Warby Parker Inc

Equity Research 6 August 2026 | 5:52AM MDT

Warby Parker Inc. (WRBY): 2Q26 First Take: Soft revenue trends persist; Tariff refunds and AI glasses spend muddle the margin picture

WRBY reported 2Q26 adjusted EBITDA of $32.9mn, above GS/FactSet consensus at Brooke Roach, CFA | $28.5mn/$28.9mn. That said, 2Q adj. EBITDA benefited by ~$11.8mn of tariff Goldman Sachs & Co. LLC refunds, which management utilized to offset investments to support the upcoming Mentesnot Adamu launch of WRBY’s AI glasses initiative. Net revenues were reported below | expectations, coming in at $235.5mn (9.8% Y/Y growth vs. GS/consensus at 11.0%). Goldman Sachs & Co. LLC

Adjusted EBITDA margin at 14.0% of sales was reported above GS/consensus at Carly Chasen | 12.0%/12.1%. Goldman Sachs & Co. LLC Looking ahead, WRBY reaffirmed its FY26 guidance albeit now including a ~$14.4mn tariff refund benefit and strategic investments in the business in 2Q/2H ahead of the AI glasses launch. Sales are still expected to grow 10-12% vs. GS/consensus at 11.5%/12.4%, and adjusted EBITDA dollars expected between $117-$119mn, which compares to GS/consensus at $119.7mn/$120.7mn. This implies a ~12.2% adj. EBITDA margin at the midpoint vs. GS/consensus at 12.3%. WRBY expects to open 50 new stores in FY26. Management’s prior guide did not include tariff refunds.

Upon first glance, we view this as a disappointing update for WRBY. Revenues came in below expectations and the EBITDA beat was largely attributable to tariff refunds rather than underlying operating outperformance. While we acknowledge the cost/spend picture is muddled given management’s decision to recognize a $12mn tariff refund this quarter and increase SG&A spend ahead of the AI glasses launch, gross margin missed expectations excluding the refund and it is unclear how management’s underlying core business SG&A performance trended vs. management’s initial guidance which did not include the benefit of refunds. While management reaffirmed FY26 guidance, we believe conference call commentary will be critical in helping investors assess the underlying demand and margin trajectory of the core business. Importantly, WRBY’s revenue guide now embeds a sharp acceleration in revenue growth into 2H to 12.9%, well above the 9.8% growth rate achieved in 2Q and the 9.1% 1H rate. WRBY’s 3Q guide is also well below consensus at ~10-11% Y/Y revenue growth (below GS/consensus at 12.8%/14.3%) and adj. EBITDA at $26-$28mn vs. GS/consensus at $36.1mn/$35.3mn. This implies an even stronger sequential acceleration in 4Q. We expect management’s confidence in delivering this guide in the base business to be in focus on today’s conference call, particularly given management has indicated their guide does not include any revenue contribution or halo effect from AI glasses in 2H.

On today’s conference call, we believe the following topics will be in focus: (1) Intelligent Eyewear/AI glasses, including updated launch timing, consumer demand

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Goldman Sachs Warby Parker Inc. (WRBY)

expectations, distribution strategy, and pricing. (2) Underlying demand trends, including active customer growth, core business momentum, and confidence in achieving the implied 2H acceleration embedded in guidance and the drivers of the weaker 3Q guide. (3) Tariffs and margins, including the magnitude and cadence of the remaining tariff refund benefit and how management is thinking about future tariff exposure after recent policy developments. (4) Expense investment plans tied to Intelligent Eyewear/AI glasses, including technology spending, retail training, customer acquisition, and path back to SG&A leverage once launch-related expenses…