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WRBY, Warby Parker Inc.

Medical Devices & Equipment capital-intensive

Warby Parker is a mission-driven, lifestyle brand that operates at the intersection of design, technology, healthcare, and social enterprise.

As a pioneer of the direct-to-consumer model, we design our glasses in-house at our New York City headquarters and sell directly to customers, enabling us to make high-quality, designer eyewear more accessible, with simple, unified pricing starting at $95 including prescription lenses.

We operate an integrated, omnichannel platform across digital commerce and 323 retail stores as of December 31, 2025, all designed to make shopping both convenient and fun.

Latest annual: FY2025 10-K

WRBY · Warby Parker Inc.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$872M

+13.0% YoY · 17% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $912M 5-yr avg $690M

Gross margin 55% 5-yr avg 56%

Operating margin 0.2% 5-yr avg −12.1%

ROIC 1% 5-yr avg −119%

Owner-earnings margin 5% 5-yr avg 1%

Free cash flow margin 2% 5-yr avg −3%

Next report By 11/8 · the 10-Q for the quarter ended late September · due within 40 days of period end · has filed ~38 days after · the wire records it on arrival

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What it is: Revenue is Eyewear (82%), Contacts Products (11%) and Eye care (6%).
What moves the needle: Operating margin has run around −11% through the cycle on a 57% gross margin, the operating line in the red even at its best — so the lever is whether the spending below the gross line can come down enough to clear a profit: revenue growth against the cost curve, and the cash runway until it does. Capital spending runs about 8.3% of sales, well above depreciation, so the return earned on what it sinks into that plant weighs as much as the margin. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has rarely cleared the cost of capital (median −67%, above 15% in 0 of 5 years). By owner earnings: roughly 3% of revenue reaches owners as cash, though it swings. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

Eyewear is 82% of revenue, with Contacts Products the other meaningful line at 11%.

Revenue by product line, FY2025

Eyewear82%$719M
Contacts Products11%$97M
Eye care6%$56M
Shipping and Handling0%$4M

