WARBY PARKER INC., 10-K filed on 2/27/2025
Annual Report
v3.25.0.1
Cover - USD ($)
 12 Months Ended
Dec. 31, 2024
Feb. 25, 2025
Jun. 30, 2024
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2024    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-40825    
Entity Registrant Name Warby Parker Inc.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 80-0423634    
Entity Address, Address Line Two 6th Floor East    
Entity Address, Address Line One 233 Spring Street    
Entity Address, City or Town New York    
Entity Address, State or Province NY    
Entity Address, Postal Zip Code 10013    
City Area Code 646    
Local Phone Number 847-7215    
Title of 12(b) Security Class A Common Stock, $0.0001 par value per share    
Trading Symbol WRBY    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
Entity Shell Company false    
Entity Public Float     $ 1,410,394,885
Documents Incorporated by Reference
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the registrant’s definitive Proxy Statement relating to its 2025 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. Such definitive Proxy Statement will be filed with the Securities and Exchange Commission within 120 days after the end of the registrant’s fiscal year ended December 31, 2024.
    
Entity Central Index Key 0001504776    
Amendment Flag false    
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus FY    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Common Class A      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   103,622,991  
Common Class B      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   17,235,818  
v3.25.0.1
Audit Information
 12 Months Ended
Dec. 31, 2024
Audit Information [Abstract]  
Auditor Firm ID 42
Auditor Name Ernst & Young LLP
Auditor Location New York, New York
v3.25.0.1
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 254,161 $ 216,894
Accounts receivable, net 1,948 1,779
Inventory 52,345 62,234
Prepaid expenses and other current assets 17,592 17,712
Total current assets 326,046 298,619
Property and equipment, net 170,464 152,332
Right-of-use lease assets 171,284 122,305
Other assets 8,696 7,056
Total assets 676,490 580,312
Current liabilities:    
Accounts payable 23,519 22,456
Accrued expenses 51,609 46,320
Deferred revenue 32,358 31,617
Current lease liabilities 20,235 24,286
Other current liabilities 2,633 2,411
Total current liabilities 130,354 127,090
Non-current lease liabilities 205,120 150,171
Other liabilities 943 1,264
Total liabilities 336,417 278,525
Commitments and contingencies (see Note 11)
Stockholders’ equity:    
Additional paid-in capital 1,029,220 970,135
Accumulated deficit (687,221) (666,831)
Accumulated other comprehensive income (1,938) (1,529)
Total stockholders’ equity 340,073 301,787
Total liabilities and stockholders’ equity 676,490 580,312
Class A and Class B Common Stock    
Stockholders’ equity:    
Common Stock $ 12 $ 12
v3.25.0.1
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2024
Dec. 31, 2023
Common stock par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock shares authorized (in shares) 1,050,000,000  
Common Class A    
Common stock shares authorized (in shares) 750,000,000  
Common stock shares issued (in shares) 102,889,000 98,368,000
Common stock shares outstanding (in shares) 102,889,000 98,368,000
Common Class B    
Common stock shares authorized (in shares) 150,000,000  
Common stock shares issued (in shares) 17,961,000 19,789,000
Common stock shares outstanding (in shares) 17,961,000 19,789,000
v3.25.0.1
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Statement [Abstract]      
Net revenue $ 771,315 $ 669,765 $ 598,112
Cost of goods sold 344,481 304,541 257,050
Gross profit 426,834 365,224 341,062
Selling, general, and administrative expenses 456,946 437,220 452,265
Loss from operations (30,112) (71,996) (111,203)
Interest and other income, net 10,597 9,232 1,307
Loss before income taxes (19,515) (62,764) (109,896)
Provision for income taxes 875 433 497
Net loss (20,390) (63,197) (110,393)
Net Income (Loss) Available to Common Stockholders, Basic, Total (20,390) (63,197) (110,393)
Net Income (Loss) Available to Common Stockholders, Diluted, Total $ (20,390) $ (63,197) $ (110,393)
Net loss per share attributable to common stockholders, basic (in dollars per share) $ (0.17) $ (0.54) $ (0.96)
Net loss per share attributable to common stockholders, diluted (in dollars per share) $ (0.17) $ (0.54) $ (0.96)
Weighted average shares used in computing net loss per share attributable to common stockholders, basic (in shares) 120,385,000 117,389,000 114,942,000
Weighted average shares used in computing net loss per share attributable to common stockholders, Diluted (in shares) 120,385,000 117,389,000 114,942,000
Other comprehensive loss      
Foreign currency translation adjustment $ (409) $ (882) $ (663)
Total comprehensive loss $ (20,799) $ (64,079) $ (111,056)
v3.25.0.1
Condensed Consolidated Statements of Changes in Redeemable Convertible Preferred Stock and Stockholders’ Deficit - USD ($)
$ in Thousands
Total
Class A and Class B Common Stock
Class A and Class B Common Stock
Class A and Class B Common Stock
Additional Paid-In Capital
Accumulated Other Comprehensive Income (Loss)
Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2021     113,621,000      
Beginning balance at Dec. 31, 2021 $ 285,998   $ 11 $ 779,212 $ 16 $ (493,241)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Stock option and warrant exercises (in shares)     627,000      
Stock option exercises 7,066     7,066    
Restricted stock unit releases (in shares)     684,000      
Restricted stock unit releases 1   $ 1      
Shares issued in connection with employee stock purchase plan (in shares)     189,000      
Shares issued in connection with employee stock purchase plan 2,744     2,744    
Repayment of related party loans (in shares)     5,000      
Proceeds from repayment of related party loans 91     91    
Stock-based compensation 98,032     98,032    
Non-cash charitable contributions (in shares)     213,000      
Non-cash charitable contributions 3,770     3,770    
Other comprehensive loss (663)       (663)  
Net loss (110,393)         (110,393)
Ending balance (in shares) at Dec. 31, 2022     115,339,000      
Ending balance at Dec. 31, 2022 286,646   $ 12 890,915 (647) (603,634)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Stock option and warrant exercises (in shares)     809,000      
Stock option exercises 5,903     5,903    
Restricted stock unit releases (in shares)     1,275,000      
Restricted stock unit releases 0          
Shares issued in connection with employee stock purchase plan (in shares)     191,000      
Shares issued in connection with employee stock purchase plan 1,835     1,835    
Stock-based compensation 68,291     68,291    
Non-cash charitable contributions (in shares)     235,000      
Non-cash charitable contributions 3,191     3,191    
Other comprehensive loss (882)       (882)  
Net loss (63,197)         (63,197)
Ending balance (in shares) at Dec. 31, 2023     117,849,000      
Ending balance at Dec. 31, 2023 $ 301,787   $ 12 970,135 (1,529) (666,831)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Stock option and warrant exercises (in shares) 459,000   441,000      
Stock option exercises $ 5,411     5,411    
Restricted stock unit releases (in shares)     1,980,000      
Restricted stock unit releases 0          
Shares issued in connection with employee stock purchase plan (in shares)     195,000      
Shares issued in connection with employee stock purchase plan 1,925     1,925    
APIC, Share-Based Payment Arrangement, Increase for Cost Recognition, Shares   48,000        
Stock-based compensation 49,220     49,220    
Non-cash charitable contributions (in shares)     179,000      
Non-cash charitable contributions 2,196     2,196    
Other equity activity (in shares)     19,000      
Other equity activity 333     333    
Other comprehensive loss (409)       (409)  
Net loss (20,390)         (20,390)
Ending balance (in shares) at Dec. 31, 2024     120,711,000      
Ending balance at Dec. 31, 2024 $ 340,073   $ 12 $ 1,029,220 $ (1,938) $ (687,221)
v3.25.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash flows from operating activities      
Net loss $ (20,390) $ (63,197) $ (110,393)
Adjustments to reconcile net loss to net cash provided by operating activities:      
Depreciation and amortization 45,865 38,554 31,864
Stock-based compensation 47,294 70,509 98,032
Non-cash charitable contribution 2,196 3,191 3,770
Asset impairment charges 816 3,230 1,647
Amortization of cloud-based software implementation costs 3,704 2,895 247
Change in operating assets and liabilities:      
Accounts receivable, net (169) (345) (451)
Inventory 9,889 6,614 (11,794)
Prepaid expenses and other assets (3,233) (3,276) (10,534)
Accounts payable 689 1,633 (7,943)
Accrued expenses 9,521 (8,898) 2,748
Deferred revenue 741 5,989 3,583
Lease assets and liabilities 1,920 4,459 7,385
Other liabilities (99) (367) 2,209
Net cash provided by operating activities 98,744 60,991 10,370
Cash flows from investing activities      
Purchases of property and equipment (64,032) (53,671) (60,181)
Investment in optical equipment company (2,000) (1,000) 0
Net cash used in investing activities (66,032) (54,671) (60,181)
Cash flows from financing activities      
Proceeds from stock option exercises 2,703 1,036 456
Other financing activity 333 0 91
Proceeds from shares issued in connection with ESPP 1,925 1,835 2,744
Net cash provided by financing activities 4,961 2,871 3,291
Effect of exchange rates on cash (404) (882) (1,311)
Net increase (decrease) in cash and cash equivalents 37,267 8,309 (47,831)
Beginning of year 216,894 208,585 256,416
End of year 254,161 216,894 208,585
Supplemental disclosures      
Cash paid for income taxes 1,035 419 536
Cash paid for interest 246 227 184
Cash paid for amounts included in the measurement of lease liabilities 44,459 37,126 29,647
Non-cash investing and financing activities:      
Purchases of property and equipment included in accounts payable and accrued expenses $ 4,420 $ 3,647 $ 3,968
v3.25.0.1
Description of Business
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business Description of Business
Warby Parker Inc., a public benefit corporation founded in 2010 (together with its wholly owned subsidiaries, the “Company”), is a founder-led, mission-driven lifestyle brand that sits at the intersection of technology, design, healthcare, and social enterprise. The Company offers holistic vision care by selling eyewear products and providing optical services directly to consumers through its retail stores and e-commerce platform. For every pair of glasses or sunglasses sold, the Company helps distribute a pair of glasses to someone in need through its Buy a Pair, Give a Pair program. The Company is headquartered in New York, New York.
v3.25.0.1
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Basis of Presentation
The Company’s consolidated financial statements have been prepared and are presented in accordance with United States generally accepted accounting principles (“U.S. GAAP”). Certain prior period amounts were reclassified to conform to the current period presentation. These changes had no impact on the consolidated financial statements for any period.
Principles of Consolidation
The consolidated financial statements include the financial statements of Warby Parker Inc., and its wholly owned subsidiaries. The Company has consolidated certain entities meeting the definition of a variable interest entity as the Company concluded that it is the primary beneficiary of the entities. The inclusion of these entities does not have a material impact on the consolidated financial statements. Intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates
The Company prepares its consolidated financial statements in conformity with U.S. GAAP. These principles require management to make certain estimates and assumptions during the preparation of its consolidated financial statements and accompanying notes. Actual results could differ from those estimates.
Management’s estimates are based on historical experience and on various other market-specific and relevant assumptions that management believes to be reasonable under the circumstances. Significant estimates underlying the accompanying consolidated financial statements include, but are not limited to the valuation of inventory, including the determination of the net realizable value, the useful lives and recoverability of long-lived assets, income taxes and valuation allowances, and assumptions related to the valuation of common stock and determination of stock-based compensation.
Concentration of Credit Risk and Major Suppliers
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents. The Company maintains its cash and cash equivalents in various accounts, which, at times, may exceed the limits insured by the Federal Deposit Insurance Corporation of $250 thousand per institution and the Canada Deposit Insurance Corporation of $100 thousand Canadian dollars. At December 31, 2024 and 2023, uninsured cash balances were approximately $252.6 million and $215.6 million, respectively. The Company has not experienced any concentration losses related to its cash and cash equivalents to date. The Company seeks to minimize its credit risk by maintaining its cash and cash equivalents with high-quality financial institutions and monitoring the credit standing of such institutions.
The Company’s top five inventory suppliers accounted for approximately 18%, 18%, and 19% of cost of goods sold for each of the years ended December 31, 2024, 2023, and 2022, respectively.
Interest Rate and Foreign Currency Risk
The Company’s cash and cash equivalents as of December 31, 2024 consisted of cash and money-market funds. Such interest-earning instruments carry a degree of interest rate risk. The goals of the Company’s investment policy are liquidity and capital preservation. The Company does not enter into investments for trading or speculative purposes and have not used any derivative financial instruments to manage its interest rate exposure.
The Company is exposed to changes in foreign currency rates as a result of its foreign operations and international suppliers from whom it purchases in Japanese yen and euros. Revenue and income generated by the Company’s operations in Canada as well as the Company’s cost of goods sold will fluctuate as a result of changes
in foreign currency exchange rates. The impact of changes in foreign currency rates on the Company’s financial results is not material to the consolidated financial statements. The Company does not enter into currency hedges.
Cash and Cash Equivalents
The Company considers all highly liquid short-term investments with an original maturity of three months or less to be a cash equivalent. Cash and cash equivalents include both deposits with banks and financial institutions and receivables from credit card issuers and payment processors, which are typically converted into cash within two to four days of capture. As such, these receivables are recorded as a deposit in transit as a component of cash and cash equivalents on the consolidated balance sheets. At December 31, 2024 and 2023, the balance of cash and cash equivalents for these items was $15.5 million and $15.0 million, respectively.
Accounts Receivable, Net
The Company primarily sells directly to U.S. and Canadian consumers where payment is processed upon order approval or product shipment. In some instances, customers can utilize vision insurance benefits to cover the cost of their purchase. For these orders, the Company submits claims directly to the vision insurance carrier and receives reimbursement directly from the carrier. Accounts receivable primarily represents amounts due from insurance carriers. Receivables from customers and insurance carriers are typically collected within 30 days of the transaction and are included in accounts receivable, net on the consolidated balance sheets. The accounts receivable are net of an allowance for credit losses, which is established based on management’s best estimate of probable credit losses after considering several relevant factors such as counterparty creditworthiness, historical collections, receivable terms, and the size of the individual receivables when determining the reserve. The Company’s allowance for credit losses was $0.9 million and $1.5 million at December 31, 2024 and 2023, respectively.
Inventory
Inventory consists of approximately $12.9 million and $13.3 million of finished goods, including ready-to-wear sun frames, Scout by Warby Parker contact lenses, and eyeglass cases, as of December 31, 2024 and 2023, respectively, and approximately $39.4 million and $48.9 million of component parts, including optical frames and prescription optical lenses, as of December 31, 2024 and 2023, respectively. Inventory is stated at the lower of cost or net realizable value, with cost determined on a weighted average cost basis.
The Company continuously evaluates the composition of its inventory and makes adjustments when the cost of inventory is not expected to be fully recoverable. The estimated net realizable value of excess and obsolete inventory is determined based on an analysis of historical sales trends, the impact of market trends and economic conditions, a forecast of future demand, and the estimated timing of product retirements. Adjustments for damaged inventory are recorded primarily based on actual damaged inventory. Adjustments for inventory shrink, representing the physical loss of inventory, includes estimates based on historical experience, and are adjusted based upon physical inventory counts. However, unforeseen adverse future economic and market conditions could result in actual results differing materially from estimates.
Investments
During the years ended December 31, 2024 and 2023, the Company invested $2.0 million and $1.0 million, respectively, in a private optical equipment company. As part of these investments, the Company will automatically receive shares of the entity or cash based on a conversion price dependent upon an ultimate conversion event. The investments are recorded within other assets on the consolidated balance sheets and are measured at cost less impairment, if any. No impairment has been recorded for the years ended December 31, 2024 and 2023.
Property and Equipment, Net
Property and equipment, net is stated at cost less accumulated depreciation. Repairs and maintenance and any gains or losses on dispositions are recognized as incurred. When assets are sold or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and a gain or loss on disposition is reflected in current operations. Depreciation is recorded on a straight-line basis over the following estimated
useful lives:
Asset Category
Depreciation Period
Computer equipment
3 years
Leasehold improvements
2 - 10 years (lesser of lease term and economic life)
Furniture and fixtures
7 years
Capitalized software
1 - 3 years
Equipment
5 - 7 years
Capitalized Software
The Company capitalizes as property and equipment certain qualified costs incurred in connection with the development of internal-use software. Capitalization of internal-use software begins when the preliminary project stage is completed, management with relevant authority authorizes and commits to funding the software project, and it is probable that the project will be completed and software will be used to perform the function intended. Capitalized internal-use software is amortized on a straight-line basis over the estimated useful life of the software, not to exceed three years, beginning when the software is ready for its intended use.
Cloud-Based Software Implementation Costs
The Company enters into cloud-based software hosting arrangements for which it incurs implementation costs. Certain costs incurred during the application development stage are capitalized and included within prepaid expenses and other current assets or other assets, depending on their long or short-term nature. All other related costs are expensed as incurred. Capitalized cloud-based software implementation costs are amortized on a straight-line basis, from the date the related software or module is ready for its intended use through the end of the contractual term of the hosting arrangement, inclusive of any reasonably certain renewal periods, as a component of selling, general, and administrative expenses, the same line item as the expense for the associated hosting arrangement.
As of December 31, 2024, the Company had $13.6 million of gross capitalized cloud-based software implementation costs and $6.4 million of related accumulated amortization, for a net balance of $7.2 million, made up of $2.8 million recorded within prepaid expenses and other current assets and $4.4 million recorded within other assets on the consolidated balance sheet.
As of December 31, 2023, the Company had $13.1 million of gross capitalized cloud-based software implementation costs and $3.1 million of related accumulated amortization, for a net balance of $10.0 million, made up of $4.0 million recorded within prepaid expenses and other current assets and $6.0 million recorded within other assets on the consolidated balance sheet.
During the years ended December 31, 2024, 2023, and 2022, the Company incurred $3.7 million, $2.9 million, and $0.3 million of amortization of capitalized cloud-based software implementation costs, respectively.
Leases
The Company records a lease liability and corresponding right-of-use (“ROU”) asset at lease commencement. The lease liability is measured at the present value of non-cancellable future lease payments over the lease term, minus expected tenant improvement allowances (“TIAs”) determined to be lease incentives. The ROU asset is measured at the lease liability amount, adjusted for prepaid lease payments, TIAs, and any initial direct costs.
When calculating the present value of future lease payments, the Company utilizes an incremental borrowing rate, which incorporates several factors including the lease term, U.S. Treasury bond rates, financial ratios related to earnings and cash flows, and other comparisons with similarly sized companies.
The recognition of rent expense for an operating lease commences on the date at which control and possession of the property is obtained. Rent expense is calculated by recognizing total fixed minimum rental payments, net of any TIAs or other rental concessions, on a straight-line basis over the lease term. Some of the Company’s retail leases contain percent of sales rent or similar provisions, which is expensed as incurred as variable rent. Retail, optical laboratory, and distribution center rent expense is recognized as a component of cost of goods sold and all other rent expense is recognized as a component of selling, general, and administrative expenses.
Asset Impairment
Long-lived assets, such as property and equipment, ROU assets, and capitalized cloud-based software implementation costs, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Recoverability of asset groups to be held and used is evaluated by a comparison of the carrying amount of an asset group to estimated undiscounted future cash flows expected to be generated by the asset group. If the carrying amount of an asset group exceeds its estimated undiscounted future cash flows, an impairment charge is recognized as a component of selling, general, and administrative expenses in the amount by which the carrying amount exceeds the fair value of the asset group. The Company considers each store location to be its own asset group when evaluating for impairment.
Asset impairment charges, recorded as a component of selling, general, and administrative expenses, are $0.8 million, $3.2 million, and $1.6 million for the years ended December 31, 2024, 2023, and 2022, respectively, and are primarily related to the write-off of assets in connection with retail store closures and impairments, and the write-off of capitalized software and related cloud-based software implementation costs no longer being used.
Income Taxes
The Company utilizes the asset and liability method of accounting for income taxes. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as operating loss, capital loss, and tax credit carryforwards. Valuation allowances are established against deferred tax assets if it is more likely than not that they will not be realized.
The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon its evaluation of the facts, circumstances, and information available at the reporting date. For those tax positions where it is more likely than not that a tax benefit will be sustained, the Company records the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. The Company’s policy is to recognize interest and penalties expense, if any, related to unrecognized tax benefits as a component of income tax expense.
The Company has elected to treat taxes due on future U.S. inclusions in taxable income related to Global Intangible Low Taxed Income (“GILTI”) as a current period expense when incurred using the period cost method.
Fair Value of Financial Instruments
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability, or the exit price, in an orderly transaction between market participants at the measurement date. Inputs used to measure fair value are classified in the following hierarchy:
•Level 1: Quoted prices in active markets for identical instruments.
•Level 2: Quoted prices in active markets for similar instruments or quoted prices for identical or similar instruments in markets that are not active or inputs other than quoted prices that are observable for the instrument.
•Level 3: Unobservable inputs for the instrument.
The Company endeavors to utilize the best available information in measuring fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
The Company’s material financial instruments consists primarily of cash and cash equivalents, accounts receivable, net, accounts payable, and accrued expenses, which are measured at fair value using Level 1 inputs. The fair values of cash and cash equivalents, accounts receivable, net, accounts payable, and accrued expenses are approximately equal to their carrying values based on the short-term nature of these items.
Commitments and Contingencies
Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated.
Foreign Currency
The Company’s foreign operations in Canada have a functional currency of Canadian dollars. Assets and liabilities are translated into U.S. dollars using the current exchange rates in effect at the balance sheet date, while revenues and expenses are translated at the average exchange rates during the period. The resulting translation adjustments are recorded as a component of accumulated other comprehensive income on the consolidated balance sheets. Foreign currency impact on the consolidated statements of cash flows is translated to U.S. dollars using average exchange rates for the period, which approximates the timing of cash flows. Monetary assets and liabilities denominated in currencies other than the functional currency are remeasured at period end using the period-end exchange rate. Gains and losses resulting from remeasurement are recorded in interest and other income, net on the consolidated statements of operations and comprehensive loss.
Revenue Recognition
The Company primarily derives revenue from the sales of eyewear products, optical services and accessories. The Company sells products and services through its stores, website, and mobile apps. Revenue generated from eyewear includes the sales of prescription and non-prescription optical glasses and sunglasses, contact lenses, eyewear accessories, lens replacements, and customer charges for optional expedited shipping. Revenue generated from vision care consists of in-person eye exams and prescriptions issued through the Virtual Vision Test app. All revenue is reported net of sales taxes collected from customers on behalf of taxing authorities and variable consideration, including returns and discounts.
Revenue is recognized when performance obligations are satisfied through either the transfer of control of promised goods or the rendering of services to the Company's customers. Control transfers once a customer has the ability to direct the use of, and obtain substantially all of the benefits from, the product, which is generally determined to be the point of delivery or upon rendering of the service in the case of eye exams. This includes the transfer of legal title, physical possession, the risks and rewards of ownership, and customer acceptance. In the normal course of business, payment may be collected from the customer prior to recognizing revenue and such cash receipts are included in deferred revenue until the order is delivered to the customer. Substantially all of the deferred revenue included on the balance sheet at December 31, 2023 was recognized as revenue in the first quarter of 2024 and the Company expects substantially all of the deferred revenue at December 31, 2024 to be recognized as revenue in the first quarter of 2025.
The Company’s sales policy allows customers to return merchandise for any reason within 30 days of receipt, generally for an exchange or refund. An allowance is recorded within other current liabilities on the consolidated balance sheets for expected future customer returns which the Company estimates using historical return patterns and its expectation of future returns. Any difference between the actual return and previous estimates is adjusted in the period in which such returns occur. Historical return estimates have not materially differed from actual returns in any of the periods presented. The allowance for returns was $2.6 million and $2.2 million at December 31, 2024 and 2023, respectively, and is included in other current liabilities on the consolidated balance sheets.
The Company offers non-expiring gift cards to its customers. Proceeds from the sale of gift cards are initially deferred and recognized within deferred revenue on the consolidated balance sheets, and are recognized as revenue when the product is received by the customer after the gift card has been tendered for payment. Based on historical experience, and to the extent there is no requirement to remit unclaimed card balances to government agencies under unclaimed property laws, an estimate of the gift card balances that will never be redeemed is recognized as revenue in proportion to gift cards which have been redeemed. While the Company will continue to honor all gift cards presented for payment, management may determine the likelihood of redemption to be remote for certain card balances due to, among other things, long periods of inactivity. The balance of unredeemed gift cards was $3.1 million as of both December 31, 2024 and 2023.
The following table disaggregates the Company’s revenue by product:
Year Ended December 31,
202420232022
Eyewear$730,804 $641,093 $580,469 
Vision care40,511 28,672 17,643 
Total Revenue
$771,315 $669,765 $598,112 
The following table disaggregates the Company’s revenue by channel:
Year Ended December 31,
202420232022
E-commerce$233,565 $226,705 $233,956 
Retail537,750 443,060 364,156 
Total Revenue
$771,315 $669,765 $598,112 
Shipping and Handling Fees and Costs
The Company pays for shipping and handling costs which are generally not charged to the customer, except in the case of customer requested expedited shipments. The costs associated with shipping goods to customers are recorded as cost of goods sold. Shipping and handling fees billed to customers related to expedited shipments are recorded as revenue. Shipping and handling fees included in revenue were $3.8 million, $4.0 million, and $4.1 million in the years ended December 31, 2024, 2023, and 2022, respectively, while shipping and handling costs included in cost of goods sold were $20.4 million, $22.0 million, and $22.1 million in the years ended December 31, 2024, 2023, and 2022, respectively.
Cost of Goods Sold
Cost of goods sold includes the costs incurred to acquire materials, assemble, and sell the Company’s finished products. Such costs include (i) product costs, including freight and import costs and adjustments to the lesser of cost and net realizable value, (ii) optical laboratory costs, (iii) customer shipping, (iv) occupancy and depreciation costs of retail stores, and (v) employee-related costs associated with eye exams, which includes salaries, benefits, bonuses, and stock-based compensation.
Selling, General, and Administrative Expenses
Selling, general, and administrative expenses primarily consists of salaries, benefits, bonuses and stock-based compensation for corporate and retail employees, marketing, information technology, credit card processing fees, charitable donations, headquarters facilities and related depreciation, legal, and other administrative costs associated with operating the business. Marketing, which consists of both online and offline advertising, includes sponsored search, online advertising, Home Try-On program costs, and other initiatives.
Advertising costs are expensed as incurred, and were approximately $95.8 million, $76.1 million, and $76.9 million in the years ended December 31, 2024, 2023, and 2022 respectively.
Stock-Based Compensation
Stock-based compensation is recorded as a component of both cost of goods sold and selling, general, and administrative expenses and follows the classification of the related employee. The Company recognizes compensation expense for stock-based awards based on the grant date fair value, on either (i) a straight-line basis for awards with only a service condition, or (ii) an accelerated attribution basis for awards with a performance condition, over the requisite service period of the awards, which is generally the vesting term of the outstanding stock awards. Compensation expense for awards with a performance condition is recognized when it is determined that it is probable that the vesting conditions will be satisfied. The Company utilizes a narrow interpretation of award authorization and expense and stock-based compensation expense is recognized beginning on an award’s grant date.
The Company estimates the fair value of options and Employee Stock Purchase Plan (“ESPP”) purchase rights on the date of grant using the Black-Scholes option-pricing model, which utilizes assumptions subject to management
estimate. These assumptions include estimating the expected term, the estimated volatility of the Company’s common stock price over the expected term, the fair value of the Company’s stock, the risk-free interest rate, and the expected dividend yield. Changes in these assumptions can materially affect the estimate of fair value of stock-based awards. The Company accounts for forfeitures as they occur.
Prior to the Company’s direct listing, the fair value of restricted stock units (“RSUs”) was determined by the board of directors with input from management and independent third-party valuation specialists, as there was no public market for the Company’s common stock. Subsequent to the Company’s direct listing, the grant date fair value is determined by the closing price of the Company’s Class A common stock as reported on the date of grant.
Stock-based compensation expense related to stock awards with market-based or performance-based vesting conditions are measured based on the fair value of the awards granted. The Company determines the grant date fair value using equity valuation models, such as the Monte Carlo simulation, using assumptions and judgements made by management and third-party valuation specialists. The Company recognizes stock-based compensation expense for market or performance-based awards using the accelerated attribution method over the derived service period.
Net Loss Per Share
Basic and diluted net loss per share is presented in conformity with the two-class method required for participating securities. Under the two-class method, net loss is attributed to common stockholders and participating securities based on their participation rights.
Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of the Company’s common stock outstanding during a given period.
The diluted net loss is computed by giving effect to all dilutive securities. Diluted net loss per share is computed by dividing the resulting net loss by the weighted-average number of fully diluted common shares outstanding. During periods when there is a net loss, potentially dilutive common stock equivalents are excluded as their effect is anti-dilutive. The Company uses the treasury stock method for its employee equity awards and ESPP purchase rights to determine if any incremental shares should be included in diluted net loss. If the effect of a conversion of an instrument is neutral to earnings per share, the Company considers the security to be dilutive. The Company excludes unvested employee awards when the vesting is contingent on a performance or market condition that is not met as of the evaluation date.
Restructuring Activities
During the years ended December 31, 2022 and December 31, 2024, the Company completed restructuring plans to reduce the Company’s cost and drive long-term operational efficiencies totaling $1.5 million and $0.7 million respectively, which were recognized as a component of selling, general, and administrative expenses.
Recently Issued Accounting Pronouncements
In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes. The guidance requires public entities to annually disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. The ASU is effective for annual periods beginning after December 15, 2024. The company expects the adoption of the standard within the 2025 Form 10-K to result in additional disclosures related to the rate reconciliation.
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures. The guidance requires disaggregated disclosure of income statement expenses for public entities. The ASU does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. This ASU is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.
