Company: WRBY
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001504776-25-000033
Chunk: 78

Company: Warby Parker Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 78
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 have been antidilutive:Three Months Ended September 30,Nine Months Ended September 30,2025202420252024Stock options— 1,752 — 1,752 Unvested restricted stock units26 3,219 26 3,219 Unvested performance stock units4,398 4,398 4,398 4,398 ESPP purchase rights— 338 — 338 

12. Related-Party Transactions

As a private company, the Company issued secured promissory notes collateralized by the stock purchased by certain Company executives in relation to the exercise of employee stock options. As the promissory notes are secured by the underlying shares they have been treated as non-recourse notes in the condensed consolidated financial statements. The promissory notes were issued with a term of 8.5 years and an interest rate equal to the minimum applicable federal mid-term rate in the month the loan was issued. The secured promissory notes were recorded as a reduction to equity offsetting the amount in additional paid-in-capital related to the exercised options funded by the notes.The loans had a balance of $2.2 million at both September 30, 2025 and December 31, 2024. No loans are outstanding with any of our named executive officers, and no new promissory notes have been issued since 2021. The loans outstanding had a weighted average remaining term of 3.8 years at September 30, 2025.During both the three and nine months ended September 30, 2025 and 2024, the outstanding loan balance increased by an immaterial amount due to interest.

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Table of ContentsWarby Parker Inc. and SubsidiariesNotes to Condensed Consolidated Financial Statements (Unaudited)(Amounts in thousands, except per share data)

13. Subsequent Events

Lease ObligationsSubsequent to September 30, 2025, the Company entered into 5 operating lease agreements and extended the term of 2 operating lease agreements for retail space in the U.S., with terms ranging from 5 to 10 years. Total commitments under these agreements are approximately $6.0 million, payable over the terms of the related agreements.

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Table of Contents

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