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2019–2025

realized figures from each filing · older years to the left

2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMJun 2026
								Income statement
$370M	$394M	$541M	$598M	$670M	$771M	$872M	$912M	RevenueRevenue
$223M	$232M	$318M	$341M	$365M	$427M	$471M	$498M	Gross profitGross prof.
60%	59%	59%	57%	55%	55%	54%	55%	Gross marginGross mgn
61%	73%	85%	76%	65%	59%	55%	55%	SG&A / revenueSG&A/rev
($2M)	($56M)	($144M)	($111M)	($72M)	($30M)	($5M)	$2M	Operating incomeOp. inc.
−0.4%	−14.1%	−26.6%	−18.6%	−10.7%	−3.9%	−0.6%	0.2%	Operating marginOp. mgn
$276K	($56M)	($144M)	($110M)	($63M)	($20M)	$3M	—	Pretax incomePretax
$0	($56M)	($144M)	($110M)	($63M)	($20M)	$2M	$8M	Net incomeNet inc.
								Cash flow & returns
$21M	$33M	($32M)	$10M	$61M	$99M	$111M	$95M	Operating cash flowOp. cash
$15M	$18M	$22M	$32M	$39M	$46M	$50M	$53M	Depreciation & amortizationD&A
($2M)	$26M	($16M)	($9M)	$15M	$26M	$24M	($457K)	Working capital & otherWC & other
$33M	$20M	$49M	$60M	$54M	$64M	$67M	$74M	CapexCapex
8.8%	5.1%	9.0%	10.1%	8.0%	8.3%	7.7%	8.1%	Capex / revenueCapex/rev
$7M	$13M	($54M)	($21M)	$22M	$53M	$61M	$42M	Owner earningsOwner earn.
1.9%	3.2%	−9.9%	−3.6%	3.3%	6.9%	6.9%	4.6%	Owner earnings marginOE mgn
($11M)	$13M	($81M)	($50M)	$7M	$35M	$44M	$22M	Free cash flowFCF
−3.0%	3.2%	−14.9%	−8.3%	1.1%	4.5%	5.0%	2.4%	Free cash flow marginFCF mgn
$79M	$0	$8M	$0	$0	—	—	—	BuybacksBuybacks
($33M)	($20M)	($49M)	($60M)	($55M)	($66M)	($67M)	—	Investing cash flowInv. cash
($83M)	$246M	$23M	$3M	$3M	$5M	($12M)	—	Financing cash flowFin. cash
$237K	$37K	($161K)	($1M)	($882K)	($404K)	$457K	—	Exchange-rate effectFX
($94M)	$259M	($58M)	($48M)	$8M	$37M	$32M	—	Change in cashΔ cash
—	—	-384%	-113%	-67%	-28%	-4%	1%	ROICROIC
—	—	-50%	-39%	-21%	-6%	0%	2%	Return on equityROE
—	—	−50%	−39%	−21%	−6%	0%	2%	Retained to equityRetained/eq
								Balance sheet
$55M	$314M	$256M	$209M	$217M	$254M	$286M	$293M	Cash & investmentsCash+inv
—	$601K	$992K	$1M	$2M	$2M	$3M	$2M	ReceivablesReceiv.
—	$38M	$57M	$69M	$62M	$52M	$45M	$42M	InventoryInvent.
—	$41M	$31M	$21M	$22M	$24M	$32M	$41M	Accounts payablePayables
—	($2M)	$27M	$49M	$42M	$31M	$16M	$3M	Operating working capitalOper. WC
—	$360M	$328M	$295M	$299M	$326M	$352M	$371M	Current assetsCur. assets
—	$105M	$118M	$130M	$127M	$130M	$150M	$163M	Current liabilitiesCur. liab.
—	3.4×	2.8×	2.3×	2.3×	2.5×	2.3×	2.3×	Current ratioCurr. ratio
—	$85M	$112M	$139M	$152M	$170M	$187M	—	Net PP&ENet PP&E
—	$445M	$441M	$569M	$580M	$676M	$721M	$772M	Total assetsAssets
($55M)	($314M)	($256M)	($209M)	($217M)	($254M)	($286M)	($293M)	Net debt / (cash)Net debt
—	$136M	$155M	$282M	$279M	$336M	$353M	—	Total liabilitiesTotal liab.
$263M	$507M	$0	$0	—	—	—	—	Redeemable interestsRedeemable
($189M)	($198M)	$286M	$287M	$302M	$340M	$368M	$392M	Shareholders’ equityEquity
2.3%	11.4%	19.8%	16.4%	10.5%	6.1%	4.0%	3.8%	Stock comp / revenueSBC/rev
								Per share
52.4M	53.0M	71.2M	115M	117M	120M	125M	126M	Shares out (diluted)Shares
$7.07	$7.42	$7.59	$5.20	$5.71	$6.41	$6.97	$7.25	Revenue / shareRev/sh
$0.00	$-1.05	$-2.02	$-0.96	$-0.54	$-0.17	$0.01	$0.06	EPS (diluted)EPS
$0.13	$0.24	$-0.75	$-0.19	$0.19	$0.44	$0.48	$0.33	Owner earnings / shareOE/sh
$-0.21	$0.24	$-1.13	$-0.43	$0.06	$0.29	$0.35	$0.17	Free cash flow / shareFCF/sh
$0.62	$0.38	$0.68	$0.52	$0.46	$0.53	$0.54	$0.59	Cap. spending / shareCapex/sh
$-3.61	$-3.74	$4.01	$2.49	$2.57	$2.82	$2.94	$3.12	Book value / shareBVPS

The diluted share count moved ×1.61 into 2022 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.

Per-share growththe realized rate an owner's share compounded

	6-yr	5-yr
Revenue / share	−0.2%/yr	−1.3%/yr
Owner earnings / share	+24.3%/yr	+15.1%/yr
Capital spending / share	−2.5%/yr	+7.2%/yr

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetained

Each year's operating cash, by what management did with it: the mix, and how it drifts.

FY2019FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business earned $61M of owner earnings, the operating cash left after the $50M it takes just to hold its position. It put $17M more into growth; free cash flow, after that spending, was $44M.

Reported net income$2M

Owner earnings$61M · 7% of revenue

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	$2M	($20M)	($63M)	($110M)	($144M)
Depreciation & amortizationnon-cash charge added back	+$50M	+$46M	+$39M	+$32M	+$22M
Stock-based compensationreal costnon-cash, but a real cost	+$35M	+$47M	+$71M	+$98M	+$107M
Working capital & othertiming of cash in and out, other non-cash items	+$24M	+$26M	+$15M	−$9M	−$16M
Cash from operations	$111M	$99M	$61M	$10M	($32M)
Maintenance capital expenditurethe spending needed just to hold position and volume	−$50M	−$46M	−$39M	−$32M	−$22M
Owner earnings	$61M	$53M	$22M	($21M)	($54M)
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	−$17M	−$18M	−$15M	−$28M	−$27M
Free cash flow	$44M	$35M	$7M	($50M)	($81M)
Owner-earnings marginowner earnings ÷ revenue	7%	7%	3%	-4%	-10%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the maintenance capital it must spend to hold its position (here about $50M, roughly its depreciation, the rate its assets wear out). The other $17M of its capital spending is growth it chose, not upkeep it owed; charged only with the maintenance it must do, the business earns well more than the year's free cash flow shows. The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $35M), owner earnings is nearer $26M.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Material weakness in financial controls

“For example, we previously identified material weaknesses related to information technology general controls and controls within our financial reporting processes.”

