WARBY PARKER INC., 10-K filed on 2/26/2026
Annual Report
v3.25.4
Cover - USD ($)
 12 Months Ended
Dec. 31, 2025
Feb. 24, 2026
Jun. 30, 2025
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2025    
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     $ 2,174,041,230
Documents Incorporated by Reference
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the registrant’s definitive Proxy Statement relating to its 2026 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, 2025.
    
Entity Central Index Key 0001504776    
Amendment Flag false    
Document Fiscal Year Focus 2025    
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   106,768,721  
Common Class B      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   15,679,056  
v3.25.4
Audit Information
 12 Months Ended
Dec. 31, 2025
Audit Information [Abstract]  
Auditor Firm ID 42
Auditor Name Ernst & Young LLP
Auditor Location New York, New York
v3.25.4
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Current assets:    
Cash and cash equivalents $ 286,358 $ 254,161
Accounts receivable, net 3,285 1,948
Inventory 44,512 52,345
Prepaid expenses and other current assets 18,283 17,592
Total current assets 352,438 326,046
Property and equipment, net 187,448 170,464
Right-of-use lease assets 170,805 171,284
Other assets 10,228 8,696
Total assets 720,919 676,490
Current liabilities:    
Accounts payable 31,979 23,519
Accrued expenses 49,225 51,609
Deferred revenue 33,869 32,358
Current lease liabilities 31,399 20,235
Other current liabilities 3,658 2,633
Total current liabilities 150,130 130,354
Non-current lease liabilities 201,749 205,120
Other liabilities 1,310 943
Total liabilities 353,189 336,417
Commitments and contingencies (see Note 11)
Stockholders’ equity:    
Additional paid-in capital 1,054,779 1,029,220
Accumulated deficit (685,580) (687,221)
Accumulated other comprehensive income (1,481) (1,938)
Total stockholders’ equity 367,730 340,073
Total liabilities and stockholders’ equity 720,919 676,490
Class A and Class B Common Stock    
Stockholders’ equity:    
Common Stock $ 12 $ 12
v3.25.4
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2025
Dec. 31, 2024
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) 106,318,000 102,889,000
Common stock shares outstanding (in shares) 106,318,000 102,889,000
Common Class B    
Common stock shares authorized (in shares) 150,000,000  
Common stock shares issued (in shares) 16,130,000 17,961,000
Common stock shares outstanding (in shares) 16,130,000 17,961,000
v3.25.4
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Statement [Abstract]      
Net revenue $ 871,905 $ 771,315 $ 669,765
Cost of goods sold 401,326 344,481 304,541
Gross profit 470,579 426,834 365,224
Selling, general, and administrative expenses 475,915 456,946 437,220
Loss from operations (5,336) (30,112) (71,996)
Interest and other income, net 8,379 10,597 9,232
Income (loss) before income taxes 3,043 (19,515) (62,764)
Provision for income taxes 1,402 875 433
Net income (loss) 1,641 (20,390) (63,197)
Net Income (Loss) Available to Common Stockholders, Basic, Total 1,641 (20,390) (63,197)
Net Income (Loss) Available to Common Stockholders, Diluted, Total $ 1,641 $ (20,390) $ (63,197)
Net loss per share attributable to common stockholders, basic (in dollars per share) $ 0.01 $ (0.17) $ (0.54)
Net loss per share attributable to common stockholders, diluted (in dollars per share) $ 0.01 $ (0.17) $ (0.54)
Weighted average shares used in computing net loss per share attributable to common stockholders, basic (in shares) 122,670,000 120,385,000 117,389,000
Weighted average shares used in computing net loss per share attributable to common stockholders, Diluted (in shares) 125,100,000 120,385,000 117,389,000
Other comprehensive income (loss)      
Foreign currency translation adjustment $ 457 $ (409) $ (882)
Total comprehensive income (loss) $ 2,098 $ (20,799) $ (64,079)
v3.25.4
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, 2022     115,339,000      
Beginning 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 income (loss) (882)       (882)  
Net income (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)     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 income (loss) (409)       (409)  
Net income (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)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Stock option and warrant exercises (in shares) 54,000   47,000      
Stock option exercises $ 369     369    
Restricted stock unit releases (in shares)     1,801,000      
Restricted stock unit releases $ 0          
Shares withheld for taxes on stock-based compensation (in shares) (646,000)          
Shares withheld for taxes on stock-based compensation $ (14,390)          
Shares issued in connection with employee stock purchase plan (in shares)     201,000      
Shares issued in connection with employee stock purchase plan 2,204     2,204    
APIC, Share-Based Payment Arrangement, Increase for Cost Recognition, Shares   27,000        
Stock-based compensation 34,525     34,525    
Non-cash charitable contributions (in shares)     179,000      
Non-cash charitable contributions 2,821     2,821    
Other equity activity (in shares)     7,000      
Other equity activity 30     30    
Other comprehensive income (loss) 457       457  
Net income (loss) 1,641         1,641
Ending balance (in shares) at Dec. 31, 2025     122,327,000      
Ending balance at Dec. 31, 2025 $ 367,730   $ 12 $ 1,054,779 $ (1,481) $ (685,580)
v3.25.4
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Cash flows from operating activities      
Net income (loss) $ 1,641 $ (20,390) $ (63,197)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:      
Depreciation and amortization 50,280 45,865 38,554
Stock-based compensation 34,536 47,294 70,509
Non-cash charitable contribution 2,821 2,196 3,191
Asset impairment charges 557 816 3,230
Amortization of cloud-based software implementation costs 3,405 3,704 2,895
Change in operating assets and liabilities:      
Accounts receivable, net (1,337) (169) (345)
Inventory 7,833 9,889 6,614
Prepaid expenses and other assets (5,631) (3,233) (3,276)
Accounts payable 8,500 689 1,633
Accrued expenses (2,691) 9,521 (8,898)
Deferred revenue 1,511 741 5,989
Lease assets and liabilities 8,272 1,920 4,459
Other liabilities 1,088 (99) (367)
Net cash provided by operating activities 110,785 98,744 60,991
Cash flows from investing activities      
Purchases of property and equipment (67,048) (64,032) (53,671)
Investment in optical equipment company 0 (2,000) (1,000)
Net cash used in investing activities (67,048) (66,032) (54,671)
Cash flows from financing activities      
Proceeds from stock option exercises 159 2,701 1,036
Shares withheld for taxes on stock-based compensation (14,390) 0 0
Other financing activity 30 333 0
Proceeds from shares issued in connection with ESPP 2,204 1,925 1,835
Net cash (used in) provided by financing activities (11,997) 4,959 2,871
Effect of exchange rates on cash 457 (404) (882)
Net increase in cash and cash equivalents 32,197 37,267 8,309
Beginning of year 254,161 216,894 208,585
End of year 286,358 254,161 216,894
Supplemental disclosures      
Cash paid for income taxes 776 1,035 419
Cash paid for interest 325 246 227
Non-cash investing and financing activities:      
Purchases of property and equipment included in accounts payable and accrued expenses $ 5,191 $ 4,420 $ 3,647
v3.25.4
Description of Business
 12 Months Ended
Dec. 31, 2025
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 mission-driven, lifestyle brand that operates at the intersection of design, technology, healthcare and social enterprise. The Company provides holistic vision care by offering eyewear, contacts, and eye care directly to consumers through its integrated, omnichannel 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.
v3.25.4
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Basis of Presentation
The Company’s consolidated financial statements are prepared and presented in accordance with United States generally accepted accounting principles (“U.S. GAAP”).
Principles of Consolidation
The consolidated financial statements include the financial statements of Warby Parker Inc., and its wholly owned subsidiaries. The Company consolidates certain variable interest entities that it is the primary beneficiary of. 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 principles of U.S. GAAP require management to make certain estimates and assumptions during the preparation of the Company’s consolidated financial statements and accompanying notes. Actual results could differ from those estimates.
Management’s estimates are based on historical experience and various other market-specific and relevant assumptions that management believes to be reasonable. Significant estimates underlying the 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, 2025 and 2024, uninsured cash balances were approximately $284.9 million and $252.6 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 14%, 18%, and 18% of cost of goods sold for each of the years ended December 31, 2025, 2024, and 2023, respectively.
Interest Rate and Foreign Currency Risk
The Company’s cash and cash equivalents as of December 31, 2025 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, 2025 and 2024, the balance of cash and cash equivalents for these items was $11.1 million and $15.5 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 $1.5 million and $0.9 million at December 31, 2025 and 2024, respectively.
Inventory
Inventory consists of approximately $12.6 million and $12.9 million of finished goods, including ready-to-wear sun frames and eyeglass cases, as of December 31, 2025 and 2024, respectively, and approximately $31.9 million and $39.4 million of component parts, including optical frames and prescription optical lenses, as of December 31, 2025 and 2024, 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
In 2023 and 2024, the Company invested a total of $3.0 million in a private optical equipment company. In connection with this investment, the Company will automatically receive shares of the entity or cash based on a conversion price dependent upon an ultimate conversion event. The investment is recorded within other assets on the consolidated balance sheets and is measured at cost less impairment, if any. No impairment has been recorded for the years ended December 31, 2025 and 2024.
