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Warby Parker

WRBY
38
Medical - Instruments & Supplies · Healthcare
Winston Score
38
Winston is serious
Below-average fundamentals — multiple weak pillars.

Warby Parker sells eyeglasses, sunglasses, and contact lenses directly to consumers. The company designs its own frames and sells them at lower prices than traditional optical retailers by cutting out middlemen like Luxottica. Customers can shop online or visit one of its roughly 270 retail stores across the United States and Canada.

Warby Parker makes money by selling eyewear products and eye exams directly to shoppers, keeping margins higher by owning its supply chain and brand. Its direct-to-consumer model and in-house design give it some pricing advantage over legacy optical chains, though it faces growing competition from both online rivals and large retailers. The company is not yet consistently profitable, and its main challenge is scaling its retail store network and vision care services fast enough to reach sustained positive operating income.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+8.3% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+5.3% YoY

YoY Growth Rate

Slow EPS growth

Insider Activity

23.8%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$288M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Warby Parker is growing revenue at 8% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
54.0%
Healthy — 54.0% gross margin
Operating Margin
0.7%
Thin — 0.7% operating margin
ROCE
0.3%
Weak — 0.3% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+12.0%
Fast-growing sales (12.0% YoY)
EPS YoY
N/A
Data not available
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
7871%
Turns 7871% of profit into real cash
FCF Margin
4.4%
Thin free cash flow (4.4%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.63
Moderate — manageable debt (0.63)
Interest Cover
N/A
Data not available

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Valuation

P/E Ratio (TTM)
N/A
no trend
Data not available
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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