New Warby Parker stores brought new occupancy bills and more doctors onto the payroll. Revenue also rose 9.8% to $235.5 million in the three months ended June 30.
The more striking change was what Warby kept. Gross profit climbed 20.1% to $136.5 million, lifting gross margin from 53.0% to 57.9%. Operating income moved from a $4.5 million loss to $3.2 million of profit, and net income went from a $1.8 million loss to $4.6 million of profit.
The figures show a shift from growth without profits to growth with profits. The cost line adds a footnote in unusually large type: the company credited IEEPA tariff refunds as one reason gross profit improved.
Warby Parker described the gain this way:
"Gross profit, calculated as net revenue less cost of goods sold, increased by $22.8 million, or 20.1%, for the three months ended June 30, 2026 compared to the same period in 2025, primarily due to the increase in net revenue over the same period as well as a benefit from IEEPA tariff refunds."
10-Q 2026-08-06
Revenue growth did the basic work, but the refund helped the gross-margin arithmetic. The filing does not quantify how much of the improvement came from the refund.
The business still incurred the ordinary costs of expansion. Warby Parker said cost of goods sold rose because of store occupancy, doctor headcount, product, and fulfillment costs, with tariff refunds partly offsetting those increases.
"The increase in cost of goods sold was primarily driven by increases in store occupancy costs and doctor headcount due to new retail stores, as well as increased product and fulfillment costs associated with our sales growth, partially offset by the benefit from IEEPA tariff refunds."
10-Q 2026-08-06
That leaves two versions of the same filing. The operating model produced positive operating income for the period, while some of the gross-profit lift came from a trade-policy-related benefit whose amount the filing does not quantify.
Cash generation adds another layer. Cash rose 2.2% to $292.7 million, and inventory fell 2.7% to $42.1 million. But capital spending rose 20.2%, and free-cash-flow margin declined 5.3 percentage points. The company is spending more as it expands, even as the income statement turns positive.
The historical direction is not a one-period invention. Warby Parker’s annual revenue increased from $669.8 million in 2023 to $871.9 million in 2025, while annual operating margin improved from -10.7% to -0.6%. The latest three months move that margin across zero, though diluted shares also increased 2.6% year over year.
Shares closed at $26.95 on August 6, down 8.0% for the day. No filing fact assigns a reason for that move. The stock’s latest annual P/E is 2054.9x, a figure distorted by thin earnings.
Warby Parker’s next quarterly report will provide the cleanest comparison for whether gross margin holds after the disclosed IEEPA tariff-refund benefit and how the higher investment load appears in cash flow.
Warby Parker’s latest filing shows faster gross-profit growth than revenue growth, with IEEPA tariff refunds cited as a contributing factor.