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, 2025, the Company had $20.3 million of gross capitalized cloud-based software implementation costs and $9.6 million of related accumulated amortization, for a net balance of $10.7 million, made up of $4.1 million recorded within prepaid expenses and other current assets and $6.6 million recorded within other assets on the consolidated balance sheet.
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.
During the years ended December 31, 2025, 2024, and 2023, the Company incurred $3.4 million, $3.7 million, and $2.9 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 $0.6 million, $0.8 million, and $3.2 million for the years ended December 31, 2025, 2024, and 2023, respectively, and are primarily related to the write-off of assets in connection with retail stores and store closures, 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, contacts, and eye care through its stores, website, and mobile apps. Revenue generated from eyewear includes the sales of prescription and non-prescription optical glasses and sunglasses, eyewear accessories, lens replacements, and customer charges for optional expedited shipping. Revenue generated from eye 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, 2024 was recognized as revenue in the first quarter of 2025 and the Company expects substantially all of the deferred revenue at December 31, 2025 to be recognized as revenue in the first quarter of 2026.
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 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 $3.6 million and $2.6 million at December 31, 2025 and 2024, 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 $3.5 million and $3.1 million as of December 31, 2025 and 2024, respectively.
The following table disaggregates the Company’s revenue by product:
Year Ended December 31,
202520242023
Eyewear$719,061 $652,051 $583,204 
Contacts97,153 78,753 57,889 
Eye care55,691 40,511 28,672 
Total Revenue
$871,905 $771,315 $669,765 
The following table disaggregates the Company’s revenue by channel:
Year Ended December 31,
202520242023
E-commerce$240,892 $233,565 $226,705 
Retail631,013 537,750 443,060 
Total Revenue
$871,905 $771,315 $669,765 
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 Company may also expedite shipping on orders in order to meet customer lead time expectations. 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 $3.7 million, $3.8 million, and $4.0 million in the years ended December 31, 2025, 2024, and 2023, respectively, while shipping and handling costs included in cost of goods sold were $25.2 million, $20.4 million, and $22.0 million in the years ended December 31, 2025, 2024, and 2023, 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) compensation costs for doctors performing 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 $113.9 million, $95.8 million, and $76.1 million in the years ended December 31, 2025, 2024, and 2023 respectively.
Stock-Based Compensation
Stock-based compensation is recorded as a component of cost of goods sold or selling, general, and administrative expenses in the same manner as the compensation costs of the related employees. 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 inputs that may be subject to management estimate. These inputs include 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 inputs 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 judgments 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.
Earnings Per Share
Basic and diluted earnings per share is presented in conformity with the two-class method required for participating securities. Under the two-class method, net income is attributed to common stockholders and participating securities based on their participation rights. The Company’s Class A and Class B common stock have, in effect, the same economic rights and share equally in undistributed net income, and as such, net income is allocated proportionately between the them.
Basic earnings per share is computed by dividing net income by the weighted-average number of shares of the Company’s common stock outstanding during a given period.
Diluted earnings per share is computed by dividing net income 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 earnings per share. 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.
Recent Business Developments and Collaborative Arrangement
In the second quarter of 2025, we announced a partnership with Google to develop AI-enabled glasses intended for all-day wear. We are working closely with Google on the development of AI glasses and intend to launch a series of products over time. As part of this collaboration, Google has committed up to $75 million for our product development and commercialization costs. In addition, Google has committed to investing up to $75 million in Warby Parker, at our option and subject to reaching certain collaboration milestones.
The Company determined that its arrangement with Google should be accounted for under ASC 808, Collaborative Arrangements, as both parties are active participants and are exposed to significant risks and rewards dependent on the commercial success of the collaboration. The Company concluded that Google is not a customer under ASC 606, Revenue from Contracts with Customers, and as such the Company classifies payments to and from Google based on the nature of the items and the underlying activities. Reimbursements received from Google for specific expenses are recognized as a reduction to the related
expense incurred. During the year ended December 31, 2025, the Company reduced selling, general, and administrative expenses by $3.3 million related to costs which are reimbursable by Google and are thus fully offset within the period.
Recently Issued Accounting Pronouncements
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.
In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The guidance clarifies and enhances the accounting for costs incurred in connection with the development, implementation, and maintenance of internal-use software, including cloud-based arrangements, by removing the previous project stage model for capitalization and introducing a principles-based framework. This ASU is effective for fiscal years beginning after December 15, 2027 and can be applied either prospectively or retrospectively. Early adoption is permitted. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.
Recently Adopted 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, provide additional information for reconciling items that meet a quantitative threshold, and provide additional disclosures for income taxes paid by jurisdiction. The ASU is effective for annual periods beginning after December 15, 2024. The Company adopted the guidance using a prospective approach and included the required disclosures in Note 5. Income Taxes. This standard update did not affect the Company’s operating results.
v3.25.4
Property and Equipment, Net
 12 Months Ended
Dec. 31, 2025
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net Property and Equipment, Net
Property and equipment, net consists of the following:
December 31,
20252024
Leasehold improvements$218,358 $189,890 
Computers and equipment63,480 46,186 
Furniture and fixtures42,575 36,037 
Capitalized software49,900 36,534 
Construction in process18,444 20,460 
392,757 329,107 
Less: accumulated depreciation and amortization(205,309)(158,643)
Property and equipment, net$187,448 $170,464 
Depreciation and amortization expense consists of the following:
Year Ended December 31,
202520242023
Cost of goods sold$35,858 $30,488 $26,136 
Selling, general, and administrative expenses14,422 15,377 12,418 
Total depreciation and amortization expense$50,280 $45,865 $38,554 
v3.25.4
Accrued Expenses
 12 Months Ended
Dec. 31, 2025
Payables and Accruals [Abstract]  
Accrued Expenses Accrued Expenses
Accrued expenses consists of the following:
December 31,
20252024
Product and fulfillment12,651 15,273 
Marketing9,742 9,333 
Payroll related8,800 10,409 
Legal3,808 2,338 
Professional services3,672 2,193 
Retail related3,010 5,929 
Charitable contribution2,980 3,315 
Other4,562 2,819 
Total accrued expenses$49,225 $51,609 
v3.25.4
Income Taxes
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income (loss) before income taxes consists of the following:
December 31,
202520242023
United States$2,876 $(19,960)$(63,211)
Foreign167 445 447 
Income (loss) before income taxes$3,043 $(19,515)$(62,764)
The provision for income taxes consists of the following:
December 31,
202520242023
Current
Federal$— $— $— 
State1,310 739 362 
Foreign92 136 71 
Deferred
Federal— — — 
State— — — 
Foreign— — — 
Total provision for income taxes$1,402 $875 $433 
The Company recorded a total provision for income taxes of $1.4 million, $0.9 million, and $0.4 million for the years ended December 31, 2025, 2024, and 2023 respectively.
A summary reconciliation of the effective tax rate by amount and percent is as follows:
December 31, 2025
$%
U.S. federal statutory rate$639 21.0 %
State income taxes, net of federal income tax effect(1)
1,635 53.8 %
Foreign tax effects
Canada36 1.2 %
Nontaxable or non-deductible items
Non-deductible stock-based compensation4,629 152.1 %
Non-deductible meals, transportation, and entertainment407 13.4 %
Other(5)(0.2)%
Change in valuation allowance(5,939)(195.2)%
Effective tax rate$1,402 46.1 %
__________________
(1)The states that contribute to the majority (greater than 50%) of the tax effect in this category include California, Texas, New York, Pennsylvania, and Illinois for 2025.
The Company's effective tax rate of 46.1% for the year ended December 31, 2025 differed from the statutory rate primarily due to non-deductible stock based compensation offset by a change in valuation allowance.
A summary reconciliation of the effective tax rate is as follows:
December 31,
20242023
U.S. federal statutory rate21.0 %21.0 %
Non-deductible stock-based compensation(30.4)(20.1)
Change in valuation allowance4.5 2.3 
Other0.4 (3.9)
Effective tax rate(4.5)%(0.7)%
The Company’s effective tax rate of (4.5)% as of December 31, 2024 and (0.7)% as of December 31, 2023 differed from the statutory rate primarily due to non-deductible stock based compensation offset by a change in valuation allowance.
