Citizens JMP reiterates Market Perform rating on Warby Parker stock

Investing.com - Citizens JMP analyst Andrew Boone reiterated a Market Perform rating on Warby Parker Inc. (NYSE:WRBY) following the company’s second-quarter 2025 results. According to InvestingPro data, the company has seen impressive momentum with a 77% return over the past year, while maintaining a strong financial position with a current ratio of 2.55.

Warby Parker reported Q2 revenue slightly above the high-end of guidance by approximately $0.5 million, while EBITDA exceeded the high-end of guidance by $3 million, representing a 14% beat.

The company raised the high-end of its full-year revenue and EBITDA guidance by $2 million and $4 million respectively, which exceeds the Q2 beat. Demand has improved since April and remained strong through July.

Warby Parker’s store-led growth strategy is creating increased visibility, with physical locations serving as successful customer acquisition channels. The company is also finding that store density within markets unlocks more effective marketing opportunities, such as direct mail.

Despite the positive quarter and growth potential, Citizens JMP maintained its Market Perform rating, viewing the shares as fairly valued at 21x 2026 estimated EBITDA. The firm noted that while shares are down year-to-date, they have risen 66% from April lows.

In other recent news, Warby Parker Inc. reported its second-quarter 2025 financial results, highlighting a revenue increase to $214.5 million, which exceeded forecasts of $212.94 million. Despite this revenue growth, the company reported a loss per share of $0.01, missing the expected earnings per share (EPS) of $0.08. This earnings miss resulted in a negative surprise of 112.5%. Following these results, BTIG raised its price target for Warby Parker to $28.00 from $24.00, maintaining a Buy rating, citing significant upside in general and administrative expense leverage. Additionally, Stifel adjusted its price target to $22.00 from $21.00, while keeping a Hold rating, after Warby Parker’s first-quarter performance exceeded expectations. The company benefited from stronger new customer acquisition and improved SG&A leverage due to lower stock-based compensation and reduced corporate expenses. These developments reflect growing investor confidence, as analysts highlight positive momentum in revenue and strategic initiatives.

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