WRBYHIGH SIGNALFINANCIAL10-K

WRBY achieved profitability with net income swinging from -$20.4M loss to $1.6M profit while dramatically improving operating performance and generating strong cash flow growth.

This represents a fundamental inflection point as the company has successfully transitioned from loss-making to profitable operations while maintaining healthy revenue growth of 13%. The 108% improvement in net income combined with 82% improvement in operating income demonstrates effective operational leverage and cost management execution.

Comparing 2026-02-26 vs 2025-02-27View on EDGAR →
FINANCIAL ANALYSIS

WRBY delivered exceptional financial performance with revenue growing 13% to $871.9M while achieving profitability for the first time, swinging from a $20.4M net loss to $1.6M profit. Operating performance improved dramatically with operating losses narrowing 82% from -$30.1M to -$5.3M, while cash generation strengthened with operating cash flow increasing 12% to $110.8M and cash reserves growing to $286.4M. The company also demonstrated improved working capital management with inventory declining 15% despite revenue growth, though accounts receivable increased 68% which warrants monitoring for collection risks.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
+108%
-$20.4M$1.6M

Net income grew 108% — bottom-line growth signals improving overall business health.

Operating Income
P&L
+82.3%
-$30.1M-$5.3M

Operating leverage kicking in — revenue growth outpacing cost growth, a hallmark of scaling businesses.

Accounts Receivable
Balance Sheet
+68.6%
$1.9M$3.3M

Receivables surged 68.6% — revenue recognized but not yet collected; watch for collection issues or channel stuffing.

Current Liabilities
Balance Sheet
+15.2%
$130.4M$150.1M

Current liabilities rose 15.2% — increased short-term obligations, watch current ratio.

Inventory
Balance Sheet
-15%
$52.3M$44.5M

Inventory reduced 15% — lean inventory management or demand outpacing supply.

Revenue
P&L
+13%
$771.3M$871.9M

Revenue growing 13% — solid top-line momentum, watch margins for quality of growth.

Cash & Equivalents
Balance Sheet
+12.7%
$254.2M$286.4M

Cash grew 12.7% — improving liquidity position supports investment and shareholder returns.

Operating Cash Flow
Cash Flow
+12.2%
$98.7M$110.8M

Operating cash flow grew 12.2% — strong conversion of earnings to cash, healthy business fundamentals.

Gross Profit
P&L
+10.2%
$426.8M$470.6M

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

LANGUAGE CHANGES
NEW — 2026-02-26
PRIOR — 2025-02-27
ADDED
As of February 24, 2026, there were 106,768,721 shares of the registrant's Class A common stock and 15,679,056 shares of the registrant s Class B common stock outstanding.
In addition, statements such as we believe and similar statements reflect our beliefs and opinions on the relevant subject.
Risks Related to Our Business and Industry We have limited experience at our current scale.
Disruptions to our supply chain can have a material adverse effect on our business, financial condition, and operating results.
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.
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REMOVED
As of February 25, 2025, there were 103,622,991 shares of the registrant's Class A common stock and 17,235,818 shares of the registrant s Class B common stock outstanding.
In addition, statements that we believe and similar statements reflect our beliefs and opinions on the relevant subject.
Risks Related to Our Business and Industry We have grown rapidly in recent years and have limited experience at our current scale.
Increases in component costs, shipping costs, long lead times, supply shortages, and supply changes could disrupt our supply chain and factors such as wage rate increases and inflation can have a material adverse effect on our business, financial condition, and operating results.
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.
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