A summary of income taxes paid (net of refunds) for the year ended December 31, 2025 is as follows:
December 31, 2025
Federal$— 
State
California227 
Texas155 
Other283 
Total state665 
Foreign
Canada111 
Total foreign111 
Total cash paid during the period for income taxes$776 
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,
20252024
Deferred tax assets:
Inventory$5,141 $2,572 
Charitable contribution carryforward5,216 12,289 
Stock-based compensation1,574 2,573 
Net operating loss carryforward50,718 46,470 
Lease liabilities65,451 64,021 
Other4,172 6,818 
Total deferred tax assets132,272 134,743 
Valuation allowance(56,291)(68,504)
Net deferred tax assets75,981 66,239 
Deferred tax liabilities:
Property and equipment, net(30,833)(20,533)
Right-of-use lease assets(45,148)(45,706)
Total deferred tax liabilities(75,981)(66,239)
Deferred tax assets, net
$— $— 
As of December 31, 2025, the Company had a net operating loss carryforward (“NOL”) of $299.9 million which represents the impact of current and historic operating losses available to reduce future income taxes. Federal NOLs of $68.9 million and state NOLs of $80.2 million will begin to expire at various points beginning in 2033, however, $150.8 million of federal NOLs are available for indefinite use.
As of December 31, 2025 and 2024, the Company recorded a valuation allowance of $56.3 million and $68.5 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, 2025 and 2024, there were no uncertain tax positions. As of December 31, 2025 and 2024, the Company was subject to federal, state, and provincial income taxes in the United States and Canada. As a result of the Company’s NOL carryforwards, substantially all of the tax years, beginning with December 31, 2011, remain open and subject to examination. 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 income (loss) for the years ended December 31, 2025, 2024, or 2023.
In 2025, the Company calculated the impact of the changes to bonus depreciation and research and development expenditures, as provided by OBBBA. In 2024 and 2023, the Company calculated the impact of the mandatory capitalization and amortization of research and development expenditures, as required by the Tax Act. For the periods ending December 31, 2025, 2024, and 2023, these changes did not have a material impact on the Company’s consolidated financial statements.
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.
v3.25.4
Redeemable Convertible Preferred Stock and Stockholders’ Deficit
 12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
Redeemable Convertible Preferred Stock and Stockholders’ Deficit Stockholders’ Equity
Common Stock
As of December 31, 2025, 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, 2025, 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 2,000 and 2,009 shares of Class B common stock were converted to Class A common stock during the years ended December 31, 2025 and 2024, 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, 2025, 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 outstanding106,197 16,130 — 
Employee stock options – outstanding216 1,421 — 
Restricted stock units – outstanding2,042 934 — 
Performance stock units – outstanding236 4,398 — 
Employee stock plans – available35,783 — — 
Shares of Class A common stock issuable upon conversion of all outstanding Class B common stock, options, RSUs, and PSUs22,883 — — 
Total common stock – outstanding or issuable167,357 22,883 — 
Shares authorized
750,000 150,000 150,000 
Common stock authorized and available for future issuance
582,643 127,117 150,000 
Preferred Stock
As of December 31, 2025, 50,000 preferred shares were authorized and no shares were outstanding.
Stock Donations
In each of May 2025, 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. The Company recognized $2.8 million, $2.2 million, and $3.2 million of charitable expense related to stock donations during the years ended December 31, 2025, 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
v3.25.4
Stock-Based Compensation
 12 Months Ended
Dec. 31, 2025
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 Company’s 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 January 2025, the shares authorized for issuance under the 2021 Plan automatically increased by 6,036 shares, and 29,659 shares remained available for future issuance pursuant to new awards as of December 31, 2025.
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 increase annually, beginning on January 1, 2022 and continuing through 2031, by the lesser of (i) 1% of the Company’s outstanding common stock (on an as converted basis) as of the last day of the immediately preceding fiscal year and (ii) a smaller amount as agreed by the Board of Directors; provided, however, no more than 16,615 shares of common stock may be issued under the ESPP.
In January 2025, the shares authorized for issuance under the ESPP automatically increased by 1,207 shares, and there were 6,124 shares available for future issuance pursuant to ESPP purchases as of December 31, 2025.
Stock-based Compensation Expense
Stock-based compensation expense consisted of the following:
Year Ended December 31,
202520242023
Cost of goods sold$1,076 $1,002 $1,035 
Selling, general, and administrative expenses33,460 46,292 69,474 
Total stock-based compensation expense$34,536 $47,294 $70,509 
Stock-based compensation expense for the year ended December 31, 2025 includes $25.5 million from the vesting of RSUs, $4.3 million related to the 2021 Founders Grant, as described below, and $2.8 million related to PSUs from the 2025 Founders Grants, as described below.
Stock-based compensation expense for the year ended December 31, 2024 includes $21.8 million related to the 2021 Founders Grant, $21.1 million from the vesting of RSUs, and $2.3 million from the vesting of stock options.
Stock-based compensation expense for the year ended December 31, 2023 includes $44.1 million related to the 2021 Founders Grant, $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 Options
A summary of stock option activity for the year ended December 31, 2025 is as follows:
Number of
Stock
Options		Weighted
Average
Exercise
Price		Weighted
average
contractual
term (years)		Aggregate
intrinsic
value
Balance at December 31, 20241,697 $5.67 2.6$31,459 
Options granted— — 
Options exercised(54)7.35 
Options forfeited(6)3.94 
Balance at December 31, 20251,637 $5.62 1.6$26,477 
Exercisable and vested as of December 31, 20251,637 $5.62 1.6$26,477 
All outstanding options are vested and fully expensed as of December 31, 2025. The Company has not granted stock options since 2021.
Additional information about stock options is as follows:
Year Ended December 31,
202520242023
Total fair value of options that vested during the year$57 $1,322 $52 
Aggregate intrinsic value of options exercised during the year$822 $2,809 $4,926 
Restricted Stock Units and Performance Stock Units
A summary of RSU activity for the year ended December 31, 2025 is as follows:
Number of Restricted Stock UnitsWeighted Average Grant Date Fair Value
Unvested as of December 31, 20242,740 $19.81 
Granted1,57523.09 
Forfeited(416)17.33 
Released(1,801)22.94 
Vested and not yet released(26)31.61 
Unvested as of December 31, 20252,072 $19.94 
The total value of unrecognized stock compensation expense related to outstanding RSUs and PSUs granted under the Plans was $33.4 million and $6.8 million as of December 31, 2025, respectively, which is expected to be recognized over a weighted-average period of 1.3 years and 1.0 years, respectively. 236 PSUs were granted during the year ended December 31, 2025, and none were forfeited, released, or vested. As of December 31, 2025 there were 904 RSUs that were vested but not yet released, primarily related to the 2021 Founders Grant, as described below.
Additional information about RSUs is as follows:
Year Ended December 31,
202520242023
Weighted-average grant date fair value of RSUs granted during the year$23.09 $14.04 $13.26 
Total fair value of RSUs that vested during the year$41,141 $32,882 $19,664 
Aggregate intrinsic value of RSUs released during the year$40,731 $31,827 $14,939 
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 granted after the Company’s direct listing only contain a service condition and are recognized on a straight line basis over the vesting period.
2025 Founders Grant
In March 2025, the Company granted 236 PSUs and 236 RSUs for Class A common stock to the Co-CEOs, in the aggregate, under the 2021 Plan (the “2025 Founders Grant”). The RSUs vest in equal monthly installments over a period of three years, beginning on January 1, 2025, subject to the Co-CEOs’ continued employment with the Company through the applicable vesting date. Vesting of the PSUs will occur after the end of the performance period, which began 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 (“TSR”) relative to the total shareholder returns of the companies in the Russell 2000 Growth Index as defined in the PSU agreement. The number of shares of Class A common stock to be issued in respect of the PSUs
that become vested is based on an achievement factor as set forth in the table below. 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.
Company TSR rank versus the companies in the Russell 2000 Growth IndexShares per PSU
Zero through 24th percentile— 
25th through 49th percentile0.5 
50th through 74th percentile1.0 
75th or higher percentile2.0 
The Company used a Monte Carlo simulation to calculate the grant date fair value of the PSUs of $9.6 million. The PSUs contain a single vesting tranche and expense will be recognized on a straight-line basis over the performance period. The grant-date fair value of the RSUs is $5.7 million which will be recognized on a straight-line basis over the service period.
2021 Founders Grant
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 “2021 Founders Grant”). The PSUs had a grant date fair value of $128.8 million, as determined by a Monte Carlo simulation, and vest in eight equal tranches upon the satisfaction of 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, ranging from $47.75 to $103.46, over a period of ten years, as defined by the terms of the award. If the PSUs vest, the Company will deliver one share of Class B common stock for each PSU on the settlement date, and unvested PSUs expire in June 2031. The RSUs had a grant date fair value of $66.9 million, and will vest in equal monthly installments over a period of five years. Vesting of the PSUs and RSUs are subject to the Co-CEOs continued employment with the Company through the applicable vesting dates. Shares underlying vested 2021 Founders Grant 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.
v3.25.4
Leases
 12 Months Ended
Dec. 31, 2025
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, 2025, 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.
