Owner Scorecard


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WRBY, Warby Parker Inc.

Medical Devices & Equipment capital-intensive

Warby Parker is a mission-driven, lifestyle brand that operates at the intersection of design, technology, healthcare, and social enterprise.

As a pioneer of the direct-to-consumer model, we design our glasses in-house at our New York City headquarters and sell directly to customers, enabling us to make high-quality, designer eyewear more accessible, with simple, unified pricing starting at $95 including prescription lenses.

We operate an integrated, omnichannel platform across digital commerce and 323 retail stores as of December 31, 2025, all designed to make shopping both convenient and fun.

Latest annual: FY2025 10-K
WRBY · Warby Parker Inc.
I

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025
$872M
+13.0% YoY · 17% 5-yr CAGR
Vital signs · TTM, with 5-yr average
Revenue $891M 5-yr avg $690M
Gross margin 53% 5-yr avg 56%
Operating margin −0.7% 5-yr avg −12.1%
ROIC −4% 5-yr avg −119%
Owner-earnings margin 6% 5-yr avg 1%
Free cash flow margin 4% 5-yr avg −3%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What it is
Revenue is Eyewear (82%), Contacts Products (11%) and Eye care (6%).
What moves the needle
Operating margin has run around −11% through the cycle on a 57% gross margin, the operating line in the red even at its best — so the lever is whether the spending below the gross line can come down enough to clear a profit: revenue growth against the cost curve, and the cash runway until it does. Capital spending runs about 8.3% of sales, well above depreciation, so the return earned on what it sinks into that plant weighs as much as the margin. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.
Is it a good business?
Return on capital has rarely cleared the cost of capital (median −67%, above 15% in 0 of 5 years). By owner earnings: roughly 3% of revenue reaches owners as cash, though it swings. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

Eyewear is 82% of revenue, with Contacts Products the other meaningful line at 11%.

Revenue by product line, FY2025
  • Eyewear82%$719M
  • Contacts Products11%$97M
  • Eye care6%$56M
  • Shipping and Handling0%$4M

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

II

The record

Ten years of arithmetic, read across the cycle.

The record, 2019–2025

realized figures from each filing · older years to the left
2019’192020’202021’212022’222023’232024’242025’25TTMTTMMar 2026
Income statement
$370M$394M$541M$598M$670M$771M$872M$891MRevenueRevenue
60%59%59%57%55%55%54%53%Gross marginGross mgn
61%73%85%76%65%59%55%54%SG&A / revenueSG&A/rev
($2M)($56M)($144M)($111M)($72M)($30M)($5M)($6M)Operating incomeOp. inc.
−0.4%−14.1%−26.6%−18.6%−10.7%−3.9%−0.6%−0.7%Operating marginOp. mgn
$0($56M)($144M)($110M)($63M)($20M)$2M$1MNet incomeNet inc.
Cash flow & returns
$21M$33M($32M)$10M$61M$99M$111M$106MOperating cash flowOp. cash
$15M$18M$22M$32M$39M$46M$50M$52MDepreciationDeprec.
($2M)$26M($16M)($9M)$15M$26M$24M$19MWorking capital & otherWC & other
$33M$20M$49M$60M$54M$64M$67M$67MCapexCapex
8.8%5.1%9.0%10.1%8.0%8.3%7.7%7.5%Capex / revenueCapex/rev
$7M$13M($54M)($21M)$22M$53M$61M$54MOwner earningsOwner earn.
1.9%3.2%−9.9%−3.6%3.3%6.9%6.9%6.1%Owner earnings marginOE mgn
($11M)$13M($81M)($50M)$7M$35M$44M$39MFree cash flowFCF
−3.0%3.2%−14.9%−8.3%1.1%4.5%5.0%4.4%Free cash flow marginFCF mgn
$79M$0$8M$0$0BuybacksBuybacks
-384%-113%-67%-28%-4%-4%ROICROIC
-50%-39%-21%-6%0%0%Return on equityROE
−50%−39%−21%−6%0%0%Retained to equityRetained/eq
Balance sheet
$55M$314M$256M$209M$217M$254M$286M$288MCash & investmentsCash+inv
$601K$992K$1M$2M$2M$3M$2MReceivablesReceiv.
$38M$57M$69M$62M$52M$45M$46MInventoryInvent.
$41M$31M$21M$22M$24M$32M$37MAccounts payablePayables
($2M)$27M$49M$42M$31M$16M$11MOperating working capitalOper. WC
$360M$328M$295M$299M$326M$352M$358MCurrent assetsCur. assets
$105M$118M$130M$127M$130M$150M$153MCurrent liabilitiesCur. liab.
3.4×2.8×2.3×2.3×2.5×2.3×2.3×Current ratioCurr. ratio
$445M$441M$569M$580M$676M$721M$736MTotal assetsAssets
($55M)($314M)($256M)($209M)($217M)($254M)($286M)($288M)Net debt / (cash)Net debt
($189M)($198M)$286M$287M$302M$340M$368M$376MShareholders’ equityEquity
2.3%11.4%19.8%16.4%10.5%6.1%4.0%3.8%Stock comp / revenueSBC/rev
Per share
52.4M53.0M71.2M115M117M120M125M126MShares out (diluted)Shares
$7.07$7.42$7.59$5.20$5.71$6.41$6.97$7.09Revenue / shareRev/sh
$0.00$-1.05$-2.02$-0.96$-0.54$-0.17$0.01$0.01EPS (diluted)EPS
$0.13$0.24$-0.75$-0.19$0.19$0.44$0.48$0.43Owner earnings / shareOE/sh
$-0.21$0.24$-1.13$-0.43$0.06$0.29$0.35$0.31Free cash flow / shareFCF/sh
$0.62$0.38$0.68$0.52$0.46$0.53$0.54$0.53Cap. spending / shareCapex/sh
$-3.61$-3.74$4.01$2.49$2.57$2.82$2.94$2.99Book value / shareBVPS

The diluted share count moved ×1.61 into 2022 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.

Per-share growththe realized rate an owner's share compounded
6-yr5-yr
Revenue / share−0.2%/yr−1.3%/yr
Owner earnings / share+24.3%/yr+15.1%/yr
Capital spending / share−2.5%/yr+7.2%/yr

The record, charted

FY2019–2025

Each measure over its full record; the current point and the worst year marked.

Share count
125Mpeak FY2025
ROIC
−4%low FY2021
Gross margin
54%low FY2025

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$61Mowner earningsvs.$2Mnet incomelow FY2021

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetained

Each year's operating cash, by what management did with it: the mix, and how it drifts.

FY2019FY2025

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business earned $61M of owner earnings, the operating cash left after the $50M it takes just to hold its position. It put $17M more into growth; free cash flow, after that spending, was $44M.

Reported net income$2M
Owner earnings$61M · 7% of revenue
FY2025FY2024FY2023FY2022FY2021
Reported net income$2M($20M)($63M)($110M)($144M)
Depreciation & amortizationnon-cash charge added back+$50M+$46M+$39M+$32M+$22M
Stock-based compensationreal costnon-cash, but a real cost+$35M+$47M+$71M+$98M+$107M
Working capital & othertiming of cash in and out, other non-cash items+$24M+$26M+$15M−$9M−$16M
Cash from operations$111M$99M$61M$10M($32M)
Maintenance capital expenditurethe spending needed just to hold position and volume−$50M−$46M−$39M−$32M−$22M
Owner earnings$61M$53M$22M($21M)($54M)
Growth capital expenditurediscretionary; spent to get bigger, not to stand still−$17M−$18M−$15M−$28M−$27M
Free cash flow$44M$35M$7M($50M)($81M)
Owner-earnings marginowner earnings ÷ revenue7%7%3%-4%-10%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the maintenance capital it must spend to hold its position (here about $50M, roughly its depreciation, the rate its assets wear out). The other $17M of its capital spending is growth it chose, not upkeep it owed; charged only with the maintenance it must do, the business earns well more than the year's free cash flow shows. The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $35M), owner earnings is nearer $26M.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →
Material weakness in financial controls
“For example, we previously identified material weaknesses related to information technology general controls and controls within our financial reporting processes.”

The figures below are only as sound as the controls that produced them. read the note →

Will it survive?

  • No meaningful interest burden
    Little or no interest expense reported
    What this means

    Little or no interest expense reported, the business isn't leaning on lenders to operate.

  • Net cash, debt-free
    Cash $286M − debt $0
    What this means

    Cash and short-term investments exceed every dollar of debt by $286M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.

