Company: WRBY
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001504776-25-000019
Chunk: 96

Company: Warby Parker Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 96
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 of credit, and is recognized as incurred. We expect our interest and other income costs to fluctuate based on our future bank balances, credit line utilization, and the interest rate environment.

Provision for Income Taxes

Provision for income taxes consists of income taxes related to foreign and domestic federal and state jurisdictions in which we conduct business, adjusted for allowable credits, deductions, and valuation allowance against deferred tax assets.

Comparison of the Three Months Ended March 31, 2025 and 2024

Net Revenue

Three Months Ended March 31,20252024$ Change% Change(in thousands)Net revenue$223,782 $200,003 $23,779 11.9 %

Net revenue increased $23.8 million, or 11.9%, for the three months ended March 31, 2025 compared to the same period in 2024. Active Customers increased 8.7% and Average Revenue per Customer increased to $310 from $296 in the prior year period. Average Revenue per Customer growth was primarily driven by our glasses business, which saw strong adoption of precision progressives, our highest priced lens option, and continued uptake of our higher priced frames, an increase in customers purchasing contacts or eye exams along with glasses in the same transaction, and growth in our lens replacement service.

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Cost of Goods Sold, Gross Profit, and Gross Margin

Three Months Ended March 31,20252024$ Change% Change(in thousands)Cost of goods sold$97,802 $86,544 $11,258 13.0 %Gross profit125,980 113,459 12,521 11.0 %Gross margin56.3 %56.7 %(0.4)%

Cost of goods sold increased by $11.3 million, or 13.0%, for the three months ended March 31, 2025 compared to the same period in 2024, and increased as a percentage of revenue over the same period, from 43.3% of revenue to 43.7% of revenue. The increase in cost of goods sold was primarily driven by increased product and fulfillment costs associated with our sales growth, particularly related to the growth in our contact lens offering, as well as increases in store occupancy costs and doctor headcount due to new retail stores opened in 2024 and the first three months of 2025.

Gross profit, calculated as net revenue less cost of goods sold, increased by $12.