Net lease expense consists of the following:
Year Ended December 31,
202520242023
Operating lease expense$38,501 $34,915 $30,133 
Variable lease expense(1)
1,296 767 1,831 
Net lease expense$39,797 $35,682 $31,964 
(1) Variable lease expense primarily consists of contingent rent.
The following table presents future lease payments:
Operating Leases(1)
2026
$
44,137 
2027
55,007 
2028
50,554 
2029
41,730 
2030
30,161 
Thereafter
57,723 
Total undiscounted lease cash flows
279,312 
Impact of discounting
46,164 
Present value of lease payments
$
233,148 
(1)    The year 2026 includes $11.6 million of expected cash inflows from TIAs. Operating lease payments exclude $13.9 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 tables present other relevant lease information:
December 31,
2025
Weighted average remaining lease term (years)6.0
Weighted average discount rate5.7 %
Year Ended December 31,
202520242023
Cash paid for amounts included in the measurement of operating lease liabilities$47,844 $44,459 $37,126 
Lease assets obtained in exchange for new operating lease liabilities$28,064 $75,888 $15,544 
v3.25.4
Segment Information
 12 Months Ended
Dec. 31, 2025
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.
Segment profit and loss for the holistic vision care segment consists of the following:
Year Ended December 31,
202520242023
Revenue$871,905 $771,315 $669,765 
Less:
Cost of goods sold401,326 344,481 304,541 
Marketing110,237 95,498 78,420 
Other selling, general, and administrative costs365,678 361,448 358,800 
Interest and other income, net(8,379)(10,597)(9,232)
Income tax expense1,402 875 433 
Segment and consolidated net income (loss)$1,641 $(20,390)$(63,197)
v3.25.4
Defined Contribution Retirement Plan
 12 Months Ended
Dec. 31, 2025
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 income (loss) for the plan was $4.7 million, $4.3 million, and $3.9 million for the years ended December 31, 2025, 2024, and 2023, respectively.
v3.25.4
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
2024 Credit Facility
In February 2024, the Company and its wholly owned subsidiary, Warby Parker Retail, Inc. (together, the “Borrowers”) entered into a Credit Agreement with JPMorgan Chase Bank, N.A. and the lenders party thereto (the “2024 Credit Facility”), which replaced a previous 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, 2025 and 2024 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 the court preliminarily approved in June 2025, and a notice of settlement was sent to the class in July 2025. On February 25, 2026, the court granted final approval of the settlement. Payment will be made in March 2026. The Company has accrued for the full amount of the settlement.
In addition to the matters described above, as of December 31, 2025, 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.
v3.25.4
Net Loss Per Share Attributable to Common Stockholders
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Net Loss Per Share Attributable to Common Stockholders Earnings Per Share
The computation of earnings per share is as follows:
Year Ended December 31,
202520242023
Numerator
Net income (loss)
$1,641 $(20,390)$(63,197)
Denominator
Weighted average shares, basic
122,670 120,385 117,389 
Dilutive impact of:
Stock options
1,239 — — 
RSUs and PSUs
1,101 — — 
ESPP purchase rights90 — — 
Weighted average shares, diluted
125,100 120,385 117,389 
Earnings (loss) per share
Basic$0.01 $(0.17)$(0.54)
Diluted$0.01 $(0.17)$(0.54)
The following potentially dilutive shares were excluded from the computation of diluted earnings per share because including them would have been antidilutive:
Year Ended December 31,
202520242023
Stock options
— 1,697 2,156 
Unvested RSUs681 2,740 3,050 
Unvested PSUs4,633 4,398 4,398 
ESPP purchase rights— 286 502 
v3.25.4
Related-Party Transactions
 12 Months Ended
Dec. 31, 2025
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 at both December 31, 2025 and 2024. No loans are outstanding with any of the Company’s named executive officers and no new promissory notes have been issued since 2021. The loans outstanding had a weighted average remaining term of 3.6 years at December 31, 2025.
During the year ended December 31, 2025, an immaterial amount of employee loans were repaid and the outstanding loan balance increased by an immaterial amount due to interest. 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.
v3.25.4
Subsequent Events
 12 Months Ended
Dec. 31, 2025
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
Lease Obligations
Subsequent to December 31, 2025, the Company entered into ten operating lease agreements and extended the term of four existing operating lease agreement for retail space in the U.S., with terms
ranging from 1 to 10 years years. Total commitments under these agreements are approximately $14.3 million, payable over the terms of the related agreements.
Equity Awards
In January and February 2026, the Board of Directors approved grants of 95 RSUs and 47 PSUs for Class A common stock to employees under the 2021 Plan. The RSUs will vest over four years and had a grant date fair value of $2.2 million. The PSUs will vest over three years and are based on a valuation of $1.2 million. Stock-based compensation expense for these awards will be recognized over the vesting period.
Share Repurchase Program
In February 2026, the Company’s Board of Directors authorized a share repurchase program to purchase up to $100.0 million of the Company’s Class A common stock (the “Share Repurchase Program”). Repurchases under the Share Repurchase Program may be made in the open market, in privately negotiated transactions, or otherwise, with the amount and timing of repurchases to be determined at the Company’s discretion, depending on market conditions and corporate needs. Open market repurchases will be structured to occur in accordance with applicable federal securities laws, including within the pricing and volume requirements of Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of its shares under this authorization. The Share Repurchase Program does not have a fixed expiration date, does not obligate the Company to acquire any particular amount of Class A common stock, and may be modified, suspended, or terminated at any time at the discretion of the Company’s Board of Directors.
Supreme Court Tariff Ruling
In February 2026, the Supreme Court of the U.S. issued a ruling striking down certain tariffs previously imposed under the International Emergency Economic Powers Act ("IEEPA"). The ultimate availability, timing, and amount of any potential refunds of such tariffs remain highly uncertain and are subject to further legal, regulatory, and administrative developments. The U.S. presidential administration subsequently invoked additional tariffs under other laws resulting in a rapidly changing tariff environment. At this time the Company cannot reasonably estimate the total financial impact of this ruling, however it, and any additional tariffs, may materially affect the Company’s future results of operations and cash flows.
v3.25.4
Insider Trading Arrangements
 12 Months Ended
Dec. 31, 2025
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
v3.25.4
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2025
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.4
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2025
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.
We design and assess our program based on the National Institute of Standards and Technology Cybersecurity Framework 2.0 (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.
Key elements of our cybersecurity risk management program include, but are not limited to the following:
•Risk assessments designed to help identify material risks from cybersecurity threats to our critical systems and information;
•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 processes;
•Cybersecurity awareness training of our employees, including 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 key service providers, suppliers, and vendors based on our assessment of their criticality to our operations and respective risk profile.
We have not identified risks from known cybersecurity threats, including as a result of any prior cybersecurity incidents, that have materially affected us, including our operations, business strategy, results of operations, or financial condition. We face risks from cybersecurity threats that, if realized, 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 risks, including the 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 where it deems appropriate, regarding cybersecurity incidents it considers to be significant or potentially significant.
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 Vice President of Information Security.
Our management team, including our CTO and Vice President 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 takes steps to stay informed and monitor 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 our 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 risks, including the 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 where it deems appropriate, regarding cybersecurity incidents it considers to be significant or potentially significant.
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 Vice President 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 risks, including the 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 where it deems appropriate, regarding cybersecurity incidents it considers to be significant or potentially significant.
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 Vice President of Information Security.
Our management team, including our CTO and Vice President 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 takes steps to stay informed and monitor 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 our 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 Vice President 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 where it deems appropriate, regarding cybersecurity incidents it considers to be significant or potentially significant.
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 Vice President of Information Security.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.4
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
The Company’s consolidated financial statements are prepared and presented in accordance with United States generally accepted accounting principles (“U.S. GAAP”).
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 consolidates certain variable interest entities that it is the primary beneficiary of. 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 principles of U.S. GAAP require management to make certain estimates and assumptions during the preparation of the Company’s consolidated financial statements and accompanying notes. Actual results could differ from those estimates.
Management’s estimates are based on historical experience and various other market-specific and relevant assumptions that management believes to be reasonable. Significant estimates underlying the 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, 2025 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, contacts, and eye care through its stores, website, and mobile apps. Revenue generated from eyewear includes the sales of prescription and non-prescription optical glasses and sunglasses, eyewear accessories, lens replacements, and customer charges for optional expedited shipping. Revenue generated from eye 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, 2024 was recognized as revenue in the first quarter of 2025 and the Company expects substantially all of the deferred revenue at December 31, 2025 to be recognized as revenue in the first quarter of 2026.
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 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 $3.6 million and $2.6 million at December 31, 2025 and 2024, 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 $3.5 million and $3.1 million as of December 31, 2025 and 2024, respectively.
