intelligent eyewear, we believe that Google is the best partner for us for a variety of reasons, including their AI leadership overall and basically riding the research papers that all LLMs are based off of.

Um, where we'll continue to develop, IP is around the eyewear itself, uh, around, uh, fixing prescription lenses and fulfilling those. Um, and will ensure that, um, you know, the market and customer feedback, um, that we get from being a vertically, integrated brand, uh, we're able to act on faster than everybody else, um, and that's been, uh, a key part to, um, our success, you know, over the last 16 years as to always be customer first, because we're engaging directly with the with our customers and patients every single day and have the shortest feedback loop to our product development team, our design team, um our supply chain teams and more.

Adrian Mitchell: Mark, if I can just also build on Josh's point. We have pretty clear standards for our new store opening results. We look at payback period and four-wall margin, as you mentioned, but the reality is, like any retail company, there's gonna be a variety of performance as you look at individual stores. What we are very pleased with is the performance across the portfolio as a lot of these new stores that are opening continue to mature.

Speaker #6: But how they continue to innovate and lead with a product like Gemini, but it's not just their work in AI that makes them a great partner for us.

Speaker #6: It's their suite of products that billions of people use every day from Google Maps to calendar to Chrome to Gmail to YouTube and more.

Speaker #6: So we don't plan to develop any of our own models. Where we'll continue to develop IP is around the eyewear itself, around fixing prescription lenses and fulfilling those, and we'll ensure that the market and customer feedback that we get from being a vertically integrated brand we're able to act on faster than everybody else and that's been a key part to our success over the last 16 years is to always be customer first because we're engaging directly with our customers and patients every single day and have the shortest feedback loop to our product development team, our design team, our supply chain teams, and more.

Good morning, Oliver, it's great to be with you. I would say that as we look at the outlook for 2026, it starts with an important premise, that we have a very healthy brand proposition that will allow us to continue to outperform the market. The market this year is projected uh to be down uh low single digits. But again, we're committing ourselves to being up uh low double digits just to put in a little bit of perspective. We do expect to continue to see healthy levels of traffic as well as conversion both in stores and online. But when I look at this business and we talk about driving success in 2026, 1 is clearly the number of points of distribution. You know, we believe that we have

Neil Blumenthal: I'd also just call out some of the channel dynamics, where, you know, e-com, you know, continues to be an evolving part of our business, in particular, with the sunsetting of our Home Try-On program. This is our first quarter without that offering. We are seeing, you know, Home Try-On historically, we've seen the strongest volumes in Q1. In this period, where we anticipated that we would be able to drive a significant portion of those Home Try-On customers to our stores, that have been impacted by weather. You know, we're seeing, you know, some speed bumps to that plan, but remain confident that we'll be able to serve those customers effectively.

Speaker #6: Good morning, Oliver. Great to be with you. I would say that as we look at the outlook for 2026, it starts with an important premise that we have a very healthy brand proposition that will allow us to continue to outperform the market.

Neil Blumenthal: If, kind of you isolate, the performance of our retail stores, we continue to see very healthy dynamics in terms of customer generation, you know, overall growth and profitability, as we would expect. That gives us the confidence to continue to invest and accelerate our store rollout plans.

Have at least 900 stores on the horizon in a industry with over 45,000 but we're opening 50 stores. This year to reach more markets, more customers and more communities. The second thing is when you look at the composition of our business, in terms of spend, in exams contacts and glasses, relative to the industry, there are opportunities for us to stay more mirrored to the industry penetration which actually provides real growth for us. We've continued to see very healthy growth and exams. We continue to see Healthy Growth and progresses and so when you think about how the industry spends, we think there's a lot of opportunity to begin to mirror. Those penetration levels, the innovation of this company is actually quite compelling. You think about new categories and new collections? We have a very healthy Cadence of that Innovation. And as you know, we spoke about a bit earlier Sports and athletic is a new category for us or a new collection for us that's in demand for customers that we've already spoken to. And then obviously, AI classes has had a very helpful.

