Warby Parker Inc. Class A Common Stock (WRBY)

FairStock Score: 28/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Warby Parker as a Graham-style number cruncher and a Buffett-style business appraiser. The company sells eyewear through retail and e-commerce, and it has moved from losses to thin profits. In fiscal 2025, the year ended 2025-12-31, revenue was $871.9M and net income was $1.6M, or diluted EPS $0.01. That followed a fiscal 2024 net loss of $20.4M and a fiscal 2023 net loss of $63.2M. More recently, in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $235.5M and net income was $4.6M, or diluted EPS $0.04; the comparable fiscal Q2 2025, the quarter ended 2025-06-30, had a net loss of $1.8M. So the turnaround is real, and the Lynch category correctly calls it a TURNAROUND: returned to profit after a loss within the last three years. But the quality and competitive moat are not yet proven. The brand and retail/e-commerce model may create some customer connection, yet FairStock calculations at the 2026-10-13 close of $26.52 show a P/E of 442, P/B of 8.67, ROE of 2.06%, ROCE of -1.02%, FCF yield of 0.7%, and EV/EBITDA of 59.85. The Graham Number is $2.07, implying a margin of safety of -1181.16%. Those are not the numbers of a bargain; they are the numbers of a company priced for enormous future improvement. The balance sheet has D/E of 0.64 and Altman Z-Score 4.67, which suggest no immediate distress, and Piotroski is 5/9. But revenue has grown from $669.8M in fiscal 2023 to $771.3M in fiscal 2024 to $871.9M in fiscal 2025, while net income remains tiny. I need a much wider gap between price and proven earning power before calling it attractive.

In plain English: Warby Parker sells eyeglasses, sunglasses, and contact lenses through stores and online. The business is growing sales and has just returned to small profits, but those profits are very thin and it lost money in recent years. Based on the recent price, the stock looks expensive compared with the company's current earnings and cash flow.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer