Online sales stabilize as smart glasses launch nears
- Q2 2026 revenue grew roughly 10 percent to $236 million.
- E-commerce revenue stabilized as the company moved past the end of its Home Try-On program.
- Adjusted EBITDA reached $33 million, but this was heavily aided by an $11.8 million one-time tariff refund.
- Average revenue per customer increased 6.6 percent, driven by higher out-of-network insurance use and more eye exams.
- Warby Parker will open pre-orders for its new AI-powered glasses this fall.
New products meet profit questions
Warby Parker is showing stronger underlying health in its core business. Q2 2026 revenue grew roughly 10 percent to $236 million. The online sales drag from ending the Home Try-On program is fading, revealing double-digit underlying volume growth in e-commerce.
The bull case centers on rising customer value and a major new product. Average revenue per customer is up 6.6 percent. Eye exams now make up 7 percent of revenue. The company is also launching its Intelligent Eyewear collection this fall, introducing a higher-priced consumer electronic into its established optical stores.
The bear case points to hidden profit pressures. Q2 adjusted EBITDA looked strong at $33 million, but an $11.8 million tariff refund subsidized heavy spending on marketing and supply chain for the new smart glasses.
The key question is what organic profit margins will look like entering 2027 once the tariff benefits run out. Investors also need to see if the new AI glasses can generate enough high-margin volume to justify the heavy investment.
Direct eyewear, expanding to tech
Warby designs its own frames and sells them directly to customers. It uses its website, app, and stores instead of relying on many middlemen. The starting price for prescription glasses is $95, which supports the brand promise of easier, lower-cost eyewear.
The company makes money from prescription glasses, sunglasses, contacts, eye exams, and vision services. Its Buy a Pair, Give a Pair program also matters to the brand. For every pair sold, Warby donates a pair through its giving partners.
Stores are a major growth engine. They help customers try frames, take eye exams, and buy more complex lens types. As of Q2 2026, the company operates 352 retail locations and is marching toward a long-term goal of over 900 stores.
Online sales are also showing signs of life again. E-commerce was flat in the second quarter, but underlying order volume grew by double digits when stripping out the discontinued Home Try-On program. This balance of physical and digital sales remains central to the model.
More than frames
Prescription glasses
This is the core product. Warby designs frames in-house and sells prescription glasses with simple pricing that starts at $95.
Sunglasses
Sunglasses extend the frame business into fashion and seasonal demand. They use the same brand and store base as prescription eyewear.
Progressive and upgraded lenses
Progressives were 22.3% of prescription units at the end of 2025, below the broader industry mix. That gives Warby a path to raise average revenue per customer.
Contact lenses
Warby sells third-party contact lenses. Contacts were 11.1% of 2025 net revenue, serving as a meaningful add-on rather than the main business.
Eye exams and vision care
Eye exams have grown rapidly to 7% of revenue by Q2 2026. More stores make this service easier to sell, but it adds doctor staffing complexity.
Intelligent Eyewear
Partnered with Google and Samsung, these AI-powered smart glasses go on pre-order in Fall 2026. This could expand the market significantly if successful.
One segment, several revenue streams
Warby reports as one integrated operating segment. The mix below uses 2025 product disclosures and Q2 2026 exam updates, with remaining eyewear grouped into glasses, sunglasses, and related lens products.
What could break the story
Underlying profits face pressure
High impact · Medium oddsQ2 profit was heavily subsidized by a one-time tariff refund of $11.8 million. If the AI glasses launch fails to generate sustained volume, heavy marketing and supply chain spending will pressure bottom-line margins.
Smart glasses could miss the mark
Medium impact · Medium oddsThe company is launching Intelligent Eyewear with Google and Samsung this fall. This introduces a high-price consumer electronic into stores, but unproven demand and lower potential gross margins could hurt the broader business.
Stores do not earn enough
High impact · Medium oddsWarby continues to open new stores toward its 900-location target. Stores can lift sales, but they also add rent, staff, doctors, and setup costs that can hit earnings before the stores fully mature.
Bigger rivals squeeze price and access
Medium impact · High oddsWarby competes with large optical players and low-price online sellers. Big incumbents can have scale in lenses, insurance relationships, retail locations, and manufacturing.
Supply chain and tariff shocks
Medium impact · Medium oddsThe company relies on foreign suppliers, including exposure to China. More tariff or shipping pressure could make affordable pricing harder to maintain.
In one breath
How does Warby Parker make money?
Warby sells prescription glasses, sunglasses, contacts, eye exams, and vision services. It sells directly through its own stores and digital channels.
Is Warby Parker still an online eyewear company?
Online still matters, but physical stores now drive most of the growth. E-commerce stabilized in Q2 2026 after the company ended parts of its Home Try-On program.
What is the biggest thing to watch next?
The launch of its Intelligent Eyewear collection this fall. Investors will watch pre-order volumes and how the new AI glasses impact overall profit margins.