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 Company may also expedite shipping on orders in order to meet customer lead time expectations. 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) compensation costs for doctors performing 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 cost of goods sold or selling, general, and administrative expenses in the same manner as the compensation costs of the related employees. 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 inputs that may be subject to management estimate. These inputs include 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 inputs 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 judgments 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
Earnings Per Share
Basic and diluted earnings per share is presented in conformity with the two-class method required for participating securities. Under the two-class method, net income is attributed to common stockholders and participating securities based on their participation rights. The Company’s Class A and Class B common stock have, in effect, the same economic rights and share equally in undistributed net income, and as such, net income is allocated proportionately between the them.
Basic earnings per share is computed by dividing net income by the weighted-average number of shares of the Company’s common stock outstanding during a given period.
Diluted earnings per share is computed by dividing net income 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 earnings per share. 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.
Recent Business Developments and Collaborative Arrangement
In the second quarter of 2025, we announced a partnership with Google to develop AI-enabled glasses intended for all-day wear. We are working closely with Google on the development of AI glasses and intend to launch a series of products over time. As part of this collaboration, Google has committed up to $75 million for our product development and commercialization costs. In addition, Google has committed to investing up to $75 million in Warby Parker, at our option and subject to reaching certain collaboration milestones.
The Company determined that its arrangement with Google should be accounted for under ASC 808, Collaborative Arrangements, as both parties are active participants and are exposed to significant risks and rewards dependent on the commercial success of the collaboration. The Company concluded that Google is not a customer under ASC 606, Revenue from Contracts with Customers, and as such the Company classifies payments to and from Google based on the nature of the items and the underlying activities. Reimbursements received from Google for specific expenses are recognized as a reduction to the related
expense incurred. During the year ended December 31, 2025, the Company reduced selling, general, and administrative expenses by $3.3 million related to costs which are reimbursable by Google and are thus fully offset within the period.
Recently Issued and Adopted Accounting Pronouncements
Recently Issued Accounting Pronouncements
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.
In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The guidance clarifies and enhances the accounting for costs incurred in connection with the development, implementation, and maintenance of internal-use software, including cloud-based arrangements, by removing the previous project stage model for capitalization and introducing a principles-based framework. This ASU is effective for fiscal years beginning after December 15, 2027 and can be applied either prospectively or retrospectively. Early adoption is permitted. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements.
Recently Adopted 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, provide additional information for reconciling items that meet a quantitative threshold, and provide additional disclosures for income taxes paid by jurisdiction. The ASU is effective for annual periods beginning after December 15, 2024. The Company adopted the guidance using a prospective approach and included the required disclosures in Note 5. Income Taxes. This standard update did not affect the Company’s operating results.
v3.25.4
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2025
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,
20252024
Leasehold improvements$218,358 $189,890 
Computers and equipment63,480 46,186 
Furniture and fixtures42,575 36,037 
Capitalized software49,900 36,534 
Construction in process18,444 20,460 
392,757 329,107 
Less: accumulated depreciation and amortization(205,309)(158,643)
Property and equipment, net$187,448 $170,464 
Depreciation and amortization expense consists of the following:
Year Ended December 31,
202520242023
Cost of goods sold$35,858 $30,488 $26,136 
Selling, general, and administrative expenses14,422 15,377 12,418 
Total depreciation and amortization expense$50,280 $45,865 $38,554 
Disaggregation of Revenue
The following table disaggregates the Company’s revenue by product:
Year Ended December 31,
202520242023
Eyewear$719,061 $652,051 $583,204 
Contacts97,153 78,753 57,889 
Eye care55,691 40,511 28,672 
Total Revenue
$871,905 $771,315 $669,765 
The following table disaggregates the Company’s revenue by channel:
Year Ended December 31,
202520242023
E-commerce$240,892 $233,565 $226,705 
Retail631,013 537,750 443,060 
Total Revenue
$871,905 $771,315 $669,765 
v3.25.4
Property and Equipment, Net (Tables)
 12 Months Ended
Dec. 31, 2025
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,
20252024
Leasehold improvements$218,358 $189,890 
Computers and equipment63,480 46,186 
Furniture and fixtures42,575 36,037 
Capitalized software49,900 36,534 
Construction in process18,444 20,460 
392,757 329,107 
Less: accumulated depreciation and amortization(205,309)(158,643)
Property and equipment, net$187,448 $170,464 
Depreciation and amortization expense consists of the following:
Year Ended December 31,
202520242023
Cost of goods sold$35,858 $30,488 $26,136 
Selling, general, and administrative expenses14,422 15,377 12,418 
Total depreciation and amortization expense$50,280 $45,865 $38,554 
v3.25.4
Accrued Expenses (Tables)
 12 Months Ended
Dec. 31, 2025
Payables and Accruals [Abstract]  
Schedule of Accrued Liabilities
Accrued expenses consists of the following:
December 31,
20252024
Product and fulfillment12,651 15,273 
Marketing9,742 9,333 
Payroll related8,800 10,409 
Legal3,808 2,338 
Professional services3,672 2,193 
Retail related3,010 5,929 
Charitable contribution2,980 3,315 
Other4,562 2,819 
Total accrued expenses$49,225 $51,609 
v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign
Income (loss) before income taxes consists of the following:
December 31,
202520242023
United States$2,876 $(19,960)$(63,211)
Foreign167 445 447 
Income (loss) before income taxes$3,043 $(19,515)$(62,764)
Schedule of Components of Income Tax Expense (Benefit)
The provision for income taxes consists of the following:
December 31,
202520242023
Current
Federal$— $— $— 
State1,310 739 362 
Foreign92 136 71 
Deferred
Federal— — — 
State— — — 
Foreign— — — 
Total provision for income taxes$1,402 $875 $433 
Schedule of Effective Income Tax Rate Reconciliation
A summary reconciliation of the effective tax rate by amount and percent is as follows:
December 31, 2025
$%
U.S. federal statutory rate$639 21.0 %
State income taxes, net of federal income tax effect(1)
1,635 53.8 %
Foreign tax effects
Canada36 1.2 %
Nontaxable or non-deductible items
Non-deductible stock-based compensation4,629 152.1 %
Non-deductible meals, transportation, and entertainment407 13.4 %
Other(5)(0.2)%
Change in valuation allowance(5,939)(195.2)%
Effective tax rate$1,402 46.1 %
__________________
(1)The states that contribute to the majority (greater than 50%) of the tax effect in this category include California, Texas, New York, Pennsylvania, and Illinois for 2025.
The Company's effective tax rate of 46.1% for the year ended December 31, 2025 differed from the statutory rate primarily due to non-deductible stock based compensation offset by a change in valuation allowance.
A summary reconciliation of the effective tax rate is as follows:
December 31,
20242023
U.S. federal statutory rate21.0 %21.0 %
Non-deductible stock-based compensation(30.4)(20.1)
Change in valuation allowance4.5 2.3 
Other0.4 (3.9)
Effective tax rate(4.5)%(0.7)%
The Company’s effective tax rate of (4.5)% as of December 31, 2024 and (0.7)% as of December 31, 2023 differed from the statutory rate primarily due to non-deductible stock based compensation offset by a change in valuation allowance.