Speaker #6: Healthy levels of traffic as well as conversion both in source and online. But when I look at this business and we talk about driving success in 2026, one is clearly the number of points of distribution.

Speaker #6: We believe that we have at least 900 stores on the horizon in a industry with over 45,000, but we're opening 50 stores this year to reach more markets, more customers.

Josh Truppo: Very helpful color. Thank you.

Mark Altschwager: Very helpful color. Thank you.

Operator: The next question today will be from the line of Oliver Chen with TD Cowen. Please go ahead. Your line is open.

Speaker #6: And more communities. The second thing is when you look at the composition of our business in terms of spend and exams, contacts, and glasses relative to the industry, there are opportunities for us to more mirror the industry penetration, which actually provides real growth for us.

Healthy level of adoption. And then the last thing I would say is really around price. We just have a healthy mix of balancing units. ASP and growing, our customer base, which is unlike what we see in the industry, which is really been driven by compounding price increases on a like for like basis. So, when you think about the way that we drive price, we're very encouraged by what that can do for us as well as we think about the outlook for this year and Beyond.

Oliver Chen: Hi, thanks a lot. Hi, Neil, Dave, and Adrian. Neil and Dave, as you know from our Wharton days on the AI models, a lot of the large language models rely on unsupervised and supervised training models. A question about the LLM training and what might be proprietary to Gemini and Google versus how you're thinking about what's unique to Warby Parker. Also on the AI frontier with glasses, what are your views on personalization and some unlock that will set you apart? Adrian, as we look at guidance going forward, what are your thoughts on units relative to traffic and other comp levers? What's incorporated in your guidance view? Thanks, gentlemen.

Speaker #6: We've continued to see very healthy growth in exams. We've continued to see healthy growth in progressives. And so when you think about how the industry spends, we think there's a lot of opportunity to begin to mirror those penetration levels.

Thank you. So helpful, Luke 1, follow-up. We're getting questions from clients around parameters on timing. It's probably very Dynamic regarding the AI glasses launch and any thoughts you have on on, um, what you're testing and and relation to a framework for timing, thanks a lot. Best regards.

Speaker #6: The innovation of this company is actually quite compelling. You think about new categories and new collections. We have a very healthy cadence of that innovation.

Speaker #6: And as we spoke about a bit earlier, sports and athletic is a new category for us or a new collection for us that's in demand for customers that we've already spoken to.

Speaker #6: And then obviously AI glasses has had a very healthy level of adoption. And then the last thing I would say is really around price.

Speaker #6: We just have a healthy mix of balancing units, ASP, and growing our customer base, which is unlike what we've seen in the industry, which has really been driven by compounding price increases on a like-for-like basis.

Josh Truppo: Thanks, Oliver. We're very excited about the transformation that will be happening within the optical industry, over the next decades, particularly as we transition, right from traditional eyewear to intelligent eyewear. We believe that Google is the best partner for us for a variety of reasons, including their AI leadership overall and basically writing the research papers that all LLMs are based off of, but how they continue to innovate and, you know, lead with a product like Gemini. It's not just their work in AI that makes them a great partner for us, it's their suite of products that billions of people use every day, from Google Maps to Calendar to Chrome to Gmail to YouTube and more. We don't plan to develop any of our own models.

Um, and look forward to sharing more later this year. But, um, yeah. For for now all we can we can say, is that um uh we're excited to introduce these to, to customers in uh later in 2026.

Thank you very much.

Speaker #6: So when you think about the way that we drive price, we're very encouraged by what that can do for us as well as we think about the outlook for this year and beyond.

The last question we have time for today is from the line of all the US with City. Please go ahead. Your line is now open.

Speaker #2: Thank you. So helpful. There's one follow-up we're getting questions from clients around parameters. On timing, it's probably very dynamic regarding the AI glasses launch.

Speaker #2: And any thoughts you have relation to a framework for timing? Thanks a lot. Best regards.

Speaker #5: Yes. We can't share specifics at this moment, but we are very excited by the progress that we're making on the product we were out in the Bay Area earlier this week meeting with some of the senior leaders at Google and Samsung and our just really excited about the progress that we're making together.