Recently Adopted Accounting Pronouncements
In November 2023, the FASB issued ASU 2023-07, Segment Reporting. The guidance requires additional disclosures of significant segment expense categories and the amount and description of other segment items beyond the significant segment expenses. The ASU also allows for the disclosure of multiple measures of a
segment’s profit or loss for each reportable segment if the CODM utilizes more than one measure to assess performance and allocate resources. Lastly, the ASU clarifies that all of the disclosures required in the segments guidance, including disclosing a measure of segment profit or loss and reporting significant segment expenses and other segment items, apply to all public entities, including those with a single operating or reportable segment. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024. The Company adopted this standard in its 2024 fiscal year, which resulted in additional disclosures related to a measure of profit or loss, significant segment expenses, and other segment items for its single reportable segment as seen in Note 9, Segment Information.
v3.25.0.1
Property and Equipment, Net
 12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net Property and Equipment, Net
Property and equipment, net consists of the following:
December 31,
20242023
Leasehold improvements$189,890 $161,720 
Computers and equipment46,186 35,738 
Furniture and fixtures36,037 29,405 
Capitalized software36,534 23,750 
Construction in process20,460 17,555 
329,107 268,168 
Less: accumulated depreciation and amortization(158,643)(115,836)
Property and equipment, net$170,464 $152,332 
Depreciation and amortization expense consists of the following:
Year Ended December 31,
202420232022
Cost of goods sold$30,488 $26,136 $20,685 
Selling, general, and administrative expenses15,377 12,418 11,179 
Total depreciation and amortization expense$45,865 $38,554 $31,864 
v3.25.0.1
Accrued Expenses
 12 Months Ended
Dec. 31, 2024
Payables and Accruals [Abstract]  
Accrued Expenses Accrued Expenses
Accrued expenses consists of the following:
December 31,
20242023
Payroll related$10,409 $13,575 
Product and fulfillment15,273 8,786 
Marketing9,333 6,619 
Retail related5,929 2,800 
Charitable contribution3,315 4,458 
Legal2,338 1,638 
Professional services2,193 2,159 
Other2,819 6,285 
Total accrued expenses$51,609 $46,320 
v3.25.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Loss before income taxes consists of the following:
December 31,
202420232022
United States$(19,959)$(63,211)$(110,407)
Foreign445 447 511 
Loss before income taxes$(19,515)$(62,764)$(109,896)
The provision for income taxes consists of the following:
December 31,
202420232022
Current
Federal$— $— $(1)
State739 362 175 
Foreign136 71 51 
Deferred
Federal— — — 
Foreign— — 272 
Total provision for income taxes$875 $433 $497 
The Company recorded a total provision for income taxes of $0.9 million, $0.4 million, and $0.5 million for the years ended December 31, 2024, 2023, and 2022 respectively.
A summary reconciliation of the effective tax rate is as follows:
December 31,
202420232022
U.S. federal statutory rate21.0 %21.0 %21.0 %
Non-deductible stock-based compensation(30.4)(20.1)(13.5)
Change in valuation allowance4.5 2.3 (3.6)
Other0.4 (3.9)(4.4)
Effective tax rate(4.5)%(0.7)%(0.5)%
Deferred income taxes, included in other assets on the consolidated balance sheets, reflects the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The approximate tax effect of the significant components of the Company’s deferred tax assets and liabilities are as follows:
December 31,
20242023
Deferred tax assets:
Inventory$2,572 $3,706 
Charitable contribution carryforward12,289 10,270 
Stock-based compensation2,573 3,259 
Net operating loss carryforward46,470 49,155 
Lease liabilities64,021 49,312 
Other6,818 6,765 
Total deferred tax assets134,743 122,467 
Valuation allowance(68,504)(69,379)
Net deferred tax assets66,239 53,088 
Deferred tax liabilities:
Property and equipment, net(20,533)(20,631)
Right-of-use lease assets(45,706)(32,457)
Total deferred tax liabilities(66,239)(53,088)
Deferred tax assets, net
$— $— 
As of December 31, 2024, the Company had a net operating loss carryforward (“NOL”) of $305.5 million which represents the impact of current and historic operating losses available to reduce future income taxes. The NOL for federal income tax purposes of $185.9 million and state income tax purposes of $119.6 million will begin to expire at various points beginning in 2031, however, $128.4 million of the federal NOL is available for indefinite use.
As of December 31, 2024 and 2023, the Company recorded a valuation allowance of $68.5 million and $69.4 million, respectively, against its net deferred tax assets because it cannot be reasonably assured that deductible temporary differences and NOLs can be realized through future taxable income due to the Company’s history of losses. The Company will continue to assess the realizability of the deferred tax assets in each of the applicable jurisdictions going forward and assess the valuation allowance accordingly.
As of December 31, 2024 and 2023, there were no uncertain tax positions. As of December 31, 2024 and 2023, the Company was subject to federal, state, and provincial income taxes in the United States and Canada. The Company is no longer subject to U.S. federal, state, or foreign income tax examinations by tax authorities for years before 2021. It is the Company’s policy to record interest and penalties as a component of income tax expense. No interest or penalties were recognized in the consolidated statements of operations and comprehensive loss for the years ended December 31, 2024, 2023, or 2022.
In 2024 and 2023, the Company calculated the impact of the mandatory capitalization and amortization of research and development expenses, as required by the Tax Act. In previous years the Company was able to immediately deduct these expenses, covered under Section 174 of the Internal Revenue Code. For the periods ending December 31, 2024 and 2023, this change did not have a material impact on the Company’s cash tax liabilities.
As a result of the Tax Act, the Company's undistributed foreign earnings through 2017 were deemed to have been repatriated to the United States. The Company's intent is to indefinitely reinvest its foreign earnings generated outside of the United States starting in 2018. The Company's non-U.S. subsidiary will use any cash generated to finance foreign operations. If the Company decides at a later date to repatriate these earnings, the Company could be subject to additional income taxes. The income taxes applicable to such earnings and other outside basis differences are not readily determinable or practicable to calculate.
v3.25.0.1
Redeemable Convertible Preferred Stock and Stockholders’ Deficit
 12 Months Ended
Dec. 31, 2024
Equity [Abstract]  
Redeemable Convertible Preferred Stock and Stockholders’ Deficit Stockholders’ Equity
Common Stock
As of December 31, 2024, the Company’s Twelfth Amended and Restated Certificate of Incorporation authorizes the issuance of up to 1,050,000 shares of common stock, par value of $0.0001 per share, of which 750,000 shares are designated Class A common stock, 150,000 shares are designated Class B common stock, and 150,000 shares are designated Class C common stock.
Voting Rights
Class A common stock receives one vote per share, Class B common stock receives ten votes per share, and Class C common stock has no voting rights except as required by Delaware law. The number of authorized shares of Class A, B, or C common stock may be increased or decreased (but not below the number of shares then outstanding) by the affirmative vote of the holders of a majority of the voting power of the Company’s stock entitled to vote. Common stock is not redeemable at the option of the holder.
Dividends
The holders of Class A, B, and C common stock shall be entitled to receive dividends in any fiscal year, when, as, and if declared by the board of directors, out of any assets at the time legally available therefore, with the holders of common stock and any then outstanding preferred stock sharing on a pari passu basis in such dividends. Through December 31, 2024, no dividends have been declared.
Liquidation
Upon the dissolution or liquidation of the Company, whether voluntary or involuntary, holders of common stock will be entitled to receive assets of the Company available for distribution to its stockholders ratably in proportion to the number of shares held by them, subject to the preferential rights of any then outstanding preferred stock.
Conversion of Class B Common Stock
A total of 2,009 and 145 shares of Class B common stock were converted to Class A common stock during the years ended December 31, 2024 and 2023, respectively.
Voluntary Conversion
Each share of Class B common stock is convertible into one share of Class A common stock at the option of the holder thereof with the prior written consent of the Company.
Automatic Conversion
Shares of Class B common stock are only held by Neil Blumenthal and Dave Gilboa, the Company’s Co-CEOs, and their permitted ownership group (as defined in the Certificate of Incorporation). Such shares will automatically convert into shares of Class A common stock on a one-for-one basis upon the earlier of (i) October 1, 2031, (ii) transfer of shares to a person or entity that is not in the transferor’s permitted ownership group, (iii) the date the holder is (a) no longer a member of the board of directors, or (b) no longer an employee, officer, or consultant of the Company or its subsidiaries, or (iv) 12 months following the death or disability of the holder.
Outstanding Shares
As of December 31, 2024, outstanding shares of common stock as well as shares of common stock attributable to equity awards are as follows:
Class AClass BClass C
Common stock outstanding102,762 17,949 — 
Employee stock options – outstanding264 1,433 — 
Restricted stock units – outstanding2,301 1,317 — 
Performance stock units – outstanding— 4,398 — 
Employee stock plans – available30,131 — — 
Shares of Class A common stock issuable upon conversion of all outstanding Class B common stock, options, RSUs, and PSUs25,097 — — 
Total common stock – outstanding or issuable160,555 25,097 — 
Shares authorized
750,000 150,000 150,000 
Common stock authorized and available for future issuance
589,445 124,903 150,000 
Preferred Stock
As of December 31, 2024, 50,000 preferred shares were authorized and no shares were outstanding.
Stock Donations
In both May 2024 and August 2023, the Company issued 179 shares of Class A common stock to the Warby Parker Impact Foundation (“WPIF”), a 501(c)(3) nonprofit organization. In June 2023, the Company donated 57 shares of Class A common stock to charitable donor advised funds. The Company recognized $2.2 million and $3.2 million of charitable expense related to stock donations during the years ended December 31, 2024 and 2023, respectively, representing the fair value of the shares on the date they were issued, which is recorded as a component of selling, general, and administrative expenses. Three of the Company’s directors serve on the board of directors of WPIF
v3.25.0.1
Stock-Based Compensation
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
Plans and Awards
The Company’s eligible employees participate in various stock-based compensation plans, which are provided by the Company directly.
In August 2021, the board of directors approved the 2021 Incentive Award Plan (the “2021 Plan”), which became effective on September 28, 2021. The Company no longer grants equity awards under its 2010 Equity Incentive Plan, 2011 Stock Plan, 2012 Milestone Stock Plan, or 2019 Founder Stock Plan (collectively, the “Prior Plans”, and together with the 2021 Plan, the “Plans”), and shares available for issuance under the Prior Plans were made available for issuance under the 2021 Plan. The shares authorized under the 2021 Plan will increase annually, beginning on January 1, 2022 and continuing through 2031, by the lesser of (i) 5% of the outstanding common stock (on an as converted basis) as of the last day of the immediately preceding fiscal year, or (ii) a smaller amount as agreed by the board of directors. Awards granted under the 2021 Plan generally vest over four years. In addition, the shares authorized under the 2021 Plan will increase, among other things, to the extent that an award (including an award under the Prior Plans) terminates, expires, or lapses for any reason or an award is settled in cash without the delivery of shares.
In February 2024, the board of directors approved an annual increase of 5,892 shares to the shares authorized for issuance under the 2021 Plan, and 25,012 shares remained available for future issuance pursuant to new awards as of December 31, 2024.
The Company issues previously unissued shares upon the exercise of stock options or settlement of RSUs or PSUs.
Employee Stock Purchase Plan
In August 2021, the board of directors adopted and the stockholders of the Company approved the 2021 Employee Stock Purchase Plan (the “ESPP”). The shares authorized under the ESPP will be increased annually on the first day of each fiscal year beginning in 2022 and ending in 2031, by an amount equal to the lesser of (i) 1% of the shares of the Company’s common stock outstanding (on an as converted basis) on the last day of the immediately preceding fiscal year and (ii) such number of shares of common stock as determined by the board of directors; provided, however, no more than 16,615 shares of common stock may be issued under the ESPP.
In February 2024, the board of directors approved an annual increase of 1,178 shares to the ESPP and there were 5,119 shares available for future issuance pursuant to ESPP purchases as of December 31, 2024.
Stock-based Compensation Expense
Stock-based compensation expense consisted of the following for the periods presented:
Year Ended December 31,
202420232022
Cost of goods sold$1,002 $1,035 $880 
Selling, general, and administrative expenses46,292 69,474 97,152 
Total stock-based compensation expense$47,294 $70,509 $98,032 
Stock-based compensation expense for the year ended December 31, 2024 includes $21.8 million related to the 2021 Founders Grant, as described below, $20.8 million from the vesting of RSUs, $2.3 million from the vesting of stock options, $1.5 million related to the ESPP, $0.7 million from the issuance of stock to charitable donor advised funds, and $0.3 million from liability based awards resulting from accrued bonuses that will be settled in equity in the first quarter of 2025.
Stock-based compensation expense for the year ended December 31, 2023 includes $44.1 million related to the 2021 Founders Grant, as described below, $18.2 million from the vesting of RSUs, $3.3 million from the vesting of stock options, $2.7 million related to the ESPP, and $2.2 million from liability based awards resulting from accrued bonuses that were settled in equity in the first quarter of 2024.
Stock-based compensation expense for the year ended December 31, 2022 includes $73.0 million related to the 2021 Founders Grant, as described below, $17.6 million from the vesting of RSUs, $4.6 million from the vesting of stock options, and $2.9 million related to the ESPP.
Stock Options
A summary of stock option activity for the year ended December 31, 2024 is as follows:
Number of
Stock
Options		Weighted
Average
Exercise
Price		Weighted
average
contractual
term (years)		Aggregate
intrinsic
value
Balance at December 31, 20232,156 $7.20 4.0$16,541 
Options granted— — 
Options exercised(459)12.86 
Options forfeited— — 
Balance at December 31, 20241,697 $5.67 2.6$31,459 
Exercisable as of December 31, 20241,697 $5.67 2.6$31,459 
Vested as of December 31, 20241,681 5.55 2.6
Unvested as of December 31, 202416 $18.22 6.1
The total value of unrecognized stock compensation expense related to unvested options granted under the Plans was immaterial as of December 31, 2024. The Company has not granted stock options since 2021.
Additional information about stock options is as follows:
Year Ended December 31,
202420232022
Total fair value of options that vested during the year$1,322 $52 $187 
Aggregate intrinsic value of options exercised during the year$2,809 $4,926 $7,728 
Restricted Stock Units and Performance Stock Units
A summary of RSU activity for the year ended December 31, 2024 is as follows:
Number of Restricted Stock UnitsWeighted Average Grant Date Fair Value
Unvested as of December 31, 20233,050 $24.05 
Granted1,95714.04 
Forfeited(288)16.83 
Released(1,980)21.08 
Vested and not yet released131.76 
Unvested as of December 31, 20242,740 $19.81 
The total value of unrecognized stock compensation expense related to outstanding RSUs and PSUs granted under the Plans was $32.6 million and $1.2 million as of December 31, 2024, respectively, which is expected to be recognized over a weighted-average period of 1.2 years and 0.2 years, respectively. No PSUs were granted, forfeited, released, or vested during the year ended December 31, 2024. As of December 31, 2024 there were 878 RSUs that were vested but not yet released, mainly related to the 2021 Founders Grant, as described below.
Additional information about RSUs is as follows:
Year Ended December 31,
202420232022
Weighted-average grant date fair value of RSUs granted during the year$14.04 $13.26 $16.71 
Total fair value of RSUs that vested during the year$32,882 $19,664 $11,746 
Aggregate intrinsic value of RSUs released during the year$31,827 $14,939 $12,098 
RSUs granted prior to the Company’s direct listing vest upon the satisfaction of both a service and a performance condition, which was satisfied upon the Company’s direct listing on September 20, 2021, and the Company recognizes stock-based compensation expense using the accelerated attribution method as the service conditions are met. RSUs issued after the Company’s direct listing only contain a service condition and are recognized on a straight line basis over the vesting period.