The figures below are only as sound as the controls that produced them. read the note →

Will it survive?

Can it pay its interest? —

No meaningful interest burden

Little or no interest expense reported

What this means
Little or no interest expense reported, the business isn't leaning on lenders to operate.
How heavy is the debt, net of cash? +$286M

Net cash, debt-free

Cash $286M − debt $0

What this means
Cash and short-term investments exceed every dollar of debt by $286M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 13d

Tight

DSO 1 + DIO 40 − DPO 29 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital —

Not enough data

Industry peers: median -19%

What this means
The filing data didn't include the inputs for this check.
Owner-earnings margin 7%

Solid, recently turned positive

latest $61M = operating cash $111M − maintenance capex $50M; positive each of the last 3 years, after an earlier loss stretch (7-yr median 3%)

Industry peers: median -1%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 7% of revenue this year, a 3% median across 7 years. It chose to put $17M more into growth, so free cash flow this year was $44M — the gap is investment, not weakness. Treating stock comp as the real expense it is (less $35M of SBC) leaves $26M.
Are earnings backed by cash? 67.51×

Cash-backed

Cash from ops $111M ÷ net income $2M

In the filing’s words The filing discloses a material weakness in its financial controls — the reported numbers here, and the record built on them, are only as reliable as the controls that produced them.

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? —

Not enough data

What this means
The filing data didn't include the inputs for this check.
Investing or harvesting? 1.33×

Expanding

Capex $67M ÷ depreciation & amortization as filed $50M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

The promise and the pay packet

Is the buyback buying ownership, or mopping up? 4.0%

Stock pay, share count unread

Stock compensation $35M (fiscal 2025), 4.0% of revenue · no repurchases · the share count is not comparable across these years (a split or a first listing sits in the record), so the drift is withheld

What this means
Stock handed to employees is a real cost paid in the owner's own currency: it is charged against profit, but the shares it creates are permanent. Many companies repurchase stock at the same time, which looks like a return of capital and often is not — if the count barely moves, the cash merely cancelled the pay packet and bought the owner nothing. The three states worth telling apart are a count genuinely shrinking, a count standing still despite large repurchases, and a count rising because the issuance was never offset at all.

Graham’s defensive tests · 1 of 3 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Miss

Revenue ≥ $2B · $872M

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Pass

Current ratio ≥ 2× · 2.35×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Earnings stability Miss

A profit every year (7-yr record) · 6 loss years

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record —

Uninterrupted dividends · no dividend line tagged in the data

What this means
An unbroken dividend was Graham's mark of durability. This record carries no dividends-paid line in any year — common for partnerships, whose distributions file under tags the chain doesn't read — so the criterion is withheld rather than judged on silence.
Earnings growth —

Earnings +33% over the record · —

What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $-0.22/share (latest year $0.01), the averaged base the calculator's gate runs on, and book value is $2.97/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2019–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 1 of 7

What this means
Lost money in 6 year(s), look at what happened there before trusting the average.
Operating margin −14% → −5% (3-yr avg ends)

In the filing’s words The margin widened even though the filing names price competition — the gain came from volume or cost, not pricing power. Read where.

What this means
Through the cycle the operating margin widened — about −14% early to −5% lately, median −11% — pricing power intact or improving.
Owner earnings growth +34%/yr

What this means
Owner earnings grew about 34% a year over the record.
Worst year 2021 · −26.6% op. margin

What this means
Operations went underwater in 2021, understand why before trusting the good years.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Jun 30, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$371M

Cash & short-term investments$293M
Receivables$2M
Inventory$42M
Other current assets$34M

Current liabilities$163M

Accounts payable$41M
Other current liabilities$122M

Current ratio2.27×all current assets ÷ what's due · Graham looked for 2×

Quick ratio2.01×stricter: inventory excluded

Cash ratio1.79×strictest: cash alone against what's due

Working capital$207Mthe cushion left after near-term bills

Revenue, latest quarter vs. a year ago+9.8%the freshest read on whether the business is still growing

Current ratio, recent quarters2.5× → 2.3×

Deeper floors

Tangible book value$392Mequity stripped of goodwill & intangibles

Net current asset value($9M)Graham's net-net: current assets less all liabilities

Debt incl. operating leases$251M$251M of it operating leases

Deferred revenue$23Mcustomer cash collected before delivery; operating float

From the company's latest filing.

