Company: WRBY
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001504776-25-000019
Chunk: 94

Company: Warby Parker Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 94
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 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 profit56.3 %56.7 %Selling, general, and administrative expenses55.2 %59.3 %Income (loss) from operations1.1 %(2.6)%Interest and other income, net1.1 %1.3 %Income (loss) before income taxes2.2 %(1.3)%Provision for income taxes0.6 %— %Net income (loss)1.6 %(1.3)%

Components of Results of Operations

Net Revenue

We primarily derive revenue from the sales of eyewear products, optical services and accessories. We sell products and services through our stores, website, and mobile apps. Revenue generated from eyewear includes the sales of prescription and non-prescription optical glasses and sunglasses, contact lenses, eyewear accessories, lens replacements, and customer charges for optional expedited shipping. Revenue generated from vision care consists of in-person eye exams and prescriptions issued through the Virtual Vision Test app. Revenue from products is recognized when the customer takes possession of the product, either at the point of delivery or in-store pickup, and is recorded net of returns and discounts. Revenue for services is recognized when the service