In June 2021, the Company granted 4,398 PSUs and 1,885 RSUs to the Co-CEOs, in the aggregate, under the 2019 Plan (the “Founders Grant”). The PSUs vest upon two performance conditions, (i) a qualified public offering, which was satisfied upon the Company’s direct listing in September 2021, and (ii) the price of the Company’s Class A common stock reaches stock price hurdles over a period of ten years, as defined by the terms of the award. The PSUs are subject to the Co-CEOs continued employment with the Company through the applicable vesting date. If the PSUs vest, the Company will deliver one share of Class B common stock for each PSU on the settlement date. Unvested PSUs expire in ten years from the date of grant. The terms of the PSUs granted are described further below.
The PSUs are divided into eight substantially equal tranches, each one vesting on the date the 90-day trailing volume-weighted average trading price of the Company’s Class A common stock exceeds the stock price hurdle, as set forth in the table below, provided that no PSUs may vest prior to the six month anniversary of the Company’s direct listing.
TrancheNumber of PSUsStock Price Hurdle
1550 $47.75 
2550 $55.71 
3550 $63.67 
4550 $71.63 
5550 $79.59 
6550 $87.55 
7550 $95.50 
8550 $103.46 
The Company used a Monte Carlo simulation to calculate the grant-date fair value of the PSUs of $128.8 million. Since the PSUs contain a performance and market condition, the stock-based compensation expense will be recognized when it becomes probable that the performance condition will be met using the accelerated attribution method. Stock-based compensation will be recognized over the period of time the market condition for each tranche is expected to be met (i.e., the derived service period). The performance condition was satisfied at September 29, 2021 by the Company’s direct listing, and the Company began recording expense at that time.
The Founders Grant RSUs will vest in equal monthly installments over a period of five years, subject to the Co-CEOs continued employment with the Company through the applicable vesting date and conditioned upon the completion of a qualified public offering. The grant-date fair value of the RSUs is $66.9 million. Since the RSUs contain a performance condition, stock-based compensation expense is recognized using the accelerated attribution method when it becomes probable that the performance condition will be met. The performance condition was satisfied on September 29, 2021 by the Company’s direct listing, and the Company began recording expense at that time.
Shares underlying vested PSUs and RSUs will be issued to the Co-CEOs on a specified quarterly date following the second anniversary of the vesting date, except for an amount necessary to cover any taxes due in connection with the vesting, which will be withheld or sold to cover, or issued to offset, such taxes. Any PSUs and RSUs subject to the award that have not vested by the tenth anniversary of the grant date will be forfeited.
v3.25.0.1
Leases
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases Leases
The Company leases retail, office, optical laboratory, and distribution center space under operating leases from third parties. As of December 31, 2024, the total lease terms of the various leases range from 1 to 12 years. The leases generally contain renewal options and rent escalation clauses, and from time to time include contingent rent provisions. Renewal options are exercisable at the Company’s sole discretion and are included in the lease term if they are reasonably certain to be exercised. In general it is not reasonably certain that lease renewals will be exercised at lease commencement and as such, lease renewals are not included in the lease term.
The following table details the Company’s net lease expense:
Year Ended December 31,
202420232022
Operating lease expense$34,915 $30,133 $25,817 
Variable lease expense(1)
767 1,831 3,498 
Net lease expense$35,682 $31,964 $29,315 
(1) Variable lease expense primarily consists of contingent rent.
The following table presents the future maturity of lease liabilities:
Operating Leases(1)
2025$32,333 
202649,247 
202747,957 
202843,111 
202934,064 
Thereafter68,170 
Total undiscounted lease cash flows274,882 
Impact of discounting49,527 
Present value of lease payments$225,355 
(1)    The year 2025 includes $13.6 million of expected cash inflows from TIAs. Operating lease payments exclude $6.9 million of legally binding minimum lease payments related to executed leases for which the Company has not yet taken possession of the leased premises.

The following table presents other relevant lease information:
December 31,
2023
Weighted average remaining lease term (years)6.4
Weighted average discount rate5.5 %
v3.25.0.1
Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Information Segment Information
Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker (“CODM”), who makes decisions about allocating resources and assessing performance. The Company’s CODM is its co-Chief Executive Officers.
The Company identified one operating segment and one reportable segment, holistic vision care, which is aligned with how the CODM views the business as a holistic vision care brand with complementary vision care products and services. The holistic vision care segment sells eyewear products and provides optical services directly to customers through its retail and e-commerce platform. The Company derives revenues in the U.S. and Canada and manages business activities on a consolidated basis using the same technology and supply chain infrastructure across channels, products, and geographies.
The accounting policies of the holistic vision care segment are the same as those described in the summary of significant accounting policies.
The CODM assesses performance for the holistic vision care segment and decides how to allocate resources based on net income that is also reported on the income statement as consolidated net income. The measure of segment assets is reported on the balance sheet as total consolidated assets. The CODM uses net income when determining whether to reinvest profits into the holistic vision care segment or to use them for acquisitions or other transactions. Net income is also used in the evaluation of budget versus actual performance.
The following table details segment profit and loss for the holistic vision care segment:
Year Ended December 31,
202420232022
Revenue$771,315 $669,765 $598,112 
Less:
Cost of goods sold344,481 304,541 257,050 
Marketing95,498 78,420 84,184 
Other selling, general, and administrative costs361,448 358,800 368,081 
Interest and other income, net(10,597)(9,232)(1,307)
Income tax expense875 433 497 
Segment and consolidated net income$(20,390)$(63,197)$(110,393)
v3.25.0.1
Defined Contribution Retirement Plan
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Defined Contribution Retirement Plan Defined Contribution Retirement Plan
The Company maintains a defined contribution retirement plan covering substantially all employees based on plan defined age and service requirements. The Company provides discretionary employer-provided matching contributions based on a percentage of employee contributions. Costs are accrued and funded on a current basis. Total expense charged to the consolidated statements of operations and comprehensive loss for the plan was $4.3 million, $3.9 million, and $3.4 million for the years ended December 31, 2024, 2023, and 2022, respectively.
v3.25.0.1
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
2022 Credit Facility
In September 2022, the Company and its wholly owned subsidiary, Warby Parker Retail, Inc. (together, the “Borrowers”), entered into a Credit Agreement with Comerica Bank and the lenders from time to time party thereto (as amended, the “2022 Credit Facility”). The 2022 Credit Facility consisted of a $100.0 million five-year revolving credit facility with sublimits of $15.0 million for letters of credit and $5.0 million for swing line notes. In February 2024, the 2022 Credit Facility was terminated and replaced by the 2024 Credit Facility as described below.
2024 Credit Facility
In February 2024, the Borrowers entered into a Credit Agreement with JPMorgan Chase Bank, N.A. and the lenders party thereto (the “2024 Credit Facility”), which replaced the 2022 Credit Facility. The 2024 Credit Facility consists of a $120.0 million five-year revolving credit facility with sublimits of $15.0 million for letters of credit and $10.0 million for swingline loans. The 2024 Credit Facility includes an option for the Company to increase the available amount by up to $55.0 million, for a maximum borrowing capacity of $175.0 million, subject to the consent of the lenders funding the increase and certain other conditions. Proceeds of the borrowings under the 2024 Credit Facility are expected to be used for working capital and other general corporate purposes in the ordinary course of business. The Company is permitted to repay borrowings under the 2024 Credit Facility at any time, in whole or in part, without penalty.
Under the 2024 Credit Facility, borrowings under the revolving credit facility bear interest on the principal amount outstanding, at the Company’s election, at (a) the greater of the prime rate (as defined in the credit agreement) or 2.5%, plus an applicable margin of 0.65% to 0.90% depending on the Company’s leverage ratio or (b) adjusted SOFR (as defined in the credit agreement), plus an applicable margin of 1.65% to 1.90% depending on the Company’s leverage ratio. The Company is charged an unused commitment fee of 0.20% to 0.25% depending on the Company's leverage ratio. Both interest on principal and commitment fees are included in interest expense on the consolidated statements of operations.
The 2024 Credit Facility contains a financial maintenance covenant which only applies while total borrowings exceed $30.0 million, which requires the Company to maintain a maximum consolidated senior net leverage ratio of 3:1. The 2024 Credit Facility contains customary affirmative and negative covenants, including limits on indebtedness, liens, capital expenditures, asset sales, investments and restricted payments, in each case subject
to negotiated exceptions and baskets, as well as customary representations, warranties and event of default provisions. The obligations of the Borrowers under the 2024 Credit Agreement are secured by first-lien security interests in substantially all of the assets of the Borrowers. In addition, the obligations are required to be guaranteed in the future by certain additional domestic subsidiaries of the Company.
Other than letters of credit outstanding of $4.3 million as of both December 31, 2024 and 2023 used to secure certain leases in lieu of a cash security deposit, there were no other borrowings outstanding.
Litigation
During the normal course of business, the Company may become subject to legal proceedings, claims and litigation. Such matters are subject to many uncertainties and outcomes are not predictable with assurance. Accruals for loss contingencies are recorded when a loss is probable, and the amount of such loss can be reasonably estimated.
On March 13, 2023, a former employee, on behalf of herself and a proposed class of California hourly employees, filed a complaint against the Company, alleging violations of various California wage and hour laws, seeking wages, statutory penalties and attorneys’ fees. The matter (captioned Pham v. Warby Parker Inc., et al., Case No. 5:23-cv-01884-NC; N.D. Cal.) is currently pending in the United States District Court for the Northern District of California. On June 16, 2023, another former employee filed a related representative action (captioned Chery v. Warby Parker Inc., et al., Case No. 23CV417693; Cal. Super. Ct.) in the Santa Clara County Superior Court of California pursuant to California’s Private Attorneys General Act, asserting largely overlapping claims, seeking civil penalties on behalf of the state. Since that time, one additional follow on Private Attorneys General Act lawsuit was filed (captioned Jacobsen, et al. v. Warby Park Inc., et al., Case No. 23CV421588; Cal. Super. Ct.). Following a voluntary mediation in April 2024, the Company reached an agreement in principle with the plaintiffs to consolidate and settle the foregoing matters for a total of $1.95 million. The parties entered into a final settlement agreement on October 1, 2024, which remains subject to court approval. If the court does not approve the settlement, the litigation will continue. The Company has accrued for the full amount of the proposed settlement.
In addition to the matters described above, as of December 31, 2024, the Company is currently involved in other legal proceedings which, in the opinion of the Company’s management, will not materially affect the Company’s financial position, results of operations, or cash flows should such litigation be resolved unfavorably.
v3.25.0.1
Net Loss Per Share Attributable to Common Stockholders
 12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Net Loss Per Share Attributable to Common Stockholders Earnings Per Share
The computation of net loss per share for the years presented is as follows:
Year Ended December 31,
202420232022
Numerator
Net loss
$(20,390)$(63,197)$(110,393)
Denominator
Weighted average shares, basic and diluted
120,385 117,389 114,942 
Earnings Per Share
Net loss per share, basic and diluted$(0.17)$(0.54)$(0.96)
The following potentially dilutive shares were excluded from the computation of diluted net loss per share for the years presented because including them would have been antidilutive:
Year Ended December 31,
202420232022
Stock options to purchase common stock
1,697 2,156 2,965 
Unvested restricted stock units2,740 3,050 3,314 
Unvested performance stock units4,398 4,398 4,398 
ESPP purchase rights286 502 410 
v3.25.0.1
Related-Party Transactions
 12 Months Ended
Dec. 31, 2024
Related Party Transactions [Abstract]  
Related-Party Transactions Related-Party Transactions
As a private company, the Company issued secured promissory notes collateralized by the stock purchased by certain Company executives in relation to the exercise of employee stock options. As the promissory notes are secured by the underlying shares they have been treated as non-recourse notes in the consolidated financial statements. The promissory notes were issued with a term of 8.5 years and an interest rate equal to the minimum applicable federal mid-term rate in the month the loan was issued. The secured promissory notes were recorded as a reduction to equity offsetting the amount in additional paid-in-capital related to the exercised options funded by the notes.
The loans had a balance of $2.2 million and $2.5 million at December 31, 2024 and 2023, respectively. No loans are outstanding with any of the Company’s named executive officers and no new promissory notes were issued during the years ended December 31, 2024 and 2023. The loans outstanding had a weighted average remaining term of 4.6 years at December 31, 2024.
During the year ended December 31, 2024, $0.3 million of employee loans were repaid and the outstanding loan balance increased by an immaterial amount due to interest. During the year ended December 31, 2023, the outstanding loan balance increased by an immaterial amount due to interest.
v3.25.0.1
Subsequent Events
 12 Months Ended
Dec. 31, 2024
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
Lease Obligations
Subsequent to December 31, 2024, the Company entered into four operating lease agreements and extended the term of one existing operating lease agreement for retail space in the U.S., with terms ranging from 5 to 10 years. Total commitments under these agreements are approximately $4.3 million, payable over the terms of the related agreements.
Equity Awards
In February 2025, the board of directors approved RSU and PSU awards for Class A common stock to the Co-CEOs under the 2021 Plan, to be granted on March 3, 2025. The number of RSUs to be granted will be determined on the grant date based on a valuation of $3.0 million for each Co-CEO, and vest in equal monthly installments over a period of three years, beginning on January 1, 2025. The number of PSUs to be granted will be determined on the grant date based on a valuation of $3.0 million for each Co-CEO. Vesting of the PSUs will occur after the end of the performance period, which begins on January 1, 2025 and ends on the earlier of a change of control or December 31, 2027, in each case based on the Company’s total shareholder return relative to the total shareholder returns of the Russell 2000 Growth Index as defined in the PSU agreement. The number of shares to be issued in respect of the PSUs that become vested is based on an achievement factor which ranges from a zero shares to a maximum of 2 shares of Class A common stock per PSU. The final settlement of the PSUs is subject to the Co-CEOs’ continued employment with the Company through the earlier of a change of control or December 31, 2027.
v3.25.0.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Pay vs Performance Disclosure      
Net loss $ (20,390) $ (63,197) $ (110,393)
v3.25.0.1
Insider Trading Arrangements
 12 Months Ended
Dec. 31, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.0.1
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.0.1
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
Cybersecurity Risk Management and Strategy
We have developed and implemented a cybersecurity risk management program intended to protect the confidentiality, integrity, and availability of our critical systems and information. Our cybersecurity risk management program includes a cybersecurity incident response plan.
We design and assess our program based on the National Institute of Standards and Technology Cybersecurity Framework 1.1 (NIST CSF). This does not imply that we meet any particular technical standards, specifications, or requirements, only that we use the NIST CSF as a guide to help us identify, assess, and manage cybersecurity risks relevant to our business.
Our cybersecurity risk management program is integrated into our overall enterprise risk management program, and shares common methodologies, reporting channels and governance processes that apply across the enterprise risk management program to other legal, compliance, strategic, operational, and financial risk areas.
