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

Company: Warby Parker Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 25
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,006 10,409 Retail related5,557 5,929 Legal3,311 2,338 Professional services3,544 2,193 Charitable contributions2,215 3,315 Other5,004 2,819 Total accrued expenses$51,796 $51,609 

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

5. Income Taxes

The Company uses the estimated annual effective tax rate approach to determine the provision for income taxes. The estimated annual effective tax rate is based on forecasted annual results and may fluctuate due to differences between the forecasted and actual results, changes in valuation allowances, and any other transactions that result in differing tax treatment.The Company's income tax provision and effective tax rate were as follows:Three Months Ended March 31,20252024Income tax provision$1,454 $108 Effective tax rate29.5 %(4.2)%The Company’s effective income tax rate for the three months ended March 31, 2025 and 2024 differed from the U.S. statutory rate of 21% primarily due to the valuation allowance, non-deductible executive compensation, stock-based compensation, differences in tax rates in state and foreign jurisdictions, and other permanent items.

6. Stockholders’ Equity

Common StockAs of March 31, 2025, the Company’s Twelfth Amended and Restated Certificate of Incorporation authorizes the issuance of up to 1,050,000 shares of common stock, par value of $0.0001 per share, of which 750,000 shares are designated Class A common stock, 150,000 shares are designated Class B common stock, and 150,000 shares are designated Class C common stock. Class A common stock receives one vote per share, Class B common stock receives ten votes per share, and Class C common stock has no voting rights except as required by Delaware law. Common stock is not redeemable at the option of the holder.As of March 31, 2025, outstanding shares of common stock as well as shares of common stock attributable to equity awards are as follows:Class AClass BClass CCommon stock outstanding104,375 16,904 — Stock options outstanding249 1,422 — Restricted stock units (“RSUs”) outstanding2,921