Company: WRBY
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001504776-25-000019
Chunk: 31

Company: Warby Parker Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 31
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 on a specified quarterly date following the second anniversary of the vesting date, except for an amount necessary to cover any taxes due in connection with the vesting, which will be withheld or sold to cover, or issued to offset, such taxes. Any 2021 Founders Grant RSUs or PSUs that have not vested by the tenth anniversary of the grant date will be forfeited.

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

8. Leases

The Company leases retail, office, optical laboratory, and distribution center space under operating leases from third parties. As of March 31, 2025, the total lease terms of the various leases range from 1 to 12 years. The leases generally contain renewal options and rent escalation clauses, and from time to time include contingent rent provisions. Renewal options are exercisable at the Company’s sole discretion and are included in the lease term if they are reasonably certain to be exercised. In general it is not reasonably certain that lease renewals will be exercised at lease commencement and as such, lease renewals are not included in the lease term.Net lease expense consists of the following:Three Months Ended March 31,20252024Operating lease expense$9,357 $8,091 Variable lease expense(1)355 196 Net lease expense$9,712 $8,287 (1) Variable lease expense primarily consists of contingent rent.The following table presents future lease payments:Operating Leases(1)2025$23,223 202646,641 202749,411 202844,789 202935,895 Thereafter72,784 Future minimum lease payments272,743 Impact of discounting49,083 Present value of lease payments$223,660 (1)    The years 2025 and 2026 include $12.0 million and $4.0 million of expected cash inflows from tenant improvement allowances. Operating lease payments exclude $7.0 million of legally binding minimum lease payments related to executed leases for which the Company has not yet taken possession of the leased premises.The following tables present other relevant lease information:March 31,2025Weighted average remaining lease term (years)6.3Weighted average discount rate5.6 %Three Months Ended March 31,20252024Cash paid for amounts included in the measurement