A summary of income taxes paid (net of refunds) for the year ended December 31, 2025 is as follows:
December 31, 2025
Federal$— 
State
California227 
Texas155 
Other283 
Total state665 
Foreign
Canada111 
Total foreign111 
Total cash paid during the period for income taxes$776 
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,
20252024
Deferred tax assets:
Inventory$5,141 $2,572 
Charitable contribution carryforward5,216 12,289 
Stock-based compensation1,574 2,573 
Net operating loss carryforward50,718 46,470 
Lease liabilities65,451 64,021 
Other4,172 6,818 
Total deferred tax assets132,272 134,743 
Valuation allowance(56,291)(68,504)
Net deferred tax assets75,981 66,239 
Deferred tax liabilities:
Property and equipment, net(30,833)(20,533)
Right-of-use lease assets(45,148)(45,706)
Total deferred tax liabilities(75,981)(66,239)
Deferred tax assets, net
$— $— 
v3.25.4
Redeemable Convertible Preferred Stock and Stockholders’ Deficit (Tables)
 12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
Schedule of Stock by Class
As of December 31, 2025, 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 outstanding106,197 16,130 — 
Employee stock options – outstanding216 1,421 — 
Restricted stock units – outstanding2,042 934 — 
Performance stock units – outstanding236 4,398 — 
Employee stock plans – available35,783 — — 
Shares of Class A common stock issuable upon conversion of all outstanding Class B common stock, options, RSUs, and PSUs22,883 — — 
Total common stock – outstanding or issuable167,357 22,883 — 
Shares authorized
750,000 150,000 150,000 
Common stock authorized and available for future issuance
582,643 127,117 150,000 
v3.25.4
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Share-based Payment Arrangement, Expensed and Capitalized, Amount
Stock-based compensation expense consisted of the following:
Year Ended December 31,
202520242023
Cost of goods sold$1,076 $1,002 $1,035 
Selling, general, and administrative expenses33,460 46,292 69,474 
Total stock-based compensation expense$34,536 $47,294 $70,509 
Share-based Payment Arrangement, Option, Activity
A summary of stock option activity for the year ended December 31, 2025 is as follows:
Number of
Stock
Options		Weighted
Average
Exercise
Price		Weighted
average
contractual
term (years)		Aggregate
intrinsic
value
Balance at December 31, 20241,697 $5.67 2.6$31,459 
Options granted— — 
Options exercised(54)7.35 
Options forfeited(6)3.94 
Balance at December 31, 20251,637 $5.62 1.6$26,477 
Exercisable and vested as of December 31, 20251,637 $5.62 1.6$26,477 
Share-based Payment Arrangement, Restricted Stock Unit, Activity
A summary of RSU activity for the year ended December 31, 2025 is as follows:
Number of Restricted Stock UnitsWeighted Average Grant Date Fair Value
Unvested as of December 31, 20242,740 $19.81 
Granted1,57523.09 
Forfeited(416)17.33 
Released(1,801)22.94 
Vested and not yet released(26)31.61 
Unvested as of December 31, 20252,072 $19.94 
Schedule of Share-Based Compensation Arrangement by Share-Based Payment Award, Achievement Factor
Company TSR rank versus the companies in the Russell 2000 Growth IndexShares per PSU
Zero through 24th percentile— 
25th through 49th percentile0.5 
50th through 74th percentile1.0 
75th or higher percentile2.0 
v3.25.4
Leases (Tables)
 12 Months Ended
Dec. 31, 2025
Leases [Abstract]  
Lease, Cost
Net lease expense consists of the following:
Year Ended December 31,
202520242023
Operating lease expense$38,501 $34,915 $30,133 
Variable lease expense(1)
1,296 767 1,831 
Net lease expense$39,797 $35,682 $31,964 
(1) Variable lease expense primarily consists of contingent rent.
The following tables present other relevant lease information:
December 31,
2025
Weighted average remaining lease term (years)6.0
Weighted average discount rate5.7 %
Year Ended December 31,
202520242023
Cash paid for amounts included in the measurement of operating lease liabilities$47,844 $44,459 $37,126 
Lease assets obtained in exchange for new operating lease liabilities$28,064 $75,888 $15,544 
Lessee, Operating Lease, Liability, Maturity
The following table presents future lease payments:
Operating Leases(1)
2026
$
44,137 
2027
55,007 
2028
50,554 
2029
41,730 
2030
30,161 
Thereafter
57,723 
Total undiscounted lease cash flows
279,312 
Impact of discounting
46,164 
Present value of lease payments
$
233,148 
(1)    The year 2026 includes $11.6 million of expected cash inflows from TIAs. Operating lease payments exclude $13.9 million of legally binding minimum lease payments related to executed leases for which the Company has not yet taken possession of the leased premises.
v3.25.4
Segment Information (Tables)
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
Segment profit and loss for the holistic vision care segment consists of the following:
Year Ended December 31,
202520242023
Revenue$871,905 $771,315 $669,765 
Less:
Cost of goods sold401,326 344,481 304,541 
Marketing110,237 95,498 78,420 
Other selling, general, and administrative costs365,678 361,448 358,800 
Interest and other income, net(8,379)(10,597)(9,232)
Income tax expense1,402 875 433 
Segment and consolidated net income (loss)$1,641 $(20,390)$(63,197)
v3.25.4
Net Loss Per Share Attributable to Common Stockholders (Tables)
 12 Months Ended
Dec. 31, 2025
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
The computation of earnings per share is as follows:
Year Ended December 31,
202520242023
Numerator
Net income (loss)
$1,641 $(20,390)$(63,197)
Denominator
Weighted average shares, basic
122,670 120,385 117,389 
Dilutive impact of:
Stock options
1,239 — — 
RSUs and PSUs
1,101 — — 
ESPP purchase rights90 — — 
Weighted average shares, diluted
125,100 120,385 117,389 
Earnings (loss) per share
Basic$0.01 $(0.17)$(0.54)
Diluted$0.01 $(0.17)$(0.54)
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
The following potentially dilutive shares were excluded from the computation of diluted earnings per share because including them would have been antidilutive:
Year Ended December 31,
202520242023
Stock options
— 1,697 2,156 
Unvested RSUs681 2,740 3,050 
Unvested PSUs4,633 4,398 4,398 
ESPP purchase rights— 286 502 
v3.25.4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($)
$ in Thousands
 1 Months Ended 12 Months Ended
May 31, 2025
May 31, 2024
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Concentration Risk [Line Items]          
Uninsured cash balances     $ 284,900 $ 252,600  
Cash and cash equivalents     286,358 254,161  
Allowance for doubtful accounts     1,500 900  
Finished goods     12,600 12,900  
Component parts     31,900 39,400  
Capitalized software costs, net     10,700 7,200  
Allowance for returns     3,600 2,600  
Net revenue     871,905 771,315 $ 669,765
Cost of goods sold     401,326 344,481 304,541
Advertising costs     113,900 95,800 76,100
Capitalized Computer Software, Gross     20,300 13,600  
Capitalized Computer Software, Accumulated Amortization     9,600 6,400  
Amortization of cloud-based software implementation costs     3,400 3,700 2,900
Payments to Acquire Equity Securities, FV-NI       3,000  
Asset impairment charges     557 816 3,230
Deferred Revenue, Unredeemed Gift Cards     3,500 3,100  
Proceeds from Collaborators     75,000    
Collaborative Arrangement, Investment Option for Put Shares, Amount     75,000    
Costs incurred expected to be reimbursed     $ 3,300    
Unvested RSUs          
Concentration Risk [Line Items]          
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other Than Options Vested And Not Yet Released Number     26,000    
Unvested RSUs | 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     904,000    
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     $ 6,600 4,400  
Prepaid Expenses and Other Current Assets          
Concentration Risk [Line Items]          
Capitalized software costs, net     4,100 2,800  
Shipping and Handling          
Concentration Risk [Line Items]          
Net revenue     3,700 3,800 4,000
Cost of goods sold     25,200 20,400 $ 22,000
Credit Card Receivable          
Concentration Risk [Line Items]          
Cash and cash equivalents     $ 11,100 $ 15,500  
Cost of Goods and Service Benchmark | Supplier Concentration Risk | Top Five Inventory Suppliers          
Concentration Risk [Line Items]          
Concentration risk percent     14.00% 18.00% 18.00%
v3.25.4
Summary of Significant Accounting Policies - Property and Equipment Useful Life (Details)
Dec. 31, 2025
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
v3.25.4
Summary of Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Disaggregation of Revenue [Line Items]      
Net revenue $ 871,905 $ 771,315 $ 669,765
E-commerce      
Disaggregation of Revenue [Line Items]      
Net revenue 240,892 233,565 226,705
Retail      
Disaggregation of Revenue [Line Items]      
Net revenue 631,013 537,750 443,060
Eyewear      
Disaggregation of Revenue [Line Items]      
Net revenue 719,061 652,051 583,204
Contacts Products      
Disaggregation of Revenue [Line Items]      
Net revenue 97,153 78,753 57,889
Eye care      
Disaggregation of Revenue [Line Items]      
Net revenue $ 55,691 $ 40,511 $ 28,672
v3.25.4
Property and Equipment, Net (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 392,757 $ 329,107  
Less: accumulated depreciation and amortization (205,309) (158,643)  
Property and equipment, net 187,448 170,464  
Total depreciation and amortization expense 50,280 45,865 $ 38,554
Total depreciation and amortization expense      
Property, Plant and Equipment [Line Items]      
Total depreciation and amortization expense 50,280 45,865 38,554
Cost of goods sold      
Property, Plant and Equipment [Line Items]      
Total depreciation and amortization expense 35,858 30,488 26,136
Selling, general, and administrative expenses      
Property, Plant and Equipment [Line Items]      
Total depreciation and amortization expense 14,422 15,377 $ 12,418
Leasehold improvements      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 218,358 189,890  
Computers and equipment      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 63,480 46,186  
Furniture and fixtures      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 42,575 36,037  
