# Warby Parker Inc. (WRBY) Informational only - not investment advice. CIK: 0001504776 SIC: 3851 Ophthalmic Goods SIC breadcrumb: [Manufacturing](/division/D/) > [SIC Major Group 38](/major-group/38/) > [SIC 3851 Ophthalmic Goods](/industry/3851/) Latest 10-K filed: 2026-02-26 SEC page: https://www.sec.gov/edgar/browse/?CIK=1504776 Filing source: https://www.sec.gov/Archives/edgar/data/1504776/000150477626000006/wrby-20251231.htm ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 871905000 | USD | 2025 | 2026-02-26 | | Net income | 1641000 | USD | 2025 | 2026-02-26 | | Assets | 720919000 | USD | 2025 | 2026-02-26 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-26. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001504776.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | 370,463,000 | 393,719,000 | 540,798,000 | 598,112,000 | 669,765,000 | 771,315,000 | 871,905,000 | | Net income | | 0.00 | -55,919,000 | -144,271,000 | -110,393,000 | -63,197,000 | -20,390,000 | 1,641,000 | | Operating income | | -1,663,000 | -55,632,000 | -143,661,000 | -111,203,000 | -71,996,000 | -30,112,000 | -5,336,000 | | Gross profit | | 223,108,000 | 231,935,000 | 317,749,000 | 341,062,000 | 365,224,000 | 426,834,000 | 470,579,000 | | Diluted EPS | | -1.10 | -1.05 | -2.21 | -0.96 | -0.54 | -0.17 | 0.01 | | Operating cash flow | | 21,394,000 | 32,758,000 | -31,994,000 | 10,370,000 | 60,991,000 | 98,744,000 | 110,785,000 | | Capital expenditures | | 32,632,000 | 20,070,000 | 48,513,000 | 60,181,000 | 53,671,000 | 64,032,000 | 67,048,000 | | Assets | | | 444,751,000 | 440,646,000 | 568,707,000 | 580,312,000 | 676,490,000 | 720,919,000 | | Liabilities | | | 136,338,000 | 154,648,000 | 282,061,000 | 278,525,000 | 336,417,000 | 353,189,000 | | Stockholders' equity | -133,595,000 | -189,453,000 | -198,097,000 | 285,998,000 | 286,646,000 | 301,787,000 | 340,073,000 | 367,730,000 | | Cash and cash equivalents | | | 314,085,000 | 256,416,000 | 208,585,000 | 216,894,000 | 254,161,000 | 286,358,000 | | Free cash flow | | -11,238,000 | 12,688,000 | -80,507,000 | -49,811,000 | 7,320,000 | 34,712,000 | 43,737,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | 0.00% | -14.20% | -26.68% | -18.46% | -9.44% | -2.64% | 0.19% | | Operating margin | | -0.45% | -14.13% | -26.56% | -18.59% | -10.75% | -3.90% | -0.61% | | Return on equity | | | | -50.44% | -38.51% | -20.94% | -6.00% | 0.45% | | Return on assets | | | -12.57% | -32.74% | -19.41% | -10.89% | -3.01% | 0.23% | | Liabilities / equity | | | | 0.54 | 0.98 | 0.92 | 0.99 | 0.96 | | Current ratio | | | 3.42 | 2.78 | 2.27 | 2.35 | 2.50 | 2.35 | ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-07. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001504776.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q2 | 2022-06-30 | | | -0.28 | reported discrete quarter | | 2022-Q3 | 2022-09-30 | | | -0.21 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | -0.09 | reported discrete quarter | | 2023-Q2 | 2023-03-31 | | -10,812,000 | | reported discrete quarter | | 2023-Q2 | 2023-06-30 | 166,093,000 | | -0.14 | reported discrete quarter | | 2023-Q3 | 2023-06-30 | | -15,925,000 | | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 169,849,000 | | -0.15 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 161,855,000 | -19,047,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 200,003,000 | -2,679,000 | -0.02 | reported discrete quarter | | 2024-Q2 | 2024-03-31 | | -2,679,000 | | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 188,222,000 | | -0.06 | reported discrete quarter | | 2024-Q3 | 2024-06-30 | | -6,762,000 | | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 192,447,000 | | -0.03 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 190,643,000 | -6,877,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 223,782,000 | 3,472,000 | 0.03 | reported discrete quarter | | 2025-Q2 | 2025-03-31 | | 3,472,000 | | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 214,475,000 | | -0.01 | reported discrete quarter | | 2025-Q3 | 2025-06-30 | | -1,752,000 | | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 221,680,000 | | 0.05 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 211,968,000 | -5,953,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 242,447,000 | 3,177,000 | 0.03 | reported discrete quarter | ## Macro Cross-References - [CPIAUCSL](/indicator/CPIAUCSL/): Consumer Price Index for All Urban Consumers: All Items in U.S. City Average - [UNRATE](/indicator/UNRATE/): Unemployment Rate - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit - [DFEDTARL](/indicator/DFEDTARL/): Federal Funds Target Range - Lower Limit - [DGS3MO](/indicator/DGS3MO/): Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity - [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [DGS30](/indicator/DGS30/): Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity - [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity - [CPILFESL](/indicator/CPILFESL/): Consumer Price Index for All Urban Consumers: All Items Less Food and Energy - [CPIUFDSL](/indicator/CPIUFDSL/): Consumer Price Index for All Urban Consumers: Food - [CPIENGSL](/indicator/CPIENGSL/): Consumer Price Index for All Urban Consumers: Energy - [CUSR0000SAH1](/indicator/CUSR0000SAH1/): Consumer Price Index for All Urban Consumers: Shelter - [PCEPI](/indicator/PCEPI/): Personal Consumption Expenditures: Chain-type Price Index - [PCEPILFE](/indicator/PCEPILFE/): Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index - [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities - [T10YIE](/indicator/T10YIE/): 10-Year Breakeven Inflation Rate - [U6RATE](/indicator/U6RATE/): Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm - [CIVPART](/indicator/CIVPART/): Labor Force Participation Rate - [EMRATIO](/indicator/EMRATIO/): Employment-Population Ratio - [UNEMPLOY](/indicator/UNEMPLOY/): Unemployed - [CE16OV](/indicator/CE16OV/): Employment Level - [ICSA](/indicator/ICSA/): Initial Claims - [JTSJOL](/indicator/JTSJOL/): Job Openings: Total Nonfarm - [JTSQUR](/indicator/JTSQUR/): Quits: Total Nonfarm - [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product - [A191RL1Q225SBEA](/indicator/A191RL1Q225SBEA/): Real Gross Domestic Product: Percent Change from Preceding Period - [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index - [TCU](/indicator/TCU/): Capacity Utilization: Total Index - [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units - [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units - [RSAFS](/indicator/RSAFS/): Advance Retail Sales: Retail Trade - [PCE](/indicator/PCE/): Personal Consumption Expenditures - [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income - [PSAVERT](/indicator/PSAVERT/): Personal Saving Rate - [M2SL](/indicator/M2SL/): M2 - [BOPGSTB](/indicator/BOPGSTB/): U.S. International Trade in Goods and Services: Balance - [MSPUS](/indicator/MSPUS/): Median Sales Price of Houses Sold for the United States - [HSN1F](/indicator/HSN1F/): New One Family Houses Sold: United States - [RHORUSQ156N](/indicator/RHORUSQ156N/): Homeownership Rate in the United States - [TTLCONS](/indicator/TTLCONS/): Total Construction Spending: Total Construction in the United States - [RRVRUSQ156N](/indicator/RRVRUSQ156N/): Rental Vacancy Rate in the United States - [TOTALSL](/indicator/TOTALSL/): Total Consumer Credit Owned and Securitized - [REVOLSL](/indicator/REVOLSL/): Revolving Consumer Credit Owned and Securitized - [DRCCLACBS](/indicator/DRCCLACBS/): Delinquency Rate on Credit Card Loans, All Commercial Banks - [GDP](/indicator/GDP/): Gross Domestic Product - [GPDI](/indicator/GPDI/): Gross Private Domestic Investment - [GCE](/indicator/GCE/): Government Consumption Expenditures and Gross Investment - [PCEC](/indicator/PCEC/): Personal Consumption Expenditures - [NETEXP](/indicator/NETEXP/): Net Exports of Goods and Services - [GFDEBTN](/indicator/GFDEBTN/): Federal Debt: Total Public Debt - [GFDEGDQ188S](/indicator/GFDEGDQ188S/): Federal Debt: Total Public Debt as Percent of Gross Domestic Product - [FYFSD](/indicator/FYFSD/): Federal Surplus or Deficit - [FGRECPT](/indicator/FGRECPT/): Federal Government Current Receipts - [FGEXPND](/indicator/FGEXPND/): Federal Government: Current Expenditures - [MANEMP](/indicator/MANEMP/): All Employees, Manufacturing - [USCONS](/indicator/USCONS/): All Employees, Construction - [USTRADE](/indicator/USTRADE/): All Employees, Retail Trade - [USFIRE](/indicator/USFIRE/): All Employees, Financial Activities - [USGOVT](/indicator/USGOVT/): All Employees, Government - [AWHAETP](/indicator/AWHAETP/): Average Weekly Hours of All Employees, Total Private - [DGORDER](/indicator/DGORDER/): Manufacturers' New Orders: Durable Goods - [NEWORDER](/indicator/NEWORDER/): Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft - [BUSINV](/indicator/BUSINV/): Total Business Inventories - [EXPGS](/indicator/EXPGS/): Exports of Goods and Services - [IMPGS](/indicator/IMPGS/): Imports of Goods and Services - [IR](/indicator/IR/): Import Price Index (End Use): All Commodities - [PPIFIS](/indicator/PPIFIS/): Producer Price Index by Commodity: Final Demand ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1504776/000150477626000011/wrby-20260331.