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Warby Parker

WRBY
57
Specialty Retail · Consumer Cyclical
Price
$27.44
-0.02 (-0.07%)
Market Cap
$3.37B
Winston Score
57
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Mixed
Growth
Good
Cash Flow
Strong
Stability
Strong
Valuation
Good

Share count rising — dilution

+10.1% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 113.6M (2021) → 125.1M (2025)

Winston Score History

The full picture

Warby Parker sells eyeglasses, sunglasses, and contact lenses directly to consumers. The company designs its own frames and sells them at lower prices than traditional optical retailers by cutting out middlemen like Luxottica. Customers can shop online or visit one of its roughly 270 retail stores across the United States and Canada.

Warby Parker makes money by selling eyewear products and eye exams directly to shoppers, keeping margins higher by owning its supply chain and brand. Its direct-to-consumer model and in-house design give it some pricing advantage over legacy optical chains, though it faces growing competition from both online rivals and large retailers. The company is not yet consistently profitable, and its main challenge is scaling its retail store network and vision care services fast enough to reach sustained positive operating income.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+9.8% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+379.7% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

23.8%ownership

Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$293M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Warby Parker is growing revenue at 10% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Profit per sale
Gross Margin
57.9%
Premium pricing power — 57.9% gross margin
Profit after running costs
Operating Margin
1.3%
Thin — 1.3% operating margin
Return on the money invested
ROCE
0.2%
Weak — 0.2% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth
Sales YoY
+11.0%
Steady sales growth (+11.0% YoY)
Profit growth
EPS YoY
N/A
Data not available
How steady the profit is
EPS Consistency
8/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash
Cash Conversion
1232%
Turns 1232% of profit into real cash
Spare cash per sale
FCF Margin
2.4%
Thin free cash flow (2.4%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
0.64
Moderate — manageable debt (0.64)
Covers its interest
Interest Cover
100.00x
Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
417.0x
Expensive — P/E 417.0

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year
P/E vs Forward
+357.4
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (417.0 → 59.6)

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Dividends

Not applicable for this business.
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