Our cybersecurity risk management program includes:
•Risk assessments designed to help identify material cybersecurity risks to our critical systems, information, products, services, and our broader enterprise IT environment;
•A security team principally responsible for managing (1) our cybersecurity risk assessment processes, (2) our security protocols and controls, and (3) our response to cybersecurity incidents;
•The use of external service providers, where appropriate, to assess, test or otherwise assist with aspects of our security protocols and controls;
•Cybersecurity awareness training of our employees, incident response personnel, and senior management;
•A cybersecurity incident response plan that includes procedures for assessing and responding to cybersecurity incidents; and
•A third-party risk management process for service providers, suppliers, and vendors who have access to our critical systems and information.
We have not identified risks from known cybersecurity threats, including as a result of any prior cybersecurity incidents, that have materially affected or are reasonably likely to materially affect us, including our operations, business strategy, results of operations, or financial condition. See Item 1A. “Risk Factors—Risks Related to Our Business and Industry—We rely heavily on our information technology systems, as well as those of our third-party vendors, business partners, and service providers, for our business to effectively operate and to safeguard confidential information; any significant failure, inadequacy, interruption, or cybersecurity incident could adversely affect our business, financial condition, and operations.”
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]
Our cybersecurity risk management program is integrated into our overall enterprise risk management program, and shares common methodologies, reporting channels and governance processes that apply across the enterprise risk management program to other legal, compliance, strategic, operational, and financial risk areas.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
Cybersecurity Governance
Our board of directors considers cybersecurity risk as part of its risk oversight function and has delegated to our Audit Committee oversight of cybersecurity and other information technology risks. Our Audit Committee oversees management’s implementation of our cybersecurity risk management program.
Our Audit Committee receives reports from management on our cybersecurity risks on at least a quarterly basis, and more frequently as needed. In addition, management updates the Audit Committee, as necessary, regarding any material cybersecurity incidents, as well as any incidents with lesser impact potential.
Our Audit Committee reports to the full board of directors regarding its activities, including those related to cybersecurity. The full board of directors also receives an annual briefing from management on our cyber risk management program. Board members receive presentations on cybersecurity topics from the Chief Technology Officer (“CTO”) and the Senior Director of Information Security.
Our management team, including our CTO and Senior Director of Information Security, are responsible for assessing and managing our material risks from cybersecurity threats, and our Chief Financial Officer and General Counsel are responsible for associated materiality assessments. Our CTO and cybersecurity team have primary responsibility for our overall cybersecurity risk management program and supervise both our internal cybersecurity personnel and our retained external cybersecurity consultants. Their experience includes decades spent managing the security programs of publicly traded corporations, formal cybersecurity education programs from accredited academic institutions, and numerous security certifications such as CISSP, CCSP, CySA+ and AWS Architect & Security Specializations.
Our management team supervises efforts to prevent, detect, mitigate, and remediate cybersecurity risks and incidents through various means, which may include briefings from internal security personnel; threat intelligence and other information obtained from governmental, public or private sources, including external consultants engaged by us; and alerts and reports produced by security tools deployed in the IT environment. The Company maintains a cybersecurity risk insurance policy that would help defray the costs associated with a covered cybersecurity incident if it occurred.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block]
Our board of directors considers cybersecurity risk as part of its risk oversight function and has delegated to our Audit Committee oversight of cybersecurity and other information technology risks. Our Audit Committee oversees management’s implementation of our cybersecurity risk management program.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block]
Our Audit Committee receives reports from management on our cybersecurity risks on at least a quarterly basis, and more frequently as needed. In addition, management updates the Audit Committee, as necessary, regarding any material cybersecurity incidents, as well as any incidents with lesser impact potential.
Our Audit Committee reports to the full board of directors regarding its activities, including those related to cybersecurity. The full board of directors also receives an annual briefing from management on our cyber risk management program. Board members receive presentations on cybersecurity topics from the Chief Technology Officer (“CTO”) and the Senior Director of Information Security.
Cybersecurity Risk Role of Management [Text Block]
Our board of directors considers cybersecurity risk as part of its risk oversight function and has delegated to our Audit Committee oversight of cybersecurity and other information technology risks. Our Audit Committee oversees management’s implementation of our cybersecurity risk management program.
Our Audit Committee receives reports from management on our cybersecurity risks on at least a quarterly basis, and more frequently as needed. In addition, management updates the Audit Committee, as necessary, regarding any material cybersecurity incidents, as well as any incidents with lesser impact potential.
Our Audit Committee reports to the full board of directors regarding its activities, including those related to cybersecurity. The full board of directors also receives an annual briefing from management on our cyber risk management program. Board members receive presentations on cybersecurity topics from the Chief Technology Officer (“CTO”) and the Senior Director of Information Security.
Our management team, including our CTO and Senior Director of Information Security, are responsible for assessing and managing our material risks from cybersecurity threats, and our Chief Financial Officer and General Counsel are responsible for associated materiality assessments. Our CTO and cybersecurity team have primary responsibility for our overall cybersecurity risk management program and supervise both our internal cybersecurity personnel and our retained external cybersecurity consultants. Their experience includes decades spent managing the security programs of publicly traded corporations, formal cybersecurity education programs from accredited academic institutions, and numerous security certifications such as CISSP, CCSP, CySA+ and AWS Architect & Security Specializations.
Our management team supervises efforts to prevent, detect, mitigate, and remediate cybersecurity risks and incidents through various means, which may include briefings from internal security personnel; threat intelligence and other information obtained from governmental, public or private sources, including external consultants engaged by us; and alerts and reports produced by security tools deployed in the IT environment. The Company maintains a cybersecurity risk insurance policy that would help defray the costs associated with a covered cybersecurity incident if it occurred.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block]
Our management team, including our CTO and Senior Director of Information Security, are responsible for assessing and managing our material risks from cybersecurity threats, and our Chief Financial Officer and General Counsel are responsible for associated materiality assessments. Our CTO and cybersecurity team have primary responsibility for our overall cybersecurity risk management program and supervise both our internal cybersecurity personnel and our retained external cybersecurity consultants. Their experience includes decades spent managing the security programs of publicly traded corporations, formal cybersecurity education programs from accredited academic institutions, and numerous security certifications such as CISSP, CCSP, CySA+ and AWS Architect & Security Specializations.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] Their experience includes decades spent managing the security programs of publicly traded corporations, formal cybersecurity education programs from accredited academic institutions, and numerous security certifications such as CISSP, CCSP, CySA+ and AWS Architect & Security Specializations.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]
Our Audit Committee receives reports from management on our cybersecurity risks on at least a quarterly basis, and more frequently as needed. In addition, management updates the Audit Committee, as necessary, regarding any material cybersecurity incidents, as well as any incidents with lesser impact potential.
Our Audit Committee reports to the full board of directors regarding its activities, including those related to cybersecurity. The full board of directors also receives an annual briefing from management on our cyber risk management program. Board members receive presentations on cybersecurity topics from the Chief Technology Officer (“CTO”) and the Senior Director of Information Security.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.0.1
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
The Company’s consolidated financial statements have been prepared and are presented in accordance with United States generally accepted accounting principles (“U.S. GAAP”). Certain prior period amounts were reclassified to conform to the current period presentation. These changes had no impact on the consolidated financial statements for any period.
Principles of Consolidation
Principles of Consolidation
The consolidated financial statements include the financial statements of Warby Parker Inc., and its wholly owned subsidiaries. The Company has consolidated certain entities meeting the definition of a variable interest entity as the Company concluded that it is the primary beneficiary of the entities. The inclusion of these entities does not have a material impact on the consolidated financial statements. Intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates
Use of Estimates
The Company prepares its consolidated financial statements in conformity with U.S. GAAP. These principles require management to make certain estimates and assumptions during the preparation of its consolidated financial statements and accompanying notes. Actual results could differ from those estimates.
Management’s estimates are based on historical experience and on various other market-specific and relevant assumptions that management believes to be reasonable under the circumstances. Significant estimates underlying the accompanying consolidated financial statements include, but are not limited to the valuation of inventory, including the determination of the net realizable value, the useful lives and recoverability of long-lived assets, income taxes and valuation allowances, and assumptions related to the valuation of common stock and determination of stock-based compensation.
Concentration of Credit Risk and Major Suppliers
Concentration of Credit Risk and Major Suppliers
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents. The Company maintains its cash and cash equivalents in various accounts, which, at times, may exceed the limits insured by the Federal Deposit Insurance Corporation of $250 thousand per institution and the Canada Deposit Insurance Corporation of $100 thousand Canadian dollars.
Interest Rate and Foreign Currency Risk
Interest Rate and Foreign Currency Risk
The Company’s cash and cash equivalents as of December 31, 2024 consisted of cash and money-market funds. Such interest-earning instruments carry a degree of interest rate risk. The goals of the Company’s investment policy are liquidity and capital preservation. The Company does not enter into investments for trading or speculative purposes and have not used any derivative financial instruments to manage its interest rate exposure.
The Company is exposed to changes in foreign currency rates as a result of its foreign operations and international suppliers from whom it purchases in Japanese yen and euros. Revenue and income generated by the Company’s operations in Canada as well as the Company’s cost of goods sold will fluctuate as a result of changes
in foreign currency exchange rates. The impact of changes in foreign currency rates on the Company’s financial results is not material to the consolidated financial statements. The Company does not enter into currency hedges.
Cash and Cash Equivalents
Cash and Cash Equivalents
The Company considers all highly liquid short-term investments with an original maturity of three months or less to be a cash equivalent. Cash and cash equivalents include both deposits with banks and financial institutions and receivables from credit card issuers and payment processors, which are typically converted into cash within two to four days of capture. As such, these receivables are recorded as a deposit in transit as a component of cash and cash equivalents on the consolidated balance sheets.
Accounts Receivable, Net
Accounts Receivable, Net
The Company primarily sells directly to U.S. and Canadian consumers where payment is processed upon order approval or product shipment. In some instances, customers can utilize vision insurance benefits to cover the cost of their purchase. For these orders, the Company submits claims directly to the vision insurance carrier and receives reimbursement directly from the carrier. Accounts receivable primarily represents amounts due from insurance carriers. Receivables from customers and insurance carriers are typically collected within 30 days of the transaction and are included in accounts receivable, net on the consolidated balance sheets. The accounts receivable are net of an allowance for credit losses, which is established based on management’s best estimate of probable credit losses after considering several relevant factors such as counterparty creditworthiness, historical collections, receivable terms, and the size of the individual receivables when determining the reserve.
Inventory Inventory is stated at the lower of cost or net realizable value, with cost determined on a weighted average cost basis.
The Company continuously evaluates the composition of its inventory and makes adjustments when the cost of inventory is not expected to be fully recoverable. The estimated net realizable value of excess and obsolete inventory is determined based on an analysis of historical sales trends, the impact of market trends and economic conditions, a forecast of future demand, and the estimated timing of product retirements. Adjustments for damaged inventory are recorded primarily based on actual damaged inventory. Adjustments for inventory shrink, representing the physical loss of inventory, includes estimates based on historical experience, and are adjusted based upon physical inventory counts. However, unforeseen adverse future economic and market conditions could result in actual results differing materially from estimates.
Property and Equipment, Net
Property and Equipment, Net
Property and equipment, net is stated at cost less accumulated depreciation. Repairs and maintenance and any gains or losses on dispositions are recognized as incurred. When assets are sold or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and a gain or loss on disposition is reflected in current operations.
Internal-Use Software
Capitalized Software
The Company capitalizes as property and equipment certain qualified costs incurred in connection with the development of internal-use software. Capitalization of internal-use software begins when the preliminary project stage is completed, management with relevant authority authorizes and commits to funding the software project, and it is probable that the project will be completed and software will be used to perform the function intended. Capitalized internal-use software is amortized on a straight-line basis over the estimated useful life of the software, not to exceed three years, beginning when the software is ready for its intended use.
Leases and Deferred Rent
Leases
The Company records a lease liability and corresponding right-of-use (“ROU”) asset at lease commencement. The lease liability is measured at the present value of non-cancellable future lease payments over the lease term, minus expected tenant improvement allowances (“TIAs”) determined to be lease incentives. The ROU asset is measured at the lease liability amount, adjusted for prepaid lease payments, TIAs, and any initial direct costs.
When calculating the present value of future lease payments, the Company utilizes an incremental borrowing rate, which incorporates several factors including the lease term, U.S. Treasury bond rates, financial ratios related to earnings and cash flows, and other comparisons with similarly sized companies.
The recognition of rent expense for an operating lease commences on the date at which control and possession of the property is obtained. Rent expense is calculated by recognizing total fixed minimum rental payments, net of any TIAs or other rental concessions, on a straight-line basis over the lease term. Some of the Company’s retail leases contain percent of sales rent or similar provisions, which is expensed as incurred as variable rent. Retail, optical laboratory, and distribution center rent expense is recognized as a component of cost of goods sold and all other rent expense is recognized as a component of selling, general, and administrative expenses.
Income Taxes
Income Taxes
The Company utilizes the asset and liability method of accounting for income taxes. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as operating loss, capital loss, and tax credit carryforwards. Valuation allowances are established against deferred tax assets if it is more likely than not that they will not be realized.
The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon its evaluation of the facts, circumstances, and information available at the reporting date. For those tax positions where it is more likely than not that a tax benefit will be sustained, the Company records the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. The Company’s policy is to recognize interest and penalties expense, if any, related to unrecognized tax benefits as a component of income tax expense.
The Company has elected to treat taxes due on future U.S. inclusions in taxable income related to Global Intangible Low Taxed Income (“GILTI”) as a current period expense when incurred using the period cost method.
Fair Value of Financial Instruments
Fair Value of Financial Instruments
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability, or the exit price, in an orderly transaction between market participants at the measurement date. Inputs used to measure fair value are classified in the following hierarchy:
•Level 1: Quoted prices in active markets for identical instruments.
•Level 2: Quoted prices in active markets for similar instruments or quoted prices for identical or similar instruments in markets that are not active or inputs other than quoted prices that are observable for the instrument.
•Level 3: Unobservable inputs for the instrument.
The Company endeavors to utilize the best available information in measuring fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
The Company’s material financial instruments consists primarily of cash and cash equivalents, accounts receivable, net, accounts payable, and accrued expenses, which are measured at fair value using Level 1 inputs. The fair values of cash and cash equivalents, accounts receivable, net, accounts payable, and accrued expenses are approximately equal to their carrying values based on the short-term nature of these items.
Commitments and Contingencies
Commitments and Contingencies
Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated.
Foreign Currency
Foreign Currency
The Company’s foreign operations in Canada have a functional currency of Canadian dollars. Assets and liabilities are translated into U.S. dollars using the current exchange rates in effect at the balance sheet date, while revenues and expenses are translated at the average exchange rates during the period. The resulting translation adjustments are recorded as a component of accumulated other comprehensive income on the consolidated balance sheets. Foreign currency impact on the consolidated statements of cash flows is translated to U.S. dollars using average exchange rates for the period, which approximates the timing of cash flows. Monetary assets and liabilities denominated in currencies other than the functional currency are remeasured at period end using the period-end exchange rate. Gains and losses resulting from remeasurement are recorded in interest and other income, net on the consolidated statements of operations and comprehensive loss.