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-05-07 Report date: 2026-03-31 Item 2. Management’s Discussion And Analysis Of Financial Condition And Results Of Operations You should read the following discussion and analysis of our financial condition and results of operations together with our unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q and our audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed with the Securities and Exchange Commission (“SEC”) on February 26, 2026 (the “Annual Report”). Data as of and for the three months ended March 31, 2026 and 2025 has been derived from our unaudited condensed consolidated financial statements. Results for any interim period should not be construed as an inference of what our results would be for any full fiscal year or future period. This discussion and other parts of this Quarterly Report on Form 10-Q contain forward-looking statements, such as those relating to our plans, objectives, expectations, intentions, and beliefs, which involve risks and uncertainties. Our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those identified below and those discussed in the sections titled “Special Note Regarding Forward-Looking Statements” and in Part I, Item 1A, Risk Factors, in the Annual Report. Overview We are a mission-driven, lifestyle brand that operates at the intersection of design, technology, healthcare, and social enterprise. Since day one, our focus on delighting customers and doing good has created a foundation for continuous innovation: •We aim to provide customers with the highest-quality product possible by designing glasses at our headquarters in New York City, using custom materials, and selling direct to the customer. By cutting out the middleman, we are able to sell our products at a lower price than many of our competitors and pass the savings on to our customers. In addition to lower prices, we introduced simple, unified pricing (glasses starting at $95, including prescription lenses) to the eyewear market. •We’ve built a seamless shopping experience that meets customers where and how they want to shop, whether that’s on our website, on our mobile app, or in our 337 retail stores as of March 31, 2026. •We’ve crafted a holistic vision care offering that extends beyond glasses to include contacts, vision tests and eye exams, vision insurance, and more. We leverage leading (and in many cases proprietary) technology to enhance our customers’ experiences, whether it’s to help them find a better-fitting frame using our Virtual Try-On tool, or to update their prescription from home using Virtual Vision Test, our telehealth app. •We recruit and retain highly engaged, motivated team members who are driven by our commitment to scaling a large, growing business while making an impact and are excited to connect their daily work back to our mission. •We are a public benefit corporation focused on positively impacting all stakeholders, and hope to inspire other entrepreneurs and businesses to think along the same lines. Working closely with our nonprofit partners, we have distributed glasses to people in need in more than 80 countries globally and many parts of the United States. Over 25 million more people now have the glasses they need to learn, work, and achieve better economic outcomes through our Buy a Pair, Give a Pair program. We generate revenue through selling our wide array of eyewear and contact lenses, as well as from providing eye exams and vision tests. We maintain data across the entire customer journey that allows us to develop deep insights, informing our innovation priorities and enabling us to create a highly personalized, brand-enhancing experience for our customers. We have built an integrated, omnichannel presence that we believe deepens our relationship with existing customers while broadening reach and accessibility. And while we have the ability to track where our customers transact, we’re channel agnostic to where the transaction takes place and find that many of our customers engage with us across both digital and physical channels; for example, many customers 21 Table of Contents who check out online also visit a store throughout their customer journey, while others choose to browse online before visiting one of our stores. Financial Highlights For the three months ended March 31, 2026 and 2025: •we generated net revenue of $242.4 million and $223.8 million, respectively; •we generated gross profit of $131.0 million and $126.0 million, respectively, representing a gross margin of 54.0% and 56.3%, respectively; •we generated net income of $3.2 million and $3.5 million, respectively; and •we generated Adjusted EBITDA of $29.6 million and $29.2 million, respectively, representing an Adjusted EBITDA Margin of 12.2% and 13.1%, respectively. For a definition of Adjusted EBITDA and Adjusted EBITDA Margin, a non-GAAP measure, and a reconciliation to the most directly comparable GAAP measure, see the section titled “Key Business Metrics and Certain Non-GAAP Financial Measures.” Recent Business Developments AI Glasses In the second quarter of 2025, we announced a partnership with Google to develop AI-enabled glasses intended for all-day wear. We are working closely with Google on the development of AI glasses and intend to launch a series of products over time. As part of this collaborative arrangement, Google has committed up to $75 million for our product development and commercialization costs. In addition, Google has committed to investing up to $75 million in Warby Parker, at our option and subject to reaching certain collaboration milestones. During the three months ended March 31, 2026, the Company reduced selling, general, and administrative expenses by $2.0 million related to costs which are reimbursable by Google and are thus fully offset within the period. To date, we have incurred $5.3 million of reimbursable costs. Supreme Court Tariff Ruling In February 2026, the U.S. Supreme Court issued a ruling striking down certain tariffs previously imposed under the International Emergency Economic Powers Act ("IEEPA"). The U.S. presidential administration subsequently invoked additional tariffs under other laws resulting in a rapidly changing tariff environment. In April 2026, the U.S. Customs and Border Protection agency launched a platform to allow for the submission of IEEPA tariff refund requests. The timing of claim acceptance and payment remains uncertain and we are in the process of estimating the potential financial impact of this ruling. We will continue to monitor the refund process and will recognize a refund when the right to receive any amounts becomes probable. Factors Affecting Our Financial Condition and Results of Operations We believe that our performance and future success depend on a variety of factors that present significant opportunities for our business but also present risks and challenges that could adversely impact our growth and profitability, including those discussed below and throughout this Quarterly Report on Form 10-Q as well as in Part I, Item 1A. “Risk Factors” of the Annual Report. Overall