Company: WRBY
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001504776-25-000033
Chunk: 73

Company: Warby Parker Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 73
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2021 Founders Grant PSUs and RSUs will be issued to the Co-CEOs 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 September 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 September 30,Nine Months Ended September 30,2025202420252024Operating lease expense$9,738 $9,029 $28,538 $25,605 Variable lease expense(1)337 192 879 573 Net lease expense$10,075 $9,221 $29,417 $26,178 (1) Variable lease expense primarily consists of contingent rent.The following table presents future lease payments:Operating Leases(1)2025$9,515 202645,551 202753,310 202848,720 202939,813 Thereafter82,885 Future minimum lease payments279,794 Impact of discounting47,268 Present value of lease payments$232,526 (1)    The years 2025 and 2026 include $2.9 million and $8.7 million, respectively, of expected cash inflows from tenant improvement allowances. Operating lease payments exclude $5.3 million of legally binding minimum lease payments related to executed leases for which the Company has not yet taken possession of the leased