Josh Truppo: Where we'll continue to develop IP is around the eyewear itself, around fixing prescription lenses and fulfilling those. We'll ensure that, you know, the market and customer feedback that we get from being a vertically integrated brand, we're able to act on faster than everybody else. That's been a key part to our success, you know, over the last 16 years, is to always be customer first, because we're engaging directly with our customers and patients every single day and have the shortest feedback loop to our product development team, our design team, our supply chain teams, and more.

Speaker #5: And look forward to sharing more later this year, but yeah, for now all we can say is that we're excited to introduce these to customers in later in 2026.

Speaker #2: Thank you very much. The last question we have time for today is from the line of all the US with City. Please go ahead.

Hey, thanks guys. What major um, the uh, active customer account, grew the slowest, Pace all year and fourth quarter. Uh, curious if if you think that, you know, customers are are putting off purchases because of higher prices in the assortment you think it's just more of a higher price issue across the retail environment. You know, maybe specific to the categories. You called out some weaker industry Trends but I guess along those lines. Maybe framed for outside your thinking about that Revenue growth for next year for 26. Um, when we think about that increase in active customer accounts versus Revenue per customer. If you can frame that for us, sort of what underpins your Revenue guidance. Uh, and then just the second just I just want to Clarity on that what you're saying about the revenue assume from the Google partnership or are you assuming that there's no incremental Revenue that that any Revenue that that you receive would not be.

Speaker #2: Your line is now open.

Incremental uh, to to the business this year. Or are you saying at this point, you're kind of pretending like those classes. Don't even hit the assortment. And so there will be zero revenue from from Google classes.

Speaker #6: Hey, thanks, guys. Welcome, Adrian. The active customer count grew at the slowest pace all year in the fourth quarter. Curious if you think that customers are putting off purchases because of higher prices in the assortment.

Adrian Mitchell: Good morning, Oliver. It's great to be with you. I would say that as we look at the outlook for 2026, it starts with an important premise that we have a very healthy brand proposition that will allow us to continue to outperform the market, healthy levels of traffic as well as conversion both in stores and online. When I look at the business and we talk about driving success in 2026, one is clearly the number of points of distribution. You know, we believe that we have at least 900 stores on the horizon in an industry with over 45,000, but we're opening 50 stores this year to reach more markets, more customers, and more communities.

Speaker #6: You think it's just more of a higher price issue across the retail environment. Maybe specific to the categories you called out some weaker industry trends.

Speaker #6: But I guess along those lines, maybe frame for us how you're thinking about that revenue growth for next year for '26. When we think about that increase in active customer counts versus revenue per customer, if you can frame that for us, sort of what underpins your revenue guidance.

Thanks for your question. Um, to answer your last question first, um, just to clarify, uh, we have not included any incremental Revenue through the sale of a eyeglasses in, in our guidance, um, we have included uh the expenses that will incur um to prepare and launch, uh, this new category for us. Um,

so,

Speaker #6: And then just second, I just want to clarity on what you're saying about the revenue assumed from the Google partnership. Are you assuming that there's no incremental revenue that any revenue that you receive would not be incremental to the business this year?

Speaker #6: Or are you saying at this point you're kind of pretending like those glasses don't even hit the assortment and so there will be zero revenue from Google glasses?

Adrian Mitchell: The second thing is, when you look at the composition of our business in terms of spend in exams, contacts, and glasses relative to the industry, there are opportunities for us to more mirror the industry penetration, which actually provides real growth for us. We continue to see very healthy growth in exams. We continue to see healthy growth in progressives. So when you think about how the industry spends, we think there's a lot of opportunity to begin to mirror those penetration levels. The innovation of this company is actually quite compelling. You think about new categories and new collections, we have a very healthy cadence of that innovation. As, you know, we spoke about a bit earlier, sports and athletic is a new category for us, or a new collection for us, that's in demand for customers that we've already spoken to.