economic environment The nature of our business, which involves the sale of products and services that are a medical necessity for many consumers, provides some insulation from swings in consumer sentiment. However, our performance and growth are still subject to broader macroeconomic factors. Pressures in the U.S. and the global economy such as changes in tariff regimes, inflation, energy prices, and recession fears may influence consumer sentiment and spending behavior. Throughout 2025 and into 2026, we experienced pressure from a dynamic trade environment. We source frame components from suppliers in China, Italy, Vietnam and Japan, and our cost structure has been directly affected by tariffs on imports from these countries. While the U.S. Supreme Court has struck down tariffs previously imposed under the IEEPA, the U.S. presidential administration subsequently invoked new tariffs under other authorities, resulting in a rapidly changing policy environment. We continue to strategically diversify our supplier base outside of China through international frame manufacturing partnerships and our domestic 22 Table of Contents optical laboratories, however the complexity of the current trade environment makes it difficult to predict the net effect on our future financial results. Key Business Metrics and Certain Non-GAAP Financial Measures In addition to the measures presented in our condensed consolidated financial statements, we use the following key business metrics and certain non-GAAP financial measures to evaluate our business, measure our performance, develop financial forecasts, and make strategic decisions. The following table summarizes our key performance indicators and non-GAAP financial measures for the periods presented, which are unaudited. Three Months Ended March 31, 2026 2025 Active Customers (in thousands) 2,689  2,567  Store Count(1) 337  287  Adjusted EBITDA(2) (in thousands) $ 29,567  $ 29,207  Adjusted EBITDA Margin(2) 12.2 % 13.1 % __________________ (1)Store Count number at the end of the period indicated. (2)Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures. For more information regarding our use of these measures and a reconciliation of net income to Adjusted EBITDA and Adjusted EBITDA Margin, see the section titled "Adjusted EBITDA and Adjusted EBITDA Margin” below. Active Customers The number of Active Customers is a key performance measure that we use to assess the reach of our physical retail stores and digital platform as well as our brand awareness. We define an Active Customer as a unique customer account that has made at least one purchase in the trailing 12-month period. We determine our number of Active Customers by counting the total number of customer accounts that have made at least one purchase in the trailing 12-month period, measured from the last date of such period. Given our definition of a customer is a unique customer account that has made at least one purchase, it can include either an individual person or a household of more than one person utilizing a single account. We define Average Revenue per Customer as the sum of the total net revenues in the trailing 12-month period divided by the current period Active Customers. Store Count Store Count is a key performance measure that we track as we grow our retail footprint. Stores drive customer awareness of our brand and generate incremental demand for our products. We define Store Count as the total number of retail stores open at the end of a given period. We believe our retail stores embody our brand, drive brand awareness, and serve as efficient customer acquisition vehicles. Our results of operations have been and will continue to be affected by the timing and number of retail stores that we operate. We have expanded our retail store footprint over the past several years. During the three months ended March 31, 2026 and 2025, we opened 14 and 11 net new retail stores, respectively. As of March 31, 2026, 299 out of our 337 retail stores offered in-person eye exams, representing 88.7% of our fleet, compared to 86.1% as of March 31, 2025. Adjusted EBITDA and Adjusted EBITDA Margin We define Adjusted EBITDA as net income before interest and other income, taxes, and depreciation and amortization as further adjusted for asset impairment costs, stock-based compensation expense and related employer payroll taxes, amortization of cloud-based software implementation costs, non-cash charitable donations, charges for certain legal matters outside the ordinary course of b [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Item 7. Management’s Discussion And Analysis Of Financial Condition And Results Of Operations You should read the following discussion and analysis of our financial condition and results of operations together with our audited consolidated financial statements and related notes included elsewhere in this Annual Report on Form 10-K. This discussion and other parts of this Annual Report on Form 10-K contain forward-looking statements, such as those relating to our plans, objectives, expectations, intentions, and beliefs, which involve risks and uncertainties. Our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those identified below and those discussed in the sections titled “Special Note Regarding Forward-Looking Statements” and “Risk Factors” included elsewhere in this Annual Report on Form 10-K. Overview We are a mission-driven, lifestyle brand that operates at the intersection of design, technology, healthcare, and social enterprise. Since day one, our focus on delighting customers and doing good has created a foundation for continuous innovation: •We aim to provide customers with the highest-quality product possible by designing glasses at our headquarters in New York City, using custom materials, and selling direct to the customer. By cutting out the middleman, we are able to sell our products at a lower price than many of our competitors and pass the savings on to our customers. In addition to lower prices, we introduced simple, unified pricing (glasses starting at $95, including prescription lenses) to the eyewear market. •We’ve built a seamless shopping experience that meets customers where and how they want to shop, whether that’s on our website, on our mobile app, or in our 323 retail stores as of December 31, 2025. •We’ve crafted a holistic vision care offering that extends beyond glasses to include contacts, vision tests and eye exams, vision insurance, and more. We leverage leading (and in many cases proprietary) technology to enhance our customers’ experiences, whether it’s to help them find a better-fitting frame using our Virtual Try-On tool, or to update their prescription from home using Virtual Vision Test, our telehealth app. •We recruit and retain highly engaged, motivated team members who are driven by our commitment to scaling a large, growing business while making an impact and are excited to connect their daily work back to our mission. •We are a public benefit corporation focused on positively impacting all stakeholders, and hope to inspire other entrepreneurs and businesses to think along the same lines. Working closely with our nonprofit partners, we have distributed glasses to people in need in more than 80 countries globally and many parts of the United States. Over 20 million more people now have the glasses they need to learn, work, and achieve better economic outcomes through our Buy a Pair, Give a Pair program. We generate revenue through selling our wide array of eyewear, including glasses, sunglasses, and contact lenses. We also generate revenue from providing eye exams and vision tests, and selling eyewear accessories. We maintain data across the entire customer journey that allows us to develop deep insights, informing our innovation priorities and enabling us to create a highly personalized, brand-enhancing experience for our customers. We have built an integrated, omnichannel presence that we believe deepens our relationship with existing customers while broadening reach and accessibility. And while we have the ability to track where our customers transact, we’re channel agnostic to where the transaction