  • Tight
    DSO 1 + DIO 40 − DPO 29 days
    What this means

    Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

  • Not enough data
    Industry peers: median 3%
    What this means

    The filing data didn't include the inputs for this check.

  • Solid, recently turned positive
    latest $61M = operating cash $111M − maintenance capex $50M; positive each of the last 3 years, after an earlier loss stretch (7-yr median 3%)
    Industry peers: median 5%
    What this means

    What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 7% of revenue this year, a 3% median across 7 years. It chose to put $17M more into growth, so free cash flow this year was $44M — the gap is investment, not weakness. Treating stock comp as the real expense it is (less $35M of SBC) leaves $26M.

  • Cash-backed
    Cash from ops $111M ÷ net income $2M

    In the filing’s words The filing discloses a material weakness in its financial controls — the reported numbers here, and the record built on them, are only as reliable as the controls that produced them.

    What this means

    How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

  • Reinvests most of it
    Dividends + buybacks $0 ÷ Owner Earnings $61M
    What this means

    Of $61M Owner Earnings, $0 (0%) went back to shareholders, $0 dividends, $0 buybacks. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.

  • Investing or harvesting? 1.33×
    Expanding
    Capex $67M ÷ depreciation $50M
    What this means

    Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 1 of 4 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

  • Adequate size Miss
    Revenue ≥ $2B · $872M
    What this means

    Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.

  • Strong liquidity Pass
    Current ratio ≥ 2× · 2.35×
    What this means

    Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.

  • Earnings stability Miss
    A profit every year (7-yr record) · 6 loss years
    What this means

    Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.

  • Dividend record Miss
    Uninterrupted dividends · none paid
    What this means

    An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.

  • Earnings growth
    Earnings +33% over the record ·
    What this means

    Earnings were negative early in the record, a growth rate isn't meaningful.

  • Moderate price
    P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price
    What this means

    Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $-0.22/share (latest year $0.01), the averaged base the calculator's gate runs on, and book value is $2.98/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2019–2025

Whether the record’s returns held, and what the capital reinvested earned.

  • Profitable years 1 of 7
    What this means

    Lost money in 6 year(s), look at what happened there before trusting the average.

  • Operating margin −14% → −5% (3-yr avg ends)

    In the filing’s words The margin widened even though the filing names price competition — the gain came from volume or cost, not pricing power. Read where.

    What this means

    Through the cycle the operating margin widened — about −14% early to −5% lately, median −11% — pricing power intact or improving.

  • Owner earnings growth +34%/yr
    What this means

    Owner earnings grew about 34% a year over the record.

  • Worst year 2021 · −26.6% op. margin
    What this means

    Operations went underwater in 2021, understand why before trusting the good years.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

In its own filing A competitive risk, new this year

Its FY2025 10-K names artificial intelligence as a competitive threat, in language that was not in the prior year's filing.

“Our use of artificial intelligence may result in operational disruptions, reputational harm, competitive challenges, regulatory scrutiny, liability, or security risks that could adversely affect our business, financial condition, and results of operations.”

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat, and the company is using it that way.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$358M
  • Cash & short-term investments$288M
  • Receivables$2M
  • Inventory$46M
  • Other current assets$21M
Current liabilities$153M
  • Accounts payable$37M
  • Other current liabilities$116M
Current ratio2.33×all current assets ÷ what's due · Graham looked for 2×
Quick ratio2.03×stricter: inventory excluded
Cash ratio1.88×strictest: cash alone against what's due
Working capital$204Mthe cushion left after near-term bills
Revenue, latest quarter vs. a year ago+8.3%the freshest read on whether the business is still growing
Current ratio, recent quarters2.5× → 2.3×
Deeper floors
Tangible book value$376Mequity stripped of goodwill & intangibles
Net current asset value($3M)Graham's net-net: current assets less all liabilities
Debt incl. operating leases$238M$238M of it operating leases
Deferred revenue$21Mcustomer cash collected before delivery; operating float

From the company's latest filing.

How the cash was used, 2019–2025

Over the record, the business generated $303M of operating cash; how management split it reads as a reinvestor, most operating cash is plowed back into the business.

  • Reinvested$346M · 114%
  • Buybacks$88M · 29%
  • Returned to owners$88M

    109% of the owner earnings the business produced over the span, $0 as dividends and $88M as buybacks.