We, we plan to share more around timing and projections of later, later, in the year. Um, but, um, we do, uh, anticipate right with the launch. Um, that there would be incremental Revenue, but when we're not baking it in to our guidance. And we're, we're also not, um, you know, including any halo effect or, you know, anticipation of additional traffic. Um, uh, and, you know, sales drivers for the existing products, uh, in our business. So we do that, all as, as upside, um, you know, once we, once we do launch that product and, and believe that, um, you know, these these will generate quite a bit of excitement, um, and and drive people to our stores and, um,

Speaker #2: Thanks for your question. To answer your last question first, just to clarify, we have not included any incremental revenue through the sale of AI glasses in our guidance.

Uh, in our digital properties that will will, um, uh, you know, generate additional benefits. But, um, again. Um, right now we're just projecting the the core business as it as it stands today.

Speaker #2: We have included the expenses that will incur to prepare and launch this new category for us. So we plan to share more around timing and projections of later in the year.

and then to tackle your first question uh I'll start and then kick it over to Adrian but um

Speaker #2: But we do anticipate with the launch that there would be incremental revenue, but we're not baking it in to our guidance.

Adrian Mitchell: Obviously, AI glasses has had a very healthy level of adoption. The last thing I would say is really around price. We just have a healthy mix of balancing units, ASP, and growing our customer base, which is unlike what we see in the industry, which has really been driven by compounding price increases on a like-for-like basis. When you think about the way that we drive price, we're very encouraged by what that can do for us as well as we think about the outlook for this year and beyond.

Speaker #5: And we're also not including any Halo Effect or anticipation of additional traffic and sales drivers for the existing products in our business. So we do that all as outside once we do launch our product and believe that these will generate quite a bit of excitement and drive people to our stores and our digital properties that will generate additional benefits, but again, right now we're just projecting the core business as it stands today.

Oliver Chen: Thank you. So helpful. There's one follow-up. We're getting questions from clients around parameters on timing. It's probably very dynamic regarding the AI glasses launch, and any thoughts you have on what you're testing in relation to a framework for timing. Thanks a lot. Best regards.

Speaker #2: And then to tackle your first question, I'll start and then kick it over to Adrian. But we are seeing based on the category data that some customers are putting off their purchases.

We are seeing based on the category data um, that some customers are putting off the their purchases. Um, now, um, we are outperforming the market and gaining share. Um, and that's both from a customer perspective, from a unit perspective from uh, Revenue perspective as as well, 1 of our strengths has always been our our pricing model and our 95 opening price point. Including anti-reflective prescription lenses is more competitive than ever because it's been that price now for 16 years as we've seen our competitors continue to take price, um, and we think that this is 1 of the reasons why, you know, in um, this category that historically has been resilient, that is experiencing some volatility that we continue to outperform our competitors. Um, and acquire

Neil Blumenthal: Yes, we can't share specifics at this moment, but we are very excited by the progress that we're making on the product. We were out in the Bay Area earlier this week, meeting with some of the senior leaders at Google and Samsung and are just, yeah, really excited about the progress that we're making together and look forward to sharing more later this year. For now, all we can say is that we're excited to introduce these to customers later in 2026.

Speaker #2: Now, we are outperforming the market and gaining share and that's both from a customer perspective, from a unit perspective, from revenue perspective, as well.

Speaker #2: One of our strengths has always been our pricing model. And our 95-dollar opening price point including anti-reflective prescription lenses is more competitive than ever because it's been that price now for 16 years.

Speaker #2: As we've seen our competitors continue to take price, and we think that this is one of the reasons why in this category that historically has been resilient, that is experiencing some volatility, that we continue to outperform our competitors.

Oliver Chen: Thank you very much.

Operator: The last question we have time for today is from the line of Paul Lejuez with Citi. Please go ahead. Your line is now open.

Speaker #2: And acquiring customers and driving units. So we'll continue to be competitive there. We are seeing as well as we're hearing from other folks within our category, but also people across the consumer and retail landscape that the younger consumer in their 20s is behaving more cautiously and is under financial stress.

