Company: WRBY
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001504776-25-000027
Chunk: 87

Company: Warby Parker Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 87
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vision 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 June 30, 2025 and 2024

Net Revenue

Three Months Ended June 30,20252024$ Change% Change(in thousands)Net revenue$214,475 $188,222 $26,253 13.9 %

Net revenue increased $26.3 million, or 13.9%, for the three months ended June 30, 2025 compared to the same period in 2024. Active Customers increased 9.0% and Average Revenue per Customer increased to $316 from $302 in the prior year period. Average Revenue per Customer growth was primarily driven by our glasses business, which benefited from selective price increases during the quarter, strong adoption of precision progressives, and continued uptake of our higher priced frames, as well as an increase in customers purchasing contacts or eye exams along with glasses in the same transaction.

Cost of Goods Sold, Gross Profit, and Gross Margin

Three Months Ended June 30,20252024$ Change% Change(in thousands)Cost of goods sold$100,866 $82,840 $18,026 21.8 %Gross profit113,609 105,382 8,227 7.8 %Gross margin53.0 %56.0 %(3.0)%

Cost of goods sold increased by $18.0 million, or 21.8%, for the three months ended June 30, 2025 compared to the same period in 2024, and increased as a percentage of revenue over the same period, from 44.0% of revenue to 47.0% 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, increases in store occupancy costs and doctor headcount due to new retail stores, and inventory impairment charges primarily related to sunsetting the Home Try-On program.

Gross profit, calculated as net revenue less cost of goods sold, increased by $8.2 million, or 7.8%, for the three months ended June 30, 2025 compared to the same period in 2024, primarily due to the increase in net revenue over the same period.

Gross margin, expressed as a