  • Source of funding−$131M

    Reinvestment and shareholder returns ran $131M beyond the operating cash the business generated, so the gap was financed off the balance sheet.

  • Average price paid for buybacks

    Buybacks ran $88M over the span, but the filings don't tag the share count needed to deduce the average price paid.

  • Net change in share count139.5%

    The diluted count rose from 52M to 126M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.

  • Dividend record

    No dividend line was reported in the filing data over the span; the record here neither confirms nor rules out a payout.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal yearChief executivePay, as filed“Actually paid”Owner earnings
2022Blumenthal$700k−$98.1M($21M)
2022Gilboa$700k−$98.1M($21M)
2023Blumenthal$907k$2.9M$22M
2023Gilboa$907k$2.9M$22M
2024Blumenthal$1.5M$22.4M$53M
2024Gilboa$1.5M$22.4M$53M
2025Blumenthal$9.0M−$5.7M$61M
2025Gilboa$9.0M−$5.7M$61M

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

  • Insider ownership<1%

    The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.

  • Stock-based compensation$35M

    The slice of the business handed to employees in shares this year, 4% of revenue. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Warby Parker Inc. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2019–2025.

2 of the 3 tests turned up something to look into; the other 1 came back clean.

  • Look hereDid the share count rise anyway?139.5%

    Diluted shares grew 139.5% over 2019–2025, even as the company spent $88M on buybacks. The repurchases were outrun by issuance — to staff, in a raise, or in a deal — and the filing says which; owners' slice still shrank. Read the buyback line beside this one, not on its own.

  • Look hereAre "one-time" charges a yearly habit?6 of 7 years

    Management took an impairment or write-down in 6 of the last 7 years, $7M in all. A charge taken almost every year is not one-time; it is the business — past deals coming due, and an admission the assets were worth less than what was paid. Munger's rule: when the "one-time" keeps happening, it is the business. Read it beside the goodwill the company still carries.

And these came back clean
  • Is it less profitable than it was?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2025

read the 10-K →
  • Which reported numbers are a judgment call?
    Management names Income taxes, Inventory as critical estimates

    each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Medical Devices & Equipment

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

CompanyRevenueGross marginOp. marginROICOwner earn. margin
COOThe Cooper Companies Inc.$4.1B65%16.6%5%15%
EYENational Vision Holdings Inc.$2.0B54%3.2%3%4%
KODKEastman Kodak Company Common New$1.1B15%-5.6%-2%-6%
ONTOOnto Innovation$1.0B52%14.2%10%19%
MIRMirion Technologies Inc.$925M43%2.9%-1%5%
BMIBadger Meter$917M39%15.4%17%15%
WRBYWarby Parker Inc.$872M57%-10.7%-67%3%
TMDXTransMedics Group$605M63%-63.3%-18%-75%
Group median53%3.0%1%4%
IV

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Warby Parker Inc. has delivered.

Warby Parker Inc.’s latest year runs above its own through-cycle margin — the reported figure may flatter a peak. So the tool opens on the through-cycle base, Graham’s averaging cutting both ways; clear the toggle below to read the latest year exactly as reported.

$

Through the cycle, Warby Parker Inc. earns about $28M on its 3.2% median owner-earnings margin. This year’s 6.9% margin runs above that; the reported figure may flatter a peak you'd be paying on. Normalize, below, values the price on that through-cycle figure rather than the latest year. It comes pre-checked here for that reason, the same rule that already normalizes a trough; clear it to price the year as filed.

Base

The assumptions

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price
Owner-earnings growth · ’19→’25+94%/yr
Owner-earnings yield
P/E (3-yr earnings ’23–’25)
P/B
Graham’s price gate

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Free cash flow $39M on 123M shares outstanding (a weighted basic average, the only count this filer tags); net cash $288M. The base opens on the through-cycle figure (the latest year sits above the record’s own median, and Graham’s averaging cuts both ways); clear Normalize to use the year as filed. Net of stock comp treats option pay as the expense it is. Capex ($67M) runs well above depreciation ($52M), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $56M, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Cite: Owner Scorecard, "Warby Parker Inc. (WRBY), the owner's record," https://ownerscorecard.com/c/WRBY, data as of 2026-07-09.

Manual order: ← WRB its page in the Manual WRLD →

Industry order: ← UFPT the Medical Devices & Equipment chapter WST →