takes place and find that many of our customers engage with us across both digital and physical channels; for example, many customers who check out online also visit a store throughout their customer journey, while others choose to browse online before visiting one of our stores. Financial Highlights For the years ended December 31, 2025, 2024, and 2023: •we generated net revenue of $871.9 million, $771.3 million, and $669.8 million, respectively; 55 Table of Contents •we generated gross profit of $470.6 million, $426.8 million, and $365.2 million, respectively, representing a gross margin of 54.0%, 55.3%, and 54.5%, respectively; •we generated net income of $1.6 million, and net loss of $20.4 million and $63.2 million, respectively; and •we generated Adjusted EBITDA of $95.2 million, $73.1 million, and $52.4 million, respectively, representing an Adjusted EBITDA Margin of 10.9%, 9.5%, and 7.8%, respectively. For definitions of Adjusted EBITDA and Adjusted EBITDA Margin, non-GAAP measures, and a reconciliation to the most directly comparable GAAP measure, see the section titled “Key Business Metrics and Certain Non-GAAP Financial Measures.” Recent Business Developments In the second quarter of 2025, we announced a partnership with Google to develop AI-enabled glasses intended for all-day wear. We are working closely with Google on the development of AI glasses and intend to launch a series of products over time. As part of this collaboration, Google has committed up to $75 million for our product development and commercialization costs. In addition, Google has committed to investing up to $75 million in Warby Parker, at our option and subject to reaching certain collaboration milestones. During the year ended December 31, 2025, the Company reduced selling, general, and administrative expenses by $3.3 million related to costs which are reimbursable by Google and are thus fully offset within the period. Factors Affecting Our Financial Condition and Results of Operations We believe that our performance and future success depend on a variety of factors that present significant opportunities for our business but also present risks and challenges that could adversely impact our growth and profitability, including those discussed below and in Part I, Item 1A. “Risk Factors” of this Annual Report. Overall economic environment The nature of our business, which involves the sale of products and services that are a medical necessity for many consumers, provides some insulation from swings in consumer sentiment. However, our performance and growth are still subject to broader macroeconomic factors. During 2025, we experienced pressure from a dynamic trade environment and fluctuating inflationary trends, which impacted both consumer discretionary spending and our internal cost structure. While elevated interest rates and government policy continue to influence consumer confidence, we remain focused on our core value proposition to mitigate these headwinds. Our 2025 results were affected by cost volatility related to evolving international trade policies and tariffs. We have taken proactive steps to manage these costs, including further diversifying our supplier base outside of China, making strategic price adjustments on select products, and disciplined expense management. The complexity of the global trade landscape makes it difficult to predict the timing and extent of future policy changes. We believe our business model, which emphasizes an outstanding value-driven experience, provides a durable foundation. Our ongoing efforts to expand our supply chain network, both through international frame manufacturing partnerships and our domestic optical laboratories, are a key strategy intended to insulate us from localized disruptions. While we continue to navigate these macroeconomic uncertainties, we remain committed to meeting growing customer demand while maintaining our exceptional quality and customer satisfaction standards. Key Business Metrics and Certain Non-GAAP Financial Measures In addition to the measures presented in our consolidated financial statements, we use the following key business metrics and certain non-GAAP financial measures to evaluate our business, measure our performance, 56 Table of Contents develop financial forecasts, and make strategic decisions. The following table summarizes our key performance indicators and non-GAAP financial measures for the periods presented, which are unaudited. Year Ended December 31, 2025 2024 2023 Active Customers (in thousands) 2,689  2,514  2,332  Store Count(1) 323  276  237  Adjusted EBITDA(2) (in thousands) $ 95,211  $ 73,111  $ 52,352  Adjusted EBITDA Margin(2) 10.9 % 9.5 % 7.8 % __________________ (1)Store Count number at the end of the period indicated. (2)Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures. For more information regarding our use of these measures and a reconciliation of net income (loss) to Adjusted EBITDA and Adjusted EBITDA Margin, see the section titled "Adjusted EBITDA and Adjusted EBITDA Margin” below. Active Customers The number of Active Customers is a key performance measure that we use to assess the reach of our physical retail stores and digital platform as well as our brand awareness. We define an Active Customer as a unique customer account that has made at least one purchase in the trailing 12-month period. We determine our number of Active Customers by counting the total number of customer accounts that have made at least one purchase in the trailing 12-month period, measured from the last date of such period. Given our definition of a customer is a unique customer account that has made at least one purchase, it can include either an individual person or a household of more than one person utilizing a single account. We define Average Revenue per Customer as the sum of the total net revenues in the trailing 12-month period divided by the current period Active Customers. Store Count Store Count is a key performance measure that we track as we grow our retail footprint. Stores drive customer awareness of our brand and generate incremental demand for our products. We define Store Count as the total number of retail stores open at the end of a given period. We believe our retail stores embody our brand, drive brand awareness, and serve as efficient customer acquisition vehicles. Our results of operations have been and will continue to be affected by the timing and number of retail stores that we operate. We have thoughtfully expanded our retail store footprint over the past several years. During the years ended December 31, 2025, 2024, and 2023, we opened 47, 39, and 37 net new retail stores, respectively. As of December 31, 2025, 285 out of our 323 retail stores offered in-person eye exams, representing 88.2% of our fleet, compared to 85.5% and 81.9% as of December 31, 2024 and 2023, respectively. Adjusted EBITDA and Adjusted EBITDA Margin We define Adjusted EBITDA as net income (loss) before interest and other income, taxes, and depreciation and amortization as further adjusted for asset impairment costs, stock-based compensation expense and related employer payroll taxes, amortization of cloud-based software implementation costs, non-cash charitable donations, charges for certain legal matters outside the ordinary course of business, and non-recurring costs such as restructuring costs and major system implementation costs. