Warby Parker Q3 2026: Earnings Miss Signals Big Spending Ahead

Warby Parker posted GAAP earnings of $0.04 per share for the third quarter of fiscal 2026, missing expectations of $0.09. Net revenue rose 10.4% year over year to $244.74 million, coming in just a hair under the $245.07 million consensus. The gap between top-line momentum and bottom-line delivery points squarely at spending choices the company is making right now.

Rising retail compensation and technology costs pushed SG&A higher, squeezing the profit margin even as gross margin edged up to 54.4%. Gross profit grew 11% year over year to $133.17 million, so the business is generating more from each dollar of sales. The drag is coming from the deliberate investment layer sitting below that gross profit line.

The strategic bet behind that spending becomes clearer when you look at what is coming: pre-orders for Warby Parker's first Intelligent Eyewear collection, developed in partnership with Google and Samsung, open November 12, with customer deliveries targeted for the holiday season. CEO Neil Blumenthal called out the launch alongside the rollout of Warby Parker Care and continued retail expansion as evidence that 'a tremendous amount is happening across Warby Parker.' The company ended the quarter with 364 stores after opening 12 net new locations during the period.

Customer metrics showed a mixed picture. Active customers grew 3% over the trailing twelve months while Average Revenue per Customer climbed to $342, suggesting Warby Parker is deepening its relationship with existing buyers rather than relying on rapid new-customer acquisition. Increased penetration of progressives and other premium lens treatments was cited as a driver.

For the full year, the company narrowed its revenue guidance to a range of $966 million to $976 million, implying roughly 11% to 12% growth versus 2025, and reaffirmed adjusted EBITDA guidance of $117 million to $119 million. Management noted that a modest contribution from Intelligent Eyewear, as well as the costs associated with its launch, is now baked into those figures. Free cash flow was negative for the quarter as capital expenditures rose to fund expansion.