Company: WRBY
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001504776-25-000027
Chunk: 89

Company: Warby Parker Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 89
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 $(1,162)(311.5)%As a percentage of net revenue(0.4)%0.2 %(0.6)%

Provision for income taxes decreased $1.2 million, or 311.5%, for the three months ended June 30, 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 Six Months Ended June 30, 2025 and 2024

Net Revenue

Six Months Ended June 30,20252024$ Change% Change(in thousands)Net revenue$438,257 $388,225 $50,032 12.9 %

Net revenue increased $50.0 million, or 12.9%, for the six months ended June 30, 2025 compared to the same period in 2024. Active Customers increased 9.0% and Average Revenue per Customer increased to $316 from $302 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, selective price increases during the second quarter, and continued uptake of our higher priced frames, as well as an increase in customers purchasing contacts or eye exams along with glasses in the same transaction.

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Cost of Goods Sold, Gross Profit, and Gross Margin

Six Months Ended June 30,20252024$ Change% Change(in thousands)Cost of goods sold$198,668 $169,384 $29,284 17.3 %Gross profit$239,589 $218,841 $20,748 9.5 %Gross margin54.7 %56.4 %(1.7)%

Cost of goods sold increased by $29.3 million, or 17.3%, for the six months ended June 30, 2025 compared to the same period in 2024, and increased as a percentage of revenue over the same period, from 43.6% of revenue to 45.3% 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 costs and doctor headcount due to new retail stores.

Gross profit, calculated as net revenue less cost of goods sold, increased