Paul Lejuez: Hey, thanks, guys. Welcome, Adrian. The active customer count grew at the slowest pace all year in Q4. Curious if you think that, you know, customers are putting off purchases because of higher prices in the assortment? You think it's just more of a higher price issue across the retail environment, you know, maybe specific to the categories you called out, the weaker industry trends. I guess along those lines, maybe frame for us how you're thinking about that revenue growth for next year, for 2026. When we think about that increase in active customer accounts versus revenue per customer, if you could frame that for us, sort of what underpins your revenue guidance? Just second, I just want clarity on what you're saying about the revenue assumed from the Google partnership.

Yeah. The the category is seeing this, this particular customer um sort of pull back a bit. Um we again think we're that we're best position and we're going to continue to acquire customers. Um, whether they're younger or whether they're older, and want to think that we see with our older customers is that, that drives progressives penetration, uh, which helps drives ASP and gross margin and contribution margin overall.

Speaker #2: So we're not surprised that the category is seeing this particular customer sort of pull back a bit but we again think that we're best positioned and we're going to continue to acquire customers whether they're younger or whether they're older and want to think that we see with our older customers is that that drives progressive penetration which helps drive ASP and gross margin and contribution margin overall.

Paul Lejuez: Are you assuming that there's no incremental revenue, that any revenue that you receive would not be incremental to the business this year? Are you saying at this point, you're kind of pretending like those glasses don't even hit the assortment, and so there will be zero revenue from Google Glasses?

Speaker #6: Hi, Paul. I think Dave and Neil actually captured it quite well. Just to amplify the point, the way we think about it is units ASP and new customers.

Hi, Paul. I think, uh, David Neil actually captured it quite well, just to amplify the point. The way we think about it is units. ASP and new customers. When you think about the expansion of 50 points of distribution, that's clearly a way to really reach out to more customers where we know from our data that 1 of the biggest drivers of opportunity to actually have a physical location nearby. What I love about this brand is the healthy view on ASP, which is heavily driven by mix. So, when you think about the sport and athletic, introductions that we plan to have later this spring, which really excited about that is, it's at a healthier price point, but in terms of its price point, it's at Great Value. So those dimensions on mix, really helped us quite a bit. And as we think about units, we're thinking about our existing comp stores that exist within the business and getting more and more customers from the neighborhood into those stores. But also in terms of units, getting units through the new stores that we're opening as well as it actually progresses through its maturity curve, just to kind of amplify.

Speaker #6: When you think about the expansion of 50 points of distribution, that's clearly a way to really reach out to more customers where we know from our data that one of the biggest drivers of opportunities to actually have a physical location nearby what I love about this brand is they healthy view on ASP which is heavily driven by NYX.

Neil Blumenthal: Thanks for your question. To answer your last question first, just to clarify, we have not included any incremental revenue through the sale of AI glasses in our guidance. We have included the expenses that will incur to prepare and launch this new category for us. We plan to share more around timing and projections of later in the year. But we do anticipate, right, with the launch, that there would be incremental revenue, but we're not baking it into our guidance. We're also not including any halo effect or, you know, anticipation of additional traffic, and, you know, sales drivers for the existing products in our business. We view that all as upside.

David Neil spoke about, we're focused on a number of initiatives for units. We have a healthy way to think about ASP and we also have avenues for us in our Omni Channel platform to get new customers, particularly with physical openings, and points of distribution.

Thank you guys, good luck.

Speaker #6: So when you think about the sport and athletic introductions that we plan to have later this spring, what's really excited about that is at a healthier price point, but in terms of its price point, it's at great value.

Thank you with that. We will conclude the Warby Parker Incorporated, 4 q25 earnings conference call.

Thank you to everyone who was able to join us on the call today. You may now disconnect your lines

Speaker #6: So those dimensions on NYX really help us quite a bit. And as we think about units, we're thinking about our existing comp stores that exist within the business and getting more and more customers from the neighborhood into those stores.

Speaker #6: But also in terms of units, getting units through the new stores that we're opening as well as it actually progresses through its maturity curve.