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by net revenue. We caution investors that amounts presented in accordance with our definitions of Adjusted EBITDA and Adjusted EBITDA Margin may not be comparable to similar measures disclosed by our competitors, because not all companies and analysts calculate these measures in the same manner. We present Adjusted EBITDA and Adjusted EBITDA Margin because we consider these metrics to be important supplemental measures of our performance and believe they are frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. Management believes that investors’ understanding of our performance is enhanced by including these non-GAAP financial measures as a reasonable basis for comparing our ongoing results of operations. Management uses Adjusted EBITDA and Adjusted EBITDA Margin: •as a measurement of operating performance because they assist us in evaluating the operating performance of our business on a consistent basis, as they remove the impact of items not directly resulting from our core operations; 57 Table of Contents •for planning purposes, including the preparation of our internal annual operating budget and financial projections; •to evaluate the performance and effectiveness of our operational strategies; and •to evaluate our capacity to expand our business. By providing these non-GAAP financial measures, together with a reconciliation to the most directly comparable GAAP measure, we believe we are enhancing investors’ understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives. Adjusted EBITDA and Adjusted EBITDA Margin have limitations as analytical tools, and should not be considered in isolation, or as an alternative to, or a substitute for net income (loss) or other financial statement data presented in our consolidated financial statements as indicators of financial performance. Some of the limitations are: •such measures do not reflect our cash expenditures, or future requirements for capital expenditures, or contractual commitments; •such measures do not reflect changes in, or cash requirements for, our working capital needs; •such measures do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments on our debt; •such measures do not reflect our tax expense or the cash requirements to pay our taxes; •although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and such measures do not reflect any cash requirements for such replacements; and •other companies in our industry may calculate such measures differently than we do, limiting their usefulness as comparative measures. Due to these limitations, Adjusted EBITDA and Adjusted EBITDA Margin should not be considered as measures of discretionary cash available to us to invest in the growth of our business. We compensate for these limitations by relying primarily on our GAAP results and using these non-GAAP measures only supplementally. Each of the adjustments and other adjustments described in this paragraph and in the reconciliation table below help management with a measure of our core operating performance over time by removing items that are not related to day-to-day operations. The following table reconciles Adjusted EBITDA and Adjusted EBITDA Margin to the most directly comparable GAAP measure, which is net income (loss): Year Ended December 31, 2025 2024 2023 ($ in thousands) Net income (loss) $ 1,641  $ (20,390) $ (63,197) Adjusted to exclude the following: Interest and other income, net (8,379) (10,596) (9,232) Provision for income taxes 1,402  875  433  Depreciation and amortization expense 50,280  45,865  38,554  Asset impairment charges 557  816  3,230  Stock-based compensation expense(1) 36,097  48,409  71,065  Non-cash charitable donations(2) 2,821  2,196  3,191  Amortization of cloud-based software implementation costs 3,405  3,704  2,895  System implementation costs(3) 1,883  —  4,413  Inventory write-downs(4) 2,456  —  —  Other costs(5) 3,048  2,232  1,000  Adjusted EBITDA $ 95,211  $ 73,111  $ 52,352  Adjusted EBITDA Margin 10.9  % 9.5  % 7.8  % 58 Table of Contents __________________ (1)    Represents expenses related to the Company’s equity-based compensation programs and related employer payroll taxes, which may vary significantly from period to period depending upon various factors including the timing, number, and the valuation of awards granted, and vesting of awards including the satisfaction of performance conditions. For the years ended December 31, 2025, 2024, and 2023, the amount includes $1.6 million, $1.1 million, and $0.6 million of employer payroll costs associated with releases of RSUs and option exercises, respectively. (2)    Represents charitable expense recorded in connection with the donation of 178,572 shares of Class A common stock in each of May 2025, May 2024, and August 2023 to the Warby Parker Impact Foundation, and 56,938 shares of Class A common stock to charitable donor advised funds in June 2023. (3)    Represents costs related to the implementation of major new enterprise software systems. (4)    Represents one-time inventory write-downs primarily related to the decision in the second quarter of 2025 to sunset our Home-Try On program at the end of 2025. (5)    Primarily represents restructuring costs incurred in the second quarter of 2025 and the fourth quarter of 2024 and charges for certain legal matters outside the ordinary course of business. Results of Operations The results of operations presented below should be reviewed in conjunction with the consolidated financial statements and notes included elsewhere in this Annual Report on Form 10-K. The following tables set forth our results of operations for the periods presented in dollars and as a percentage of net revenue: Year Ended December 31, 2025 2024 2023 ($ in thousands) Consolidated Statements of Operations Data: Net revenue $ 871,905  $ 771,315  $ 669,765  Cost of goods sold 401,326  344,481  304,541  Gross profit 470,579  426,834  365,224  Selling, general, and administrative expenses 475,915  456,946  437,220  Loss from operations (5,336) (30,112) (71,996) Interest and other income, net 8,379  10,597  9,232  Income (loss) before income taxes 3,043  (19,515) (62,764) Provision for income taxes 1,402  875  433  Net income (loss) $ 1,641  $ (20,390) $ (63,197) Year Ended December 31, 2025 2024 2023 % of Net Revenue Consolidated Statements of Operations Data: Net revenue 100.0  % 100.0  % 100.0  % Cost of goods sold 46.0  % 44.7  % 45.5  % Gross profit 54.0  % 55.3  % 54.5  % Selling, general, and administrative expenses 54.6  % 59.2  % 65.3  % Loss from operations (0.6) % (3.9) % (10.8) % Interest and other income, net 1.0  % 1.4  % 1.4  % Income (loss) before income taxes 0.4  % (2.5) % (9.4) % Provision for income taxes 0.2  % 0.1  % —  % Net income (loss) 0.2  % (2.6) % (9.4) % Components of Results of Operations Net Revenue We primarily derive revenue from the sales of eyewear, contact lenses, and eye care. We sell products and services through our stores, website, and mobile apps. Revenue generated from eyewear includes the sales of 59 Table of Contents prescription and non-prescription optical glasses and sunglasses, eyewear accessories, lens replacements, and customer charges for optional expedited shipping. Revenue generated from eye care consists of in-person eye exams and prescriptions issued through the Virtual Vision Test app. Revenue from products is recognized when the customer takes possession of the product, either at the point of delivery or in-store pickup, and is recorded net of returns and discounts. Revenue for services is recognized when the service is rendered and is recorded net of discounts. Cost of Goods Sold Cost of goods sold includes the costs incurred to acquire materials, assemble, and sell our finished products. Cost of goods sold includes the costs incurred to acquire materials, assemble and sell our finished products, purchase and fulfill contacts orders through our third-party distribution partner, and provide eye exams. Such costs include (i) product costs, including freight and import costs and adjustments to the lesser of cost and net realizable value, (ii) optical laboratory costs, (iii) customer shipping, (iv) occupancy and depreciation costs of retail stores, and (v) employee-related costs associated with eye exams, which includes salaries, benefits, bonuses, and stock-based compensation. We expect our cost of goods sold to fluctuate as a percentage of net revenue primarily due to product mix, customer preferences and resulting demand, the cost and management of inventory, shipping costs, laboratory utilization, and the scaling of our eye exam and contacts businesses. Cost of goods sold also may change as we open or close retail stores because of the resulting change in related occupancy and depreciation costs. Gross Profit and Gross Margin We define gross profit as net revenues less cost of goods sold. Gross margin is gross profit