Revenue Recognition and Shipping and Handling Fees and Costs
Revenue Recognition
The Company primarily derives revenue from the sales of eyewear products, optical services and accessories. The Company sells products and services through its stores, website, and mobile apps. Revenue generated from eyewear includes the sales of prescription and non-prescription optical glasses and sunglasses, contact lenses, eyewear accessories, lens replacements, and customer charges for optional expedited shipping. Revenue generated from vision care consists of in-person eye exams and prescriptions issued through the Virtual Vision Test app. All revenue is reported net of sales taxes collected from customers on behalf of taxing authorities and variable consideration, including returns and discounts.
Revenue is recognized when performance obligations are satisfied through either the transfer of control of promised goods or the rendering of services to the Company's customers. Control transfers once a customer has the ability to direct the use of, and obtain substantially all of the benefits from, the product, which is generally determined to be the point of delivery or upon rendering of the service in the case of eye exams. This includes the transfer of legal title, physical possession, the risks and rewards of ownership, and customer acceptance. In the normal course of business, payment may be collected from the customer prior to recognizing revenue and such cash receipts are included in deferred revenue until the order is delivered to the customer. Substantially all of the deferred revenue included on the balance sheet at December 31, 2023 was recognized as revenue in the first quarter of 2024 and the Company expects substantially all of the deferred revenue at December 31, 2024 to be recognized as revenue in the first quarter of 2025.
The Company’s sales policy allows customers to return merchandise for any reason within 30 days of receipt, generally for an exchange or refund. An allowance is recorded within other current liabilities on the consolidated balance sheets for expected future customer returns which the Company estimates using historical return patterns and its expectation of future returns. Any difference between the actual return and previous estimates is adjusted in the period in which such returns occur. Historical return estimates have not materially differed from actual returns in any of the periods presented. The allowance for returns was $2.6 million and $2.2 million at December 31, 2024 and 2023, respectively, and is included in other current liabilities on the consolidated balance sheets.
The Company offers non-expiring gift cards to its customers. Proceeds from the sale of gift cards are initially deferred and recognized within deferred revenue on the consolidated balance sheets, and are recognized as revenue when the product is received by the customer after the gift card has been tendered for payment. Based on historical experience, and to the extent there is no requirement to remit unclaimed card balances to government agencies under unclaimed property laws, an estimate of the gift card balances that will never be redeemed is recognized as revenue in proportion to gift cards which have been redeemed. While the Company will continue to honor all gift cards presented for payment, management may determine the likelihood of redemption to be remote for certain card balances due to, among other things, long periods of inactivity. The balance of unredeemed gift cards was $3.1 million as of both December 31, 2024 and 2023.
Shipping and Handling Fees and Costs
The Company pays for shipping and handling costs which are generally not charged to the customer, except in the case of customer requested expedited shipments. The costs associated with shipping goods to customers are recorded as cost of goods sold. Shipping and handling fees billed to customers related to expedited shipments are recorded as revenue.
Cost of Goods Sold
Cost of Goods Sold
Cost of goods sold includes the costs incurred to acquire materials, assemble, and sell the Company’s finished products. Such costs include (i) product costs, including freight and import costs and adjustments to the lesser of cost and net realizable value, (ii) optical laboratory costs, (iii) customer shipping, (iv) occupancy and depreciation costs of retail stores, and (v) employee-related costs associated with eye exams, which includes salaries, benefits, bonuses, and stock-based compensation.
Selling, General, and Administrative Expenses
Selling, General, and Administrative Expenses
Selling, general, and administrative expenses primarily consists of salaries, benefits, bonuses and stock-based compensation for corporate and retail employees, marketing, information technology, credit card processing fees, charitable donations, headquarters facilities and related depreciation, legal, and other administrative costs associated with operating the business. Marketing, which consists of both online and offline advertising, includes sponsored search, online advertising, Home Try-On program costs, and other initiatives.
Stock-Based Compensation
Stock-Based Compensation
Stock-based compensation is recorded as a component of both cost of goods sold and selling, general, and administrative expenses and follows the classification of the related employee. The Company recognizes compensation expense for stock-based awards based on the grant date fair value, on either (i) a straight-line basis for awards with only a service condition, or (ii) an accelerated attribution basis for awards with a performance condition, over the requisite service period of the awards, which is generally the vesting term of the outstanding stock awards. Compensation expense for awards with a performance condition is recognized when it is determined that it is probable that the vesting conditions will be satisfied. The Company utilizes a narrow interpretation of award authorization and expense and stock-based compensation expense is recognized beginning on an award’s grant date.
The Company estimates the fair value of options and Employee Stock Purchase Plan (“ESPP”) purchase rights on the date of grant using the Black-Scholes option-pricing model, which utilizes assumptions subject to management
estimate. These assumptions include estimating the expected term, the estimated volatility of the Company’s common stock price over the expected term, the fair value of the Company’s stock, the risk-free interest rate, and the expected dividend yield. Changes in these assumptions can materially affect the estimate of fair value of stock-based awards. The Company accounts for forfeitures as they occur.
Prior to the Company’s direct listing, the fair value of restricted stock units (“RSUs”) was determined by the board of directors with input from management and independent third-party valuation specialists, as there was no public market for the Company’s common stock. Subsequent to the Company’s direct listing, the grant date fair value is determined by the closing price of the Company’s Class A common stock as reported on the date of grant.
Stock-based compensation expense related to stock awards with market-based or performance-based vesting conditions are measured based on the fair value of the awards granted. The Company determines the grant date fair value using equity valuation models, such as the Monte Carlo simulation, using assumptions and judgements made by management and third-party valuation specialists. The Company recognizes stock-based compensation expense for market or performance-based awards using the accelerated attribution method over the derived service period.
Net Loss Per Share Attributable to Common Stockholders
Net Loss Per Share
Basic and diluted net loss per share is presented in conformity with the two-class method required for participating securities. Under the two-class method, net loss is attributed to common stockholders and participating securities based on their participation rights.
Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of the Company’s common stock outstanding during a given period.
The diluted net loss is computed by giving effect to all dilutive securities. Diluted net loss per share is computed by dividing the resulting net loss by the weighted-average number of fully diluted common shares outstanding. During periods when there is a net loss, potentially dilutive common stock equivalents are excluded as their effect is anti-dilutive. The Company uses the treasury stock method for its employee equity awards and ESPP purchase rights to determine if any incremental shares should be included in diluted net loss. If the effect of a conversion of an instrument is neutral to earnings per share, the Company considers the security to be dilutive. The Company excludes unvested employee awards when the vesting is contingent on a performance or market condition that is not met as of the evaluation date.
Restructuring Activities
During the years ended December 31, 2022 and December 31, 2024, the Company completed restructuring plans to reduce the Company’s cost and drive long-term operational efficiencies totaling $1.5 million and $0.7 million respectively, which were recognized as a component of selling, general, and administrative expenses.
Recently Issued and Adopted Accounting Pronouncements
Recently Issued Accounting Pronouncements
In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes. The guidance requires public entities to annually disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. The ASU is effective for annual periods beginning after December 15, 2024. The company expects the adoption of the standard within the 2025 Form 10-K to result in additional disclosures related to the rate reconciliation.
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures. The guidance requires disaggregated disclosure of income statement expenses for public entities. The ASU does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. This ASU is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.
Recently Adopted Accounting Pronouncements
In November 2023, the FASB issued ASU 2023-07, Segment Reporting. The guidance requires additional disclosures of significant segment expense categories and the amount and description of other segment items beyond the significant segment expenses. The ASU also allows for the disclosure of multiple measures of a
segment’s profit or loss for each reportable segment if the CODM utilizes more than one measure to assess performance and allocate resources. Lastly, the ASU clarifies that all of the disclosures required in the segments guidance, including disclosing a measure of segment profit or loss and reporting significant segment expenses and other segment items, apply to all public entities, including those with a single operating or reportable segment. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024. The Company adopted this standard in its 2024 fiscal year, which resulted in additional disclosures related to a measure of profit or loss, significant segment expenses, and other segment items for its single reportable segment as seen in Note 9, Segment Information.
v3.25.0.1
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Schedule of Property and Equipment Depreciation is recorded on a straight-line basis over the following estimated
useful lives:
Asset Category
Depreciation Period
Computer equipment
3 years
Leasehold improvements
2 - 10 years (lesser of lease term and economic life)
Furniture and fixtures
7 years
Capitalized software
1 - 3 years
Equipment
5 - 7 years
Property and equipment, net consists of the following:
December 31,
20242023
Leasehold improvements$189,890 $161,720 
Computers and equipment46,186 35,738 
Furniture and fixtures36,037 29,405 
Capitalized software36,534 23,750 
Construction in process20,460 17,555 
329,107 268,168 
Less: accumulated depreciation and amortization(158,643)(115,836)
Property and equipment, net$170,464 $152,332 
Depreciation and amortization expense consists of the following:
Year Ended December 31,
202420232022
Cost of goods sold$30,488 $26,136 $20,685 
Selling, general, and administrative expenses15,377 12,418 11,179 
Total depreciation and amortization expense$45,865 $38,554 $31,864 
Disaggregation of Revenue
The following table disaggregates the Company’s revenue by product:
Year Ended December 31,
202420232022
Eyewear$730,804 $641,093 $580,469 
Vision care40,511 28,672 17,643 
Total Revenue
$771,315 $669,765 $598,112 
The following table disaggregates the Company’s revenue by channel:
Year Ended December 31,
202420232022
E-commerce$233,565 $226,705 $233,956 
Retail537,750 443,060 364,156 
Total Revenue
$771,315 $669,765 $598,112 
v3.25.0.1
Property and Equipment, Net (Tables)
 12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment Depreciation is recorded on a straight-line basis over the following estimated
useful lives:
Asset Category
Depreciation Period
Computer equipment
3 years
Leasehold improvements
2 - 10 years (lesser of lease term and economic life)
Furniture and fixtures
7 years
Capitalized software
1 - 3 years
Equipment
5 - 7 years
Property and equipment, net consists of the following:
December 31,
20242023
Leasehold improvements$189,890 $161,720 
Computers and equipment46,186 35,738 
Furniture and fixtures36,037 29,405 
Capitalized software36,534 23,750 
Construction in process20,460 17,555 
329,107 268,168 
Less: accumulated depreciation and amortization(158,643)(115,836)
Property and equipment, net$170,464 $152,332 
Depreciation and amortization expense consists of the following:
Year Ended December 31,
202420232022
Cost of goods sold$30,488 $26,136 $20,685 
Selling, general, and administrative expenses15,377 12,418 11,179 
Total depreciation and amortization expense$45,865 $38,554 $31,864 
v3.25.0.1
Accrued Expenses (Tables)
 12 Months Ended
Dec. 31, 2024
Payables and Accruals [Abstract]  
Schedule of Accrued Liabilities
Accrued expenses consists of the following:
December 31,
20242023
Payroll related$10,409 $13,575 
Product and fulfillment15,273 8,786 
Marketing9,333 6,619 
Retail related5,929 2,800 
Charitable contribution3,315 4,458 
Legal2,338 1,638 
Professional services2,193 2,159 
Other2,819 6,285 
Total accrued expenses$51,609 $46,320 
v3.25.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign
Loss before income taxes consists of the following:
December 31,
202420232022
United States$(19,959)$(63,211)$(110,407)
Foreign445 447 511 
Loss before income taxes$(19,515)$(62,764)$(109,896)
Schedule of Components of Income Tax Expense (Benefit)
The provision for income taxes consists of the following:
December 31,
202420232022
Current
Federal$— $— $(1)
State739 362 175 
Foreign136 71 51 
Deferred
Federal— — — 
Foreign— — 272 
Total provision for income taxes$875 $433 $497 
Schedule of Effective Income Tax Rate Reconciliation
A summary reconciliation of the effective tax rate is as follows:
December 31,
202420232022
U.S. federal statutory rate21.0 %21.0 %21.0 %
Non-deductible stock-based compensation(30.4)(20.1)(13.5)
Change in valuation allowance4.5 2.3 (3.6)
Other0.4 (3.9)(4.4)
Effective tax rate(4.5)%(0.7)%(0.5)%
Schedule of Deferred Tax Assets and Liabilities The approximate tax effect of the significant components of the Company’s deferred tax assets and liabilities are as follows:
December 31,
20242023
Deferred tax assets:
Inventory$2,572 $3,706 
Charitable contribution carryforward12,289 10,270 
Stock-based compensation2,573 3,259 
Net operating loss carryforward46,470 49,155 
Lease liabilities64,021 49,312 
Other6,818 6,765 
Total deferred tax assets134,743 122,467 
Valuation allowance(68,504)(69,379)
Net deferred tax assets66,239 53,088 
Deferred tax liabilities:
Property and equipment, net(20,533)(20,631)
Right-of-use lease assets(45,706)(32,457)
Total deferred tax liabilities(66,239)(53,088)
Deferred tax assets, net
$— $— 
v3.25.0.1
Redeemable Convertible Preferred Stock and Stockholders’ Deficit (Tables)
 12 Months Ended
Dec. 31, 2024
Equity [Abstract]  
Schedule of Stock by Class
As of December 31, 2024, outstanding shares of common stock as well as shares of common stock attributable to equity awards are as follows:
Class AClass BClass C
Common stock outstanding102,762 17,949 — 
Employee stock options – outstanding264 1,433 — 
Restricted stock units – outstanding2,301 1,317 — 
Performance stock units – outstanding— 4,398 — 
Employee stock plans – available30,131 — — 
Shares of Class A common stock issuable upon conversion of all outstanding Class B common stock, options, RSUs, and PSUs25,097 — — 
Total common stock – outstanding or issuable160,555 25,097 — 
Shares authorized
750,000 150,000 150,000 
Common stock authorized and available for future issuance
589,445 124,903 150,000 
v3.25.0.1
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Share-based Payment Arrangement, Expensed and Capitalized, Amount
Stock-based compensation expense consisted of the following for the periods presented:
Year Ended December 31,
202420232022
Cost of goods sold$1,002 $1,035 $880 
Selling, general, and administrative expenses46,292 69,474 97,152 
Total stock-based compensation expense$47,294 $70,509 $98,032 
Share-based Payment Arrangement, Option, Activity
A summary of stock option activity for the year ended December 31, 2024 is as follows:
Number of
Stock
Options		Weighted
Average
Exercise
Price		Weighted
average
contractual
term (years)		Aggregate
intrinsic
value
Balance at December 31, 20232,156 $7.20 4.0$16,541 
Options granted— — 
Options exercised(459)12.86 
Options forfeited— — 
Balance at December 31, 20241,697 $5.67 2.6$31,459 
Exercisable as of December 31, 20241,697 $5.67 2.6$31,459 
Vested as of December 31, 20241,681 5.55 2.6
Unvested as of December 31, 202416 $18.22 6.1
Share-based Payment Arrangement, Restricted Stock Unit, Activity
A summary of RSU activity for the year ended December 31, 2024 is as follows:
Number of Restricted Stock UnitsWeighted Average Grant Date Fair Value
Unvested as of December 31, 20233,050 $24.05 
Granted1,95714.04 
Forfeited(288)16.83 
Released(1,980)21.08 
Vested and not yet released131.76 
Unvested as of December 31, 20242,740 $19.81 
Schedule of Nonvested Performance-based Units Activity
The PSUs are divided into eight substantially equal tranches, each one vesting on the date the 90-day trailing volume-weighted average trading price of the Company’s Class A common stock exceeds the stock price hurdle, as set forth in the table below, provided that no PSUs may vest prior to the six month anniversary of the Company’s direct listing.
