Company: WRBY
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001504776-25-000019
Chunk: 42

Company: Warby Parker Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 42
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,455)(2,556)Provision for income taxes1,454 108 Depreciation and amortization expense12,162 10,583 Asset impairment charges311 399 Stock-based compensation expense(1)13,001 14,315 Amortization of cloud-based software implementation costs737 1,073 Other costs(2)525 1,135 Adjusted EBITDA$29,207 $22,378 Adjusted EBITDA Margin13.1 %11.2 %__________________

(1)    Represents expenses related to the Company’s equity-based compensation programs and related employer payroll taxes, which may vary significantly from period to period depending upon various factors including the timing, number, and the valuation of awards granted, and vesting of awards including the satisfaction of performance conditions, as well as the issuance of 26,832 and 48,486 Class A common stock to charitable donor advised funds in February 2025 and February 2024, respectively. For the three months ended March 31, 2025 and 2024, the amount includes $0.7 million and $0.3 million, respectively, of employer payroll taxes associated with releases of RSUs and option exercises.

(2)    Represents charges for certain legal matters outside the ordinary course of business.

24

Results of Operations

The results of operations presented below should be reviewed in conjunction with the condensed consolidated financial statements and notes included elsewhere in this Quarterly Report on Form 10-Q. The following tables set forth our results of operations for the periods presented in dollars and as a percentage of net revenue:

Three Months Ended March 31,20252024(in thousands)Net revenue$223,782 $200,003 Cost of goods sold97,802 86,544 Gross profit125,980 113,459 Selling, general, and administrative expenses123,509 118,586 Income (loss) from operations2,471 (5,127)Interest and other income, net2,455 2,556 Income (loss) before income taxes4,926 (2,571)Provision for income taxes1,454 108 Net income (loss)$3,472 $(2,679)

Three Months Ended March 31,20252024% of Net RevenueNet revenue100.0 %100.0 %Cost of goods sold43.7 %43.3 %Gross