Company: WRBY
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001504776-25-000019
Chunk: 46

Company: Warby Parker Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 46
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9 million, or 4.2%, for the three months ended March 31, 2025 compared to the same period in 2024. This increase was primarily driven by higher payroll-related costs from growth in our retail workforce and investments in marketing, partially offset by lower stock-based compensation, mostly related to the 2021 Founders Grant (which is described in Note 7 to our condensed consolidated financial statements included in Part 1, Item 1 of this Quarterly Report on Form 10-Q). As a percentage of revenue, SG&A decreased by 410 basis points, primarily driven by slower growth in corporate expenses and reduced stock-based compensation.

Interest and Other Income, Net

Three Months Ended March 31,20252024$ Change% Change(in thousands)Interest and other income, net$2,455 $2,556 $(101)(4.0)%As a percentage of net revenue1.1 %1.3 %(0.2)%

Interest and other income, net decreased $0.1 million, or 4.0%, for the three months ended March 31, 2025 compared to the same period in 2024, primarily due to lower interest rates on our increased cash and cash equivalents balance.

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Provision for Income Taxes

Three Months Ended March 31,20252024$ Change% Change(in thousands)Provision for income taxes$1,454 $108 $1,346 1,246.3 %As a percentage of net revenue0.6 %— %0.6 %

Provision for income taxes increased $1.3 million, or 1,246.3%, for the three months ended March 31, 2025 compared to the same period in 2024, primarily due to the change in pre-tax income (loss) in addition to the tax effects of stock-based compensation expense, depreciation expense, and differences in tax rates in state jurisdictions.

Seasonality

Historically, we have observed moderately higher seasonal demand during the month of December due in part to customer usage of health and flexible spending benefits in the final week of the year. Consistent with our policy to recognize revenue upon order delivery, any orders placed at the end of December are recognized as revenue on delivery, which may occur in the following year, and as such we typically see revenue increase sequentially from the fourth quarter to the first quarter of the following year.

Our business has historically experienced a higher proportion of costs in each subsequent quarter