expressed as a percentage of net revenues. Our gross margin has remained steady historically, but may fluctuate in the future based on a number of factors, including the cost at which we can obtain, transport, and assemble our inventory, the rate at which we open new retail stores, the mix of products we sell, and how effective we can be at controlling costs, in any given period. Selling, General, and Administrative Expenses Selling, general, and administrative expenses, or SG&A, primarily consist of employee-related costs including salaries, benefits, bonuses, and stock-based compensation for our corporate and retail employees, marketing, information technology, credit card processing fees, donations in connection with our Buy a Pair, Give a Pair program, facilities, legal, and other administrative costs associated with operating the business. Marketing, which consist of both online and offline advertising, includes sponsored search, online advertising, Home Try-On program costs, and other initiatives. We expect SG&A to increase in absolute dollars over time and to fluctuate as a percentage of revenue due to the anticipated growth of our business, intentional investments in marketing, and changing prices of goods and services caused by inflation and other macroeconomic factors. SG&A is expensed in the period in which it is incurred. Interest and Other Income, Net Interest and other income, net, consists primarily of interest generated from our cash and cash equivalents balances net of interest incurred on borrowings and fees on our undrawn line of credit, and is recognized as incurred. We expect our interest and other income costs to fluctuate based on our future bank balances, credit line utilization, and the interest rate environment. Provision for Income Taxes Provision for income taxes consists of income taxes related to foreign and domestic federal and state jurisdictions in which we conduct business, adjusted for allowable credits, deductions, and valuation allowance against deferred tax assets. We expect our provision to fluctuate based on changes in our operations, our income before taxes, and tax laws or regulations. 60 Table of Contents Comparison of the Years Ended December 31, 2025 and 2024 Net Revenue Year Ended December 31, 2025 2024 $ Change % Change ($ in thousands) Net revenue $ 871,905  $ 771,315  $ 100,590  13.0  % Net revenue increased $100.6 million, or 13.0%, for the year ended December 31, 2025 compared to the same period in 2024. Driving this increase was our 47 new stores opened in 2025, a 7.0% increase in our Active Customers, and a 5.7% increase in Average Revenue per Customer to $324, from $307 in the prior year period. Average Revenue per Customer growth was primarily driven by our glasses business, which benefited from strong adoption of precision progressives and selective price increases during the second quarter, as well as by growth in our contacts and eye exam businesses which are often purchased together with glasses. Cost of Goods Sold, Gross Profit, and Gross Margin Year Ended December 31, 2025 2024 $ Change % Change ($ in thousands) Cost of goods sold $ 401,326  $ 344,481  $ 56,845  16.5  % Gross profit 470,579  426,834  43,745  10.2  % Gross margin 54.0  % 55.3  % (1.3) % Cost of goods sold increased by $56.8 million, or 16.5%, for the year ended December 31, 2025 compared to the same period in 2024, and increased as a percentage of revenue over the same period by 130 basis points, from 44.7% of revenue to 46.0% of revenue. The increase in cost of goods sold was primarily driven by increased product and fulfillment costs associated with our sales growth, particularly related to the growth in our contact lens offering and optical laboratory costs to support glasses growth, as well as increases in store occupancy costs and doctor headcount due to new retail stores. Gross profit, calculated as net revenue less cost of goods sold, increased by $43.7 million, or 10.2%, for the year ended December 31, 2025 compared to the same period in 2024, primarily due to the increase in net revenue over the same period. Gross margin, expressed as a percentage and calculated as gross profit divided by net revenue, decreased by 130 basis points for the year ended December 31, 2025 compared to the same period in 2024. The decrease in gross margin was primarily driven by tariff costs related to glasses, sales growth of contact lenses, which are sold at a lower margin than our other eyewear, increased doctor headcount as the number of exam stores grew by 21%, and increased customer shipping costs as a percent of revenue, partially offset by selective price increases in glasses taken in the second quarter and increased penetration of progressives and other lens enhancements. Selling, General, and Administrative Expenses Year Ended December 31, 2025 2024 $ Change % Change ($ in thousands) Selling, general, and administrative expenses $ 475,915  $ 456,946  $ 18,969  4.2  % As a percentage of net revenue 54.6  % 59.2  % (4.6) % Selling, general, and administrative expenses increased $19.0 million, or 4.2%, for the year ended December 31, 2025 compared to the same period in 2024. This increase was primarily driven by higher payroll related costs from growth in our retail workforce and investments in marketing, partially offset by lower stock-based 61 Table of Contents compensation, mostly related to the 2021 Founders Grant. As a percentage of revenue, SG&A decreased by 460 basis points, primarily driven by slower growth in corporate expenses, efficiencies in our customer experience operations, and reduced stock-based compensation. Interest and Other Income, Net Year Ended December 31, 2025 2024 $ Change % Change ($ in thousands) Interest and other income, net $ 8,379  $ 10,597  $ (2,218) (20.9) % As a percentage of net revenue 1.0  % 1.4  % (0.4) % Interest and other income, net decreased by $2.2 million, or 20.9%, for the year ended December 31, 2025 compared to the same period in 2024 primarily due to unfavorable fluctuations in foreign currency rates and lower interest rates on our increased cash and cash equivalents balance. Provision for Income Taxes Year Ended December 31, 2025 2024 $ Change % Change ($ in thousands) Provision for income taxes $ 1,402  $ 875  $ 527  60.2  % As a percentage of net revenue 0.2  % 0.1  % 0.1  % Provision for income taxes increased $0.5 million, or 60.2%, for the year ended December 31, 2025 compared to the same period in 2024 primarily due to the change in pre-tax income (loss) in addition to the tax effects of stock-based compensation expense and depreciation expense. Comparison of the Years Ended December 31, 2024 and 2023 Net Revenue Year Ended December 31, 2024 2023 $ Change % Change ($ in thousands) Net revenue $ 771,315  $ 669,765  $ 101,550  15.2  % Net revenue increased $101.6 million, or 15.2%, for the year ended December 31, 2024 compared to the same period in 2023. Active Customers increased 7.8% and Average Revenue per Customer increased to $307 from $287 in the prior year period. Average Revenue per Customer growth was primarily driven by our glasses business, which saw strong adoption of precision progressives, our highest priced lens option which launched in April 2023, growth in our lens replacement service that was launched in the fourth quarter of 2023, and continued uptake of our higher priced frames, as well as by the impact of customers purchasing contacts or eye exams along with glasses in the same transaction. Cost of Goods Sold, Gross Profit, and Gross Margin Year Ended December 31, 2024 2023 $ Change % Change ($ in thousands) Cost of goods sold $ 344,481  $ 304,541  $ 39,940  13.1  % Gross profit 426,834  365,224  61,610  16.9  % Gross margin 55.3  % 54.5  % 0.8  % 62 Table of Contents Cost of goods sold increased by $39.9 million, or 13.1%, for the year ended December 31, 2024 compared to the same period in 2023, and decreased as a percentage of revenue over the same period by 80 basis points, from 45.5% of revenue to 44.7% of revenue. The increase in cost of goods sold was primarily driven by increased product and fulfillment costs associated with our sales growth, particularly related