TrancheNumber of PSUsStock Price Hurdle
1550 $47.75 
2550 $55.71 
3550 $63.67 
4550 $71.63 
5550 $79.59 
6550 $87.55 
7550 $95.50 
8550 $103.46 
v3.25.0.1
Leases (Tables)
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Lease, Cost
The following table details the Company’s net lease expense:
Year Ended December 31,
202420232022
Operating lease expense$34,915 $30,133 $25,817 
Variable lease expense(1)
767 1,831 3,498 
Net lease expense$35,682 $31,964 $29,315 
(1) Variable lease expense primarily consists of contingent rent.
The following table presents other relevant lease information:
December 31,
2023
Weighted average remaining lease term (years)6.4
Weighted average discount rate5.5 %
Lessee, Operating Lease, Liability, Maturity
The following table presents the future maturity of lease liabilities:
Operating Leases(1)
2025$32,333 
202649,247 
202747,957 
202843,111 
202934,064 
Thereafter68,170 
Total undiscounted lease cash flows274,882 
Impact of discounting49,527 
Present value of lease payments$225,355 
(1)    The year 2025 includes $13.6 million of expected cash inflows from TIAs. Operating lease payments exclude $6.9 million of legally binding minimum lease payments related to executed leases for which the Company has not yet taken possession of the leased premises.
v3.25.0.1
Segment Information (Tables)
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
The following table details segment profit and loss for the holistic vision care segment:
Year Ended December 31,
202420232022
Revenue$771,315 $669,765 $598,112 
Less:
Cost of goods sold344,481 304,541 257,050 
Marketing95,498 78,420 84,184 
Other selling, general, and administrative costs361,448 358,800 368,081 
Interest and other income, net(10,597)(9,232)(1,307)
Income tax expense875 433 497 
Segment and consolidated net income$(20,390)$(63,197)$(110,393)
v3.25.0.1
Net Loss Per Share Attributable to Common Stockholders (Tables)
 12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
The computation of net loss per share for the years presented is as follows:
Year Ended December 31,
202420232022
Numerator
Net loss
$(20,390)$(63,197)$(110,393)
Denominator
Weighted average shares, basic and diluted
120,385 117,389 114,942 
Earnings Per Share
Net loss per share, basic and diluted$(0.17)$(0.54)$(0.96)
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
The following potentially dilutive shares were excluded from the computation of diluted net loss per share for the years presented because including them would have been antidilutive:
Year Ended December 31,
202420232022
Stock options to purchase common stock
1,697 2,156 2,965 
Unvested restricted stock units2,740 3,050 3,314 
Unvested performance stock units4,398 4,398 4,398 
ESPP purchase rights286 502 410 
v3.25.0.1
Summary of Significant Accounting Policies - Narrative (Details) - USD ($)
$ in Thousands
 1 Months Ended 12 Months Ended
May 31, 2024
Aug. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Concentration Risk [Line Items]          
Uninsured cash balances     $ 252,600 $ 215,600  
Cash and cash equivalents     254,161 216,894  
Allowance for doubtful accounts     900 1,500  
Finished goods     12,900 13,300  
Component parts     39,400 48,900  
Capitalized software costs, net     7,200 10,000  
Allowance for returns     2,600 2,200  
Net revenue     771,315 669,765 $ 598,112
Cost of goods sold     344,481 304,541 257,050
Advertising costs     95,800 76,100 76,900
Capitalized Computer Software, Gross     13,600 13,100  
Capitalized Computer Software, Accumulated Amortization     6,400 3,100  
Amortization of cloud-based software implementation costs     3,700 2,900 300
Severance Costs     700   1,500
Payments to Acquire Equity Securities, FV-NI     2,000 1,000  
Asset impairment charges     816 3,230 1,647
Deferred Revenue, Unredeemed Gift Cards     $ 3,100 3,100  
Unvested restricted stock units          
Concentration Risk [Line Items]          
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other Than Options Vested And Not Yet Released Number     (1,000)    
Unvested restricted stock units | The Founders Grant          
Concentration Risk [Line Items]          
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other Than Options Vested And Not Yet Released Number     878,000    
Series A common stock          
Concentration Risk [Line Items]          
Non-cash charitable contributions (in shares) 179,000 179,000      
Other Noncurrent Assets          
Concentration Risk [Line Items]          
Capitalized software costs, net     $ 4,400 6,000  
Prepaid Expenses and Other Current Assets          
Concentration Risk [Line Items]          
Capitalized software costs, net     2,800 4,000  
Shipping and Handling          
Concentration Risk [Line Items]          
Net revenue     3,800 4,000 4,100
Cost of goods sold     20,400 22,000 $ 22,100
Credit Card Receivable          
Concentration Risk [Line Items]          
Cash and cash equivalents     $ 15,500 $ 15,000  
Cost of Goods and Service Benchmark | Supplier Concentration Risk | Top Five Inventory Suppliers          
Concentration Risk [Line Items]          
Concentration risk percent     18.00% 18.00% 19.00%
v3.25.0.1
Summary of Significant Accounting Policies - Property and Equipment Useful Life (Details)
Dec. 31, 2024
Computers and equipment  
Property, Plant and Equipment [Line Items]  
Property Equipment Useful Life 3 years
Leasehold improvements | Minimum  
Property, Plant and Equipment [Line Items]  
Property Equipment Useful Life 2 years
Leasehold improvements | Maximum  
Property, Plant and Equipment [Line Items]  
Property Equipment Useful Life 10 years
Furniture and fixtures  
Property, Plant and Equipment [Line Items]  
Property Equipment Useful Life 7 years
Capitalized software | Minimum  
Property, Plant and Equipment [Line Items]  
Property Equipment Useful Life 1 year
Capitalized software | Maximum  
Property, Plant and Equipment [Line Items]  
Property Equipment Useful Life 3 years
Equipment | Minimum  
Property, Plant and Equipment [Line Items]  
Property Equipment Useful Life 5 years
Equipment | Maximum  
Property, Plant and Equipment [Line Items]  
Property Equipment Useful Life 7 years
v3.25.0.1
Summary of Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Disaggregation of Revenue [Line Items]      
Net revenue $ 771,315 $ 669,765 $ 598,112
E-commerce      
Disaggregation of Revenue [Line Items]      
Net revenue 233,565 226,705 233,956
Retail      
Disaggregation of Revenue [Line Items]      
Net revenue 537,750 443,060 364,156
Eyewear      
Disaggregation of Revenue [Line Items]      
Net revenue 730,804 641,093 580,469
Vision care      
Disaggregation of Revenue [Line Items]      
Net revenue $ 40,511 $ 28,672 $ 17,643
v3.25.0.1
Property and Equipment, Net (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 329,107 $ 268,168  
Less: accumulated depreciation and amortization (158,643) (115,836)  
Property and equipment, net 170,464 152,332  
Total depreciation and amortization expense 45,865 38,554 $ 31,864
Total depreciation and amortization expense      
Property, Plant and Equipment [Line Items]      
Total depreciation and amortization expense 45,865 38,554 31,864
Cost of goods sold      
Property, Plant and Equipment [Line Items]      
Total depreciation and amortization expense 30,488 26,136 20,685
Selling, general, and administrative expenses      
Property, Plant and Equipment [Line Items]      
Total depreciation and amortization expense 15,377 12,418 $ 11,179
Leasehold improvements      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 189,890 161,720  
Computers and equipment      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 46,186 35,738  
Furniture and fixtures      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 36,037 29,405  
Capitalized software      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 36,534 23,750  
Construction in process      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 20,460 $ 17,555  
v3.25.0.1
Accrued Expenses (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Payables and Accruals [Abstract]    
Payroll related $ 10,409 $ 13,575
Marketing 9,333 6,619
Charitable contribution 3,315 4,458
Legal 2,338 1,638
Product and fulfillment 15,273 8,786
Retail related 5,929 2,800
Professional services 2,193 2,159
Other 2,819 6,285
Total accrued expenses $ 51,609 $ 46,320
v3.25.0.1
Income Taxes - Income Before Income Tax (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
United States $ (19,959) $ (63,211) $ (110,407)
Foreign 445 447 511
Loss before income taxes $ (19,515) $ (62,764) $ (109,896)
v3.25.0.1
Income Taxes - Provision for Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Current      
Federal $ 0 $ 0 $ (1)
State 739 362 175
Foreign 136 71 51
Deferred      
Federal 0 0 0
Foreign 0 0 272
Provision for income taxes $ 875 $ 433 $ 497
v3.25.0.1
Income Taxes - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Investments, Owned, Federal Income Tax Note [Line Items]      
Provision (benefit) for income taxes $ 875 $ 433 $ 497
Net operating loss carryforwards 305,500    
Valuation allowance 68,504 $ 69,379  
Domestic Tax Jurisdiction      
Investments, Owned, Federal Income Tax Note [Line Items]      
Net operating loss carryforwards 185,900    
Net operating loss carryforward, indefinite 128,400    
State and Local Jurisdiction      
Investments, Owned, Federal Income Tax Note [Line Items]      
Net operating loss carryforwards $ 119,600    
v3.25.0.1
Income Taxes - Income Tax Rate Reconciliation (Details)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
U.S. federal statutory rate 21.00% 21.00% 21.00%
Non-deductible stock-based compensation (30.40%) (20.10%) (13.50%)
Change in valuation allowance 4.50% 2.30% (3.60%)
Other 0.40% (3.90%) (4.40%)
Effective tax rate (4.50%) (0.70%) (0.50%)
v3.25.0.1
Income Taxes - Deferred Tax Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]    
Inventory $ 2,572 $ 3,706
Charitable contribution carryforward 12,289 10,270
Stock-based compensation 2,573 3,259
Net operating loss carryforward 46,470 49,155
Lease liabilities 64,021 49,312
Other 6,818 6,765
Total deferred tax assets 134,743 122,467
Valuation allowance (68,504) (69,379)
Net deferred tax assets 66,239 53,088
Property and equipment, net (20,533) (20,631)
Right-of-use lease assets (45,706) (32,457)
Total deferred tax liabilities (66,239) (53,088)
Deferred tax assets, net $ 0 $ 0
v3.25.0.1
Redeemable Convertible Preferred Stock and Stockholders’ Deficit - Narrative (Details)
$ / shares in Units, $ in Thousands
 1 Months Ended 12 Months Ended
May 31, 2024
shares
Aug. 31, 2023
shares
Jun. 30, 2023
shares
Dec. 31, 2024
USD ($)
vote
$ / shares
shares
Dec. 31, 2023
USD ($)
$ / shares
shares
Dec. 31, 2022
USD ($)
Temporary Equity [Line Items]            
Common stock shares authorized (in shares)       1,050,000,000    
Common stock par value (in dollars per share) | $ / shares       $ 0.0001 $ 0.0001  
Preferred stock shares authorized       50,000,000    
Non-cash charitable contribution | $       $ 2,196 $ 3,191 $ 3,770
Series A common stock            
Temporary Equity [Line Items]            
Common stock shares authorized (in shares)       750,000,000    
Shares converted       (2,009,000) (145,000)  
Stock issued (in shares)     57,000      
Number Of Votes Granted To Each Class Of Stock | vote       1    
Non-cash charitable contributions (in shares) 179,000 179,000        
Series B common stock            
Temporary Equity [Line Items]            
Common stock shares authorized (in shares)       150,000,000    
Shares converted       2,009,000 145,000  
Number Of Votes Granted To Each Class Of Stock | vote       10    
Series C common stock            
Temporary Equity [Line Items]            
Common stock shares authorized (in shares)       150,000,000    
Number Of Votes Granted To Each Class Of Stock | vote       0    
v3.25.0.1
Redeemable Convertible Preferred Stock and Stockholders’ Deficit - Common Stock Outstanding (Details) - shares
Dec. 31, 2024
Dec. 31, 2023
Class of Stock [Line Items]    
Employee stock options - outstanding (in shares) 1,697,000 2,156,000
Authorized (in shares) 1,050,000,000  
Series A common stock    
Class of Stock [Line Items]    
Common stock outstanding (in shares) 102,762,000  
Employee stock options - outstanding (in shares) 264,000  
Shares of Class A common stock issuable upon conversion of all outstanding Class B common stock, options, RSUs, and PSUs (in shares) 25,097,000  
Total common stock – outstanding or issuable on exercise of options (in shares) 160,555,000  
Authorized (in shares) 750,000,000  
Common stock available for future issuance (in shares) 589,445,000  
Series A common stock | Restricted stock units (RSUs)    
Class of Stock [Line Items]    
Restricted stock units - outstanding (in shares) 2,301,000  
Series A common stock | Unvested performance stock units    
Class of Stock [Line Items]    
Restricted stock units - outstanding (in shares) 0  
Series A common stock | ESPP purchase rights    
Class of Stock [Line Items]    
Employee stock purchase plan – available (in shares) 30,131,000  
Series B common stock    
Class of Stock [Line Items]    
Common stock outstanding (in shares) 17,949,000  
Employee stock options - outstanding (in shares) 1,433,000  
Shares of Class A common stock issuable upon conversion of all outstanding Class B common stock, options, RSUs, and PSUs (in shares) 0  
Total common stock – outstanding or issuable on exercise of options (in shares) 25,097,000  
Authorized (in shares) 150,000,000  
Common stock available for future issuance (in shares) 124,903,000  
Series B common stock | Restricted stock units (RSUs)    
Class of Stock [Line Items]    
Restricted stock units - outstanding (in shares) 1,317,000  
Series B common stock | Unvested performance stock units    
Class of Stock [Line Items]    
Restricted stock units - outstanding (in shares) 4,398,000  
Series B common stock | ESPP purchase rights    
Class of Stock [Line Items]    
Employee stock purchase plan – available (in shares) 0  
Series C common stock    
Class of Stock [Line Items]    
Common stock outstanding (in shares) 0  
Employee stock options - outstanding (in shares) 0  
Shares of Class A common stock issuable upon conversion of all outstanding Class B common stock, options, RSUs, and PSUs (in shares) 0  
Total common stock – outstanding or issuable on exercise of options (in shares) 0  
Authorized (in shares) 150,000,000  
Common stock available for future issuance (in shares) 150,000,000  
Series C common stock | Restricted stock units (RSUs)    
Class of Stock [Line Items]    
Restricted stock units - outstanding (in shares) 0  
Series C common stock | Unvested performance stock units    
Class of Stock [Line Items]    
Restricted stock units - outstanding (in shares) 0  
Series C common stock | ESPP purchase rights    
Class of Stock [Line Items]    
Employee stock purchase plan – available (in shares) 0  
v3.25.0.1
Stock-Based Compensation - Narrative (Details)
$ / shares in Units, $ in Thousands
 1 Months Ended 12 Months Ended
Jan. 31, 2022
shares
Aug. 31, 2021
Jun. 30, 2021
performanceCondition
shares
Dec. 31, 2024
USD ($)
$ / shares
shares
Dec. 31, 2023
USD ($)
$ / shares
Dec. 31, 2022
USD ($)
$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Total stock-based compensation expense       $ 47,294 $ 70,509 $ 98,032
Stock options granted in period (in shares) | shares       0    
Fair value of options vested       $ 1,322 52 187
Options exercised, value       $ 2,809 $ 4,926 $ 7,728
Options granted (in dollars per share) | $ / shares       $ 0    
Shares cancelled | shares       0    
Series A common stock            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Common Stock, Capital Shares Reserved for Future Issuance | shares       160,555,000    
Series B common stock            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Common Stock, Capital Shares Reserved for Future Issuance | shares       25,097,000    
Restricted stock units (RSUs)            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Units vested (in shares) | shares       1,980,000    
