Company: WRBY
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001504776-25-000027
Chunk: 33

Company: Warby Parker Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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 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 June 30, 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 June 30,Six Months Ended June 30,2025202420252024Operating lease expense$9,443 $8,485 $18,799 $16,576 Variable lease expense(1)187 138 542 322 Net lease expense$9,630 $8,623 $19,341 $16,898 (1) Variable lease expense primarily consists of contingent rent.The following table presents future lease payments:Operating Leases(1)2025$17,812 202646,072 202751,396 202846,805 202937,897 Thereafter77,834 Future minimum lease payments277,816 Impact of discounting49,437 Present value of lease payments$228,379 (1)    The years 2025 and 2026 each include $6.4 million of expected cash inflows from tenant improvement allowances. Operating lease payments exclude $8.0 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:June 30,2025Weighted average remaining lease term (years)6.1Weighted average discount rate5.7 %Six Months Ended June 30,20252024Cash paid for amounts included in the