to the growth in our contact lens offering, as well as increases in store occupancy, store depreciation, doctor headcount due to new retail stores opened in 2024, and optical laboratory costs to support glasses growth. Gross profit, calculated as net revenue less cost of goods sold, increased by $61.6 million, or 16.9%, for the year ended December 31, 2024 compared to the same period in 2023, primarily due to the increase in net revenue over the same period. Gross margin, expressed as a percentage and calculated as gross profit divided by net revenue, increased by 80 basis points for the year ended December 31, 2024 compared to the same period in 2023. The increase in gross margin was primarily driven by faster growth in our glasses business which is our highest margin product category, lower outbound customer shipping costs as a percent of revenue, and efficiencies in our owned optical laboratories. These impacts were partially offset by sales growth of contact lenses, which are sold at a lower margin than our other eyewear, and increased doctor headcount, as the number of stores offering eye exams grew from 194 stores as of December 31, 2023 to 236 stores as of December 31, 2024. Selling, General, and Administrative Expenses Year Ended December 31, 2024 2023 $ Change % Change ($ in thousands) Selling, general, and administrative expenses $ 456,946  $ 437,220  $ 19,726  4.5  % As a percentage of net revenue 59.2  % 65.3  % (6.1) % Selling, general, and administrative expenses increased $19.7 million, or 4.5%, for the year ended December 31, 2024 compared to the same period in 2023. This increase was primarily driven by higher payroll-related costs, primarily from growth in our retail workforce, and investments in marketing, partially offset by a $23.2 million decrease in stock-based compensation, mostly related to the 2021 Founders Grant (as described in Note 7 to our consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K). Interest and Other Income, Net Year Ended December 31, 2024 2023 $ Change % Change ($ in thousands) Interest and other income, net $ 10,597  $ 9,232  $ 1,365  14.8  % As a percentage of net revenue 1.4  % 1.4  % —  % Interest and other income, net increased by $1.4 million, or 14.8%, for the year ended December 31, 2024 compared to the same period in 2023 primarily due to interest on our increased cash and cash equivalents balance. Provision for Income Taxes Year Ended December 31, 2024 2023 $ Change % Change ($ in thousands) Provision for income taxes $ 875  $ 433  $ 442  102.1  % As a percentage of net revenue 0.1  % —  % 0.1  % 63 Table of Contents Provision for income taxes increased $0.4 million, or 102.1%, for the year ended December 31, 2024 compared to the same period in 2023 primarily due to the change in pre-tax loss in addition to the tax effects of stock-based compensation expense, depreciation expense, and differences in tax rates in state jurisdictions. Liquidity and Capital Resources Since inception, we have financed our operations primarily from net proceeds from the sale of redeemable convertible preferred stock and cash flows from operating activities. We also have access to cash from our credit facility, which remains undrawn as of December 31, 2025. We had cash and cash equivalents of $286.4 million, which was primarily held for working capital purposes, and an accumulated deficit of $685.6 million as of December 31, 2025. We expect that operating losses could continue in the foreseeable future as we continue to invest in the expansion of our business. We believe our existing cash and cash equivalents, funds available under our existing credit facility, and cash flows from operating activities will be sufficient to fund our operations for at least the next 12 months. 2024 Credit Facility In February 2024, the Company and its wholly owned subsidiary, Warby Parker Retail, Inc. (together, the “Borrowers”) entered into a Credit Agreement with JPMorgan Chase Bank, N.A. and the lenders party thereto (the “2024 Credit Facility”), which replaced a previous credit facility. The 2024 Credit Facility consists of a $120.0 million five-year revolving credit facility with sublimits of $15.0 million for letters of credit and $10.0 million for swingline loans. The 2024 Credit Facility includes an option for the Company to increase the available amount by up to $55.0 million, for a maximum borrowing capacity of $175.0 million, subject to the consent of the lenders funding the increase and certain other conditions. Proceeds of the borrowings under the 2024 Credit Facility are expected to be used for working capital and other general corporate purposes in the ordinary course of business. The Company is permitted to repay borrowings under the 2024 Credit Facility at any time, in whole or in part, without penalty. Under the 2024 Credit Facility, borrowings under the revolving credit facility bear interest on the principal amount outstanding, at the Company’s election, at (a) the greater of the prime rate (as defined in the credit agreement) or 2.5%, plus an applicable margin of 0.65% to 0.90% depending on the Company’s leverage ratio or (b) adjusted SOFR (as defined in the credit agreement), plus an applicable margin of 1.65% to 1.90% depending on the Company’s leverage ratio. The Company is charged an unused commitment fee of 0.20% to 0.25% depending on the Company's leverage ratio. Both interest on principal and commitment fees are included in interest expense on the consolidated statements of operations. The 2024 Credit Facility contains a financial maintenance covenant which only applies while total borrowings exceed $30.0 million, which requires the Company to maintain a maximum consolidated senior net leverage ratio of 3:1. The 2024 Credit Facility contains customary affirmative and negative covenants, including limits on indebtedness, liens, capital expenditures, asset sales, investments and restricted payments, in each case subject to negotiated exceptions and baskets, as well as representations, warranties and event of default provisions. The obligations of the Borrowers under the 2024 Credit Agreement are secured by first-lien security interests in substantially all of the assets of the Borrowers. In addition, the obligations are required to be guaranteed in the future by certain additional domestic subsidiaries of the Company. Other than letters of credit outstanding of $4.3 million as of both December 31, 2025 and 2024, used to secure certain leases in lieu of a cash security deposit, there were no other borrowings outstanding under the 2024 Credit Facility. Share Repurchase Program In February 2026, the Company’s Board of Directors authorized a share repurchase program to purchase up to $100.0 million of the Company’s Class A common stock (the “Share Repurchase Program”). Repurchases under the Share Repurchase Program may be made in the open market, in privately negotiated transactions, or otherwise, with the amount and timing of repurchases to be determined at the Company’s discretion, depending on market conditions and corporate needs. Open market repurchases will be structured to occur in accordance with applicable federal securities laws, including within the pricing and volume requirements of Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of its shares under this authorization. The Share Repurchase Program does not have a fixed expiration date, does not obligate the Company to acquire any 64 Table of Contents particular amount of Class A common stock, and may be modified, suspended, or terminated at any time at the discretion of the Company’s Board of Directors. Cash Flows The following table summarizes our cash flows for the periods presented: Year Ended December 31, 2025 2024 2023 ($ in thousands) Net cash provided by operating activities $ 110,785  $ 98,744  $ 60,991  Net cash used in investing activities (67,048) (66,032) (54,671) Net cash (used in) provided by financing activities (11,997) 4,959  2,871  Effect of exchange rates on cash 457  (404) (882) Net increase in cash and cash equivalents $ 32,197  $ 37,267  $ 8,309  Cash Flows from Operating Activities Net cash provided by operating activities