Capitalized software      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 49,900 36,534  
Construction in process      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 18,444 $ 20,460  
v3.25.4
Accrued Expenses (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Payables and Accruals [Abstract]    
Payroll related $ 8,800 $ 10,409
Marketing 9,742 9,333
Charitable contribution 2,980 3,315
Legal 3,808 2,338
Product and fulfillment 12,651 15,273
Retail related 3,010 5,929
Professional services 3,672 2,193
Other 4,562 2,819
Total accrued expenses $ 49,225 $ 51,609
v3.25.4
Income Taxes - Income Before Income Tax (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
United States $ 2,876 $ (19,960) $ (63,211)
Foreign 167 445 447
Income (loss) before income taxes $ 3,043 $ (19,515) $ (62,764)
v3.25.4
Income Taxes - Provision for Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Current      
Federal $ 0 $ 0 $ 0
State 1,310 739 362
Foreign 92 136 71
Deferred      
Federal 0 0 0
Deferred State and Local Income Tax Expense (Benefit) 0 0 0
Foreign 0 0 0
Provision for income taxes $ 1,402 $ 875 $ 433
v3.25.4
Income Taxes - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Investments, Owned, Federal Income Tax Note [Line Items]      
Provision (benefit) for income taxes $ 1,402 $ 875 $ 433
Net operating loss carryforwards 299,900    
Valuation allowance 56,291 $ 68,504  
Domestic Tax Jurisdiction      
Investments, Owned, Federal Income Tax Note [Line Items]      
Net operating loss carryforwards 68,900    
Net operating loss carryforward, indefinite 150,800    
State and Local Jurisdiction      
Investments, Owned, Federal Income Tax Note [Line Items]      
Net operating loss carryforwards $ 80,200    
v3.25.4
Income Taxes - Income Tax Rate Reconciliation (Details)
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
U.S. federal statutory rate 21.00% 21.00% 21.00%
Non-deductible stock-based compensation 152.10% (30.40%) (20.10%)
Change in valuation allowance (195.20%) 4.50% 2.30%
Other   0.40% (3.90%)
Effective tax rate 46.10% (4.50%) (0.70%)
v3.25.4
Income Taxes - Effective Tax Rate Reconciliation (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Amount      
U.S. federal statutory rate $ 639    
State income taxes, net of federal income tax effect 1,635    
Non-deductible stock-based compensation 4,629    
Non-deductible meals, transportation, and entertainment 407    
Other (5)    
Change in valuation allowance (5,939)    
Provision for income taxes $ 1,402 $ 875 $ 433
Percent      
U.S. federal statutory rate 21.00% 21.00% 21.00%
State income taxes, net of federal income tax effect 53.80%    
Non-deductible stock-based compensation 152.10% (30.40%) (20.10%)
Non-deductible meals, transportation, and entertainment 13.40%    
Other (0.20%)    
Change in valuation allowance (195.20%) 4.50% 2.30%
Other   0.40% (3.90%)
Effective tax rate 46.10% (4.50%) (0.70%)
CANADA      
Amount      
Foreign tax effects $ 36    
Percent      
Foreign tax effects 1.20%    
v3.25.4
Income Taxes - Income Tax Paid (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Income Tax Paid, by Individual Jurisdiction [Line Items]      
Federal $ 0    
State 665    
Foreign 111    
Total cash paid during the period for income taxes 776 $ 1,035 $ 419
CANADA      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
Foreign 111    
CALIFORNIA      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
State 227    
TEXAS      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
State 155    
Other      
Income Tax Paid, by Individual Jurisdiction [Line Items]      
State $ 283    
v3.25.4
Income Taxes - Deferred Tax Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2025
Dec. 31, 2024
Income Tax Disclosure [Abstract]    
Inventory $ 5,141 $ 2,572
Charitable contribution carryforward 5,216 12,289
Stock-based compensation 1,574 2,573
Net operating loss carryforward 50,718 46,470
Lease liabilities 65,451 64,021
Other 4,172 6,818
Total deferred tax assets 132,272 134,743
Valuation allowance (56,291) (68,504)
Net deferred tax assets 75,981 66,239
Property and equipment, net (30,833) (20,533)
Right-of-use lease assets (45,148) (45,706)
Total deferred tax liabilities (75,981) (66,239)
Deferred tax assets, net $ 0 $ 0
v3.25.4
Redeemable Convertible Preferred Stock and Stockholders’ Deficit - Narrative (Details)
$ / shares in Units, $ in Thousands
 1 Months Ended 12 Months Ended
May 31, 2025
shares
May 31, 2024
shares
Dec. 31, 2025
USD ($)
vote
$ / shares
shares
Dec. 31, 2024
USD ($)
$ / shares
shares
Dec. 31, 2023
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 | $     $ 2,821 $ 2,196 $ 3,191
Series A common stock          
Temporary Equity [Line Items]          
Common stock shares authorized (in shares)     750,000,000    
Shares converted     (2,000,000) (2,009,000)  
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     2,000,000 2,009,000  
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    
v3.25.4
Redeemable Convertible Preferred Stock and Stockholders’ Deficit - Common Stock Outstanding (Details) - shares
Dec. 31, 2025
Dec. 31, 2024
Class of Stock [Line Items]    
Employee stock options - outstanding (in shares) 1,637,000 1,697,000
Authorized (in shares) 1,050,000,000  
Series A common stock    
Class of Stock [Line Items]    
Common stock outstanding (in shares) 106,197,000  
Employee stock options - outstanding (in shares) 216,000  
Shares of Class A common stock issuable upon conversion of all outstanding Class B common stock, options, RSUs, and PSUs (in shares) 22,883,000  
Total common stock – outstanding or issuable on exercise of options (in shares) 167,357,000  
Authorized (in shares) 750,000,000  
Common stock available for future issuance (in shares) 582,643,000  
Series A common stock | Restricted stock units (RSUs)    
Class of Stock [Line Items]    
Restricted stock units - outstanding (in shares) 2,042,000  
Series A common stock | Unvested PSUs    
Class of Stock [Line Items]    
Restricted stock units - outstanding (in shares) 236,000  
Series A common stock | ESPP purchase rights    
Class of Stock [Line Items]    
Employee stock purchase plan – available (in shares) 35,783,000  
Series B common stock    
Class of Stock [Line Items]    
Common stock outstanding (in shares) 16,130,000  
Employee stock options - outstanding (in shares) 1,421,000  
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) 22,883,000  
Authorized (in shares) 150,000,000  
Common stock available for future issuance (in shares) 127,117,000  
Series B common stock | Restricted stock units (RSUs)    
Class of Stock [Line Items]    
Restricted stock units - outstanding (in shares) 934,000  
Series B common stock | Unvested PSUs    
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 PSUs    
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  
v3.25.4
Stock-Based Compensation - Narrative (Details)
$ / shares in Units, $ in Thousands
 1 Months Ended 12 Months Ended
Mar. 31, 2025
shares
Jan. 31, 2022
shares
Aug. 31, 2021
Jun. 30, 2021
USD ($)
performanceCondition
$ / shares
shares
Dec. 31, 2025
USD ($)
shares
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Total stock-based compensation expense         $ 34,536 $ 47,294 $ 70,509
Fair value of options vested         57 1,322 52
Options exercised, value         $ 822 2,809 4,926
Series A common stock              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Common Stock, Capital Shares Reserved for Future Issuance | shares         167,357,000    
Series B common stock              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Common Stock, Capital Shares Reserved for Future Issuance | shares         22,883,000    
Number of shares receivable per share based payments award (in shares) | shares       1      
Restricted stock units (RSUs)              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Total stock-based compensation expense             18,200
Non-vested award, cost not yet recognized, period for recognition         1 year 3 months 18 days    
Granted (in shares) | shares         1,575,000    
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other Than Options Vested And Not Yet Released Number | shares         26,000    
Fair value of RSUs vested         $ 41,141 32,882 19,664
Aggregate intrinsic value         40,731 31,827 14,939
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grant Date Fair Value         $ 5,700    
Performance stock units (PSUs)              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Non-vested award, cost not yet recognized, period for recognition         1 year    
Granted (in shares) | shares         236,000    
Terms of award, stock price hurdle period       10 years      
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grant Date Fair Value         $ 9,600    
Number of performance conditions | performanceCondition       2      
Performance stock units (PSUs) | Minimum              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Share-based Compensation Arrangement by Share-based Payment Award, Stock Price Hurdle Period | $ / shares       $ 47.75      
Performance stock units (PSUs) | Maximum              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Share-based Compensation Arrangement by Share-based Payment Award, Stock Price Hurdle Period | $ / shares       $ 103.46      
Performance stock units (PSUs) | Monte Carlo simulation              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Grant date fair value       $ 128,800      
Stock options              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Total stock-based compensation expense           2,300 3,300
Liability-Based Awards              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Total stock-based compensation expense             2,200
The Plans | Restricted stock units (RSUs)              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Cost not yet recognized, outstanding awards         33,400    
The Plans | Performance stock units (PSUs)              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Cost not yet recognized, outstanding awards         6,800    
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   6,036,000          
Total stock-based compensation expense         $ 4,300    