Non-vested award, cost not yet recognized, period for recognition       1 year 2 months 12 days    
Granted (in dollars per share) | $ / shares       $ 14.04 $ 13.26 $ 16.71
Aggregate intrinsic value       $ 31,827 $ 14,939 $ 12,098
Fair value of RSUs vested       $ 32,882 19,664 11,746
Granted (in shares) | shares       1,957,000    
Performance stock units (PSUs)            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Terms of award, stock price hurdle period     10 years      
Award expiration period     10 years      
Non-vested award, cost not yet recognized, period for recognition       2 months 12 days    
Number of performance conditions | performanceCondition     2      
Performance stock units (PSUs) | Monte Carlo simulation            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Grant date fair value       $ 128,800    
Performance stock units (PSUs) | Series B common stock            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of shares receivable per share based payments award (in shares) | shares     1      
Stock options to purchase common stock            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Total stock-based compensation expense       2,300 3,300 4,600
Liability-Based Awards            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Total stock-based compensation expense       300 2,200  
Charitable Donor Advised Funds            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Total stock-based compensation expense       700    
The Plans | Restricted stock units (RSUs)            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Cost not yet recognized, outstanding awards       32,600    
The Plans | Performance stock units (PSUs)            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Cost not yet recognized, outstanding awards       $ 1,200    
2021 Incentive Award Plan            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Annual increase in shares authorized, percent   5.00%        
Number of additional shares authorized | shares 5,892,000          
2021 Incentive Award Plan | Series A common stock            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Stock authorized for issuance (in shares) | shares       25,012,000    
2021 Incentive Award Plan | Stock options or restricted stock units (RSUs)            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Award vesting period       4 years    
2021 Incentive Award Plan | Restricted stock units (RSUs)            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Total stock-based compensation expense       $ 20,800 18,200 17,600
The Founders Grant            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Total stock-based compensation expense       21,800 44,100 73,000
The Founders Grant | Restricted stock units (RSUs)            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Award vesting period     5 years      
Granted (in shares) | shares     1,885,000      
Grant date fair value       $ 66,900    
The Founders Grant | Performance stock units (PSUs)            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Award vesting period       90 days    
Granted (in shares) | shares     4,398,000      
Employee Stock Purchase Plan            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Total stock-based compensation expense       $ 1,500 $ 2,700 $ 2,900
Annual increase in shares authorized as a percent of common stock outstanding   1.00%        
Employee Stock Purchase Plan | Stock options to purchase common stock            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Number of additional shares authorized | shares 1,178,000     16,615,000    
Employee Stock Purchase Plan | ESPP purchase rights            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]            
Common Stock, Capital Shares Reserved for Future Issuance | shares       5,119,000    
v3.25.0.1
Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation expense $ 47,294 $ 70,509 $ 98,032
The Founders Grant      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation expense $ 21,800 44,100 73,000
Unvested restricted stock units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other Than Options Vested And Not Yet Released Number (1,000)    
Unvested restricted stock units | The Founders Grant      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other Than Options Vested And Not Yet Released Number 878,000    
Cost of goods sold      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation expense $ 1,002 1,035 880
Selling, general, and administrative expenses      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation expense $ 46,292 $ 69,474 $ 97,152
v3.25.0.1
Stock-Based Compensation - Schedule of Stock Option Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Number of Stock Options    
Beginning balance (in shares) 2,156,000  
Options granted (in shares) 0  
Options exercised (in shares) (459,000)  
Options forfeited (in shares) 0  
Ending balance (in shares) 1,697,000 2,156,000
Exercisable at end of period (in shares) 1,697,000  
Vested at end of period (in shares) 1,681,000  
Exercisable at end of period (in shares) 16,000  
Weighted Average Exercise Price    
Beginning balance (in dollars per share) $ 7.20  
Options granted (in dollars per share) 0  
Options exercised (in dollars per share) 12.86  
Options forfeited (in dollars per share) 0  
Ending balance (in dollars per share) 5.67 $ 7.20
Exercisable at end of period (in dollars per share) 5.67  
Vested at end of period (in dollars per share) 5.55  
Unvested at end of period (in dollars per share) $ 18.22  
Weighted average contractual term (years)    
Weighted average contractual term (years) 2 years 7 months 6 days 4 years
Exercisable at end of period 2 years 7 months 6 days  
Vested at end of period 2 years 7 months 6 days  
Unvested at end of period 6 years 1 month 6 days  
Aggregate intrinsic value    
Beginning balance $ 16,541  
Ending balance 31,459 $ 16,541
Exercisable $ 31,459  
v3.25.0.1
Stock-Based Compensation - Schedule of RSU Activity (Details) - Unvested restricted stock units - $ / shares
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Number of Restricted Stock Units      
Unvested beginning balance (in shares) 3,050,000    
Granted (in shares) 1,957,000    
Forfeited (in shares) (288,000)    
Released (in shares) (1,980,000)    
Vested and not yet released (in shares) 1,000    
Unvested ending balance (in shares) 2,740,000 3,050,000  
Weighted Average Grant Date Fair Value      
Unvested beginning balance (in dollars per share) $ 24.05    
Granted (in dollars per share) 14.04 $ 13.26 $ 16.71
Forfeited (in dollars per share) 16.83    
Released (in dollars per share) 21.08    
Vested and not yet released (in dollars per share) 31.76    
Unvested ending balance (in dollars per share) $ 19.81 $ 24.05  
v3.25.0.1
Stock-Based Compensation - Schedule of PSUs (Details) - Unvested performance stock units
Dec. 31, 2024
$ / shares
shares
1  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Number of PSUs (in shares) | shares 550,000
Stock price hurdle (in dollars per share) | $ / shares $ 47.75
2  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Number of PSUs (in shares) | shares 550,000
Stock price hurdle (in dollars per share) | $ / shares $ 55.71
3  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Number of PSUs (in shares) | shares 550,000
Stock price hurdle (in dollars per share) | $ / shares $ 63.67
4  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Number of PSUs (in shares) | shares 550,000
Stock price hurdle (in dollars per share) | $ / shares $ 71.63
5  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Number of PSUs (in shares) | shares 550,000
Stock price hurdle (in dollars per share) | $ / shares $ 79.59
6  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Number of PSUs (in shares) | shares 550,000
Stock price hurdle (in dollars per share) | $ / shares $ 87.55
7  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Number of PSUs (in shares) | shares 550,000
Stock price hurdle (in dollars per share) | $ / shares $ 95.50
8  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Number of PSUs (in shares) | shares 550,000
Stock price hurdle (in dollars per share) | $ / shares $ 103.46
v3.25.0.1
Leases - Narrative (Details)
Dec. 31, 2024
Minimum  
Lessee, Lease, Description [Line Items]  
Operating lease term period 1 year
Maximum  
Lessee, Lease, Description [Line Items]  
Operating lease term period 12 years
v3.25.0.1
Leases - Lease Cost (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]      
Operating lease expense $ 34,915 $ 30,133 $ 25,817
Variable lease expense(1) 767 1,831 3,498
Net lease expense $ 35,682 $ 31,964 $ 29,315
v3.25.0.1
Leases - Future Minimum Operating Lease Payment (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Leases [Abstract]  
2025 $ 32,333
2026 49,247
2027 47,957
2028 43,111
2029 34,064
Thereafter 68,170
Total undiscounted lease cash flows 274,882
Impact of discounting 49,527
Present value of lease payments 225,355
Expected cash inflows from TIAs 13,600
Minimum lease payments for leases not yet commenced $ 6,900
v3.25.0.1
Leases - Other Lease Information (Details)
Dec. 31, 2024
Leases [Abstract]  
Weighted average remaining lease term (years) 6 years 4 months 24 days
Weighted average discount rate 5.50%
v3.25.0.1
Segment Information (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
segment
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Segment Reporting [Abstract]      
Number of operating segments | segment 1    
Number of reportable segments | segment 1    
Net revenue $ 771,315 $ 669,765 $ 598,112
Cost of goods sold 344,481 304,541 257,050
Marketing 95,498 78,420 84,184
Other selling, general, and administrative costs 361,448 358,800 368,081
Interest and other income, net (10,597) (9,232) (1,307)
Provision for income taxes 875 433 497
Net loss $ (20,390) $ (63,197) $ (110,393)
v3.25.0.1
Defined Contribution Retirement Plan (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Retirement Benefits [Abstract]      
Plan expense $ 4.3 $ 3.9 $ 3.4
v3.25.0.1
Commitments and Contingencies - Narrative (Details) - USD ($)
$ in Thousands
 1 Months Ended
Apr. 30, 2024
Feb. 28, 2024
Dec. 31, 2024
Dec. 31, 2023
Sep. 30, 2022
Debt Instrument [Line Items]          
Litigation Settlement, Fee Expense $ 1,950        
Revolving credit facility | Comerica Bank | Line of credit          
Debt Instrument [Line Items]          
Maximum borrowing capacity   $ 120,000     $ 100,000
Debt Instrument, Interest Rate, Stated Percentage   2.50%      
Debt Instrument, Covenant,Net Leverage Ratio Maximum   3      
Debt Instrument, Covenant, Financial Maintenance Maximum   $ 30,000      
Revolving credit facility | Comerica Bank | Line of credit | Minimum          
Debt Instrument [Line Items]          
Debt Instrument, Basis Spread on Variable Rate   0.20%      
Revolving credit facility | Comerica Bank | Line of credit | Maximum          
Debt Instrument [Line Items]          
Debt Instrument, Basis Spread on Variable Rate   0.25%      
Revolving credit facility | Comerica Bank | Line of credit | Prime Rate | Minimum          
Debt Instrument [Line Items]          
Debt Instrument, Basis Spread on Variable Rate   0.65%      
Revolving credit facility | Comerica Bank | Line of credit | Prime Rate | Maximum          
Debt Instrument [Line Items]          
Debt Instrument, Basis Spread on Variable Rate   0.90%      
Revolving credit facility | Comerica Bank | Line of credit | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum          
Debt Instrument [Line Items]          
Debt Instrument, Basis Spread on Variable Rate   1.65%      
Revolving credit facility | Comerica Bank | Line of credit | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum          
Debt Instrument [Line Items]          
Debt Instrument, Basis Spread on Variable Rate   1.90%      
Revolving credit facility | Comerica Bank | Line of credit | Debt Instrument, Option to Increase          
Debt Instrument [Line Items]          
Maximum borrowing capacity   $ 175,000      
Line of Credit Facility, Increase (Decrease), Net   55,000      
Letter of credit | Comerica Bank | Line of credit          
Debt Instrument [Line Items]          
Maximum borrowing capacity   15,000     15,000
Letter of credit | Comerica Bank | Line of credit | Credit Facility          
Debt Instrument [Line Items]          
Letters of credit, outstanding amount     $ 4,300 $ 4,300  
Swing Line Notes | Comerica Bank | Line of credit          
Debt Instrument [Line Items]          
Maximum borrowing capacity   $ 10,000     $ 5,000
v3.25.0.1
Net Loss Per Share Attributable to Common Stockholders - Loss per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Numerator      
Net Income (Loss) Available to Common Stockholders, Basic, Total $ (20,390) $ (63,197) $ (110,393)
Net Income (Loss) Available to Common Stockholders, Diluted, Total $ (20,390) $ (63,197) $ (110,393)
Denominator      
Weighted average shares, basic (in shares) 120,385,000 117,389,000 114,942,000
Weighted average shares, diluted (in shares) 120,385,000 117,389,000 114,942,000
Earnings Per Share      
Net loss per share attributable to common stockholders, basic (in dollars per share) $ (0.17) $ (0.54) $ (0.96)
Net loss per share attributable to common stockholders, diluted (in dollars per share) $ (0.17) $ (0.54) $ (0.96)
v3.25.0.1
Net Loss Per Share Attributable to Common Stockholders -Schedule of Antidilutive Shares (Details) - shares
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Stock options to purchase common stock      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive shares excluded from computation of earnings per share (in shares) 1,697,000 2,156,000 2,965,000
Unvested restricted stock units      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive shares excluded from computation of earnings per share (in shares) 2,740,000 3,050,000 3,314,000
Unvested performance stock units      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive shares excluded from computation of earnings per share (in shares) 4,398,000 4,398,000 4,398,000
ESPP purchase rights      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive shares excluded from computation of earnings per share (in shares) 286,000 502,000 410,000
v3.25.0.1
Related-Party Transactions (Details) - Management - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Employee Loans    
Related Party Transaction [Line Items]    
Related Party Transaction, Amounts of Transaction $ 0.3  
Secured promissory notes    
Related Party Transaction [Line Items]    
Notes payable, term 8 years 6 months  
Secured promissory notes | Employee Loans    
Related Party Transaction [Line Items]    
Long-Term Debt $ 2.2 $ 2.5
Weighted average remaining term 4 years 7 months 6 days  
v3.25.0.1
Subsequent Events (Details)
$ in Millions
 1 Months Ended 12 Months Ended
Feb. 28, 2025
USD ($)
Dec. 31, 2024
shares
Feb. 27, 2025
USD ($)
leaseAgreement
Unvested restricted stock units      
Subsequent Event [Line Items]      
Granted (in shares) | shares   1,957,000  
Non-vested award, cost not yet recognized, period for recognition   1 year 2 months 12 days  
Subsequent Event      
Subsequent Event [Line Items]      
Operating lease agreements | leaseAgreement     4
Number of Extended Operating Lease Agreements | leaseAgreement     1
Lease commitments     $ 4.3
Share-Based Compensation Arrangement by Share-Based Payment Award, Vested Value, Maximum Performance Percentage     200.00%
Award vesting period 3 years    
Subsequent Event | Unvested restricted stock units      
Subsequent Event [Line Items]      
Grant date fair value $ 3.0    
Subsequent Event | Unvested performance stock units      
Subsequent Event [Line Items]      
Grant date fair value $ 3.0    
Minimum      
Subsequent Event [Line Items]      
Operating lease term period   1 year  
Minimum | Subsequent Event      
Subsequent Event [Line Items]      
Operating lease term period     5 years
Maximum      
Subsequent Event [Line Items]      
Operating lease term period   12 years  
Maximum | Subsequent Event      
Subsequent Event [Line Items]      
Operating lease term period     10 years