How the cash was used, 2019–2025

Over the record, the business generated $303M of operating cash; how management split it reads as a reinvestor, most operating cash is plowed back into the business.

Reinvested$346M · 114%
Buybacks$88M · 29%

Returned to owners$88M
109% of the owner earnings the business produced over the span, $0 as dividends and $88M as buybacks.
Source of funding−$131M
Reinvestment and shareholder returns ran $131M beyond the operating cash the business generated, so the gap was financed off the balance sheet.
Average price paid for buybacks—
Buybacks ran $88M over the span, but the filings don't tag the share count needed to deduce the average price paid.
Net change in share count139.7%
The diluted count rose from 52M to 126M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
Dividend record—
No dividend line was reported in the filing data over the span; the record here neither confirms nor rules out a payout.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2022	Blumenthal	$700k	−$98.1M	($21M)
2022	Gilboa	$700k	−$98.1M	($21M)
2023	Blumenthal	$907k	$2.9M	$22M
2023	Gilboa	$907k	$2.9M	$22M
2024	Blumenthal	$1.5M	$22.4M	$53M
2024	Gilboa	$1.5M	$22.4M	$53M
2025	Blumenthal	$9.0M	−$5.7M	$61M
2025	Gilboa	$9.0M	−$5.7M	$61M

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership<1%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
Stock-based compensation$35M
The slice of the business handed to employees in shares in fiscal 2025, 4.0% of revenue. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

What an owner would ask, FY2025

read the 10-K →

Which reported numbers are a judgment call?
Management names Income taxes, Inventory as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Medical Devices & Equipment

The same industry, side by side on owner economics. Each column names the period it is read over; the group median at the foot is the line to read each figure against.

Company	Revenuelatest FY, USD	Gross marginmedian over the record	Op. marginmedian over the record	ROICmedian over the record	Owner earn. marginmedian over the record
COOThe Cooper Companies Inc.	$4.1B	65%	16.6%	5%	15%
TNDMTandem Diabetes Care	$1.0B	52%	-15.0%	-24%	-1%
INSPInspire Medical Systems	$912M	84%	-28.7%	-19%	-23%
WRBYWarby Parker Inc.	$872M	57%	-10.7%	-67%	3%
OFIXOrthofix Medical Inc. Common Stock (DE)	$822M	75%	-2.3%	-3%	1%
ATECAlphatec Holdings	$764M	68%	-30.2%	-47%	-31%
IRTCiRhythm Technologies	$747M	70%	-25.5%	-29%	-13%
STAASTAAR Surgical Company	$239M	75%	4.7%	9%	6%
Group median	—	69%	-12.9%	-22%	0%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Warby Parker Inc. has delivered.

Warby Parker Inc.’s latest year runs above its own through-cycle margin — the reported figure may flatter a peak. So the tool opens on the through-cycle base, Graham’s averaging cutting both ways; clear the toggle below to read the latest year exactly as reported.

Today’s price $

Through the cycle, Warby Parker Inc. earns about $28M on its 3.2% median owner-earnings margin. This year’s 6.9% margin runs above that; the reported figure may flatter a peak you'd be paying on. Normalize, below, values the price on that through-cycle figure rather than the latest year. It comes pre-checked here for that reason, the same rule that already normalizes a trough; clear it to price the year as filed.

Base Normalize · through-cycle ($28M) Net of stock comp (−$35M TTM) Steady-state · maintenance capex ($45M)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.71% 10-year Treasury (Aug 18, 2026) + 4.29 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’19→’25+94%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.71%, as of Aug 18, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Free cash flow $22M on 124M shares outstanding (a weighted basic average, the only count this filer tags); net cash $293M. The base opens on the through-cycle figure (the latest year sits above the record’s own median, and Graham’s averaging cuts both ways); clear Normalize to use the year as filed. Net of stock comp treats option pay as the expense it is. Capex ($74M) runs well above depreciation ($53M), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $45M, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh WRBY against another business →

Cite: Owner Scorecard, "Warby Parker Inc. (WRBY), the owner's record," https://ownerscorecard.com/c/WRBY, data as of 2026-08-17.

Manual order: ← WRB its page in the Manual WRLD →

Industry order: ← UFPT the Medical Devices & Equipment chapter WST →