Company: WRBY
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001504776-25-000027
Chunk: 27

Company: Warby Parker Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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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 June 30,Six Months Ended June 30,2025202420252024Income tax provision$(789)$373 $665 $481 Effective tax rate31.1 %(5.8)%27.9 %(5.4)%The Company’s effective income tax rate for the three and six months ended June 30, 2025 and 2024 differed from the U.S. statutory rate primarily due to the valuation allowance, non-deductible executive compensation, stock-based compensation, and other permanent items.

6. Stockholders’ Equity

Common StockAs of June 30, 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 June 30, 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 outstanding104,885 16,946 — Stock options outstanding233 1,422 — Restricted stock units (“RSUs”) outstanding2,726 1,132 — Performance stock units (“PSUs”) outstanding— 4,633 — Employee stock plans – available35,742 — — Shares of Class A common stock issuable upon conversion of all outstanding Class B common stock, stock options, RSUs, and PSUs24,133 — — Total common stock – outstanding or issuable167,719 24,133 — Shares authorized750,000 150,000