was $110.8 million for the year ended December 31, 2025, consisting of a net income of $1.6 million, adjusted for $91.6 million of non-cash expenses and $17.6 million of net cash from changes in operating assets and liabilities. The non-cash charges included $34.5 million of stock-based compensation, $50.3 million of depreciation and amortization, $3.4 million of amortization of cloud-based implementation costs, $2.8 million of non-cash charitable contributions, and $0.6 million of non-cash impairment charges. The changes in operating assets and liabilities were primarily driven by increases in accounts payable and lease liabilities and a decrease in inventory, partially offset by an increase in prepaid expenses and other assets. Net cash provided by operating activities was $98.7 million for the year ended December 31, 2024, consisting of a net loss of $20.4 million, adjusted for $99.9 million of non-cash expenses and $19.2 million of net cash from changes in operating assets and liabilities. The non-cash charges included $47.3 million of stock-based compensation, $45.9 million of depreciation and amortization, $3.7 million of amortization of cloud-based implementation costs, $2.2 million of non-cash charitable contributions, and $0.8 million of non-cash impairment charges. The changes in operating assets and liabilities were primarily driven by decreased inventory as we more closely manage stock on hand, increased accrued expenses, and increased net lease liabilities in connection with retail leases entered into in 2024, partially offset by an increase in prepaid expenses and other current assets. Net cash provided by operating activities was $61.0 million for the year ended December 31, 2023, consisting of a net loss of $63.2 million, adjusted for $118.4 million of non-cash expenses and $5.8 million of net cash from changes in operating assets and liabilities. The non-cash charges included $70.5 million of stock-based compensation, $38.6 million of depreciation and amortization, $3.2 million of non-cash charitable contributions, $3.2 million of non-cash impairment charges, and $2.9 million of amortization of cloud-based implementation costs. The changes in operating assets and liabilities were primarily driven by decreased inventory and other non-current assets, and increased deferred revenue from sales growth, net lease liabilities in connection with retail leases entered into in 2023, and accounts payable, partially offset by a decrease in accrued expenses and an increase in prepaid expenses and other current assets. Cash Flows from Investing Activities For the year ended December 31, 2025, net cash used in investing activities was $67.0 million related to purchases of property and equipment to support our growth, primarily related to the build-out of new retail stores and investments in capitalized software development costs. For the year ended December 31, 2024, net cash used in investing activities was $66.0 million related to purchases of property and equipment to support our growth, primarily related to the build-out of new retail stores, investments in capitalized software development costs, and an investment in a private optical equipment company. 65 Table of Contents For the year ended December 31, 2023, net cash used in investing activities was $54.7 million related to purchases of property and equipment to support our growth, primarily related to the build-out of new retail stores, investments in capitalized software development costs, and an investment in a private optical equipment company. Cash Flows from Financing Activities For the year ended December 31, 2025, net cash used in financing activities was $12.0 million, which was primarily related to cash paid for shares withheld for taxes for stock-based compensation, partially offset by proceeds shares issued in connection with our Employee Stock Purchase Plan (“ESPP”). For the year ended December 31, 2024, net cash provided by financing activities was $5.0 million, which was primarily related to proceeds from stock option exercises, shares issued in connection with our ESPP, and other equity activity. For the year ended December 31, 2023, net cash provided by financing activities was $2.9 million, which was primarily related to proceeds from shares issued in connection with our ESPP and stock option exercises. Contractual Obligations and Commitments The following table summarizes our contractual obligations and commitments as of December 31, 2025: Payments Due by Period Total Less than 1 year 1 to 3 years 3 to 5 years More than 5 years ($ in thousands) Operating leases $ 279,312  $ 44,137  $ 105,561  $ 71,891  $ 57,723  Total $ 279,312  $ 44,137  $ 105,561  $ 71,891  $ 57,723  For additional discussion on our lease obligations, see Note 8, “Leases” in our consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K. Subsequent to December 31, 2025, we entered into ten operating lease agreements and extended the term of four existing operating lease agreement for retail space in the U.S. Total commitments under these agreements are approximately $14.3 million. Recent Accounting Pronouncements See Note 2, “Summary of Significant Accounting Policies” in our consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K for a description of recently adopted accounting pronouncements and recently issued accounting pronouncements not yet adopted. Critical Accounting Policies and Estimates Management’s discussion and analysis of our financial condition and results of operations is based on our consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of our financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, the reported revenue generated and expenses incurred during the reporting periods, and related disclosures. Our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities and the amount of revenue and expenses that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions, and any such differences may be material. We believe that the accounting policies discussed below are critical to understanding our historical and future performance, as these policies relate to the more significant areas involving management’s judgments and estimates. Inventory Inventory is stated at the lower of cost or net realizable value, with cost determined on a weighted average cost basis. We continuously evaluate the composition of our inventory and make adjustments when the cost of inventory is not expected to be fully recoverable. The estimated net realizable value of excess and obsolete inventory is determined based on an analysis of historical sales trends, the impact of market trends and economic conditions, forecasts of future demand, and estimated timing of product retirements. Adjustments for damaged inventory are recorded primarily based on actual damaged inventory. Adjustments for inventory shrink, representing the physical loss of inventory, are estimated based on historical experience and are 66 Table of Contents adjusted based upon physical inventory counts. Actual results may differ from estimates due to the quantity and mix of products in inventory, consumer preferences, and economic and market conditions. Our historical estimates of these costs and the related provisions have not differed materially from actual results. However, unforeseen adverse future economic and market conditions, such as those resulting from disease pandemics and other catastrophic events, could result in our actual results differing materially from our estimates. Income Taxes Management makes estimates, assumptions, and judgments to determine our provision for income taxes, deferred tax assets and liabilities, and any valuation allowance recorded against deferred tax assets. We utilize the asset and liability method of accounting for income taxes. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as operating loss, capital loss, and tax credit carryforwards. Valuation allowances are established against deferred tax assets if it is more likely than not that they will not be realized. Our policy is to recognize interest and penalties expense, if any, related to unrecognized tax benefits as a component of income tax expense.