Speaker #6: Just to kind of amplify what Dave and Neil spoke about, we're focused on a number of initiatives for units. We have a healthy way to think about ASP and we also have avenues for us in our omnichannel platform to get new customers, particularly with physical openings and points of distribution.

Neil Blumenthal: Once we do launch that product and believe that, you know, these will generate quite a bit of excitement and drive people to our stores and our digital properties that will, you know, generate additional benefits. Again, right now we're just projecting the core business as it stands today. To tackle your first question, I'll start and then kick it over to Adrian. We are seeing based on the category data that some customers are putting off their purchases. We are outperforming the market and gaining share. That's both from a customer perspective, from a unit perspective, from a revenue perspective as well.

Speaker #6: Thank you, guys. Good luck.

Speaker #2: Thank you. With that, we will conclude the Warby Parker Incorporated 4Q25 earnings conference call. Thank you to everyone who was able to join us on the call today.

Josh Truppo: One of our strengths has always been our pricing model, and our $95 opening price point, including anti-reflective prescription lenses, is more competitive than ever because it's been that price now for 16 years, as we've seen our competitors continue to take price. We think that this is one of the reasons why, you know, in this category that historically has been resilient, that is experiencing some volatility, that we continue to outperform our competitors in acquiring customers and driving units. We'll continue to be competitive there. We are seeing, as well as we're hearing from other folks within our category, but also people across the consumer and retail landscape, that the younger consumer, in their twenties, is behaving more cautiously and is under financial stress.

Neil Blumenthal: One of our strengths has always been our pricing model, and our $95 opening price point, including anti-reflective prescription lenses, is more competitive than ever because it's been that price now for 16 years, as we've seen our competitors continue to take price. We think that this is one of the reasons why, you know, in this category that historically has been resilient, that is experiencing some volatility, that we continue to outperform our competitors in acquiring customers and driving units. We'll continue to be competitive there. We are seeing, as well as we're hearing from other folks within our category, but also people across the consumer and retail landscape, that the younger consumer, in their twenties, is behaving more cautiously and is under financial stress.

Josh Truppo: We're not surprised that, you know, the category is seeing this particular customer sort of pull back a bit. We, again, think we're best positioned, and we're going to continue to acquire customers, whether they're younger or whether they're older. One of the things that we see with our older customers is that that drives progressive penetration, which helps drives ASP, gross margin, and contribution margin overall.

Neil Blumenthal: We're not surprised that, you know, the category is seeing this particular customer sort of pull back a bit. We, again, think we're best positioned, and we're going to continue to acquire customers, whether they're younger or whether they're older. One of the things that we see with our older customers is that that drives progressive penetration, which helps drives ASP, gross margin, and contribution margin overall.

Adrian Mitchell: Hi, Paul. I think Dave and Neil actually captured it quite well. Just to amplify the point, the way we think about it is units, ASP, and new customers. When you think about the expansion of 50 points of distribution, that's clearly a way to really reach out to more customers, where we know from our data that one of the biggest drivers of opportunity is to actually have a physical location nearby. What I love about this brand is the healthy view on ASP, which is heavily driven by mix. When you think about the sport and athletic introductions that we plan to have later this spring, what's really excited about that is it's at a healthier price point, but in terms of its price point, it's at great value. Those dimensions on mix really help us quite a bit.

Adrian Mitchell: As we think about units, we're thinking about our existing comp stores that exist within the business and getting more and more customers from the neighborhood into those stores, but also in terms of units, getting units through the new stores that we're opening, as well as it actually progresses through its maturity curve. Just to kind of amplify what Dave and Neil spoke about, we're focused on a number of initiatives for units. We have a healthy way to think about ASP, and we also have avenues for us in our omni-channel platform to get new customers, particularly with physical openings and points of distribution.

Paul Lejuez: Thank you, guys. Good luck.

Operator: Thank you. With that, we will conclude the Warby Parker Incorporated Q4 2025 Earnings Conference Call. Thank you to everyone who was able to join us on the call today. You may now disconnect your lines.

Q4 2025 Warby Parker Inc Earnings Call

Request a DemoDemo

WRBY

Warby Parker

Earnings