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         29,659,000    
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         $ 25,500 21,100  
The Founders Grant              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Total stock-based compensation expense         $ 2,800 $ 21,800 44,100
The Founders Grant | Restricted stock units (RSUs)              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Award vesting period 3 years     5 years      
Granted (in shares) | shares 236     1,885,000      
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other Than Options Vested And Not Yet Released Number | shares         904,000    
Grant date fair value       $ 66,900      
The Founders Grant | Performance stock units (PSUs)              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Granted (in shares) | shares 236     4,398,000      
Employee Stock Purchase Plan              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Annual increase in shares authorized as a percent of common stock outstanding     1.00%        
Total stock-based compensation expense             $ 2,700
Employee Stock Purchase Plan | Stock options              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Number of additional shares authorized | shares   1,207,000     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         6,124,000    
v3.25.4
Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation expense $ 34,536 $ 47,294 $ 70,509
Cost of goods sold      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation expense 1,076 1,002 1,035
Selling, general, and administrative expenses      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation expense $ 33,460 $ 46,292 $ 69,474
v3.25.4
Stock-Based Compensation - Schedule of Stock Option Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Number of Stock Options    
Beginning balance (in shares) 1,697,000  
Options granted (in shares) 0  
Options exercised (in shares) (54,000)  
Options forfeited (in shares) (6,000)  
Ending balance (in shares) 1,637,000 1,697,000
Exercisable at end of period (in shares) 1,637,000  
Vested at end of period (in shares) 1,637,000  
Weighted Average Exercise Price    
Beginning balance (in dollars per share) $ 5.67  
Options granted (in dollars per share) 0  
Options exercised (in dollars per share) 7.35  
Options forfeited (in dollars per share) 3.94  
Ending balance (in dollars per share) 5.62 $ 5.67
Exercisable at end of period (in dollars per share) 5.62  
Vested at end of period (in dollars per share) $ 5.62  
Weighted average contractual term (years)    
Weighted average contractual term (years) 1 year 7 months 6 days 2 years 7 months 6 days
Exercisable at end of period 1 year 7 months 6 days  
Vested at end of period 1 year 7 months 6 days  
Aggregate intrinsic value    
Beginning balance $ 31,459  
Ending balance 26,477 $ 31,459
Exercisable $ 26,477  
v3.25.4
Stock-Based Compensation - Schedule of RSU Activity (Details) - Unvested RSUs - $ / shares
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Number of Restricted Stock Units      
Unvested beginning balance (in shares) 2,740,000    
Granted (in shares) 1,575,000    
Forfeited (in shares) (416,000)    
Released (in shares) (1,801,000)    
Vested and not yet released (in shares) (26,000)    
Unvested ending balance (in shares) 2,072,000 2,740,000  
Weighted Average Grant Date Fair Value      
Unvested beginning balance (in dollars per share) $ 19.81    
Granted (in dollars per share) 23.09 $ 14.04 $ 13.26
Forfeited (in dollars per share) 17.33    
Released (in dollars per share) 22.94    
Vested and not yet released (in dollars per share) 31.61    
Unvested ending balance (in dollars per share) $ 19.94 $ 19.81  
v3.25.4
Stock-Based Compensation - Achievement Factor (Details) - Unvested performance stock units
Dec. 31, 2025
Zero through 24th percentile  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Shares per PSU 0
25th through 49th percentile  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Shares per PSU 0.5
50th through 74th percentile  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Shares per PSU 1.0
75th or higher percentile  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Shares per PSU 2.0
v3.25.4
Leases - Narrative (Details)
Dec. 31, 2025
Minimum  
Lessee, Lease, Description [Line Items]  
Operating lease term period 1 year
Maximum  
Lessee, Lease, Description [Line Items]  
Operating lease term period 12 years
v3.25.4
Leases - Lease Cost (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]      
Operating lease expense $ 38,501 $ 34,915 $ 30,133
Variable lease expense(1) 1,296 767 1,831
Net lease expense $ 39,797 $ 35,682 $ 31,964
v3.25.4
Leases - Future Minimum Operating Lease Payment (Details)
$ in Thousands
Dec. 31, 2025
USD ($)
Leases [Abstract]  
2026 $ 44,137
2027 55,007
2028 50,554
2029 41,730
2030 30,161
Thereafter 57,723
Total undiscounted lease cash flows 279,312
Impact of discounting 46,164
Present value of lease payments 233,148
Expected cash inflows from TIAs 11,600
Minimum lease payments for leases not yet commenced $ 13,900
v3.25.4
Leases - Other Lease Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Leases [Abstract]      
Weighted average remaining lease term (years) 6 years    
Weighted average discount rate 5.70%    
Cash paid for amounts included in the measurement of operating lease liabilities $ 47,844 $ 44,459 $ 37,126
Lease assets obtained in exchange for new operating lease liabilities $ 28,064 $ 75,888 $ 15,544
v3.25.4
Segment Information (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2025
USD ($)
segment
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Segment Reporting [Abstract]      
Number of operating segments | segment 1    
Number of reportable segments | segment 1    
Net revenue $ 871,905 $ 771,315 $ 669,765
Cost of goods sold 401,326 344,481 304,541
Marketing 110,237 95,498 78,420
Other selling, general, and administrative costs 365,678 361,448 358,800
Interest and other income, net (8,379) (10,597) (9,232)
Provision for income taxes 1,402 875 433
Net income (loss) $ 1,641 $ (20,390) $ (63,197)
v3.25.4
Defined Contribution Retirement Plan (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Retirement Benefits [Abstract]      
Plan expense $ 4.7 $ 4.3 $ 3.9
v3.25.4
Commitments and Contingencies - Narrative (Details) - USD ($)
$ in Thousands
 1 Months Ended
Apr. 30, 2024
Feb. 28, 2024
Dec. 31, 2025
Dec. 31, 2024
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    
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    
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    
v3.25.4
Net Loss Per Share Attributable to Common Stockholders - Loss per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Numerator      
Net Income (Loss) Available to Common Stockholders, Basic, Total $ 1,641 $ (20,390) $ (63,197)
Net Income (Loss) Available to Common Stockholders, Diluted, Total $ 1,641 $ (20,390) $ (63,197)
Denominator      
Weighted average shares, basic (in shares) 122,670,000 120,385,000 117,389,000
Weighted average shares, diluted (in shares) 125,100,000 120,385,000 117,389,000
Earnings (loss) per share      
Net loss per share attributable to common stockholders, basic (in dollars per share) $ 0.01 $ (0.17) $ (0.54)
Net loss per share attributable to common stockholders, diluted (in dollars per share) $ 0.01 $ (0.17) $ (0.54)
Stock options      
Denominator      
Effect of dilutive awards 1,239,000 0 0
Restricted stock units (RSUs)      
Denominator      
Effect of dilutive awards 1,101,000 0 0
ESPP purchase rights      
Denominator      
Effect of dilutive awards 90,000 0 0
v3.25.4
Net Loss Per Share Attributable to Common Stockholders -Schedule of Antidilutive Shares (Details) - shares
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Stock options      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive shares excluded from computation of earnings per share (in shares) 0 1,697,000 2,156,000
Unvested RSUs      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive shares excluded from computation of earnings per share (in shares) 681,000 2,740,000 3,050,000
Unvested PSUs      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive shares excluded from computation of earnings per share (in shares) 4,633,000 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) 0 286,000 502,000
v3.25.4
Related-Party Transactions (Details) - Management - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2025
Dec. 31, 2024
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 $ 2.2
Weighted average remaining term 3 years 7 months 6 days  
v3.25.4
Subsequent Events (Details)
$ in Millions
 2 Months Ended 12 Months Ended
Feb. 26, 2026
USD ($)
leaseAgreement
shares
Dec. 31, 2025
shares
Unvested RSUs    
Subsequent Event [Line Items]    
Granted (in shares) | shares   1,575,000
Subsequent Event    
Subsequent Event [Line Items]    
Operating lease agreements | leaseAgreement 10  
Number of Extended Operating Lease Agreements | leaseAgreement 4  
Lease commitments $ 14.3  
Subsequent Event | Series A common stock    
Subsequent Event [Line Items]    
Share Repurchase Program, Authorized, Amount $ 100.0  
Subsequent Event | Unvested RSUs | 2021 Incentive Award Plan    
Subsequent Event [Line Items]    
Award vesting period 4 years  
Grant date fair value $ 2.2  
Subsequent Event | Unvested RSUs | 2021 Incentive Award Plan | Series A common stock    
Subsequent Event [Line Items]    
Granted (in shares) | shares 95,000  
Subsequent Event | Unvested PSUs | 2021 Incentive Award Plan    
Subsequent Event [Line Items]    
Award vesting period 3 years  
Grant date fair value $ 1.2  
Subsequent Event | Unvested PSUs | 2021 Incentive Award Plan | Series A common stock    
Subsequent Event [Line Items]    
Granted (in shares) | shares 47,000  
Minimum    
Subsequent Event [Line Items]    
Operating lease term period   1 year
Minimum | Subsequent Event    
Subsequent Event [Line Items]    
Operating lease term period 1 year  
Maximum    
Subsequent Event [Line Items]    
Operating lease term period   12 years
Maximum | Subsequent Event    
Subsequent Event [Line Items]    
Operating lease term period 10 years